Critical success factors of enterprise resource planning post-implemetation in Automotive Industry

Abstract

Enterprise resource planning (ERP) has been widely used to improve productivity, increase the efficiency of business operations and reduce firm’s costs. ERP implementation is highly beneficial, however, sustaining those benefits are challenging for most organisations at post-implementation phase. Based on the reviewed literature, there is no clear evidence of comprehensive investigation done on the effects of critical success factors (CSFs) of ERP post-implementation success. This study uses past literature, as well as the existing theoretical and conceptual frameworks to illustrate a new conceptual framework that incorporates CSFs with technological, organisational and environmental theory (TOE). The CSFs are ERP technological factors, ERP organisational factors and ERP environmental factors. The data collection instrument used in this study is a questionnaire. Using cross-sectional survey method, data were collected from 290 suppliers in the Iranian automotive industry. They were identified through stratified sampling method. Hypothesised relationships were examined using partial least squares structural equation modeling technique (PLS-SEM). The results highlighted positive effects of some CSFs of ERP, namely ERP data accuracy, ERP communication and ERP training benefits. In addition, the results of the study were aligned with TOE and life cycle theory (LCT), underlining the roles of some key CSFs of ERP. Findings of this study have contributed theoretically to the ERP by demonstrating new insights on technological, organisational and environmental factors on ERP benefits particularly in Iran. Finally, the study could be used as a guideline to encourage managers to focus more on CSFs of ERP for organisations to obtain more benefits.