EFFECTS AND SUCCESS FACTORS OF ENTERPRISE RESOURCE PLANNING IMPLEMENTATION ON ORGANIZATIONAL PERFORMANCE: A SYSTEMATIC LITERATURE REVIEW
-
Marco Widjaja(1*)
Information Systems Management Department, BINUS Graduate Program Master of Information Systems Management, Bina Nusantara University, Jakarta
-
Wahyu Sardjono(2)
Information Systems Management Department, BINUS Graduate Program Master of Information Systems Management, Bina Nusantara University, Jakarta
(*) Corresponding Author
Keywords:
Enterprise Resource Planning, ERP Success Factor, ERP Implementation Impact, Organization Performance, Unsuccessful ERP
Abstract
The rapid development of information technology today has prompted organizations or companies to invest in and implement information technology. Enterprise Resource Planinng (ERP) implementation is one such investment or information technology-related implementation. ERP implementation is carried out to assist organizations or companies in achieving their business goals. However, implementing ERP within an organization or company is not an easy task and comes with consequences that must be faced if the implementation fails. This study wants to identify the elements that affect whether ERP installation within businesses or organizations is successful or unsuccessful. This study also seeks to comprehend the effects of successful or unsuccessful ERP implementation within businesses or organizations. This study conducts a review of the literature concerning ERP implementation within organizations or companies. In accordance with the literature evaluation done for this study, user training, top management support, and vendor support are the three areas that have been extensively investigated in the context of implementing an ERP, all of which impact the success or failure of the whole process. Performance inside an organization is affected by both the success and failure of ERP adoption. This performance enhancement extends not only to the organization but also to the performance of the employees working within it. Apart from the advantages of successful ERP implementation, ERP implementation can also fail. Failures in the deployment of ERP can cause organizations or businesses to lose money on their information technology investments.
Keywords: Enterprise Resource Planning; ERP Success Factor; ERP Implementation Impact, Organization Performance; Unsuccessful ERP
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References
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Https://Doi.Org/Https://Doi.Org/10.1016/J.Procs.2019.12.20
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Jafari, A. A., & Nair, S. S. K. (2018). Erp Implementation In The Oil And Gas Sector: A Case Study In Sultanate Of Oman. 2018 7th International Conference On Reliability, Infocom Technologies And Optimization (Trends And Future Directions) (Icrito), 848–854. Https://Doi.Org/10.1109/Icrito.2018.8748779
Jha, V., Pal, P., & Ranjan, S. (2018). Critical Success Factors In Erp Implementation In Indian Manufacturing Enterprises: An Exploratory Analysis. International Journal Of Business Information Systems, 28, 404.
Https://Doi.Org/10.1504/Ijbis.2018.10014631
Jiwasiddi, A., & Mondong, B. (2018). Social Sciences & Humanities Analysing Erp Implementation Critical Success Factors For Sme: A Study Of Sap One Implementation In Jakarta. Pertanika J. Soc. Sci. & Hum, 26, 139–146.
Kembaren, J., & Budiastuti, D. (2016). Role Of Mobility Strategy In Moderating The Effect Of Erp Performance To Operational Performance: (Study In Indonesian Palm Oil Plantation Industries). 2016 International Conference On Information Management And Technology (Icimtech), 200–204.
Https://Doi.Org/10.1109/Icimtech.2016.7930329
Lee, J.-C., Shiue, Y.-C., & Chen, C.-Y. (2016). Examining The Impacts Of Organizational Culture And Top Management Support Of Knowledge Sharing On The Success Of Software Process Improvement. Computers In Human Behavior, 54, 462–474. Https://Doi.Org/Https://Doi.Org/10.1016/J.Chb.2015.08.030
Liesnaningsih, L., Fandhilah, F., & Kasoni, D. (2020). Analisis Dampak Implementasi Sistem Enterprise Recource Planning Terhadap Kinerja Pengguna Pada Pt.Baiksan Indonesia. Jurnal Inovasi Informatika, 5(1), 55–63.
