Centralization and the success of ERP implementation

Nandi, Madhavi Latha and Kumar, Ajith J (2015) Centralization and the success of ERP implementation. TAPMI, Manipal.

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Abstract

Enterprise Resource Planning (ERP) systems have steadily attracted research and practitioner interest over the last two decades. We examine the association between centralization – a component of organization structure – and the success of ERP implementation in organizations. We treat ERP implementation as a form of organizational innovation. Our study is motivated by the presence of contrasting findings on the association between centralization and innovation. Drawing upon pertinent literature, we build a theoretical model that links centralization with the success of ERP implementation and do a PLS path analysis to test it, using data from a sample of 51 organizations in India. We find that policyrelated centralization negatively influences the acceptance of ERP by users, but has no influence on the extent of use of the ERP system. In contrast, work-related centralization positively influences acceptance and negatively influences use. Further analyses show that the negative association between policy-level centralization and acceptance is more in larger organizations. The contributions of this study lie in presenting and discussing the realization that overall, decentralization is favourable to the success of ERP implementation.

Item Type:	TAPMI Working Papers
Uncontrolled Keywords:	Policy-related centralization; work-related centralization; ERP use; ERP user acceptance; organizational innovation; ERP implementation success
Subjects:	Operations Management
Divisions:	Operations and Information Science
Depositing User:	Ms. Vanitha K
Date Deposited:	14 Nov 2018 07:15
Last Modified:	06 Dec 2018 10:59
URI:	http://tapmi.informaticsglobal.com/id/eprint/257

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