FACTORS INFLUENCING EFFECTIVE IMPLEMENTATION OF ERP SYSTEMS IN PAKISTAN

In recent years, ERP has become fundamental tool for optimum planning and management of resources in large scale organizations. ERP’s significance depends on its effective implementation that involves multiple dimensions of various critical success factors. Research on this issue is not very old yet. Recent research suggests that implementation of ERP system is considered more critical that its acquisition because ultimate success of its use depends on its effective implementation. Despite rapid growth in adoption of ERP its desired outcomes are still overdue and lagging behind in both developed and underdeveloped countries including Pakistan. This study adopted quantitative approach to conduct an empirical investigation on critical success factors influencing effective implementation of ERP systems in Pakistan. Research framework includes 5 major dimensions focusing on key factors of ERP implementation extracted from recent literature. Data were collected using a researcher administered questionnaire survey based on adopted questionnaire with pre-validated scales. Sample covered individual employees from various organizations in Pakistan taken under simple random sampling technique. Data analysis included various statistical techniques. Demographics were analyzed in the form of descriptive statistics. Research framework variables were analyzed using techniques of Multiple Linear Regression and Pearson Correlation. Regression assumptions were tested successfully. Reliability and validity of measurement tool were also tested. Findings show that all the independent variables have significant impact on dependent variable but three variables are positive significant and two variables are negative significant. Thus, these results support three hypotheses (being positive significant) and does not support two hypotheses (being negative significant).Recommendations are provided for all the factors of this study based on theoretical significance and empirical evidence. Limitations and future research directions are also provided.Keywords: Project Management Resource Optimization, ERP, Enterprise Resource Planning, CSFs, Critical Success Factors, Dimensions of ERP Implementation, ERP System Implementation Success, Effective Implementation of ERP System