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The importance of management innovation and consultant services on ERP implementation success


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Enterprise resource planning (ERP) implementation has been an important activity for improving efficiency. However, an ERP system is a critical investment that can significantly affect future performance of a company. Many ERP projects report an unusually high failure rate. This study empirically investigates the involvement of management consultants in ERP implementation success. The results from our field survey of 134 ERP end-users in Spanish ceramic tile companies show that ERP implementation success significantly depends on the quality of consultant services. The results also indicate the importance of internal management throughout the learning process. Overall, these findings contribute to a better understanding of how, or under which organizational conditions, ERP should be implemented.
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The importance of management innovation and consultant services on ERP
implementation success
Rafael Lapiedraa; Joaquin Alegreb; Ricardo Chivaa
a Department of Business Administration, Universitat Jaume I, Castellón de la plana, Spain b
Department of Management “Juan José Renau Piqueras”, Universidad de Valencia, Valencia, Spain
First published on: 14 March 2011
To cite this Article Lapiedra, Rafael , Alegre, Joaquin and Chiva, Ricardo(2011) 'The importance of management
innovation and consultant services on ERP implementation success', The Service Industries Journal,, First published on:
14 March 2011 (iFirst)
To link to this Article: DOI: 10.1080/02642069.2011.556189
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The importance of management innovation and consultant services on
ERP implementation success
Rafael Lapiedra
, Joaquin Alegre
and Ricardo Chiva
Department of Business Administration, Universitat Jaume I, Campus Riu sec, Castello
plana 12071, Spain;
Department of Management “Juan Jose
´Renau Piqueras”, Universidad de
Valencia, Valencia, Spain
(Received 12 July 2010; final version received 17 January 2011)
Enterprise resource planning (ERP) implementation has been an important activity for
improving efficiency. However, an ERP system is a critical investment that can
significantly affect future performance of a company. Many ERP projects report an
unusually high failure rate. This study empirically investigates the involvement of
management consultants in ERP implementation success. The results from our field
survey of 134 ERP end-users in Spanish ceramic tile companies show that ERP
implementation success significantly depends on the quality of consultant services.
The results also indicate the importance of internal management throughout the
learning process. Overall, these findings contribute to a better understanding of how,
or under which organizational conditions, ERP should be implemented.
Keywords: enterprise resource planning; ERP; end-user; information system;
implementation; organizational learning; efficiency; management consultants
Enterprise resource planning (ERP) systems are packages designed to integrate a wide
range of business functions to provide a holistic view of the firm from single information
technology (IT) architecture (Klaus, Rosemann, & Gable, 2000). ERP systems are based
on developing a common IT infrastructure and common business processes that will
support integration of the total business activity (Markus, Tanis, & van Fenema, 2000;
Newell, Tansley, & Huang, 2004). Implementation of an ERP system is an extensive,
lengthy, and costly process. Due to their integrative nature, ERP systems are more
complicated to implement than other packages because the implementation process
must be managed as a program of wide-ranging organizational change initiatives rather
than as a software installation effort (Hong & Kim, 2002). If an organization wishes to
deploy an ERP system, it can rarely be done completely in house because of the scale
and complexity of the system. Internal information systems (IS) personnel is often
trapped in daily IS operational problems. ERP systems require multiple kinds of
specialized expertise, and an internal team will not have such requisite knowledge
(Karimi, Somers, & Bhattacherjee, 2007). Consulting firms play an essential role in
almost all ERP implementations, as they bring their technical and business-industry
expertise to the process. The importance of external consultants in ERP implementation
has traditionally been recognized by the literature (Gable, 1991; Robey, Ross, &
Boudreau, 2002; Thong, 2001; Thong, Yap, & Raman, 1996; Umble, Haft, & Umble,
ISSN 0264-2069 print/ISSN 1743-9507 online
#2011 Taylor & Francis
DOI: 10.1080/02642069.2011.556189
Corresponding author. Email:
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2011, iFirst Article, 113
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2003; Wang & Chen, 2006) . The failure rate of ERP implementations has been estimated
at between 60% and 90% (Kwahk & Lee, 2008). Zhang, Lee, Huang, Zhang and Huang
(2005) state that ERP implementation projects are, on average, 178% over budget, take 2.5
times as long as intended, and deliver only 30% of promised benefits. Rao (2000) estimates
that only 3.6% of ERP implementation projects finish on time, on budget, without
technical problems, and achieve their objectives. The purpose of this study is to contribute
to improving these high failure rates. Given the low success rate of ERP implementation,
a deeper understanding of this process is essential. The aim of this study is to investigate
the impact of organizational learning capability (OLC) and consultant quality on ERP
system success.
ERP systems are often associated with fundamental organizational changes, and some
studies indicate that a major reason for failure lies in user resistance to change (Lapointe &
Rivard, 2005; Nah, Tan, & Teh, 2004). In fact, many ERP-related studies have tradition-
ally focused on internal users, by stressing the importance of an organizational culture
oriented to change and learning (Ke & Wei, 2008; Kwahk & Lee, 2008; Lapointe &
Rivard, 2005; Nah et al., 2004).
