Effect of organizational culture and top management support on ERP implementation
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Date
2013
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University of Management and Technology
Abstract
The sole purpose of this research is to study the relationship and impact of different factors on ERP implementation. Although there are many critical factors influencing in the process of successful ERP implementation. But in this research top management support and organizational culture are studied as influencing factors with ERP implementation because they are mentioned as one of highly influential factors in foreign as well as in local studies. Data has been collected from Sialkot for testing the hypothesis. Organizations representing all major sectors are included in the sample. Responses have been taken from the all employees working on ERP system irrespective of their position in the organization. Few amendments have been made in the adopted instruments in the lights of suggestions of independent reviewers. Cornbach Alpha test is applied on the data to further validate the instruments. Regression analysis is used to study the impact of organizational culture and top management support on ERP implementation. Results suggest that there is sufficient impact of independent variables (individually as well as collectively) on dependent variables and the impact is significant also. It is also found out that the collective impact of both independent variables is greater than their individual impact. Furthermore, there is also a strong positive correlation in independent and dependent variable. The collective variance explained by independent variables on dependent variable is less than 40% indicating that there are many other factors influencing ERP implementation other than the two (organizational culture and top management support) studied in this research. This result also support the literature as there are approximately 24 factors identified in the literature as critical success factors for ERP implementation. This proves to be a pioneer study in this area of research in Pakistan. The results may help the top managers to consider the factors identified in the research before implementing ERP projects in order to save financial as well as human resources. This study invites other researchers to identify other factors influencing the ERP projects and find out their impact in other major industries of Pakistan.
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Keywords
MS Thesis, Management, Oranizational culture