Critical elements that discriminate between successful and unsuccessful ERP implementations in Sri Lanka

Abstract

Purpose – The purpose of this paper is to explore enterprise resource planning (ERP) implementation project performance of successful and unsuccessful implementations; critical elements (CEs) that are conducive to success; and whether implementation project performance and CEs vary across the number of modules implemented, product type, and number of employees affected by the ERP. Design/methodology/approach – Survey research methodology was used and data collected from 74 ERP implementation projects in Sri Lanka. Data were analysed using descriptive statistics, independent sample t-test, one-way analysis of variance (ANOVA), and logistic regression. Findings – ERP implementation project performance significantly differs between successful and unsuccessful implementations. The importance given to CEs of training and education, user involvement, managing user expectations, interdepartmental cooperation, ERP teamwork and team composition, software development, testing and troubleshooting, project management, project champion, BPR and customisation, change management programme and culture, and effective communication significantly differ between successful and unsuccessful implementations. Although ERP implementation project performance does not vary by the number of ERP modules implemented, product type, and number of employees affected by the ERP, several CEs were found to vary by these three contextual variables. Originality/value – Despite extensive literature on ERP implementations, empirical studies are needed for a better understanding of CEs that are conducive to success. In the context of globalisation of business operations and interlocking supply chains, research on CEs that are conducive to success in Sri Lanka is interesting, relevant and timely, since there is an increasing interest in understanding the work environment in Asia.