An Investigation of the Factors Affecting Successful Enterprise Resource Planning (ERP) Implementation in Nigeria

Abstract

The ERP system has been identified as a tool for delivering information technology (IT) services through software and other critical infrastructures using internet technologies. Given its nature as an industry-driven concept and system, this is universally accepted in industry as a tool to solve practical problems with a view to achieving an integrated enterprise information system. However, a developing country like Nigeria still faces a lot of hurdles in managing its construction supply chain. The aim of this study is to investigate the factors affecting the successful implementation of enterprise resource planning (ERP) systems in the Nigerian construction industry. After a literature search, expert input via the Delphi technique, the study identified four main factors and 21 sub-factors. The Decision-Making Trial and Evaluation Laboratory (DEMATEL) method was used to prioritise the factors and to identify the relationship that exists between the factors. The findings revealed that the key factors affecting the implementation of ERP systems are "A lot of security concerns" (T7), "The management of ERP projects is too complex" (P5) and "The inability to align the ERP solution with the business plans of the organisation" (P2). This study recommends that the findings of this work will help both local and international practitioners alike.

The Impact of ERP Systems on Organizational Performance

“…The process-oriented view of IT impacts claims that an organization must go through a requisite adaptation-transformational process as an implementation imperative before reaping any performance benefits from its ERP adoption (Barua et al, 1995;Häkkinen & Hilmola, 2008;Hu & Quan, 2003;Hustad & Stensholt, 2023;Lee et al, 2020;Watjatrakul & Vatanapitukpong, 2021). The absence of this adaptation and transformation stage, which engenders a poor fit between ERP systems and organizational business processes, has been widely recognized as the root cause of many ERP adoption failures (Amade et al, 2022;Hustad & Stensholt, 2023;Law & Ngai, 2007;Yen et al, 2011). ERP systems are designed and equipped with industry-standard best practices that force adopting organizations to undergo significant organization-wide process re-engineering and redesign changes to accommodate the new system (Law & Ngai, 2007;Yen et al, 2011).…”

“…It can be argued that organizations, with all their idiosyncrasies, exist in their own dynamic environments that are characterized with unique constraints and contextual factors. Consequently, the performance benefits of ERP systems are presumed to be influenced by an array of organizational and environment antecedents, which may include, inter alia, such factors as business process redesign, top management support, organizational culture, user training and support, and organization fit or alignment with the ERP system (Amade et al, 2022;Hasan et al, 2019;Tarigan et al, 2020;Vargas & Comuzzi, 2020). These factors serve as contextual elements characterizing the overall environment that determines the extent of the ultimate performance impact on the organization (Ruivo et al, 2014;Uwizeyemungu & Raymond, 2012).…”