Examining the Role of Innovation Diffusion Factors on the Implementation Success of Enterprise Resource Planning Systems

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Enterprise resource planning (ERP) systems have been adopted by many businesses in the past decade. These systems have revolutionized organizational computing by facilitating integrated and real-time planning, production, and customer response. While many companies consider their ERP investment a success, other firms have had serious problems implementing the systems, often causing them to abandon their ERP initiative or implement the system in limited capacity. This paper examines the impact of innovation diffusion factors on the implementation success of ERP systems, specifically organizational performance and stakeholder satisfaction. Results reveal that complexity, top management support, competitive pressure, and training are highly related to stakeholder satisfaction, while organizational objectives, competitive pressure and elapsed time are associated with organizational performance. The uniqueness of ERP provides fertile ground for this study, which has implications for both practitioners and researchers faced with understanding what factors contribute to ERP implementation success.

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