A Primary Human Critical Success Factors Model for the ERP System Implementation

Abstract

Abstract Background and Purpose: Many researchers have investigated various Critical success factors (CSFs) and the different causes of ERP implementation project failures. Despite a detailed literature preview, we were unable to find an appropriate research with a comprehensive overview of the true causes behind CSFs, observed from a human factors perspective. The objective of this research was therefore to develop and evaluate the Primary human factors (PHFs) model and to confirm the significant impact of PHFs on traditional CSFs and on the project success. Design/Methodology/Approach: The comprehensive PHFs research model was developed and examined in empirical quantitative research with the use of available literature and the application of the Root cause analysis. A survey was conducted in various Slovenian organisations in different branches that had previously implemented the ERP system SAP. The model was verified on a sample of 21 experts from 18 organisations. Results: The results show that the PHFs have a significant positive impact on the ERP implementation project success, but only the Competence and Team composition factors are significant linear predictors in an adapted regression model and contribute significantly in predicting project success. These results therefore confirm both proposed hypotheses and the adapted regression model. Conclusion: This study improves the understanding of PHFs and confirms that they have a significant impact on traditional CSFs and the ERP implementation project success. The proposed PHFs model offers project managers and other stakeholders an effective risk assessment of CSFs and is leading the way to human oriented model of ERP implementations.