Malik, M. O., & Khan, N. (2021). Analysis Of Erp Implementation To Develop A Strategy For Its Success In Developing Countries. Production Planning & Control, 32(12), 1020–1035. Https://Doi.Org/10.1080/09537287.2020.1784481
Motiwalla &, & Thompson. (2012). Enterprise Systems For Management.
Nawawi, M. (2018). Dampak Implementasi Erp Terhadap Kapabilitas Organisasi Dan Kinerja Perusahaan. Jurnal Riset Akuntansi Terpadu, 11. Https://Doi.Org/10.35448/Jrat.V11i2.4263
Nawaz, N., & Channakeshavalu, K. (2013). The Impact Of Enterprise Resource Planning (Erp) Systems Implementation On Business Performance. Operations Management Ejournal. Https://Api.Semanticscholar.Org/Corpusid:167621294
Nikitović, M., & Strahonja, V. (2016). The Analysis Of Csfs In Stages Of Erp Implementation — Case Study In Small And Medium-Sized (Sme) Companies In Croatia. 2016 39th International Convention On Information And Communication Technology, Electronics And Microelectronics (Mipro), 1494–1499.
Https://Doi.Org/10.1109/Mipro.2016.7522375
Nkasu, M. M. (2020). Investigation Of The Effects Of Critical Success Factors On Enterprise Resource Planning (Erp) Systems Implementation In The United Arab Emirates. In S. C. Satapathy, V. Bhateja, J. R. Mohanty, & S. K. Udgata (Eds.), Smart Intelligent Computing And Applications (Pp. 611–623). Springer Singapore.
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Prasetyo, S. J., Lubis, M., Witjaksono, R. W., & Azizah, A. H. (2019). Critical Failure Factors In Enterprise Resource Planning (Erp) Implementation: Case Study Of Pt.Toyota Astra Motor Indonesia. 2019 Fourth International Conference On Informatics And Computing (Icic), 1–5. Https://Doi.Org/10.1109/Icic47613.2019.8985720
Putri, A. D., Lubis, M., & Azizah, A. H. (2020). Analysis Of Critical Success Factors (Csf) In Enterprise Resource Planning (Erp) Implementation Using Extended Technology Acceptance Model (Tam) At Trading And Distribution Company. 2020 4rd International Conference On Electrical, Telecommunication And Computer Engineering (Elticom), 129–135.
Https://Doi.Org/10.1109/Elticom50775.2020.923052
Rudi, R., Arisandy, D., & Salsalina, S. (2017). Pengaruh Penerapan Enterprise Resource Planning (Erp) Terhadap Peningkatan Produktivitas Bisnis Perusahaan (Studi Kasus Pt Xyz). Jikom: Jurnal Informatika Dan Komputer, 7(2), 57–65. Https://Ojs.Stikombanyuwangi.Ac.Id/Index.Php/Jikom/Article/View/6
Saleh, T., & Thoumy, M. (2018). The Impact Of Erp Systems On Organizational Performance: In Lebanese Wholesale Engineering Companies. 2018 7th International Conference On Industrial Technology And Management (Icitm), 198–204. Https://Doi.Org/10.1109/Icitm.2018.8333946
Shao, Z., Feng, Y., & Hu, Q. (2016). Effectiveness Of Top Management Support In Enterprise Systems Success: A Contingency Perspective Of Fit Between Leadership Style And System Life-Cycle. European Journal Of Information Systems, 25(2), 131–153. Https://Doi.Org/10.1057/Ejis.2015.6
Suhaimi, N., Nawawi, A., & Puteh Salin, A. S. A. (2017). Determinants And Problems Of Successful Erp Implementations - Malaysian Experience. International Journal Of Advanced Operations Management, 9, 207.
