E-Commerce Implementation: An Empirical Study of the Performance of Enterprise Resource Planning Systems Using the Organizational Learning Model

By Tsai, Wen-Hsien; Hung, Shih-Jieh | International Journal of Management, June 2008 | Go to article overview
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E-Commerce Implementation: An Empirical Study of the Performance of Enterprise Resource Planning Systems Using the Organizational Learning Model


Tsai, Wen-Hsien, Hung, Shih-Jieh, International Journal of Management


This research views enterprise resource planning (ERP) system implementation as an organizational learning behavior. We examined the roles of business process differences, education/training, system integration, and vendor support in the ERP implementation of Taiwan's electronics companies, and found that the problems of education/training and vendor support have negative influences on the companies' performance of ERP system. As compared with the prior research that adopted the sample of all industries, the variable of business process difference is less important in the electronics industry. This result implies that the factor of industrial difference must be taken into consideration in ERP system implementation.

Introduction

Enterprise Resource Planning (ERP) system is a managerial information system that integrates all sectors of a modern business (Scalle and Cotteleer, 1999). However, ERP implementation is not an easy task (Markus et al., 2000). Many prior researches attempted to explore the success factors of ERP implementation (e.g. Huang et al. 2004; Nah et al., 2003; Murray and Coffin, 2001), while few of them viewed ERP implementation from the perspective of organizational learning. This paper examines several relevant factors of organizational learning for ERP implementation to fill this difference. The effects of business process difference, education/training, system integration, and vendor support on the performance improvement of ERP system are measured and compared. The results show that education/training and vendor support are two critical factors for the ERP implementation of Taiwan's electronics industry in our sample.

Learning theory says that people learn new skills by their previous knowledge structures which are called schemas in the literature. The performance of learning depends on the difference between the schema and the learning task, and the efforts to develop a new schema (Rumelhart, 1980). Since a company implementing an ERP system will experience a learning process, it is interesting to examine the relationships between ERP performance and the relevant organizational learning factors. Schema differences can be represented by business process difference and difficulty of system integration. Efforts to develop a new schema can be represented by education/learning and vendor support. Business process difference and difficulty of system integration are widely viewed as significant negative factors for ERP implementation (e.g. Huang et al. 2004; Tsai et al. 2005a; Tsai et al. 2005b) used a sample of all industries and found that business process difference, education/learning problem, and insufficient vendor support negatively influence ERP implementation performance. This paper focuses on Taiwan's electronics industry to investigate whether there are different results.

Research Methodology

The sample in this research came from a questionnaire survey during 2003 on ERP implementation in Taiwan's top 5000 largest corporations. We only analyzed the data of the electronics companies which adopted ERP packages, so the sample size is 85. Likert Scale was used as a measurement way, and the sample data were obtained with a certain level of reliability and validity.

The ERP performance measures proposed by DeLone and McLean (1992) are used in this paper. The six measurement dimensions are "System Quality", "Information Quality", "System Use", "User Satisfaction", "Individual Impact", and "Organizational Impact". The computation of the composite performance value (PL^sub i^) is as follows.

Research Findings

Table 2 shows the regression results of our models. In order to realize model robustness, we added four simple regression models to the electronics industry model. Equation El is the electronics industry model, and equation E2-E5 are business process difference (BSDF) model, education/training (PEDTR) model, system integration (SYSlNT) model, and vendor support (PVEND) model, respectively.

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