ONLINE RESOURCES for Grabski, Leech and Schmidt, “A Review of ERP Research: A Future Agenda for Accounting Information Systems,” Journal of Information Systems 2011 forthcoming. TABLE 1 Selected Literature - ERP Critical Success Factors (CSF) Author/year Somers, T. M., and K. Nelson. 2001. The impact of critical success factors across the stages of enterprise resource planning implementations. Proceedings, of the 34th Annual Hawaii International Conference on System Sciences HICSS-34. Nah, F. F.-H., J. L.-S. Lau, and J. Kuang. 2001. Critical factors for successful implementation of enterprise systems. Business Process Management Journal 7 (3): 285. Akkermans, H., and K. van Helden. 2002. Vicious and virtuous cycles in ERP implementation: A case study of interrelations between critical success factors. European Journal of Information Systems 11 (1): 3546. Stratman, J. K., and A. V. Roth. 2002. Enterprise resource planning (ERP) competence constructs: Two stage multi item scale development and validation. Decision Sciences 33 (4): 601-628. Theme of study Identify ERP CSF Method Literature Review and Survey Findings Identified 22 CSF Identify CSF Literature review Categorized 11 CSF according to ERP lifecycle model How to explain the initial failure and ultimate success of an ERP implementation. Develop and rigorously test multi-item scale ERP CSF are highly correlated. Changes in one would result in changes in most of the others. Nah, F. F. H., K. M. Zuckweiler, and J. L. S. Lau. 2003. ERP implementation: Chief Information Officers' perceptions of critical success factors. International Journal of Human-Computer Interaction 16 (1): 5-22. Survey of Fortune 100 CIOs to assess the criticality of 11 CSF identified in the literature Develop a standardized, validated instrument to measure ERP Case study of ERP success factors developed by Somers and Nelson (2001) Two stage normative scale development process is followed Survey of CIOs Sedera, D., and G. Gable. 2004. A factor and structural equation analysis of the enterprise systems success measurement model. Proceedings of the 37th Hawaii International Conference on System Sciences Model developed based upon literature and validated Identified portfolio of 8 generic constructs associates with ERP success. Identified top 5 CSF based upon CIO ranking. This included top management support, project champion, ERP team, project management, and change management program and culture. Four factors are identified, individual impact, organizational impact, system quality and information quality. (HICSS-37 2004), Big Island, Hawaii Song, M., and W. M. P. Van der Aalst. 2008. Towards comprehensive support for organizational mining. Decision Support Systems 46 (1): 300-317. success Applied TAM to investigation of ERP CSF Survey of 320 managers and structural equation Snider, B., G. J. C. da Silveira, and B. Jeep. 2009. ERP implementation at SMEs: Analysis of five Canadian cases. International Journal of Operations & Production Management 29 (1): 4. Explore CSF of SMEs Case study of five SMEs in Canada Perceived fit, compatibility of an ERP system and change management influence user adoption; top management support is critical to change management, business process and communication. Identified six CSF and four distinctive factors associated with SMEs. TABLE 2 Selected Literature - ERP Domain Specific (Country, Culture and Industry) Author/year Everdingen, Y. V., J. V. Hillegersberg, and E. Waarts. 2000. ERP adoption by European midsize companies. Association for Computing Machinery. Communications of the ACM 43 (4): 27. Theme of study To learn about developments and drivers for ERP adoption decisions in European mid-market. Method 1998 large European multi-country/multiindustry survey on adoption & adoption plans. Hayes, D. C., J. E. Hunton, and J. L. Reck. 2001. Market reactions to ERP implementation announcements. Journal of Information Systems 15 (1): 3. Capital market study of reactions to initial ERP announcements. Cross-industry event study measuring abnormal market returns. Huang, Z., and P. Palvia. 2001. ERP implementation issues in advanced and developing countries. Business Process Management Journal 7 (3): 276-284. Explores differences in ERP adoption between advanced and developing countries. Global trends in developing (China, India & Brazil) verses advanced countries (USA/CA, Europe & Japan). Hunton, J. E., B. Lippincott, and J. L. Reck. 2003. Enterprise resource planning systems: Comparing firm performance of adoptors and nonadoptors. International Journal of Accounting Information Systems 4 165-184. Laukkanen, S., S. Sarpola, and P. Hallikainen. 2007. Enterprise size matters: Objectives and constraints of ERP adoption. Journal of Enterprise Information Management 20 (3): 319 Mabert, V. A., A. Soni, and M. A. Venkataramanan. 