Unraveling the Key Factors of Successful ERP Post Implementation in the Indonesian Construction Context

Abstract

Aim/Purpose: This study aims to evaluate the success of ERP post-implementation and the factors that affect the overall success of the ERP system by integrating the Task Technology Fit (TTF) model into the Information System Success Model (ISSM). Background: Not all ERP implementations provide the expected benefits, as post-implementation challenges can include inflexible ERP systems and ongoing costs. Therefore, it is necessary to evaluate the success after ERP implementation, and this research integrates the Task Technology Fit (TTF) model into the Information System Success Model (ISSM). Methodology: For data analysis and the proposed model, the authors used SmartPLS 3 by applying the PLS-SEM test and one-tailed bootstrapping. The researchers distributed questionnaires online to 115 ERP users at a construction company in Indonesia and successfully got responses from 95 ERP users. Contribution: The results obtained will be helpful and essential for future researchers and Information System practitioners – considering the high failure rate in the use of ERP in a company, as well as the inability of organizations and companies to exploit the benefits and potential that ERP can provide fully. Findings: The results show that Perceived Usefulness, User Satisfaction, and Task-Technology Fit positively affect the Organizational Impact of ERP implementation. Recommendations for Practitioners: The findings can help policymakers and CEOs of businesses in Indonesia’s construction sector create better business strategies and use limited resources more effectively and efficiently to provide a considerably higher probability of ERP deployment. The findings of this study were also beneficial for ERP vendors and consultants. The construction of the industry has specific characteristics that ERP vendors should consider. Construction is a highly fragmented sector, with specialized segments demanding specialist technologies. Several projects also influence it. They can use them to identify and establish several alternative strategies to deal with challenges and obstacles that can arise during the installation of ERP in a firm. Vendors and consultants can supply solutions, architecture, or customization support by the standard operating criteria, implement the ERP system and train critical users. The ERP system vendors and consultants can also collaborate with experts from the construction sector to develop customized alternatives for construction companies. That would be the most outstanding solution for implementing ERP in this industry. Recommendation for Researchers: Future researchers can use this combined model to study ERP post-implementation success on organizational impact with ERP systems in other company information systems fields, especially the construction sector. Future integration of different models can be used to improve the proposed model. Integration with models that assess the level of Information System acceptance, such as Technology Acceptance Model 3 (TAM3) or Unified Theory of Acceptance and Use of Technology 2 (UTAUT2), can be used in future research to deepen the exploration of factors that influence ERP post-implementation success in an organization. Impact on Society: This study can guide companies, particularly in the construction sector, to maintain ERP performance, conduct training for new users, and regularly survey user satisfaction to ensure the ERP system’s reliability, security, and performance are maintained and measurable. Future Research: It is increasing the sample size with a larger population at other loci (private and state-owned) that use ERP to see the factors influencing ERP post-implementation success and using mixed methods to produce a better understanding. With varied modes, it is possible to get better results by adding unique factors to the research, and future integration of other models can be used to improve the proposed model.