Examining the role of organizational readiness in ERP project delivery

Abstract

Research studies have shown that organisational readiness (OGRD) is a significant antecedent to the adoption and post-implementation success of enterprise resource planning (ERP). However, whether OGRD is associated with factors critical to achieving the implementation of ERP has not been examined. We report an empirical study that examines whether OGRD is associated with four critical success factors (CSFs) known to be critical in helping to achieve effective implementation of ERP projects. These CSFs are project management, business process re-engineering, training and education and system integration. A conceptual model derived from the literature was tested on data collected from 217 organisations using structural equation modelling. The results show that OGRD is significantly and positively associated with all four CSFs. Theoretically, our findings extend knowledge of the relationships among factors considered antecedent to different stages of ERP projects. Managerially, this knowledge can help in better planning, management and control of ERP projects.