International Business Management

Year: 2018
Volume: 12
Issue: 1
Page No. 10 - 22

ERP Implementation Failures in Saudi Arabia: Key Findings

Authors : Mohannad Alsayat and Mamdouh Alenezi

Abstract: This research aims to investigate the factors that contribute to Enterprise Resource Planning (ERP) implementation failure in Saudi Arabia (SA). The initial findings of this study were based on the existing research that examined this subject from both international and Saudi Arabian perspectives. The outcome of the literature review suggested that factors such as lack of senior management commitment, ineffective communication with users, failure to gain user support and ineffective change management, to name a few, tend to result in ERP implementation failure. While the research carried out by Saudi Arabian scholars also alluded to similar factors, exploration of one of the most famous cases in SA (i.e., MADAR) indicated that the following three factors played the most critical role in ERP implementation failure in the organisation: the business process engineering was not in place, the size of customisation was not measured and understood, the ERP implementation was not analysed properly and the management failed to rally all those involved in the project (both internal and external participants) behind the implementation process which led to its failure. Based on the findings of the literature review section four hypothesises were developed and tested through collection and analysis of secondary and primary data (5 interviews and 150 questionnaires). The result of data analysis led to acceptance of all 4 hypothesis while other factors such as change management and senior management commitment were also considered as significant contributors to ERP implementation failure in Saudi Arabia.

How to cite this article:

Mohannad Alsayat and Mamdouh Alenezi, 2018. ERP Implementation Failures in Saudi Arabia: Key Findings. International Business Management, 12: 10-22.

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