Ke and Wei (2008) affirm that ERP implementation success is positively related to
organizational culture along the dimensions of learning and development, participative
decision making, support and collaboration, and tolerance for risks and conflicts. Conse-
quently, the concept of OLC, defined as the organizational and managerial characteristics
or factors that facilitate the organizational learning process or allow an organization to
learn (Chiva, Alegre, & Lapiedra, 2007; Goh & Richards, 1997), might prove essential
for ERP implementation. OLC is conceived as a construct with five different dimensions:
experimentation, risk taking, interaction with the external environment, dialogue, and
participative decision making (Chiva et al., 2007). However, this direct relationship
between external consultants and ERP implementation might be influenced by internal
actors, such as users, as they have to understand and learn what is embedded in the
system or proposed by the consultants (Wang & Chen, 2006). Therefore, OLC might
affect the relationship between external consultants and ERP implementation. The main
aim of this research is to highlight the contribution of OLC to the process of ERP
consultation. To our knowledge, no other empirical research has investigated the role of
OLC in the relationship between external consultants and ERP implementation success.
The basic proposition underlying this research is that external consultants of a high
quality lead to effective ERP implementation, as perceived by the users. Building on
this, we further propose that the relationship between external consultant quality and
ERP implementation success is contingent upon the level of OLC. Hypotheses will be
tested in the Spanish ceramic industry. Results are obtained from questionnaire responses
from 134 ERP end-users in 15 Spanish ceramic tile companies.
This paper is structured as follows: first, we review the theoretical context and outline
the hypotheses; secondly, we describe our research methodology; thirdly, we develop and
test a model that analyses the relationship of OLC and consultant quality with ERP
implementation success. Finally, we reflect on the implications of our study and conclude
with some suggestions for future research.
Theoretical background and hypotheses
ERP implementation success: end-user computing satisfaction
The literature uncovers many different factors that could cause problems in the implemen-
tation of ERP systems (Karimi et al., 2007). ERP systems were designed to solve the
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problem of information fragmentation in large organizations by consolidating all business
operations into a uniform system environment to improve delivery of critical information
to users and improve data consistency. Furthermore, they use database technology to
control and integrate all the information related to a company and involve many employ-
ees from different business units, including internal IT specialists, who have to work
jointly with external parties such as vendors and consultants (Ke & Wei, 2008). This
large scale of integration makes ERP implementation a highly complex and interdepen-
dent task (Sharma & Yetton, 2003; White, Anderson, Schroeder, & Tupy, 1982).
There are many published reports about the high failure rate in ERP implementations.
However, no consensus has been reached on the measures to define the success of ERP
system implementation. The literature describes different measures of ERP implemen-
tation success:
(1) end-user computer satisfaction (Al-Mahshari, Al-Mudimimig, & Zairi, 2003; Ang,
Sum, & Yeo, 2002; Somers, Nelson, & Karimi, 2003; Yusuf, Gunasekaran, &
Abthorpe, 2004),
(2) intended business performance improvements (Al-Mahshari et al., 2003; Hong &
Kim, 2002; Mandal & Gunasekaran, 2002; Yusuf et al., 2004),
(3) implementation on time (Hong & Kim, 2002; Mabert, Soni, & Venkatraman, 2003),
(4) implementation within budget (Hong & Kim, 2002; Mabert et al., 2003), and
(5) system acceptance and use (Ang et al., 2002; Yusuf et al., 2004).
In our opinion, system acceptance and use is not an appropriate criterion to measure
the success of ERP implementation, because the use of the system is mandatory or
required. Whether the quality of the system itself and the information outputs are satisfy-
ing or not, and whether the users want to use the system or not, there is no choice for the
user; users have to accept and use the system. We also consider the time and cost criteria to
be inappropriate to measure implementation success, since even if ERP system implemen-
tation exceeds contracted delivery time and budget, firms may still regard their ERP
implementation as successful. Finally, company performance is a general assessment
that may be influenced by many other internal and external factors.
User satisfaction is regarded as the best surrogate measure of IS success (Wu & Wang,
2006). End-user computing satisfaction (EUCS) is defined as the extent to which users
believe that the IS available to them meets their information requirements (Ives, Hamilton,
& Davis, 1980). Delone and Mclean (1992) identified three reasons to justify the choice of
end-user satisfaction as a widely used measure of IS success: high degree of face validity,
development of reliable tools to measure with, and conceptual weakness and unavailability
of other measures. The study of Somers et al. (2003) shows that the EUCS instrument may
be used to evaluate ERP systems in organizations. An increasing number of researchers are
now considering user satisfaction as a valid measure of ERP implementation success
(Yusuf et al., 2004). Based on these experiences, we also consider user satisfaction as
the best measure of ERP implementation success. A better understanding of the factors
that may influence user satisfaction should be reached in order for ERP systems to be
used effectively.
Consultant quality: ERP implementation
The prominent role played by external consultants has frequently been highlighted by the
literature (Simon & Welsh, 2010; Thong, 2001; Thong, Yap, & Raman, 1994; Thong et al.,
1996). External consultants play a crucial role in the outcome of ERP implementation.
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Consultant quality is related to the extent of support, help, and work that consultants
provide during the ERP implementation process.
