(Luận văn) critical success factors of enterprise resource planning systems implementation success in vietnam

t to MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  ng hi ep w n LÊ THỊ THU CHUNG lo ad ju y th yi pl CRITICAL SUC CESS FACTORS OF ua al n ENTERPRISE RESOURCE PLANNING n va ll fu SYSTEMS IMPLEMENTATION SUCCESS m oi IN VIETNAM at nh z z k jm ht vb om l.c gm THESIS OF MASTER OF BUSINESS ADMINISTRATOR an Lu n va ey t re HO CHI MINH CITY – 2012 t to MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  ng hi ep LE THI THU CHUNG w n lo ad ju y th CRITICAL SUCCESS FACTORS OF yi ENTERPRISE RESOURCE PLANNING pl al n ua SYSTEMS IMPLEMENTATION SUCCESS va n IN VIETNAM ll fu oi m Code: 06.34.01.02 at nh Subject: Master of Business Administrator z z jm ht vb k THESIS OF MASTER OF BUSINESS ADMINISTRATOR om l.c gm ADVISOR: an Lu DR NGUYỄN THỊ NGUYỆT QUẾ n va ey t re HO CHI MINH CITY – 2012 i t to ng ACKNOWLEDGEMENT hi ep I would like to take this opportunity to express my gratitude to all those w who have helped and supported me during the time I conducted the study n lo First of all, I would like to express my deepest gratitude to my advisor, ad y th Dr Nguyen Thi Nguyet Que, for her generous and patient guidance to my ju thesis Her inspiring advices are extremely essential and valuable for me to yi pl finish this thesis The advisor is very knowledgeable, professional, and nice to al n n va be her student ua me all the time I feel very lucky and deeply appreciate her to give a chance to oi m their enthusiastic support ll fu Secondly, I would like to show sincere gratitude to faculty members for at nh Thirdly, I would like to send special thank you to my friends, members z of ERP forum, my work partners who supportively help me so much to z k jm main study ht vb finalize the questionnaire, take part in the survey for pilot test as well as the gm Lastly, I would like the send the most special thanks to my family, an Lu n va Le Thi Thu Chung Ho Chi Minh, October 2012 om and encouragement l.c especially my parents who are always there for me with so much love, care ey t re ii t to ng COMMITMENT hi ep I hereby would like to commit that the thesis, “Critical success factors w of Enterprise Resource Planning systems implementation success in Vietnam”, n lo was accomplished based on my independent and serious studies and ad y th researches The data was collected in reality and it has clear origins In ju addition to that, the data would be trust-worthily handled and it has never yi pl been released in any menu ua al Le Thi Thu Chung n n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re iii t to TABLE OF CONTENT ng hi ACKNOWLEDGEMENT I ep COMMITMENT II w n TABLE OF CONTENT III lo ad LIST OF TABLE V y th LIST OF FIGURE VI ju yi ABSTRACT .1 pl ua al CHAPTER INTRODUCTION .2 n 1.1 Research background 1.2 Research questions and objectives 1.3 Practical significances of the study 1.4 Scope and approach 1.5 Research method 1.6 Structure of the thesis n va ll fu oi m nh CHAPTER LITERATURE REVIEW at 2.1 Definition of ERP 2.2 Situation of ERP in Vietnam 10 2.3 Proposed conceptual model and hypotheses 11 z z vb jm ht CHAPTER 25 k 3.1 Research purpose .25 3.2 Research design 26 3.3 Questionnaire design 27 3.3.1 Questionnaire development 27 3.3.2 Questionnaire translation .31 3.4 Research strategy 32 3.4.1 Qualitative pilot study 32 3.4.2 Quantitative pilot study .32 3.5 Targeted population 33 3.6 Research sampling 33 om l.c gm an Lu n va ey 4.1 Descriptions of sample 38 4.2 Reliability and validity of the measurement scale 40 4.3 Testing the research model and the hypotheses 45 t re CHAPTER 38 iv t to 4.3.2 Testing hypothesis 49 4.3.3 Testing the moderating relationship .50 4.3.4 Description of statistics of overall ERP implementation success 55 4.4 Findings 56 ng hi ep CHAPTER 58 5.1 Discussion of findings 58 5.2 Practical implications 59 5.3 Contribution of the current study 61 5.4 Limitation and future research 61 w n lo ad y th LIST OF REFERENCE 63 ju APPENDIX .6973 yi pl APPENDIX 73 al n ua APPENDIX 80 n va APPENDIX 84 ll fu APPENDIX 87 oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re v LIST OF TABLE t to Table 1: ERP systems history ng Table 2: Unified CSFs model by Esteve & Pastor (2000) 12 hi ep Table 3: 22 CSFs proposed by Somers & Nelson (2001) 13 Table 4: seven broad categories of CSFs by Nah & Delgado (2006) 13 Table 2.5: Eleven key CSFs by Nah, Lau & Kuang (2003) 14 w n Table 6: Four CSFs and moderator proposed by Nah et al (2007) 15 lo ad Table 2.7: Measurement of ERP implementation success by Petroni (2002) 23 y th Table 3.1: Survey items in the study 29 ju Table 4.1: Sample characteristics 39 yi Table 4.2: Reliability of scales 40 pl Table 4.3: KMO and Barlett's Test (DV) 43 al ua Table 4.4: Total variance explained 43 n Table 4.5: Rotated Component Matix(a) 44 va Table 4.6: Correlation of constructs 45 n ll fu Table 4.7: Model sumary(b) (MRL) 47 oi m Table 4.8: ANOVA (Regression) 47 nh Table 4.9: Coefficients (Regression) 47 at Table 4.10: Testing H1, H2, H3, H4 49 z Table 4.11: Model Summary of H5 51 z ht vb Table 4.12: Coefficients of H5 hierarchical regression 51 jm Table 4.13: Model summary of H6 51 k Table 4.14: Coefficients of H6 hierarchical regression 52 gm Table 4.15: Model Summary of H7 52 l.c Table 4.16: Coefficients of H7 hierarchical regression 53 om Table 4.17: Model summary of H8 53 an Lu Table 4.18: Coefficients of H8 hierarchical regression 54 Table 4.19: Testing H5, H6, H7, H8 54 n va Table 4.20: Descriptive statistic of ERP 55 ey t re Table 4.21: Levels of importance of factor 56 vi t to LIST OF FIGURE ng Figure 2.1: Modules of ERP system hi ep Figure 2.2: Proposed conceptual framework 16 w Figure 3.1: Research procedure 26 n lo Figure 4.1: The revised research model 55 ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re ABSTRACT t to ng hi Enterprise resource planning (ERP) systems with high level of integration ep can help improve capability of customer service, productivity, cost reduction, inventory turnover and provide effective supply chain management and e-commerce w n ERP has been widely adopted in many countries, but in Vietnam it is still very lo ad limited Trend of globalization and fierce competition push Vietnamese enterprises y th into having effective management and optimize cost However, there have been ju yi many failed attempts in implementing ERP systems This research aims to examine pl the critical success factors of success of ERP implementation ua al The study was conducted in twenty five companies in Hochiminh, Dong Nai, n n va and Binh Duong (out of eighty one companies throughout Vietnam) with “go live” ll fu ERP systems The results of the study indicate Top management support, oi m Teamwork, Enterprise-wide communication and Project management program as critical success factors of ERP implementation success The results also show that nh at Organizational culture is the moderator which positively moderates the relationships z z between Top management support, Teamwork, Enterprise-wide communication, ERP implementation success k jm ht vb Project management program and om l.c gm an Lu n va ey t re t to ng CHAPTER hi ep INTRODUCTION w 1.1 Research background n lo For the last few decades, business management strongly relies on the ad y th information The use of Management Information system (MIS) is being proved to ju lead to better planning, better decision making and better result MIS is defined by yi Davis and Olsen (1985) as an integrated user-machine system for providing pl ua al information to support information management and decision making functions in n an organization This study will look into one of the most advanced and n va sophisticated MIS, the Enterprise Planning System (ERP) and the critical success ll fu factors for its successful implementation oi m Generally, ERP systems help organizations increase level of customer nh service, productivity, cost reduction, inventory turnover and provide effective at supply chain management and e-commerce The ERP systems are designed to z z develop plans and schedules so that the right resources (manpower, material, vb Kremzar, 2001) k jm ht machinery and money) are available in the right amount when needed (Wallace and gm In reality, ERP implementation is costly, complicated and time-consuming l.c According to survey result in 2010 by Panorama Consulting Group, on average, an om ERP project takes about 18.4 months with total cost of $6.2 mil 51.4 % of ERP an Lu projects exceed budget, 35.5% of projects take longer than expected duration and 40% of company face with operational disruption after “go-live” In extreme cases, n va companies have even had to close because of vast ERP investments that did not go ey (Scott and Vessey, 2002) t re live, an example being the FoxMeyer Drug Company that ends into bankruptcy