Authors: Satya S. Chakravorty; Ronald E. Dulaney; Richard M. Franza
Addresses: Department of Management and Entrepreneurship, Michael J. Coles College of Business, Kennesaw State University, 560 Parliament Garden Way, MD #0404, Kennesaw GA 30144-5591, USA ' School of Business, Clayton State University, 2000 Clayton State Boulevard, Morrow GA 30260-8285, USA ' Michael J. Coles College of Business, Kennesaw State University, 560 Parliament Garden Way, MD #0401, Kennesaw GA 30144-5591, USA
Abstract: Despite the pervasiveness of ERP systems, there is a serious concern regarding the failure of ERP implementations. One explanation for many ERP implementation failures may be 'escalation of commitment'. Escalation of commitment refers to the propensity of decision-makers to continue investing in a failing course of action. Using escalation of commitment as a framework, this research describes an ERP implementation failure in a packaging manufacturing company and makes two significant contributions. First, this research describes the dynamics of 'real world' ERP implementation failures. Second, in studying these dynamics, relevant insights for improving ERP implementation successes are provided for both academicians and practioners.
Keywords: enterprise resource planning; ERP implementation; implementation failure; decision making; case study; escalation of commitment; packaging manufacturing.
International Journal of Business Information Systems, 2016 Vol.21 No.4, pp.462 - 476
Received: 23 Sep 2014
Accepted: 01 Nov 2014
Published online: 09 Mar 2016 *