Competent consultants have knowledge about methodologies and experience from
real system implementations (Al-Mahshari et al., 2003; Bingi, Sharma, & Godla, 1999;
Fuller-Love, 2009; Lin, 2010). According to McGivern (1983), when a company hires the ser-
vices of an external consultant, the crucial factor for reaching the project goals is the quality
of the clientconsultant relationship. Wang and Chen (2006) emphasize the importance of
effective communication between user and consultant as a key aspect for a productive
relationship. Communication effectiveness describes the extent to which consultants and
users can understand each other throughout the consulting process. ERP consultants need to
understand the details of existing client business practices (Al-Mahshari et al., 2003; Cater
& Cater, 2009), and to translate the ERP requirements to the organization and process
levels (Gulledge, 2006; Rettig, 2007). Therefore, consultants should have good interpersonal
skills and be able to work with people as a team (Wakkee, Elfring, & Monaghan, 2010).
Intensive information and knowledge sharing is a prerequisite for effective implemen-
tation (Warren, Patton, & Bream, 2009). More effective communication will improve the
probability of delivering a configuration that fits more closely with client requirements
(Wang & Chen, 2006). Clients and consultants may not have similar approaches to
facing problems, and this may bring further conflicts to the relationship (Hemphill,
2010; Yang, Tu, & Yang, 2009). Both parties must learn how to perform in conflict
situations and come up with a mutually beneficial solution (Robey, Smith, & Vijayasarathy,
1993). In summary, according to McLahlin (1999), competent consultants must have
sufficient technical knowledge, but also good management and communication skills in
order to recommend effective solutions.
Consequently, effective consultants are crucial in the delivery of a high-quality ERP
system. Given the potential impact that consultant quality has on successful ERP
implementation, the following hypothesis is proposed.
H1: ERP consultant quality will be positively related to successful ERP implementation.
OLC: ERP implementation
The literature on ERP implementation success has mainly focused on two aspects: exter-
nal, which is associated with the role of consultants, and internal, which underlines the role
of the organizational and cultural context. Appleton (1997) shows that many ERP projects
fail to achieve the anticipated benefits because managers underestimate the efforts
involved in managing change. According to Somers et al. (2003), only 10% of new IS
failures can be attributed to technological problems. Therefore, the human element has
become a critical determinant of IS success (Martinsons & Chong, 1999). Users play an
important role in ERP implementation success (Mahmood, Burn, Gemoets, & Jacquez,
2000). As they have to learn from the external consultants, the direct relationship
between external consultants and ERP implementation might be influenced by how the
users behave or how they carry out their work (Wang & Chen, 2006).
Some literatures on ERP implementation have stressed the importance of an organiz-
ational culture oriented to change and learning (Ke & Wei, 2008; Kwahk & Lee, 2008;
Lapointe & Rivard, 2005; Nah et al., 2004, Shang, 2009). Some studies indicate that a
major reason for failure was user resistance to change (Browning, Edgar, Gray, &
Garrett, 2009; Lapointe & Rivard, 2005; Nah et al., 2004). Ke and Wei (2008) affirm
that ERP implementation success is positively related to organizational culture along
the dimensions of learning and development, participative decision making, support and
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collaboration, and tolerance for risks and conflicts. Subsequently, the concept of OLC,
defined as the organizational and managerial characteristics or factors that facilitate the
organizational learning process or allow an organization to learn (Chiva et al., 2007;
Goh & Richards, 1997), might prove essential for ERP implementation. The OLC
factors are experimentation, risk taking, interaction with the external environment,
dialogue, and participative decision making (Chiva et al., 2007).
Experimentation can be defined as the degree to which new ideas and suggestions are
attended to and dealt with sympathetically. Nevis, DiBella, and Gould (1995) consider
that experimentation involves trying out new ideas, being curious about how things work,
or carrying out changes in work processes. Risk taking can be understood as the tolerance
of ambiguity, uncertainty, and errors. Sitkin (1996) goes as far as to state that failure is an
essential requirement for effective organizational learning, and to this end, examines the
advantages and disadvantages of success and errors. Interaction with the external environ-
ment is defined as the scope of relationships with the external environment. The external
environment of an organization is defined as factors that are beyond the organization’s
direct control of influence. Environmental characteristics play an important role in learning,
and their influence on organizational learning has been studied by a number of researchers.
Dialogue is defined as a sustained collective inquiry into the processes, assumptions, and
certainties that make up everyday experience (Isaacs, 1993). Some authors (Dixon, 1997;
Isaacs, 1993; Schein, 1993) understand dialogue to be vitally important to organizational
learning. Participative decision making refers to the level of influence employees have in
the decision making process (Cotton, Vollrath, Foggat, Lengnick-Hall, & Jennings, 1988).
Therefore, an organizational context with a high degree of OLC fosters experimen-
tation, risk taking, dialogue, interaction with the external environment, and participative
decision making. These factors might facilitate the effective use and learning of an ERP
system by the users in an organization. If end-users usually experiment, dialogue, take
risks, or participate, they will be more likely to adapt easily to the requirements and
necessities of an ERP system; they will cooperate efficiently with external consultants,
by making suggestions or corrections; they will learn how to use it; and finally, they
will be more satisfied with the system (Figure 1). These lines of argument allow us to
propose the following hypothesis.
H2: OLC will be positively related to successful ERP implementation.
Research methodology
We conducted a field study to test the effect of consultant quality OLC on successful ERP
implementation. Specifically, we surveyed ERP end-users in 15 companies from the Spanish
Figure 1. The proposed research model.
