Strategic predictors of successful enterprise system deployment

Author： Ettlie John E Perotti Victor J Joseph Daniel A Cotteleer Mark J

ISSN： 0144-3577

Source： International Journal of Operations & Production Management, Vol.25, Iss.10, 2005-10, pp. : 953-972

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Abstract

PurposeThe delivered wisdom to date has enterprise system purchase and implementation as one of the most hazardous projects any organization can undertake. The aim was to reduce this risk by both theoretically and empirically finding those key predictors of a successful enterprise system deployment.Design/methodology/approachA representative sample of 60 firms drawn from the Fortune 1000 that had recently (1999-2000) adopted enterprise resource planning (ERP) systems was used to test a model of adoption performance with significant results.FindingsLeadership (social learning theory), business process re-engineering (change the company not the technology) and acquisition strategy (buy, do not make) were found to be significant predictors of adoption performance (final model R2=43 percent, F=5.5, p<0.001, df="7.52)," controlling="" for="" industry="" (manufacturing="" versus="" service),="" project="" start="" date="" and="" scale="" (sales).="" electronic="" data="" interchange="" (edi)="" usage="" was="" found="" to="" be="" inversely="" and="" significantly="" related="" to="" adoption="" performance="" which="" supports="" the="" notion="" that="" prior="" company="" investments="" in="" earlier="" generations="" of="" technology="" for="" integration="" might="" inhibit="" adoption="" of="" later,="" more="" radical="" or="" complex="" alternatives.="" we="" validated="" these="" results="" with="" a="" focused="" follow-up="" study="" (2005)="" using="" mailed="" and="" interview="" protocols="" identical="" to="" the="" first="" questionnaire="" and="" 20="" new="" cases="" of="" erp="" deployment.="" we="" found="" near="" perfect="" agreement=""><0.001 binomial="" test)="" with="" our="" initial="" findings.originality/valuethe="" "four="" factor"="" model="" we="" validate="" is="" a="" robust="" predictor="" of="" erp="" adoption="" success="" and="" can="" be="" used="" by="" any="" organization="" to="" audit="" plans="" and="" progress="" for="" this="" undertaking.="">