Title: Enterprise resource planning in Nigerian service firms: a structural equation modelling approach

Authors: Olawumi Dele Awolusi; Tolutope Olubamiji Fakokunde

Addresses: Department of Business Administration, Faculty of Management Sciences, Ekiti State University, P.M.B 5363, Ado Ekiti, Ekiti State, Nigeria ' Department of Business Administration, Faculty of Management Sciences, Ekiti State University, P.M.B 5363, Ado Ekiti, Ekiti State, Nigeria

Abstract: This paper provides a holistic view of the ERP implementation process, by reviewing the hard and soft factors that cause success and failure for ERP implementation, as well as examine the effectiveness of the critical success factors (CSFs) of ERP on both primary (operational) and secondary (organisational) measures of business performance in Nigerian service firms. The aim was achieved through an experience survey using a questionnaire within 22 Nigerian service firms, with 590 randomly selected senior and management staff, which have implemented the ERP programme in the past decade. Using the framework from Markus and Tanis (2000) process-oriented ERP life cycle model, several hypotheses were tested, via structural equation modelling (SEM). With the exception of the influence of chartering phase CSFs on operational performance, findings suggests the positive effects of the CSFs of ERP on both operational and organisational performances of Nigerian service firms. In addition, this study also suggests the positive effects of the operational performance on organisational performance of Nigerian service firms.

Keywords: enterprise resource planning; ERP implementation; organisational performance; operational performance; factor analysis; multivariate analysis; service firms; Nigeria; services; structural equation modelling; SEM; critical success factors; CSFs.

DOI: 10.1504/IJMNE.2014.060868

International Journal of Management and Network Economics, 2014 Vol.3 No.2, pp.123 - 143

Available online: 01 May 2014 *

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