Identification and Assessment of Risks to Successful Exploitation of ERP Systems in China

5th European and Mediterranean Conference on Information Systems, Dubai, UAE, May 25-26, 2008

13 Pages Posted: 10 Jun 2009

See all articles by Guo Chao (Alex) Peng

Guo Chao (Alex) Peng

University of Sheffield - Department of Information Studies

Miguel Baptista Nunes

affiliation not provided to SSRN

Abstract

The research presented in this paper aims at identifying, assessing and discussing potential risks that Chinese State Owned Enterprises (SOE) may encounter when using, maintaining and enhancing their Enterprise Resource Planning (ERP) systems in the post-implementation phase. The need for the research emerged from the growing awareness in the filed that there is a lack of studies addressing the organisational exploitation of ERPs after the implementation stage.

The study adopted a deductive research design based on a cross-sectional questionnaire survey. This survey was preceded by a Political, Economic, Social and Technological (PEST) analysis and a set of Strength, Weakness, Opportunity and Threat (SWOT) analyses. The PEST and SWOT analyses enabled the researchers to narrow the scope of the study and identify an appropriate industry sector and region to base the study on, namely the Electronic and Telecommunication Manufacturing Sector in Guangdong province. The questionnaire design was based on a theoretical risk ontology drawn from a systematic literature review process, which consisted of 40 predefined ERP risks. The questionnaire was sent to the operational managers and the information technology (IT) managers of 118 SOEs in Guangdong in China, from which 42 (84 questionnaires) valid and usable responses were received and analysed.

The findings identified a set of 16 top prioritised ERP exploitation risks, which concentrate around operational, analytical, organisation-wide and technical issues. The study also explored and identified 10 correlations between the risks identified.

Keywords: Enterprise Resource Planning, Risks, Post-Implementation, China

Suggested Citation

Peng, Guo Chao and Nunes, Miguel Baptista, Identification and Assessment of Risks to Successful Exploitation of ERP Systems in China. 5th European and Mediterranean Conference on Information Systems, Dubai, UAE, May 25-26, 2008, Available at SSRN: https://ssrn.com/abstract=1416838

Guo Chao Peng (Contact Author)

University of Sheffield - Department of Information Studies ( email )

Regent Court
211 Portobello Street
Sheffield, S1 4DP
United Kingdom

Miguel Baptista Nunes

affiliation not provided to SSRN ( email )

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