Investigating the Critical Factors in Implementing Enterprise Resource Planning System in Malaysian Business Firms
In order to survive in a rapidly changing business environment, Malaysian business firms must improve their own business practices and procedures. This paper describes the impact of Critical Success Factors (CSFs) during the Enterprise Resource Planning (ERP) system implementations using the responses from 151 organizations that completed or are in the process of completing an ERP implementation and identifying the key benefits of ERP implementation in the firm. The importance of these factors was investigated within Malaysian companies using questionnaire survey method. Our results provide advice to management on how best to utilize their limited resources to choose those CSFs that are most likely to have an impact upon the implementation of the ERP system.
[1] A. Huang, D. Yen, D. Chou and Y. Xu, (2003), "Corporate applications
integration: challenges, opportunities, and implementation strategies",
Journal of Business and Management, Vol. 9 No. 2, pp. 137-45.
[2] B. P. Lientz, & E.B Swanson (1980). Impact of development
productivity aids on application system maintenance. Data Base, 11(3),
114-120.
[3] Caldwell & Stein (1998); "Beyond ERP - New IT Agenda- Second
Wave of ERP", Information Week;CMP Media, Nov 1998.
[4] C. A. Beath, "Supporting the Information Technology Champion", MIS
Quarterly, 15, 3, 2000, pp. 355-372.
[5] C. Ho, W. Wu and Y. Tai (2004), "Strategies for the adaptation of ERP
systems", Industrial management & Data Systems, Vol. 104 No. 3, pp.
234-51.
[6] E.M Karimi (2008). "Enterprise resource-planning systems adoption in
Bahrain: motives, benefits, and barriers." Journal of Enterprise
Information Management 21(3): 310-334.
[7] E.M Shehab, M.W Sharp, L. Supramaniam and T.A Spedding (2004).
Enterprise resource planning: An integrative review. Business Process
Management Journal, 10(4):359 - 386.
[8] F. Nah, J. Lau and J. Kuang (2001), "Critical factors for successful
implementation of enterprise systems", Business Process Management
Journal, Vol. 7 No. 3, pp. 285-97.
[9] F. Nah & S. Delgado (2006). Critical success factors for ERP
implementation and upgrade. Journal of Computer Information Systems,
46(5), 99-113.
[10] G. P. Huber, and D. J. Powere, "Retrospective Reports of Strategy-Level
Managers: Guidelines for Increasing Accuracy", Strategic Management
Journal, 6, 2, 1985, pp. 171-180.
[11] Hammer Michael, Champy James: "Reengineering the Corporation",
Nicholas Brealy Publishing, London, 1994.
[12] H. R. Johnston, and S. R., Carrico, "DevelopingCapabilities to Use
Information Strategically", MIS Quarterly, 12, 1, 1988, pp. 37-48.
[13] I. Themistocleous, I. Irani and T. O-Keefe (2001), "ERP and application
integration - an exploratory survey", Business Process Management
Journal, Vol. 7 No. 3, pp. 195-204.
[14] J. Esteves, & J. Pastor, (2000). Towards the unification of critical
success factors for ERP implementation. Proceedings of 10th Annual
BIT Conference, Manchester, UK (pp. 60-69).
[15] J.L. McKenney, & F.W. McFarlan (1982). The information archipelago:
Maps and bridges. Harvard Business Review, 109- 119.
[16] J. Peppard and J. Ward (2004). "Beyond strategic information systems:
towards an information systems capability." Journal of Strategic
Information Systems 13(2): 167-94.
[17] K. Kumar and J.V. Hillegersberg (2000), "ERP experiences and
evolution", Communications of the ACM, Vol. 43 No.4, pp.23-6.
[18] L. Elbertsen, J. Benders and E. Nijssen (2006). "ERP use: exclusive or
complemented?" Industrial Management and Data Systems 106(6): 811-
24.