2003. The impact of organization size on enterprise resource planning (ERP) implementations in the US Cross-industry study of supply chain process performance. Survey of financial key performance indicators for business processessupply chain. Finland Chronicle growth of ERP use in manufacturing industry to current Case study and survey methodologies in a phased approach. Findings European SME market in 1998 was a nascent but promising market projected at $50 billion/year. There is a lack of homogeneity in the European mid-sized ERP market. CSFs include fit with current business processes, low price and short implementation times. Support for firm size, firm financial strength & vendor prominence influencing reactions to ERP announcements. Most positive for small/healthy firms. Reactions most positive to prominent vendors. ERP systems encounter many challenges in developing countries related to economic, cultural, & infrastructure issues. Conceptualizes a framework categorized into national/environmental and organizational/internal factors with 5 variables per category. No difference between adoptors & nonadoptors but longer ERP experience revealed higher overall performance. Only ERP adopters with SCMS had higher performance at the business process level. Small firms were found to have significant knowledge constraints, while large firms have challenges relating to organizational changes. The key finding from this study is that companies of different sizes approach ERP implementations differently across a range of issues. Also, the benefits differ by company manufacturing sector. Omega 31 (3): 235246. Olhager, J., and E. Seldin. 2003. Enterprise resource planning: Survey of Swedish manufacturing firms. European Journal of Operational Research 146 (2): 365-373. Rasmy, M. H., A. Tharwat, and S. Ashraf. 2005. Enterprise resource planning (ERP) implementation in the Egyptian organizational context. Paper presented at European and Mediterranean Conference on Information Systems, Cairo, Egypt. Rikhardsson, P., and P. Kræmmergaard. 2006. Identifying the impacts of enterprise system implementation and use: Examples from Denmark. International Journal of Accounting Information Systems 7 (1): 3649. Schoenherr, T., M. A. Venkataramanan, A. Soni, V. A. Mabert, and D. Hilpert. 2005. The ”new” users: SMEs and the Mittelstand experience. Strategic ERP: Extension and use. Bendoly, E., and Jacobs, F. R. Stanford, CA, Stanford University Press. 36-51. Sia, S. K., M. Tang, C. Soh, and W. F. Boh. 2002. Enterprise resource planning (ERP) systems as a technology of power: Empowerment or panoptic control? Database for Advances in Information Systems 33 (1): 23. Spathis, C. 2006. Enterprise systems implementation and accounting benefits. pervasive levels. size. Studies Swedish manufacturing firms for ERP penetration, pre-implementation & experiences, configuration, benefits & future. CSF & Egyptian culture influences ERP implementation. Survey of professional members of PLAN (Swedish Production & Inventory Management Society). A cross-sectional survey of Egyptian ERP adopters, PLS. Swedish firms preferred to use European and Swedish ERP vendors. US firms provided more economic justification and were more optimistic about economic returns associated with the ERP systems. Denmark Exploratory research design, based upon on the case study methodology & grounded theory Find ERP facilitates change in the basic assumptions (e.g., predominant language, value, culture, etc.), processes, rules and procedures of organization. Organizational outcomes based on use. Culturalcharacteristics of German SMEs related to their use of ERP. A field study of 18 SME’s (revenues from $29-$460 million) using interviews. German SME’s are more representative of large firs than small.. They prefer a phased approach, like to customize to own business needs and, not surprisingly, SAP is the vendor of choice. Explores ERP as an ambivalent technology of power in a Singapore Hospital. Case study (implementation phase) & survey study (after implementation) ERP facilitates both empowerment & panoptic control. Employees empowered by ERP but management put efforts to regaining their lost control. New panoptic visibility was easily learned & accepted. Greece Survey of Greek ERP users The main accounting benefits from ERP system adoption are organizational and Organizational & ERP package fit was most important factor. Egyptian organizational culture hindered ERP success. Journal of Enterprise Information Management 19 (1/2): 67-82. Yeh, C., M. Miozzo, and T. Vurdubakis. 2006. The importance of being local? Learning among Taiwan's enterprise solutions providers. Journal of Enterprise Information Management 19 (1/2): 30. operational. Investigate role of domestic ERP vendors in Taiwan Collective case study of 14 ERP firms who design, deliver and support ERP in Taiwan. Domestic ERP vendors have an advantage in meeting special, localized requirements along with directly implementing own product, rather than having a consultant implement the software. TABLE 3 Selected Literature - ERP Organizational Impact Author/year Hunton, J., E. , A. Wright, M. , and S. Wright. 2004. Are financial auditors overconfident in their ability to assess risks associated with enterprise resource planning systems? Journal of Information Systems 18 (2): 7. Theme of study Examines financial auditor’s assessment of ERP vs. non-ERP risks in the presence of a control weakness over access privileges. Method Experimental method where system type (ERP vs. non-ERP) was manipulation. O'Donnell, E. 2005. Enterprise risk management: A systems-thinking framework for the event identification phase. International Journal of Accounting Information Systems 6 (3): 177-195. Describes a systemsthinking approach to identify events that should be considered during risk assessment. A risk assessment methods paper (nonempirical). Debreceny, R. S., G. L. Gray, J. Ng, K. Lee, et al. 2005. Embedded audit modules in enterprise resource planning systems: Implementation and functionality. Journal of Information Systems 19 (2): 7-27. Dillard, J., L. Ruchala, and K. Yuthas. 