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KEY FACTORS SUPPORTING THE BENEFIT REALIZATION OF ERP SYSTEM ADOPTION: EMPIRICAL EVIDENCE FROM INDONESIAN COMPANIES


Iqbal Yulizar Mukti, Rajesri Govindaraju
Abstract

To increase the business performance, many organizations decide to adopt ERP system as their supporting information system. However, despite the enormous money and time invested in adopting the ERP system, many organizations still failed to fully realize the benefits. Previous studies found that to realize the benefits from of ERP system adoption, organizations should give more attention on post-project phase, especially on activities to achieve institutionalized ERP system, which is a condition when the ERP system is used as an integral part of in the organization and used comfortably by the users. In this regard, this study explores key factors that can positively contribute to institutionalizing the ERP system. An empirical test was conducted to Indonesian companies which already stepped into the post-project phase. Research model consisting factors that hypothetically affect to the institutionalized ERP system was developed in this study. Hypotheses test using partial least square method (PLS) shows that help desk quality and IS-Business ownership do significantly contribute positively to the institutionalized ERP, whereas user knowledge sharing, formalization of work procedure, and control mechanism do not. Further, the result shows that control mechanism significantly gives a negative contribution to the institutionalized ERP system. The practical implicationsof the findings and the direction for future study are discussed.

Volume 11 | 05-Special Issue

Pages: 164-175