[19] L. M. Applegate, F. W. McFarlan, and J. L. McKenny, Corporate
Information Systems Management: Text and Cases, (5th ed.) Irwin-
McGraw-Hill, Chicago, IL., 1999
[20] L. Zhang, M.K.O Lee, Z. Zhang, and P. Banerjee (2003). Critical
Success Factors of Enterprise Resource Planning Systems
Implementation Success in China. Proceedings, the 36th Hawaii
International Conference on System Sciences. Hawaii.
[21] M. Huang, J. Wang, J. Yu and C. Chiu(2004), "Value-added E.R.P
information into information goods: an economic analysis", Industrial
Management & Data Systems, Vol. 104 No. 8, pp. 689-97.
[22] MITI, Ministry of International Trade & Industry (2007). Malaysia,
Policies, Incentives and Facilities for SMEs. Available at:
http://www.smidec.gov.my/. Accessed on 10 Mar 2006.
[23] M.L. Markus, C. Tanis & P.C Fenma (2000). Multisite ERP
implementations. Communications of the ACM, 43(4), 42-46.
[24] Mudiarasan Kuppusamy, Murali Raman, Bala Shanmugam,
Santhapparaj Aruljeganathan Solucis, 2009, "A Perspective on the
Critical Success Factors for Information Systems Deployment in Islamic
Financial Institutions", The Electronic Journal of Information Systems
in Developing Countries. ISSN: 1681-4835 www.ejisdc.org
[25] M. Tarafdar and S.R. Gordon (2007). "Understanding the influence of
information systems competencies on process innovation: A resourcebased
view." Journal of Strategic Information Systems 16: 353-392.
[26] R. B. Cooper, and R. W. Zmud, "Information Technology
Implementation Research: A Technological Diffusion Approach",
Management Science, 36, 2, 1990, pp. 123-139.
[27] R. R. Nelson, and P. H. Cheney, "Training End Users: An Exploratory
Study", MIS Quarterly, 11, 4, 2005, pp. 547-559.
[28] S. L. Jarvenpaa, and B. Ives, "Executive Involvement and Participation
in the Management of Information Technology", MIS Quarterly, 15, 2,
2003, pp. 205-227.
[29] S.M. Jafari, M.R. Osman, R.M. Yusuff and S.H. Tang, "ERP systems
Implementation in Malaysia: The Importance of Critical Success
Factors", International Journal of Engineering and Technology, Vol. 3,
No.1, 2006, pp. 125-131.
[30] Thomas Legare (2002), "The Role of Organizational Factors in
Realizing ERP Benefits", Information system management.
[31] T.M Somers & K.G Nelson (2004). A taxonomy of players and activities
across the ERP project life cycles. Information & Management, 41, 257-
278.
[32] V. Grover, S. R. Jeong, W. J. Kettinger, and J. T. Teng, "The
Implementation of Business Process Reengineering," Journal of
Management Information Systems, 12, 1, 1995, pp. 109-144.
[33] Wright Sally, Wright Arnold M, "Information system assurance for
Enterprise Resource planning systems: unique risk considerations",
Journal of Information Sciences, Vol. 16, pp 99-113, 2002.
[34] Z. Huang and P. Palvia, "ERP Implementation Issues in Advanced and
Developing Countries." Business Process Management Journal. Vol 7,
No 3, 2001, pp. 276-284.
[35] W.H. DeLone & E.R McLeon, 1992, "Information System Success: The
Quest for the Dependent Variable", Information Systems Research, Vol.
3, No.1.
[36] Robert O. Briggs, Gert-Jan De Vreede, Jay F. Nunamaker Jr, Ralph H.
Sprague Jr, 2003, "ERP Implementation Success", Journal of
Management Information Systems, Vol 19, No.2.
[1] A. Huang, D. Yen, D. Chou and Y. Xu, (2003), "Corporate applications
integration: challenges, opportunities, and implementation strategies",
Journal of Business and Management, Vol. 9 No. 2, pp. 137-45.
