The relationship of organization maturity level and enterprise resource planning (ERP) adoption: Case study: ERP implementation in Indonesian companies

Gede Rasben Dantes, Zainal Arifin Hasibuan

Research output: Chapter in Book/Report/Conference proceedingConference contribution

5 Citations (Scopus)

Abstract

The research was a preliminary study aimed at finding the relationship between the organization maturity level, implementation approach and Enterprise Resource Planning (ERP) implementation success. Seven companies which have implemented ERP system to support their operational were chosen as the object of the study, covering four different industrial sectors, namely: telecommunication, manufacturing, automotive and oil & gas companies. To address the study objectives, a survey of 35 respondents from these 7 companies was conducted. Survey results showed that based on Information System (IS) Roles, 29.05% of the companies were in the strategic level, 22.30% were in the managerial level and 48.65% were in the operational level. This demonstrates that organization maturity level did not automatically drive the organization to implement ERP. Other factors like technology trend, goverment policy, bank policy, political issue were more dominant factors to drive organization to adopt ERP rather than maturity level. The result of the study also shows that there is no pattern of relationship between organization maturity level and ERP implementation success. This implies that the implementation of ERP in those companies have been done trivially. The ERP Implementation Approach (X2) has more significant influence than does the Organization Maturity Level (X1) on ERP Implementation Success (Y). Based on Pearson Correlation Test, it is discovered that coefficient correlation between X1 and Y is 0.312. On the other hand, the coefficient correlation between X2 and Y is 0.703. It is also found that X1 and X2 do not have multicollinearity as an independent variables.

Original languageEnglish
Title of host publicationBusiness Transformation through Innovation and Knowledge Management
Subtitle of host publicationAn Academic Perspective - Proceedings of the 14th International Business Information Management Association Conference, IBIMA 2010
PublisherInternational Business Information Management Association, IBIMA
Pages2444-2456
Number of pages13
ISBN (Print)9780982148938
Publication statusPublished - 1 Jan 2010
Event14th International Business Information Management Association Conference, IBIMA 2010 - Istanbul, Turkey
Duration: 23 Jun 201024 Jun 2010

Publication series

NameBusiness Transformation through Innovation and Knowledge Management: An Academic Perspective - Proceedings of the 14th International Business Information Management Association Conference, IBIMA 2010
Volume4

Conference

Conference14th International Business Information Management Association Conference, IBIMA 2010
CountryTurkey
CityIstanbul
Period23/06/1024/06/10

Keywords

  • Enterprise resource planning (ERP)
  • ERP implementation success
  • Implementation approach
  • Organization maturity level

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    Dantes, G. R., & Hasibuan, Z. A. (2010). The relationship of organization maturity level and enterprise resource planning (ERP) adoption: Case study: ERP implementation in Indonesian companies. In Business Transformation through Innovation and Knowledge Management: An Academic Perspective - Proceedings of the 14th International Business Information Management Association Conference, IBIMA 2010 (pp. 2444-2456). (Business Transformation through Innovation and Knowledge Management: An Academic Perspective - Proceedings of the 14th International Business Information Management Association Conference, IBIMA 2010; Vol. 4). International Business Information Management Association, IBIMA.