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ceramic tile sector. Most of the firms from this sector are considered to be small and medium
sized enterprises, as they do not exceed an average of 250 workers. Ceramic tile production is
a globalized industry whose features belong to the scale-intensive and to the science-based
trajectories of Pavitt’s taxonomy (Alegre, Lapiedra, & Chiva, 2004). In 2003, the Spanish
ceramic tile industry was the world’s biggest exporter, and its production represented almost
half of EU production (Ascer, 2009; Chamber of Commerce of Valencia, 2004).
The fieldwork was carried out from September to December 2008. With the help of
ALICER (Spanish Technological Institute of Ceramic Design) technicians, we identified
15 ceramic tile manufacturers that had recently implemented an ERP system using consul-
tancy services. We sent an introductory letter with copies of the questionnaire to the chief
information officer or another top-level executive, who then distributed the questionnaires
among the end-users.
The questionnaire was addressed to ERP end-users and attempted to ascertain their
perception of their level of satisfaction with the ERP, consultant quality, and OLC in
their organization. We used a 10-point Likert-type scale. It was agreed with the participat-
ing firms that the questionnaire would be answered during working hours. Participating
firms received a feedback report on the survey.
We received a total of 134 valid completed questionnaires from 15 participant firms
(Table 1). Participants were under no obligation to answer the questionnaire. The variation
in non-response could be due to a number of reasons such as lack of time due to work
pressure or low management support for the survey.
The responding companies implemented commercial off-the-shelf systems from
vendors such as Baan, Navision, and Sap. Sixty percent of respondents were male;
31% were 26– 35years old, 57% were 36– 45 years old, and 17% were 46– 55 years old.
All respondents were Spanish; 27% had completed high school studies, 62% had graduate
degrees, and 11% had master’s degrees. End-users typically used the following ERP
modules: finance, production, inventory, human resources, purchasing, and distribution.
End-users had been using the ERP systems for more than 1 year. The average organizational
tenure was 8.8 years. Data came from 15 organizations with the number of respondents per
organization ranging from a minimum of 3 to a maximum of 15.
Table 1. Respondent distribution per firm.
Total number of respondents
FIRM 1 10
FIRM2 15
FIRM3 10
FIRM4 15
FIRM6 10
FIRM7 14
FIRM9 12
FIRM10 7
FIRM11 6
FIRM12 5
FIRM13 10
FIRM14 7
FIRM15 6
Total 134
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Consultant quality was assessed using Wang and Chen’s (2006) 18-item measure (Tables
24). ERP end-user satisfaction was measured with the Somers et al.’s (2003) 12-item
scale. OLC was assessed using the Chiva et al.’s (2007) 14-item scale. All these measures
are fully given in Tables 2 4.
Control variables
These variables included gender (1 ¼female and 0 ¼male), age (1 ¼26 35 years, 2 ¼
3645 years, and 3 ¼46– 55 years), and education (1 ¼high school, 2 ¼university
Table 2. Items composing the Consulting Quality scale (Wang & Chen, 2006).
Dimension Item
V1. The consultants treat us with respect
V2. The consultants get adequate support from their firm to do their jobs well
V3. The consultants treat information about us with complete confidentiality
V4. The consultants try to maintain a lasting and trusting relationship with us
V5. The consultants are helpful with advice on ways to reduce our ERP
implementation efforts
V6. Through training, the consultants effectively transfer to us their knowledge
of ERP implementation and operation
V7. The consulting firm closely supervises any consultants when they are doing
work for us
V8. The consultants give us personal attention
V9. The consultants really understand my needs
V10. The consultants always have our best interests at heart
V11. When we have a problem, the consultants are sympathetic and reassuring
V12. The consultants would hesitate to take on one of my competitors as a client
V13. The consultants would make themselves available outside regular office
hours if we truly needed them
V14. The consultants’ work is error-free
V15. When consultants promise to do something by a certain time, they do so
V16. The consultants return phone calls and inquiries promptly
V17. The consultants reply and inform us, within one day, when services will be
V18. We can trust the consultants
Table 3. Items composing the EUCS scale (Somers et al., 2003).
Dimension Item
Content V1. Does the system provide precise information you need?
V2. Does the information content meet your needs?
V3. Does the system provide reports that seem to be just about exactly what you need?
V4. Does the system provide sufficient information?
Accuracy V5. Is the system accurate?
V6. Are you satisfied with the accuracy of the system?
Format V7. Do you think the output is presented in a useful format?
V8. Is the information clear?
Ease of use V9. Is the system user friendly?
V10. Is the system easy to use?
Timeliness V11. Do you get the information you need in time?
V12. Does the system provide up-to-date information?
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graduate degree, and 3 ¼university master’s degree). Employee-based surveys typically
include such control variables (Barrick, Bradley, Kristof-Brown, & Colbert, 2007; Chiva
et al., 2007; Ganzach, 1998). More specifically, previous studies suggest an influence of
gender, age, and education level on job satisfaction, which might be positive or negative
depending on other factors (Bellou, 2010; Clark, Oswald, & Warr, 2007; Fabra-Florit &
Vila-Lladosa, 2007; Jung, Moon, & Hahm, 2007).
Measurement evaluation
All the three measures used in this research have been previously validated (Chiva et al.,
2007; Somers et al., 2003; Wang & Chen, 2006). However, we used
reliability to further
assess the measures. Consultant quality computed an
of 0.91; OLC computed an
0.90; and ERP end-user satisfaction computed an
of 0.97. Table 5 shows significant
correlations between the main variables: there are clear links between user satisfaction,
Table 4. Items composing the OLC scale (Chiva et al., 2007).