Https://Doi.Org/10.1504/Ijaom.2017.088252
Suroso, J. S., Budhijana, R. B., & Delfiani, R. I. (2018). The Effect Of Successful Enterprise Resource Planning (Erp) Systems On Employee Performance. 2018 International Conference On Orange Technologies (Icot), 1–6.
Https://Doi.Org/10.1109/Icot.2018.8705850
Taghipour, D., Shabrang, M., Machiani, H., & Shamami, N. (2020). Assessment And Analysis Of Risk Associated With The Implementation Of Enterprise Resource Planning (Erp) Project Using Fmea Technique. 3, 2617–4596. Https://Doi.Org/10.31058/J.Mana.2020.32002
Tchatchouang, C. E., Jean Robert, K. K., & Fosso Wamba, S. (2019). Study Of A Successful Erp Implementation Using An Extended Information Systems Success Model In Cameroon Universities: Case Of Cuca (Pp. 727–737).
Https://Doi.Org/10.1007/978-3-030-16181-1_68
Widjaja, H. A. E., Meyliana, Fernando, E., Surjandy, Condrobimo, A. R., Grady, D., Liejaya, B., & Siwi, M. P. (2020). Analysis Measurement Of Implementation Enterprise Resource Planning On Human Resource Management In University Xyz. 2020 6th International Conference On Computing Engineering And Design (Icced), 1–6. Https://Doi.Org/10.1109/Icced51276.2020.9415764
Wijaya, R. A., Widyaningrum, P., Prasetyo, B., & Satria, R. (2018). Analyzing Of Implementation Enterprise Budgeting System Using Sap Bpc: Case Study On A Financial Government Institution. 2018 International Conference On Advanced Computer Science And Information Systems (Icacsis), 475–480. Https://Doi.Org/10.1109/Icacsis.2018.8618253
Zhang, H., & Zheng, H. (2019). An Empirical Study On The Impact Of Erp Implementation On The Performance Of Listed Companies. Journal Of Physics: Conference Series, 1213(5), 052103. Https://Doi.Org/10.1088/1742-6596/1213/5/052103
Https://Doi.Org/Https://Doi.Org/10.1016/J.Procs.2019.12.20
Abu-Shanab, E., Abu-Shehab, E., & Khairallah, M. (2015). Critical Success Factors For Erp Implementation: The Case Of Jordan. The International Arab Journal Of E-Technology (Iajet), 4, 1–7.
Ağaoğlu, M., Yurtkoru, E. S., & Ekmekçi, A. K. (2015). The Effect Of Erp Implementation Csfs On Business Performance: An Empirical Study On Users’ Perception. Procedia - Social And Behavioral Sciences, 210, 35–42.
https://Doi.Org/Https://Doi.Org/10.1016/J.Sbspro.2015.11.326
Aini, S., Lubis, M., Witjaksono, R. W., & Azizah, A. H. (2020). Analysis Of Critical Success Factors On Erp Implementation In Pt. Toyota Astra Motor Using Extended Information System Success Model. 2020 3rd International Conference On Mechanical, Electronics, Computer, And Industrial Technology (Mecnit), 370–375. Https://Doi.Org/10.1109/Mecnit48290.2020.9166653
Ali, M., & Miller, L. (2017). Erp System Implementation In Large Enterprises – A Systematic Literature Review. Journal Of Enterprise Information Management, 30(4), 666–692. Https://Doi.Org/10.1108/Jeim-07-2014-0071
Ali, N., Mohd Yasin, N., & Jenatabadi, H. S. (2009). To Investigate The Success And Failure Factors Of Erp Implementation Within Malaysian Small And Medium Enterprises. In Proceedings - 2009 International Conference On Information Management And Engineering, Icime 2009. Https://Doi.Org/10.1109/Icime.2009.66
Appelbaum, D., Kogan, A., Vasarhelyi, M., & Yan, Z. (2017). Impact Of Business Analytics And Enterprise Systems On Managerial Accounting. International Journal Of Accounting Information Systems, 25, 29–44.
