An empirical study on the influences on the acquisition of enterprise software decisions

Ramaraj Palanisamy, Jacques Verville, Christine Bernadas () and Nazim Taskin
Additional contact information
Ramaraj Palanisamy: Université Saint-Francis-Xavier (CANADA) - Université Saint-Francis-Xavier (CANADA)
Jacques Verville: UBC - University of British Columbia [Canada]
Christine Bernadas: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School
Nazim Taskin: UBC - University of British Columbia [Canada]

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Abstract: The purpose of this paper is to understand the decision process of enterprise software acquisition. The research aims to focus on identifying significant influences on enterprise software acquisition decisions. As a research model and theoretical background, the organizational buying model (OBB) is proposed for the acquisition of enterprise systems. Influences on enterprise software acquisition decision processes were found by an empirical study carried out from a practitioner's perspective. The study collected data via a mail survey administered to information systems (IS) professionals involved in the acquisition of enterprise software (ES). The survey questionnaire was developed based on a previous research project and a literature review. Organizational buying behavior (OBB) models in the literature served as the basis for the influences included in the survey instrument. Factor analysis was carried out on the survey data to identify the most significant factors/influences. The following five factors emerged as significant influences on the acquisition decision process of enterprise software: ES strategy and performance; BPR and adaptability; management commitment and user buy‐in; single vendor integrated solution; and consultants, team‐location, and vendor's financing. These factors are discussed and managerial implications are extracted. Conclusions are derived from the study findings and guidelines for further research are suggested. The present study provides a starting point for further research in understanding a more comprehensive list of influences on enterprise software acquisition. A bigger sample from more industries is required to examine whether the significance of the influences remains stable. Using OBB models has proven to be useful for organizations in making effective decisions on enterprise software acquisition.Abstract Purpose The purpose of this paper is to understand the decision process of enterprise software acquisition. The research aims to focus on identifying significant influences on enterprise software acquisition decisions. As a research model and theoretical background, the organizational buying model (OBB) is proposed for the acquisition of enterprise systems. Influences on enterprise software acquisition decision processes were found by an empirical study carried out from a practitioner's perspective. The study collected data via a mail survey administered to information systems (IS) professionals involved in the acquisition of enterprise software (ES). The survey questionnaire was developed based on a previous research project and a literature review. Organizational buying behavior (OBB) models in the literature served as the basis for the influences included in the survey instrument. Factor analysis was carried out on the survey data to identify the most significant factors/influences. The following five factors emerged as significant influences on the acquisition decision process of enterprise software: ES strategy and performance; BPR and adaptability; management commitment and user buy‐in; single vendor integrated solution; and consultants, team‐location, and vendor's financing. These factors are discussed and managerial implications are extracted. Conclusions are derived from the study findings and guidelines for further research are suggested. The present study provides a starting point for further research in understanding a more comprehensive list of influences on enterprise software acquisition. A bigger sample from more industries is required to examine whether the significance of the influences remains stable. Using OBB models has proven to be useful for organizations in making effective decisions on enterprise software acquisition.

Keywords: Computer software; Purchasing; Decision Making; Organizational Behavior (search for similar items in EconPapers)
Date: 2010-09-28
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Citations: View citations in EconPapers (3)

Published in Journal of Enterprise Information Management, 2010, 23 (5), pp.610-639. ⟨10.1108/17410391011083065⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03218579

DOI: 10.1108/17410391011083065

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