Dimension Item
Experimentation V1. People here receive support and encouragement when presenting new ideas
V2. Initiative often receives a favourable response here, so people feel
encouraged to generate new ideas
Risk taking V3. People are encouraged to take risks in this organization
V4. People here often venture into unknown territory.
Interaction with
the external
V5. It is part of the work of all staff to collect, bring back, and report
information about what is going on outside the company
V6. There are systems and procedures for receiving, collating, and sharing
information from outside the company
V7. People are encouraged to interact with the environment: competitors,
customers, technological institutes, universities, suppliers, etc.
Dialogue V8. Employees are encouraged to communicate
V9. There is a free and open communication within my work group
V10. Managers facilitate communication
V11. Cross-functional teamwork is a common practice here
decision making
V12. Managers in this organization frequently involve employees in important
V13. Policies are significantly influenced by the view of employees
V14. People feel involved in main company decisions
Table 5. Descriptive statistics and correlations.
Variables Mean SD 1 2 3
1. Consultant quality 6.21 0.63 0.41∗∗ 0.51∗∗
2. OLC 6.77 1.82 0.41∗∗ 0.88
3. User satisfaction 7.14 1.85 0.51∗∗ 0.88
Age 38.29 6.76 20.08 0.01 20.03
Gender 1.40 0.49 0.08 0.03 0.02
Education 1.72 0.44 0.13 20.02 20.11
Tenure 8.84 4.38 0.15 0.05 0.08
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OLC, and consultant quality in our database. In general terms, user satisfaction, OLC, and
consultant quality reach high levels in the ceramic tile industry.
Hypothesized relationships
To test the hypotheses, we used regression analysis (Table 6). Following the widely
accepted procedures (Barrick et al., 2007; Ganzach, 1998), in Step 1, we entered the
control variables. In Step 2, we added the direct effects of consultant quality and OLC
on user satisfaction. Table 6 reports the results. The Step 2 model shows a dramatic
increase in explanatory power (0.804 vs. 0.020) compared with the Step 1 model. This
implies that the independent variables introduced in the Step 2 model are meaningful vari-
ables, from both a theoretical and an empirical point of view. The Step 2 model provides
support for H1 and H2. Both effects are statistically significant. However, results under-
score that the internal effect (OLC) is substantially higher than the internal effect (consult-
ant quality). This is an interesting finding for ERP users’ satisfaction line of research. It
could be due to benefiting from a homogeneous standard of quality among ERP consult-
ants in the ceramic tile industry. In fact, standard deviation of this variable is reasonably
low (Table 5). This finding also highlights the importance of internal issues that are
directly linked to managerial action.
We introduced several control variables that are frequently used in employee-based
surveys into the model. However, none of these variables showed a significant effect on
user satisfaction. This could be due to the high professional nature of ERP users in
ceramic tile firms.
ERP systems are becoming increasingly important for companies and their performance.
Their implementation is a complex process that has received a great deal of attention in
recent years. The huge investment in ERP system packages and the significant differences
in adoption results have led many researchers to search for critical success factors.
However, the underlying process of how these factors affect ERP implementation
success still remains a complex research area. Following Somers et al. (2003), we have
taken the end-user satisfaction as a valid instrument to evaluate the success of ERP
system implementations. This instrument provides not only an overall assessment, but
also the capacity to analyse which aspects of ERP implementation are most problematic.
Table 6. Regression analysis results.
User satisfaction
Step 1 Step 2
Age 20.153 20.074
Gender 0.014 20.032
Education 0.028 20.021
Tenure 0.184 0.063
Consultant quality 0.158∗∗
OLC 0.814∗∗
F(df) 0.64 (4) 86.56 (6)
0.020 0.804
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The literature has traditionally underlined the importance of external consultants in
ERP implementation. Our study advances previous research by using end-user satisfaction
to evaluate ERP implementation success and by proposing that a certain organizational
context, namely, one that facilitates organizational learning, may articulate the influence
that internal factors can have on ERP implementation.
First, this research provides empirical evidence that external consultant quality has
a direct positive relationship with ERP implementation, measured through the EUCS,
thus supporting Hypothesis 1. The better the consultant quality, the higher the ERP
end-user satisfaction.
Secondly, we analyse how OLC may affect ERP implementation, thus supporting H2.
Therefore, an organizational context that facilitates learning, experimenting, dialoguing,
and participating will create the appropriate context to introduce successfully a new tech-
nological innovation, such as an ERP system, that may have the potential to imply changes
in the way tasks are performed.
Our study contributes to the literature by supporting the perspective that ERP
implementation success depends on consultant quality. Nevertheless, this positive result
will also be dependent on the level of OLC. End-users must be prepared for the changes
that ERP will bring to the firm. This result is important both for academics and for
practitioners. Successful ERP implementation does not emerge by chance, nor by simply
investing in quality consultants, but rather as the result of a managed process – a process
that fosters an organizational context which facilitates organizational learning. In sum, the
contribution of this research is threefold: first, practitioners and researchers can employ
user satisfaction as a measure of system success in an ERP environment. Second, this
research evaluates the impact of consultant quality and OLC on ERP implementation
success. Third, it uncovers some implications for implementing and managing ERP systems.
This article has implications for practitioners. Even though managers recognize the
importance of selecting good external consultants for ERP implementation success, the
management of the internal context is often an ignored ingredient for its success.
