Academic journal article E+M Ekonomie a Management

Critical Success Factors in Erp System Adoption: Comparative Analysis of the Private and the Public Sector

Academic journal article E+M Ekonomie a Management

Critical Success Factors in Erp System Adoption: Comparative Analysis of the Private and the Public Sector

Article excerpt

Introduction

Enterprise Resource Planning (ERP) systems are enterprise-wide information systems that integrate and control the complete range of processes and functions, in order to provide a holistic view of the business from a single information and information technology (IT) architecture (Klaus, Rosemann, & Gable, 2000), enabling organizations to manage efficient and effective use of their resources by using a complete, integrated, packaged software solution and a common central database for the organization's information-processing needs (Al-Fawaz, Eldabi, & Naseer, 2010). By adopting an ERP system, organizations are looking for a better use of their own resources in order to raise their own efficiency, which can be jeopardized by high costs associated with ERP implementation, staff training, as well as maintaining and aligning the system with the needs of the organization (Jaoova, Brabec, & Horak, 2013).

A successful adoption of an ERP system requires extensive efforts in the pre-implementation, implementation and postimplementation period, as to ensure a high level of acceptance and use of the ERP system by the organization and its employees. These efforts are related to Critical Success Factors (CSFs) which are usually treated as "... the limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organization" (Rockart, 1979). They are believed to be the most influential forces in ERP success and therefore must be monitored and controlled (Sun, Ni, & Lam, 2015) during an ERP adoption process.

A majority of studies that concern ERP systems adoption are focused on the main CSFs and methodologies for ERP implementation. Over the last decade, several authors have published studies devoted to the identification of critical issues or success factors of ERP adoption (Finney & Corbett, 2007; Ram & Corkindale, 2014; Shaul & Tauber, 2013; Sun et al., 2015). In the analyzed studies, the authors have identified over 80 CSFs for ERP adoption (Sun et al., 2015), and proposed several criteria for their classification. According to Ngai et al. (2008), diverse subsets of identified CSFs, rather than a comprehensive set of similar factors, are a result of different limited case studies and research settings, as well as different geographic areas (countries) where studies had been conducted.

Adoption of ERP systems is greatly influenced by certain organizational characteristics, commonly referred to as business factors. In contrast to the very extensive research on differences in implementation of ERP systems between SMEs and large organizations, the literature devoted to analysis of differences between private and public sector organizations in terms of ERP adoption and its CSFs is quite scarce. Emergence of such studies, even in a small number, can be ascribed to evident differences between private and public sector organizations. In contrast to market-oriented organizations, public sector organizations tend to be more complex (Repa, 2014), and the requirements for information transparency oblige them to manage large quantities of specific types of data (Mohelska & Sokolova, 2017). It is interesting, but not surprising, that researchers who analyzed ERP adoption CSFs usually relied on samples composed from organization of the same type. The majority of researchers were focused on private organizations; however, there is a noticeable increase of studies focusing on public organizations (Mengistie, Heaton, & Rainforth, 2013; Ziemba & Oblak, 2013; Leandro, Mexas, & Drumond, 2017). The number of authors who used samples comprised of both private and public organizations is significantly smaller. Ahmed and Khan (2013), Alves and Matos (2013) and Wingreen et al. (2014) are among the authors who carried out immediate comparative analyses of ERP adoptions in the two sectors.

The aim of this paper is to further reduce this knowledge gap and allow better understanding of the differences in ERP adoption between the public and the private sector. …

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