[2] B. P. Lientz, & E.B Swanson (1980). Impact of development
productivity aids on application system maintenance. Data Base, 11(3),
114-120.
[3] Caldwell & Stein (1998); "Beyond ERP - New IT Agenda- Second
Wave of ERP", Information Week;CMP Media, Nov 1998.
[4] C. A. Beath, "Supporting the Information Technology Champion", MIS
Quarterly, 15, 3, 2000, pp. 355-372.
[5] C. Ho, W. Wu and Y. Tai (2004), "Strategies for the adaptation of ERP
systems", Industrial management & Data Systems, Vol. 104 No. 3, pp.
234-51.
[6] E.M Karimi (2008). "Enterprise resource-planning systems adoption in
Bahrain: motives, benefits, and barriers." Journal of Enterprise
Information Management 21(3): 310-334.
[7] E.M Shehab, M.W Sharp, L. Supramaniam and T.A Spedding (2004).
Enterprise resource planning: An integrative review. Business Process
Management Journal, 10(4):359 - 386.
[8] F. Nah, J. Lau and J. Kuang (2001), "Critical factors for successful
implementation of enterprise systems", Business Process Management
Journal, Vol. 7 No. 3, pp. 285-97.
[9] F. Nah & S. Delgado (2006). Critical success factors for ERP
implementation and upgrade. Journal of Computer Information Systems,
46(5), 99-113.
[10] G. P. Huber, and D. J. Powere, "Retrospective Reports of Strategy-Level
Managers: Guidelines for Increasing Accuracy", Strategic Management
Journal, 6, 2, 1985, pp. 171-180.
[11] Hammer Michael, Champy James: "Reengineering the Corporation",
Nicholas Brealy Publishing, London, 1994.
[12] H. R. Johnston, and S. R., Carrico, "DevelopingCapabilities to Use
Information Strategically", MIS Quarterly, 12, 1, 1988, pp. 37-48.
[13] I. Themistocleous, I. Irani and T. O-Keefe (2001), "ERP and application
integration - an exploratory survey", Business Process Management
Journal, Vol. 7 No. 3, pp. 195-204.
[14] J. Esteves, & J. Pastor, (2000). Towards the unification of critical
success factors for ERP implementation. Proceedings of 10th Annual
BIT Conference, Manchester, UK (pp. 60-69).
[15] J.L. McKenney, & F.W. McFarlan (1982). The information archipelago:
Maps and bridges. Harvard Business Review, 109- 119.
[16] J. Peppard and J. Ward (2004). "Beyond strategic information systems:
towards an information systems capability." Journal of Strategic
Information Systems 13(2): 167-94.
[17] K. Kumar and J.V. Hillegersberg (2000), "ERP experiences and
evolution", Communications of the ACM, Vol. 43 No.4, pp.23-6.
[18] L. Elbertsen, J. Benders and E. Nijssen (2006). "ERP use: exclusive or
complemented?" Industrial Management and Data Systems 106(6): 811-
24.
[19] L. M. Applegate, F. W. McFarlan, and J. L. McKenny, Corporate
Information Systems Management: Text and Cases, (5th ed.) Irwin-
McGraw-Hill, Chicago, IL., 1999
[20] L. Zhang, M.K.O Lee, Z. Zhang, and P. Banerjee (2003). Critical
Success Factors of Enterprise Resource Planning Systems
Implementation Success in China. Proceedings, the 36th Hawaii
International Conference on System Sciences. Hawaii.
[21] M. Huang, J. Wang, J. Yu and C. Chiu(2004), "Value-added E.R.P
information into information goods: an economic analysis", Industrial
Management & Data Systems, Vol. 104 No. 8, pp. 689-97.
[22] MITI, Ministry of International Trade & Industry (2007). Malaysia,
Policies, Incentives and Facilities for SMEs. Available at:
http://www.smidec.gov.my/. Accessed on 10 Mar 2006.
