Critical success factors in enterprise resource planning (ERP)‎ systems implementation : an applied study on manufacturing companies in Jordan that adopted Baan LN. ERP system

Dissertant

Yusuf, Shadha Husayn Hasan

Thesis advisor

al-Adwan, Yasir

Comitee Members

al-Lawzi, Musa
al-Tarawinah, Midhat Ibrahim Khulayf
Durrah, Abd al-Bari Ibrahim

University

Middle East University

Faculty

Faculty of Business

Department

Department of Business Administration

University Country

Jordan

Degree

Master

Degree Date

2010

English Abstract

The reliability and affectivity of information systems have being proved since their early beginning in the mid of last century and encouraged more organizations to systemize their work processes which created an increasing demand on those systems.

However, deficiencies in legacy systems mainly in terms of coordination with each others and providing real-time accurate data have been a constant stimulator for software programmers to develop more advanced systems that can satisfy market's demands.

ERP comes as the last generation of materials-related management systems that were existed in 1960's and concerned mainly in improving warehouse, materials and production management.

Those systems have been further enhanced with more applications to maximize the served operations which eventually leaded to the born of ERP systems.

ERP are full integrated systems which grant a web-based linkage of all organization's operations the thing that greatly improve the quality, accuracy, timing, flow and access of data among users.

These fundamental improvements have been translated into substantial benefits on operational, managerial and financial levels in organizations that have successfully implement then properly utilize an ERP system.

So, what hold organization from implementing an ERP system? Two major obstacles rise against an ERP system adaptation decision; the huge magnitude of costs and the high failure rate.

ERP is a very costly project that requires the deployment of huge resources throughout its life cycle.

Starting by the expensive software itself to the training courses, external consultants, periodic maintenance, annual licensing, upgrading and so forth.

From the other hand, statistics show a very high failure rate among ERP implementation projects that exceed 90%.

These failure grades from minor failures in meeting the scheduled implementation time and budget to much serious complications like losing market share or even bankruptcy as happened in some cases.

Both reasons together consist a solid barrier toward ERP implementation and rise doubts the real feasibility of theses systems.

For that sake, researchers are giving more attention to study the factors that impact ERP success/failure in attempt to increase certainty and enable businesses to enjoy its benefits at minimal risks.

This study will target the same objectives by studying the most critical factors that impact ERP implementation in Jordanian companies due to the fact that only few studies have been handled this issue in Jordan.

Industrial sector has been perceived as the most suitable sector to apply this study to include a wider variety of functions comparing with other sectors; hence, more need for integration.

For this sector, Baan LN.

system has been ranked as number one ERP system by Gartner Group.

Thus, Jordanian industrial companies that implemented Baan LN.

system will consist the population of this study.

These companies as per Infor's agent in Jordan are: Middle East Complex for Eng., Electronics and Heavy Industries PLC, International Tobacco and Cigarettes Co and Pharma International.

Factors considered in the study have been determined after an extensive reviewing for the available literature and previous studies.

These factors have been divided into three main categories: managerial factors including project plan and vision, system selection and top management support; project factors including project management, project champion, teamwork composition and vendor support and organizational factors including business process reengineering, communication, user training and education and organizational resistance management.

To study the impact of these factors on ERP implementation, survey methodology has been chosen and a 56-questions questionnaire has been developed.

A Simple t test for the collected data showed a significant relation between the studied factors and the success of ERP implementation success.

However, a Multi regression test showed that organizational factors have the greater impact on ERP implementation success.

Main Subjects

Economics & Business Administration

Topics

• Strategic planning
• Business management
• Industrial management
• Jordan
• Management information systems
• Enterprise resource planning

No. of Pages

127

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-695604