ERP Critical success factors to enhance cross-functional integration.

Abstract

None of the prior studies have stated clearly and comprehensively on what are needed to be done in order to let ERP reaches its full potential on enhancing cross-functional integration level. As a result, the objective of this research is to gain an insight on the following research questions. (1) Why some ERP user organizations are successful in promoting cross-functional integration, while the others are not? (2) Is CSF the root cause of different levels of firm cross-functional integration after ERP implementation? (3) If yes, how they are put into practice so that it will enhance cross-functional integration? To gain in-depth knowledge, this study follows qualitative methodology, using multiple-case studies approach. As a result, the study proposes the definition of ERP success in terms of cross-functional integration from ERP experts along. Moreover, list of critical success factors that bring about higher level of cross-functional integration is proposed. Furthermore, the study finds out that the most crucial factor is the individuals who are “change agents” that drive the ERP project to its full potential of unifying cross-functional departments. Moreover, certain characteristics of change agents and the empowering factors that can strengthen their capability. Furthermore, insight on how organization have practically done to sustain or even improve cross functional integration through ERP systems overtime is discovered. The findings of this research should be able to trigger the new dimension of further development of theory about the relationship between ERP system and organization behaviour as well as the further research about sustainability factors that could improve organization performance through ERP usage.