Https://Doi.Org/Https://Doi.Org/10.1016/J.Accinf.2017.03.003
Chaveesuk, S., & Hongsuwan, S. (2017). A Structural Equation Model Of Erp Implementation Success In Thailand. Review Of Integrative Business And Economics Research, 6, 194.
Danielsen, P., Hansen, K. S., Helti, M., Nielsen, L., & Obwegeser, N. (2019). Selection And Training Of Super-Users For Erp Implementation Projects. Journal Of Information Technology Case And Application Research, 21, 74–89. Https://Api.Semanticscholar.Org/Corpusid:46949767
Deshmukh, P. D., Thampi, G. T., & Kalamkar, V. R. (2015). Investigation Of Quality Benefits Of Erp Implementation In Indian Smes. Procedia Computer Science, 49, 220–228. Https://Doi.Org/Https://Doi.Org/10.1016/J.Procs.2015.04.247
Dezdar, S. (2017). Erp Implementation Projects In Asian Countries: A Comparative Study On Iran And China. International Journal Of Information Technology Project Management, 8, 52–68. Https://Doi.Org/10.4018/Ijitpm.2017070104
Diponegoro, M., Kusumawardani, S., & Hidayah, I. (2021). Tinjauan Pustaka Sistematis: Implementasi Metode Deep Learning Pada Prediksi Kinerja Murid. Jurnal Nasional Teknik Elektro Dan Teknologi Informasi, 10, 131–138. Https://Doi.Org/10.22146/Jnteti.V10i2.1417
Ferbia, T. (2018). Analisis Penggunaan Sistem Erp Untuk Transformasi Proses Bisnis Studi Kasus: Supermarket Bangunan Dan Furniture. Jurnal Teknik Informatika Musirawas (Jutim), 3, 74. Https://Doi.Org/10.32767/Jutim.V3i2.313
Fernandez, D., Zainol, Z., & Ahmad, H. (2017). The Impacts Of Erp Systems On Public Sector Organizations. Procedia Computer Science, 111, 31–36. Https://Doi.Org/Https://Doi.Org/10.1016/J.Procs.2017.06.006
Garg, P., & Khurana, R. (2017). Applying Structural Equation Model To Study The Critical Risks In Erp Implementation In Indian Retail. Benchmarking: An International Journal, 24(1), 143–162. Https://Doi.Org/10.1108/Bij-12-2015-0122
Hasanah, N., Wahyu Winarno, W., Amborowati, A., & Teknik Informatika Stmik Amikom Yogyakarta, M. (2016). Analisis Keberhasilan Implementasi Enterprise Resource Planning Di Pt Indonesia Power.
Hofmann, P. (2008). Erp Is Dead, Long Live Erp. Ieee Internet Computing, 12(4), 84–88. Https://Doi.Org/10.1109/Mic.2008.78
Izzati, A. N., & Najwa, N. F. (2018). Pengaruh Stakeholder Perspective Dalam Penerapan Erp: A Systematic Literature Review. Jurnal Teknologi Informasi Dan Ilmu Komputer, 5(1), 41–50. Https://Doi.Org/10.25126/Jtiik.201851540
Jafari, A. A., & Nair, S. S. K. (2018). Erp Implementation In The Oil And Gas Sector: A Case Study In Sultanate Of Oman. 2018 7th International Conference On Reliability, Infocom Technologies And Optimization (Trends And Future Directions) (Icrito), 848–854. Https://Doi.Org/10.1109/Icrito.2018.8748779
Jha, V., Pal, P., & Ranjan, S. (2018). Critical Success Factors In Erp Implementation In Indian Manufacturing Enterprises: An Exploratory Analysis. International Journal Of Business Information Systems, 28, 404.