2005. Enterprise resource planning systems: A physical manifestation of administrative evil. International Journal of Accounting Information Systems 6 107– 127. Assesses the nature of support for embedded audit modules (EAMs) from ERP providers. Exploratory paper that addresses the lack of ERP research on embedded audit modules. This is a nonempirical theory paper. Critical theory is used to evaluate dominant ERP ideology and expose underlying assumptions. Investigate the negative potential of instrumental rationality acting in and through advanced IT. Findings Financial auditors do not see added reason to assess higher risk for ERP vs. non-ERP systems, nor are they inclined to consult IT specialists more for ERP systems. IT specialists do assess higher risks to ERP systems. Overall, financial auditors appear to be overconfident in their ability to assess ERP system risks. Systems-thinking approach to risk assessment proposes a) determine the organization's value chain to identify relationships, and (b) use the taxonomy to analyze relationships and identify events that could threaten business process performance. Found there was limited support for EAMs primarily a due to little demand from the user community. Vendors were consistent in their view that EAMs were technically feasible. When all activities are quantified this in turn dehumanizes actions and individuals resulting in abdication of moral responsibility. Management should explain how ERP design, application and implementation would be different from an approach implemented within a totalitarian Alles, M., G. Brennan, A. Kogan, and M. A. Vasarhelyi. 2006. Continuous monitoring of business process controls: A pilot implementation of a continuous auditing system at Siemens. International Journal of Accounting Information Systems 7 (2): 137-161. Kumar, V., R. Pollanen, and B. Maheshwari. 2008. Challenges in enhancing enterprise resource planning systems for compliance with SarbanesOxley Act and analogous Canadian legislation. Management Research News 31 (10): 758. Bonson, E., V. Cortijo, and T. Escobar. 2009. Towards the global adoption of XBRL using international financial reporting standards (IFRS). International Journal of Accounting Information Systems 10 (1): 46-60. A report on a continuous auditing project implementing a monitoring & control layer to continuously monitor business process controls. Investigate enhancing ERP systems for compliance with SOX and Canadian regulatory internal control requirements. Examines if global IFRS-GP taxonomy supports European firms’ financial reporting needs. A case study reporting on the experiences from a pilot implementation at one large company Case studies of 4 medium & large companies with operations in the USA and Canada that all use ERP systems. regime. Concludes that audit procedures & audit judgment can be more formally defined than is commonly expected or estimated. The management of audit alarms and the prevention of the alarm floods are found to be critical tasks in the continuous auditing implementation process In all four companies, existing ERP systems did not meet all control requirements without modifications or add-on applications. Major challenges included systems security, the segregation of duties and cultural issues especially resistance to change. Results provide guidance on the evaluation of IFRS-GP effectiveness and provide direction for further improvements of the IFRS-GP taxonomy. TABLE 4 Selected Literature - ERP Economic Impact Author/year Nicolaou, A. I. 2004. Quality of postimplementation review for enterprise resource planning systems. International Journal of Accounting Information Systems 5 (1): 25-49. Theme of study A literature review of ERP implementation studies is used to derive factors for ERP effectiveness implementations over time. Nicolaou, A. I. 2004. Firm performance Investigates how the effects in relation to the implementation long-term adoption and and use of enterprise resource planning use of ERP affects a systems. Journal of Information Systems 18 firm’s financial (2): 79-105. performance. Chand, D., G. Hachey, J. Hunton, V. Owhoso, et al. 2005. A balanced scorecard based framework for assessing the strategic impacts of ERP systems. Computers in Industry 56 (6): 558-572. Cotteleer, M. J., and E. Bendoly. 2006. Order lead-time improvement following enterprise information technology implementation: An empirical study. Management Information Systems Quarterly 30 (3): 643. Hendricks, K. B., V. R. Singhal, and J. K. Stratman. 2007. The impact of enterprise Proposes an ‘ERP Scorecard’ based on the balanced-scorecard framework for evaluating ERP system’s strategic contributions. The influence of enterprise systems implementation on operational performance, specifically, order lead times. The effect of enterprise systems (ERP, SCM, & Method Qualitative case study of two organizations following ERP implementation. Compared ERP adoption firms with a matched control group of non-adoptor firms, cross-sectionally and longitudinally (before and after adoption). Integrate Zuboff’s dimensions of automate, informate and transformate into the balanced scorecard framework. Quantitative: utilized lead-time information tracked in ERP (12 months pre to 24 months post implementation) Event study of abnormal returns. Findings Defines the construct of postimplementation review (PIR) quality consisting of five dimensions. Finds that the quality of PIR, and not