[23] M.L. Markus, C. Tanis & P.C Fenma (2000). Multisite ERP
implementations. Communications of the ACM, 43(4), 42-46.
[24] Mudiarasan Kuppusamy, Murali Raman, Bala Shanmugam,
Santhapparaj Aruljeganathan Solucis, 2009, "A Perspective on the
Critical Success Factors for Information Systems Deployment in Islamic
Financial Institutions", The Electronic Journal of Information Systems
in Developing Countries. ISSN: 1681-4835 www.ejisdc.org
[25] M. Tarafdar and S.R. Gordon (2007). "Understanding the influence of
information systems competencies on process innovation: A resourcebased
view." Journal of Strategic Information Systems 16: 353-392.
[26] R. B. Cooper, and R. W. Zmud, "Information Technology
Implementation Research: A Technological Diffusion Approach",
Management Science, 36, 2, 1990, pp. 123-139.
[27] R. R. Nelson, and P. H. Cheney, "Training End Users: An Exploratory
Study", MIS Quarterly, 11, 4, 2005, pp. 547-559.
[28] S. L. Jarvenpaa, and B. Ives, "Executive Involvement and Participation
in the Management of Information Technology", MIS Quarterly, 15, 2,
2003, pp. 205-227.
[29] S.M. Jafari, M.R. Osman, R.M. Yusuff and S.H. Tang, "ERP systems
Implementation in Malaysia: The Importance of Critical Success
Factors", International Journal of Engineering and Technology, Vol. 3,
No.1, 2006, pp. 125-131.
[30] Thomas Legare (2002), "The Role of Organizational Factors in
Realizing ERP Benefits", Information system management.
[31] T.M Somers & K.G Nelson (2004). A taxonomy of players and activities
across the ERP project life cycles. Information & Management, 41, 257-
278.
[32] V. Grover, S. R. Jeong, W. J. Kettinger, and J. T. Teng, "The
Implementation of Business Process Reengineering," Journal of
Management Information Systems, 12, 1, 1995, pp. 109-144.
[33] Wright Sally, Wright Arnold M, "Information system assurance for
Enterprise Resource planning systems: unique risk considerations",
Journal of Information Sciences, Vol. 16, pp 99-113, 2002.
[34] Z. Huang and P. Palvia, "ERP Implementation Issues in Advanced and
Developing Countries." Business Process Management Journal. Vol 7,
No 3, 2001, pp. 276-284.
[35] W.H. DeLone & E.R McLeon, 1992, "Information System Success: The
Quest for the Dependent Variable", Information Systems Research, Vol.
3, No.1.
[36] Robert O. Briggs, Gert-Jan De Vreede, Jay F. Nunamaker Jr, Ralph H.
Sprague Jr, 2003, "ERP Implementation Success", Journal of
Management Information Systems, Vol 19, No.2.
@article{"International Journal of Business, Human and Social Sciences:55280", author = "Mahadevan Supramaniam and Mudiarasan Kuppusamy", title = "Investigating the Critical Factors in Implementing Enterprise Resource Planning System in Malaysian Business Firms", abstract = "In order to survive in a rapidly changing business environment, Malaysian business firms must improve their own business practices and procedures. This paper describes the impact of Critical Success Factors (CSFs) during the Enterprise Resource Planning (ERP) system implementations using the responses from 151 organizations that completed or are in the process of completing an ERP implementation and identifying the key benefits of ERP implementation in the firm. The importance of these factors was investigated within Malaysian companies using questionnaire survey method. Our results provide advice to management on how best to utilize their limited resources to choose those CSFs that are most likely to have an impact upon the implementation of the ERP system.
", keywords = "Critical Success Factors (CSFs), Enterprise Resource Planning (ERP), system, vendor.", volume = "3", number = "9", pages = "1760-10", }