Https://Doi.Org/10.1504/Ijbis.2018.10014631
Jiwasiddi, A., & Mondong, B. (2018). Social Sciences & Humanities Analysing Erp Implementation Critical Success Factors For Sme: A Study Of Sap One Implementation In Jakarta. Pertanika J. Soc. Sci. & Hum, 26, 139–146.
Kembaren, J., & Budiastuti, D. (2016). Role Of Mobility Strategy In Moderating The Effect Of Erp Performance To Operational Performance: (Study In Indonesian Palm Oil Plantation Industries). 2016 International Conference On Information Management And Technology (Icimtech), 200–204.
Https://Doi.Org/10.1109/Icimtech.2016.7930329
Lee, J.-C., Shiue, Y.-C., & Chen, C.-Y. (2016). Examining The Impacts Of Organizational Culture And Top Management Support Of Knowledge Sharing On The Success Of Software Process Improvement. Computers In Human Behavior, 54, 462–474. Https://Doi.Org/Https://Doi.Org/10.1016/J.Chb.2015.08.030
Liesnaningsih, L., Fandhilah, F., & Kasoni, D. (2020). Analisis Dampak Implementasi Sistem Enterprise Recource Planning Terhadap Kinerja Pengguna Pada Pt.Baiksan Indonesia. Jurnal Inovasi Informatika, 5(1), 55–63.
Malik, M. O., & Khan, N. (2021). Analysis Of Erp Implementation To Develop A Strategy For Its Success In Developing Countries. Production Planning & Control, 32(12), 1020–1035. Https://Doi.Org/10.1080/09537287.2020.1784481
Motiwalla &, & Thompson. (2012). Enterprise Systems For Management.
Nawawi, M. (2018). Dampak Implementasi Erp Terhadap Kapabilitas Organisasi Dan Kinerja Perusahaan. Jurnal Riset Akuntansi Terpadu, 11. Https://Doi.Org/10.35448/Jrat.V11i2.4263
Nawaz, N., & Channakeshavalu, K. (2013). The Impact Of Enterprise Resource Planning (Erp) Systems Implementation On Business Performance. Operations Management Ejournal. Https://Api.Semanticscholar.Org/Corpusid:167621294
Nikitović, M., & Strahonja, V. (2016). The Analysis Of Csfs In Stages Of Erp Implementation — Case Study In Small And Medium-Sized (Sme) Companies In Croatia. 2016 39th International Convention On Information And Communication Technology, Electronics And Microelectronics (Mipro), 1494–1499.
Https://Doi.Org/10.1109/Mipro.2016.7522375
Nkasu, M. M. (2020). Investigation Of The Effects Of Critical Success Factors On Enterprise Resource Planning (Erp) Systems Implementation In The United Arab Emirates. In S. C. Satapathy, V. Bhateja, J. R. Mohanty, & S. K. Udgata (Eds.), Smart Intelligent Computing And Applications (Pp. 611–623). Springer Singapore.
Nofal, M. I., & Yusof, Z. M. (2015). Critical Success Factors Enhancing Enterprise Resource Planning Systems Implementation In Jordanian Smes. 2015 International Conference On Electrical Engineering And Informatics (Iceei), 98–103. Https://Doi.Org/10.1109/Iceei.2015.7352477
Prasetyo, S. J., Lubis, M., Witjaksono, R. W., & Azizah, A. H. (2019). Critical Failure Factors In Enterprise Resource Planning (Erp) Implementation: Case Study Of Pt.Toyota Astra Motor Indonesia. 2019 Fourth International Conference On Informatics And Computing (Icic), 1–5. Https://Doi.Org/10.1109/Icic47613.2019.8985720
Putri, A. D., Lubis, M., & Azizah, A. H. (2020). Analysis Of Critical Success Factors (Csf) In Enterprise Resource Planning (Erp) Implementation Using Extended Technology Acceptance Model (Tam) At Trading And Distribution Company. 2020 4rd International Conference On Electrical, Telecommunication And Computer Engineering (Elticom), 129–135.