Indeed, we also suggest the importance of a particular context, namely, one that fosters
organizational learning. This study provides additional insights into why OLC is an
essential organizational issue nowadays.
Our results must be viewed in the light of this study’s limitations. The analysis of
measurement scales constitutes an accepted research method that is particularly useful
to test theoretical relationships between concepts such as consultant quality, ERP end-
user satisfaction, and OLC. However, further qualitative research could usefully provide
a more in-depth picture of these relationships.
Because this research is based on a single industry analysis, it has benefited from
dealing with firms that are likely to be economically and technologically homogeneous.
However, it must be stressed that single industry conclusions should be considered with
caution. Future research using different samples and longitudinal studies is necessary.
Further research in other industries is needed to empirically assess the effect of consultant
quality and OLC on ERP implementation success. Validation of a measure requires the
assessment of measurement properties over a variety of samples in similar and different
The authors would like to thank the Spanish Ministry of Science and Innovation
(ECO2008-00729) for their financial support for this research.
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... A sense of belief, trust, and commitment in innovation is required for successful implementation. Success in service innovation implementation is viewed as multidimensional construct reflected by organization in terms of extent of attainment of goals (Cadwallader, Jarvis, Bitner, & Ostrom, 2010;Goodman & Pennings, 1977), continuance in the use of innovation (Maroulis & Wilensky, 2015;Rogers, 1983;Somech & Drach-Zahavy, 2013), added value (Lambooij & Koster, 2016), and the extent to which innovation is routinized (Johnson, 2001;Lapiedra, Alegre, & Chiva, 2011) in the organization. Also, the success in implementation is the result of mutual adjustment and negotiation between multiple parties with distinct or even conflicting interests (Cohen, Duberley, & Mallon, 2004). ...
... The fit between employees' role behaviors and requirements was found to benefit most from implementation through person-job integration. Studies also suggest that an innovation that is used for core function in an organization is more likely to be successful (Lapiedra et al., 2011;. The previous literature on innovation-value fit is studied in the context of social influence theory to determine the performance, service innovation implementation success, and implementation effectiveness by using different methodologies such as regression, case study, and review (Tables 5 and 6). ...
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This study presents a systematic literature review on the implementation of service innovation in the extant literature. This study conducts a comprehensive review of published articles in the extant literature related to various aspects of service innovation implementation and then critically reviews the extant literature to identify major factors that affect the success of innovation implementation. Research gaps have thus been identified through the lens of theory development, context, characteristics, and methodology (TCCM framework). This article analyzes underexplored areas of research theme in the domain of service innovation implementation, thereby providing directions for future research.
... Experts are well trained in ERP implementation methods and usually, have real system implementation experience. These consultants could increase better communication and the better understanding of the use of the ERP systems (Lapiedra et al., 2011). ...
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Although Latin America has exhibited lately the largest growth in terms of ERP adoption rate worldwide, there is a gap in the literature focused in examining the success and underlying causes of such adoptions. After an extensive literature review, the authors found little evidence of studies oriented to the study of human factors in ERP projects in higher education institutions (HEIs) in the region, which is the aim of this study. It is known that the success of these projects is limited, and that the failure rate is high (between 60% and 90%). Therefore, it is worth identifying the human factors that may serve as reference for the HEIs that are planning to implement these systems. This work compiles the experiences of experts who have participated in projects at universities in Latin American countries, establishing a set of unique features and the specific factors to lead successful ERP projects.
... These two critical roles of project management and business process analysis require professionals with highly specialized skills especially during the complex process of ERP implementation. Often organizations, especially in developing countries would find it difficult to internally hire individuals with all the necessary competencies or even manage the cost of hiring and managing an external high quality consultant (Bingi, Sharma, & Godla, 1999;Chen et al., 2009;Lapiedra, Alegre, & Chiva, 2011;Wang & Chen, 2006). More prevalent in developing countries is the scarcity of individuals with the requisite competencies as well as the high cost of consultants who can facilitate project management processes and business process management functions during ERP implementations (Amid, Moalagh, & Zare Ravasan, 2012). ...
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Enterprise Resource Planning (ERP) Systems are enterprise wide systems designed and developed with the aim of integration and optimization of organizational business processes. As these ERP systems evolve, ERP vendors and Higher Education institutions (HEIs) continue to investigate how appropriate curriculum are developed to support these new solutions. Students in Higher Education Institutions who intend to become future ERP implementers need to have appropriate competencies. In the context of developing countries, and Kenya specifically, ERP education is a very new area with a high level of potential. This paper focuses on this unique potential and the growing need to analyze the current state of ERP education and current demands for ERP based competencies. This in-depth literature analysis can provide a good basis for future work in the area of ERP education and competency building and support the proposed development of a framework that can help ERP education experts understand and explain this dynamic environment.
