Prioritising critical failure factors for the adoption of ERP system using TOPSIS method

Santosh Kumar Yadav and Dennis Joseph

International Journal of Operational Research, 2020, vol. 39, issue 2, 145-159

Abstract: Enterprise resource planning (ERP) applications are complex and difficult to implement. Even after implementation many ERP projects are not used or adopted by employees. Organisations are struggling to convince and motivate employees to adapt smoothly to them. Several personal, managerial and organisational issues contribute to successful adoption. This research paper attempts to identify potential issues that lead to failures in the adoption of ERP systems in enterprises. Earlier studies have identified different contributing issues to the failure of ERP systems. A questionnaire was developed around these significant influencing issues reported in literature and industry people mostly senior managers having good experience with ERP systems were asked to rate the importance of these factors. TOPSIS method was applied to rank the factors based on their importance in the failure of ERP systems. From the results, it is found that poor top management support and poor quality of testing were the two most important critical failure factors for ERP adoption. While implementing ERP systems, an organisation has to give importance to these failure factors based on this rank to ensure ERP implementation success.

Keywords: enterprise systems; enterprise resource planning; ERP; ERP failure factors; ERP adoption; TOPSIS. (search for similar items in EconPapers)
Date: 2020
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