Https://Doi.Org/10.1109/Elticom50775.2020.923052
Rudi, R., Arisandy, D., & Salsalina, S. (2017). Pengaruh Penerapan Enterprise Resource Planning (Erp) Terhadap Peningkatan Produktivitas Bisnis Perusahaan (Studi Kasus Pt Xyz). Jikom: Jurnal Informatika Dan Komputer, 7(2), 57–65. Https://Ojs.Stikombanyuwangi.Ac.Id/Index.Php/Jikom/Article/View/6
Saleh, T., & Thoumy, M. (2018). The Impact Of Erp Systems On Organizational Performance: In Lebanese Wholesale Engineering Companies. 2018 7th International Conference On Industrial Technology And Management (Icitm), 198–204. Https://Doi.Org/10.1109/Icitm.2018.8333946
Shao, Z., Feng, Y., & Hu, Q. (2016). Effectiveness Of Top Management Support In Enterprise Systems Success: A Contingency Perspective Of Fit Between Leadership Style And System Life-Cycle. European Journal Of Information Systems, 25(2), 131–153. Https://Doi.Org/10.1057/Ejis.2015.6
Suhaimi, N., Nawawi, A., & Puteh Salin, A. S. A. (2017). Determinants And Problems Of Successful Erp Implementations - Malaysian Experience. International Journal Of Advanced Operations Management, 9, 207.
Https://Doi.Org/10.1504/Ijaom.2017.088252
Suroso, J. S., Budhijana, R. B., & Delfiani, R. I. (2018). The Effect Of Successful Enterprise Resource Planning (Erp) Systems On Employee Performance. 2018 International Conference On Orange Technologies (Icot), 1–6.
Https://Doi.Org/10.1109/Icot.2018.8705850
Taghipour, D., Shabrang, M., Machiani, H., & Shamami, N. (2020). Assessment And Analysis Of Risk Associated With The Implementation Of Enterprise Resource Planning (Erp) Project Using Fmea Technique. 3, 2617–4596. Https://Doi.Org/10.31058/J.Mana.2020.32002
Tchatchouang, C. E., Jean Robert, K. K., & Fosso Wamba, S. (2019). Study Of A Successful Erp Implementation Using An Extended Information Systems Success Model In Cameroon Universities: Case Of Cuca (Pp. 727–737).
Https://Doi.Org/10.1007/978-3-030-16181-1_68
Widjaja, H. A. E., Meyliana, Fernando, E., Surjandy, Condrobimo, A. R., Grady, D., Liejaya, B., & Siwi, M. P. (2020). Analysis Measurement Of Implementation Enterprise Resource Planning On Human Resource Management In University Xyz. 2020 6th International Conference On Computing Engineering And Design (Icced), 1–6. Https://Doi.Org/10.1109/Icced51276.2020.9415764
Wijaya, R. A., Widyaningrum, P., Prasetyo, B., & Satria, R. (2018). Analyzing Of Implementation Enterprise Budgeting System Using Sap Bpc: Case Study On A Financial Government Institution. 2018 International Conference On Advanced Computer Science And Information Systems (Icacsis), 475–480. Https://Doi.Org/10.1109/Icacsis.2018.8618253
Zhang, H., & Zheng, H. (2019). An Empirical Study On The Impact Of Erp Implementation On The Performance Of Listed Companies. Journal Of Physics: Conference Series, 1213(5), 052103. Https://Doi.Org/10.1088/1742-6596/1213/5/052103
Published
2024-07-09
How to Cite
Widjaja, M., & Sardjono, W. (2024). EFFECTS AND SUCCESS FACTORS OF ENTERPRISE RESOURCE PLANNING IMPLEMENTATION ON ORGANIZATIONAL PERFORMANCE: A SYSTEMATIC LITERATURE REVIEW. Journal of Management : Small and Medium Enterprises (SMEs), 17(2), 465-477. https://doi.org/10.35508/jom.v17i2.13290
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Articles
