Determinants of ERPS-Fit and Impact on Firm Performance

Abstract

Despite the large number of publications addressing ‘critical success factors’ of ERP software implementations, very little is actually known about the impact of organizational fit of ERP systems on ERP implementation success (in terms of increased organizational performance). Our objective is to investigate the role of ERP fit in the implementation and operation of ERPS; we do so by developing and testing a model which (a) identifies the determinants of ERP fit and (b) links ERP fit to organizational performance. Our research builds on data which was collected through a large-scale mail survey and telephone interviews in an earlier research project in 2001. Our key findings suggest that the adoption and use of ERPS does lead to firm performance increases already within one year after the go-live date, and is then sustained over a period of at least another two years. One of the key determinants of sustained performance increases is the organizational fit of the ERPS, which is again driven by software quality and the quality of the integration (adaptation) mechanisms.