Purpose Enterprise resource planning (ERP) consultants have the expertise required to understand the specific contextual needs of an ERP client, implement tailored business processes that meet those needs, and ensure that no potential benefit offered by the ERP remains unexplored by the client. However, conflicts between ERP clients and consultants are a significant source of non-benefit realisation, making managing client–consultant agency crucial to ERP post-implementation benefits realisation. This paper aims to elucidate how managing client–consultant agency affects the benefits derived from ERP systems. Design/methodology/approach This paper uses microfinance institutions in 15 sub-Saharan African countries to explore different paths through which managing client–consultant agency leads to benefit realisation in ERP projects. It uses partial least squares structural equation modelling to analyse data from 127 managers and explains the results using insights from agency theory and the information system (IS) success model. Findings This paper reveals three routes through which contractual agreements and conflict resolution strategies lead to benefits realisation in ERP projects. Originality/value This is the first study that attempts to provide quantitative evidence of how managing the complex relationship between ERP project stakeholders affects ERP project success. It also contributes a novel theoretical model for ERP benefits realisation to complement existing research on ERP agency issues, critical success factors, and benefits realisation.
The COVID-19 pandemic made the world come to a halt, but the number and pace of innovation responses became faster than ever. However, there is a paucity of studies concentrating on the management/implementation of innovation in educational institutes. Moreover, no in-depth study has been conducted on the effect of communication strategies adopted for educational innovation implementation on the students’ motivation, attitude, and intent to use, particularly in India, to the best of the writer’s information. Accordingly, the present study aims to address the research gaps by measuring the effect of select communication strategies used for implementing IT-based educational innovations. Grounded on prior research, the study scrutinizes the effect of rational persuasive strategy (utilizing legitimate contentions), assertive strategy (utilizing intimidation), and consulting strategy (engaging in the act of giving expert advice), and inspirational (evoking feelings of appreciation) strategy. To address the hypotheses framed, the data for the cross-sectional quantitative study was collected from engineering students using an e-questionnaire from Rajasthan, India. The sample comprised 305 (84.3% male and 15.7% female) students, with a mean age of 18.16 years. The findings of PLS-SEM using SmartPLS 3.2.9 confirmed that all strategies except assertive strategy had a positive and significant effect on motivation, attitude, and intent, thereby confirming the role of communication strategies. The study adds to the extant studies on communication strategies, innovation implementation, and adoption of Information Technology for education. The managerial implications include assisting institutes, faculty, and administration in providing insight into appropriate tactics to encourage the implementation of educational innovations among students. The study will also be useful for the administrators/policymakers, for better comprehension of issues and finding solutions for innovation implementation.
Purpose The purpose of this paper is to provide empirical evidence of the relationship between end-user computing satisfaction (EUCS) and radical innovation, using organizational learning as an explanatory variable. Design/methodology/approach An empirical study was conducted in a population of 402 Spanish companies. A sample of 251 valid questionnaires was obtained. Structural equations were used to validate the proposed hypotheses. Findings Organizational learning capability fully mediates the relationship between EUCS and radical innovation. Research limitations/implications The sample of companies is heterogeneous in terms of size, sector, age and market share. The study uses single informants. Practical implications Results highlight the need to implement adequate information systems to promote radical innovation. In addition, it is necessary to facilitate organizational contexts that encourage dialogue, experimentation, risk-taking, participative decision-making and openness to the external environment. Originality/value This research contributes to the study of alternative antecedents of radical innovation by highlighting the importance of EUCS.
The primary objective of the study reported herein is to empirically test the implicit, positive relationships between ERP-related Knowledge Management Competence (KM-competence; knowledge creation, knowledge retention, knowledge transfer, and knowledge application) dimensions and the extended Enterprise Resource Planning System Success construct (ERP system success; individual impact, workgroup impact, organisational impact, information quality, system quality, and vender/consultant quality). Data were collected from 173 of business and IT managers in 455 organisations in Jordan. Statistical techniques employed included confirmatory factor analysis to examine validity of the measurement model, and structural equation modelling using AMOS 16.0 is also utilised to test the hypotheses. The results of analysis show there is a positive significant impact of ERP knowledge creation on ERP success. Also, ERP knowledge retention positively and significantly affects ERP system success. Moreover, ERP knowledge transfer positively and significantly influence ERP system success. Furthermore, ERP knowledge application has positive effect on ERP system success. The results also indicate that ERP success construct is robust since all six observed variables are strongly loaded to the latent variable. Research limitations as well as implications for practice and research are discussed.
The Enterprise Resource Planning (ERP) system is an integrated software package applied by many enterprises as an operations platform over the past years. However, according to an industrial survey, the failure rate of ERP system implementation is relatively high because of high implementation costs and long implementation time, incapable implementation teams, process misfits, resistance to change and inadequate training. This paper proposes a Value Engineering (VE)-based framework that combines the System Dynamics (SD) method to support implementation of ERP systems. Within the framework, VE is a systematic, functionally oriented method for generating decision alternatives, whereas SD can simulate the possible outcomes in terms of the generated decision alternatives so that a suitable strategic decision for the ERP implementation can be evaluated and selected. The proposed method is applied to a SAP R/3 implementation case in the manufacturing industry. The application case shows that the method can achieve a positive result indicating the high value-added output of ERP systems implementation.
Many articles have been written on enterprise resource planning success in the last two decades in both the public and private sector. An important number of empirical studies attempt to delineate the steps of ERP project integration and their specificities. These research works can be divided into two principal phases: the implementation and the post-implementation. The complex nature of the ERP system and its implementation stages lead us to investigate about the critical success factors mentioned in both phases of integration. Recently, several studies have tried to assess the success of ERP system and highlight the CSF's based on some theoretical models. This study uses a meta-analysis methodology to highlight the principal factors leading to ERP success, and it evaluates the weight of CSF's in the process of implementing the ERP project. Based on the best studies published in the last years about ERP success, we conduct this research to determine the most important factors highly correlated with the ERP success. Eleven CSF's are identified in our meta-analysis and classified according to their significant importance based on the correlation coefficients finding in 32 articles focus only on the ERP system. Some criteria were selected to choose studies such as: Sample size, the availability of correlation coefficient finding (quantitative empirical data), the availability of reliable constructs (Cronbach's alpha), and the measurement scale of each factor.
