Critical Success Factors of Enterprise Resource Planning Systems Implementation Success in China
Critical Success Factors of Enterprise Resource Planning Systems Implementation Success in China
Liang Zhang, Matthew K.O. Lee, Zhe Zhang1, Probir Banerjee Department of Information Systems, City University of Hong Kong, Hong Kong, China iszhang@is.cityu.edu.hk; ismatlee@cityu.edu.hk; ispb@is.cityu.edu.hk 1 Faculty of Business Administration, Northeastern University, Shenyang, China Zhangz27@hotmail.com
ERP systems were introduced to China at the beginning of 1980s when several state-owned companies adopted foreign ERP packages. Until now, nearly 1,000 companies in China have implemented material requirements planning (MRP), manufacturing resources planning (MRP II) or ERP systems. During the past twenty years, foreign ERP vendors dominated China’s ERP market in that ERP represents bestpractice process. Figure 1 describes 98’ ERP market share distribution in China, foreign ERP vendors took up more than 90 percent. In this pie chart, only Kingdee (2.3%) is a domestic ERP vendor. Thus, in this research foreign ERP packages are considered as the research objects. While a formal scheme for classifying ERP systems has long existed, its definition still differs widely among practitioners. Small companies may claim that a full-fledged ERP system has been implemented, while some big companies did not even think their systems have achieved MRP or MRP II. As a result, it is not meaningful to separate the different ERP versions. Thus, in this study, the term “ERP” is used as a general term to represent all ERP versions, namely, MRP (i.e., materials requirements planning), closed-loop MRP (i.e., MRP with capacity planning and shop floor), and MRP II (i.e., closed-loop MRP integrated with the other functions such as finance and marketing). The organization of this paper is as follows: in the next section, literature review is illustrated. Research methodology follows with literature review and research framework is developed after the literature review. In the section of
Liang Zhang, Matthew K.O. Lee, Zhe Zhang1, Probir Banerjee Department of Information Systems, City University of Hong Kong, Hong Kong, China iszhang@is.cityu.edu.hk; ismatlee@cityu.edu.hk; ispb@is.cityu.edu.hk 1 Faculty of Business Administration, Northeastern University, Shenyang, China Zhangz27@hotmail.com
ERP systems were introduced to China at the beginning of 1980s when several state-owned companies adopted foreign ERP packages. Until now, nearly 1,000 companies in China have implemented material requirements planning (MRP), manufacturing resources planning (MRP II) or ERP systems. During the past twenty years, foreign ERP vendors dominated China’s ERP market in that ERP represents bestpractice process. Figure 1 describes 98’ ERP market share distribution in China, foreign ERP vendors took up more than 90 percent. In this pie chart, only Kingdee (2.3%) is a domestic ERP vendor. Thus, in this research foreign ERP packages are considered as the research objects. While a formal scheme for classifying ERP systems has long existed, its definition still differs widely among practitioners. Small companies may claim that a full-fledged ERP system has been implemented, while some big companies did not even think their systems have achieved MRP or MRP II. As a result, it is not meaningful to separate the different ERP versions. Thus, in this study, the term “ERP” is used as a general term to represent all ERP versions, namely, MRP (i.e., materials requirements planning), closed-loop MRP (i.e., MRP with capacity planning and shop floor), and MRP II (i.e., closed-loop MRP integrated with the other functions such as finance and marketing). The organization of this paper is as follows: in the next section, literature review is illustrated. Research methodology follows with literature review and research framework is developed after the literature review. In the section of
References: 0-7695-1874-5/03 $17.00 © 2002 IEEE Implementation”, Production and Management Journal (3), 1997, pp