merely the activity itself, that determines the effect on business performance. Provides a framework for PIR effectiveness research in future ERP studies. Found that firms who adopted ERP systems exhibited higher differential performance after two years relative to matched firms that did not implement ERP systems. Proposes that the ERP scorecard offers advantages including a methodology to assess ERP after implementation, a means to identify operational automation, new informational and innovative (transformational) impacts, & assess ERP at different stages. ERP supports significantly reduced order lead times. Pattern of lead times showed that, after ERP implementation, lead time initially improved, then declined, and then improved again. Study provides empirical evidence of ERP’s benefits to include swift, even production flow. Theory used was a subset of Mooney’s typology. Mixed results related to financial benefits. Regarding ERP systems, some evidence of systems on corporate performance: A study of ERP, SCM, and CRM system implementations. Journal of Operations Management 25 (1): 65-82. CRM) systems investments on stock price and profitability. Wier, B., J. Hunton, and H. R. HassabElnaby. 2007. Enterprise resource planning systems and non-financial performance incentives: The joint impact on corporate performance. International Journal of Accounting Information Systems 8 (3): 165-190. Nicolaou, A. I., and S. Bhattacharya. 2008. Sustainability of ERPs performance outcomes: The role of post-implementation review quality. International Journal of Accounting Information Systems 9 (1): 4360. Roztocki, N., and H. R. Weistroffer. 2008. Stock price reactions to investments in EAI and ERP: A comparative event study. Proceedings of the 41st Hawaii International Conference on System Sciences (HICSS-41), Hawaii Links ERP adoption market returns with non-financial performance incentives in executive compensation. Häkkinen, L., and O. Hilmola. 2008. ERP evaluation during the shakedown phase: Lessons from an after-sales division. Information Systems Journal 18 (1): 73. Explores the nature and timing of postimplementation activities Examined market reaction to both ERP & enterprise application integration announcements across markets (bull and bear) & firm financials. Takes a longitudinal view (at 0 & 2 years) of the use and evaluation of an ERP system. Measures abnormal performance as change in performance minus the median performance change of comparison group. improvements in profitability were seen, but not in stock returns. Found that improvements in profitability are stronger for early adopters of ERP systems. Firms with both non-financial performance incentives & ERP obtained significantly higher short-term & long-term ROA and stock returns than either of these single conditions. Used theory base of cybernetic control theory and agency theory. Qualitative archival study using the firm sample from Nicolaous (2004b). Coded activities found in ERP PIR announcements. Event studies review. ERP post-implementation activities to improve subsequent system implementation planning and business process improvements are most effective when undertaken soon. Waiting appears to have negative short-term financial impact. Financial markets differentiate among technologies in which companies invest to integrate their information systems. Influential factors include technology maturity, financial health of the investing company, & stock market conditions. A case study using the DeLone and McLean (1992) model to evaluate user perceptions & use. Poorest ERP assessments were given early during shakedown phase but problems existed after 2 years. Assessments depended on user type and the business process(es) in which they participated. APPENDIX Primary Journals in this Review (Cited two or more times in paper and online materials) Accounting, Organizations and Society Business Process Management Journal Communications of the ACM Communications of the Association for Information Systems Computers in Industry Decision Support Systems Database for Advances in Information Systems European Accounting Review European Journal of Information Systems Harvard Business Review Proceedings, International Conference on Information Systems 2008 Industrial Management & Data Systems Information & Management Information and Organization Information Management & Computer Security Information Systems Frontiers Information Technology & People International Journal of Accounting Information Systems International Journal of Enterprise Information Systems International Journal of Human-Computer Interaction International Journal of Information Management International Journal of Operations & Production Management International Journal of Production Economics International Journal of Production Research Journal of Enterprise Information Management Journal of Information Systems Education Journal of Information Systems Journal of Information Technology Journal of Management Information Systems Journal of Organizational Change Management Journal of Software Maintenance and Evolution: Research and Practice Journal of Strategic Information Systems Management Accounting Research Management Information Systems Quarterly New Technology Work and Employment Organization Science Proceedings, Hawaii International Conference on Systems Sciences (HICSS) Sloan Management Review Strategic Change Systems Practice The Internal Auditor The Journal of Computer Information Systems