This article presents a literature review about the success evaluation in the information system, and proposes a new evaluation success model suited to the ERP software. In the first part we present approaches, frameworks and models of the evaluation success previously used and empirically validated by researchers in the IS field. Then, we present our Evaluation Success Model, highlighting its three main theoretical foundations: Mathematical theory of communication, diffusion of innovation theory and adaptive structuration theory in the one hand, and we expose the main construct of this model named the ESF (Evaluation Success Factors) on the other hand. These factors are classified in three categories: technological, environmental and organizational evaluation factors. This work analyses articles published in the last decade about the success evaluation and delineates ten ESF's widely used to evaluate the success of the ERP system project.
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Although job satisfaction is a primary human resource management concern, there is little empirical research considering job satisfaction in non-Western countries. In Korea, reforms aim to make the public service more competitive and diverse and have led to the recruitment of more women and young people. This study uses data from the Korean Income and Labor Panel Study to explore the relationship of age, gender, and service sector with job satisfaction. No substantial difference was found in the perceived job satisfaction of public employees of different ages, but an unexpected negative association was found in a subsample of private employees. Korean public and nonprofit employees are more satisfied with their jobs than private employees are but are less satisfied with their wages than with job security and job content. The study supports the expectation hypothesis and suggests there is a gender effect on job satisfaction, particularly for wages and work environment.
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Participation in decision making (PDM) takes several distinct forms. A review of empirical studies demonstrates that effects of participation on satisfaction and performance vary according to form. The findings cast doubt on the conclusions of earlier reviews based on a unidimensional view of PDM and raise several issues for the study and practice of PDM.
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Purpose The present study sets out to propose and validate a measurement scale that aims to capture the organisational capability to learn, based on a comprehensive analysis of the facilitating factors for learning. The organisational learning capability scale consists of 14 items grouped into five dimensions: experimentation, risk taking, interaction with the external environment, dialogue, and participative decision making. Design/methodology/approach Data were collected from eight Spanish ceramic tile manufacturers. The survey was addressed to shop floor workers. A total of 157 valid questionnaires were obtained, representing a response rate of 61 per cent. Using confirmatory factor analysis, the construct measurement model was tested and the scale was validated. Findings The results of the study indicate that the operational measure developed here satisfies the criteria for unidimensionality, reliability, and validity. Research limitations/implications Because of the sample features, final results should be considered with caution. Further research is needed to validate the organisational learning capability scale in other contexts and addressed to other kinds of respondents. However, this study contributes to organisational learning research by providing a valid and reliable operational measure that is expected to help researchers in future theory testing. Practical implications The proposed measurement scale for organisational learning capability could be implemented as an audit tool. Thus, managers could unveil which organisational learning issues are strong and which are weak. This would provide guidance for improvement. Originality/value This paper provides a new measurement instrument for organisational learning capability.
Prior research evidence shows that within-team interdependence moderates the process-performance relationship in small groups. Data collected from 94 top management teams (TMTs) replicated and extended the small groups finding. Specifically, TMTs with high interdependence (i.e., real teams) had higher team and subsequent firm performance when the team was more cohesive and had more communication. However, teams with low interdependence (i.e., working groups) had higher performance when communication and cohesion were lower. This constructive replication provides the first examination of the moderating effect for team interdependence within TMTs on both team and firm performance.
Despite remarkable advances in information technology (IT), many computer-based information systems (IS) still fall short of performance expectations. A growing share of these implementation failures are due to nontechnical factors. This article considers the human factors and human resource (HR) management issues associated with IT assimilation. A taxonomy of specialist roles in the IS adoption process is proposed and illustrated in a series of brief case studies. The results from a field investigation are then reported. The relationships between different HR specialist roles and selected IS success measures were examined in more than 60 organizations across East and Southeast Asia. Proactive and supportive HR roles were found to be associated with greater user satisfaction, smoother organizational change and improved productivity, but did not significantly affect perceived output quality. The implications for management practice are discussed and specific areas for further research are identified.
This study applies resource-based theory to explore logistics. A survey of 1011 forwarder-based third-party logistics providers in Taiwan was undertaken to examine the relationships between integration capability, organisational learning capability, service performance, and financial performance, using the structural equation modelling technique. The results show that four hypotheses were supported by the model, indicating that a significant positive relationship existed between integration capability, organisational learning capability and service performance. Moreover, the results also supported a significant positive relationship between organisational learning capability and financial performance. A positive relationship between service performance and financial performance was also supported.
This paper examines agent–principal agreements that prevail in marketing structures. Structural equation modeling reveals a new positioning of the relative importance of antecedents in agreement formation for two agency contexts (recruitment consultants and real estate agents). The insignificance of negotiation in agreement formation deviates from services marketing relationship models in which negotiation pre-empts commitment. A close coupling of agent attributes and information disclosure similarly positions business and consumer exchanges, contrary to sales literature. As agreement formation is not directly determined by any single event, management should not focus on outcome-based metrics for process refinement.