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The ERP Pur chase Decision: Influe ntial Business and IT Factors

Carol V. Brown · Iris Vessey · Anne Powell

29 citations0/0 files storedJournal of the Association for Information Systems

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ERP Systems Implementation and Impact Information Technology Governance and Strategy Corporate Governance and Management

Abstract

Our objective for this paper is to identify a parsimonious set of business and IT factors that are associated with the purchase of ERP systems. A survey instrument of 36 items that describe potential ERP package capabilities is developed after a review of prior literature. Based on factor analyses of the survey responses from 122 senior IS managers, four business factors (data integration, new ways of doing business, global capabilities, flexibility/agility) and four IT factors (IT purchasing, IT cost reduction, IT expertise, IT architecture) are identified. We also confirm that many of the ERP purchases in the last half of the 1990s were at least partially motivated by the avoidance of Year 2000 maintenance costs.

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1985How information gives you competitive advantage 2000The Enterprise System Experience— From Adoption to Success 1980Introduction to Factor Analysis: What It Is and How to Do It.n.d.ERP ADOPTION BY EUROPEAN MIDSIZE COMPANIES 1997Sap R/3 Business Blueprint: Understanding the Business Process Reference Model 1988Implementing Packaged Software 1998Sap R/3 Process Oriented Implementation 1998Enterprise-Wide Software Solutions: Integration Strategies and Practices

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2003Benefit realisation through ERP: the re-emergence of data warehousing 2011Differentiating weak ties and strong ties among external sources of influences for enterprise resource planning (ERP) adoption 2005Enterprise resource planning (ERP) diffusion and characteristics according to the system's lifecycle. A comparative view of small-to-medium sized and large enterprises.

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