Critical success factors of enterprise resource planning systems implementation success in China

Abstract

ERP implementation issues have been given much attention since two decades ago due to its low implementation success. Nearly 90 percent of ERP implementations are late or over budget (Martin, 1998) and the success rate with ERP implementation is about 33%. In China, the success rate of implementing ERP systems is extremely low at 10% (Zhu and Ma, 1999) which is much lower than that in West countries. This study attempts to study critical success factors affecting enterprise resource planning (ERP) systems implementation success in China with focus on both generic and unique factors. User satisfaction and White's ABCD classification method are used to judge whether an ERP system implementation is a success or a failure. Survey methodology and structural equation modeling technique of PLS-graph are used to collect and analyze data. Discussions on the results of data analysis are made.