vii
TABLE OF CONTENTS
CHAPTER
1
2
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiii
LIST OF FIGURES
xiv
LIST OF APPENDICES
xvi
INTRODUCTION
1
1.1
Introduction
1
1.2
Problem Background
3
1.3
Research Questions
5
1.4
Research Objectives
6
1.5
Scope of Research
6
1.6
Importance of the Research
7
1.7
Chapter Summary
9
LITERATURE REVIEW
10
2.1
Introduction
10
2.2
Leaderships
12
2.2.1
Transformational Leadership
12
2.2.2
Transformational Project Manager
12
2.2.3
Project Management Leadership
13
viii
2.3
2.4
Critical Success Factors of ERP Implementation
14
2.3.1
Executive Management Support
15
2.3.2
Project Champion or Sponsor
15
2.3.3
Project Management
15
2.3.4
Steering Committee
16
2.3.5
Engagement of Independent ERP Consultants
16
2.3.6
Business Process Engineering (BPR)
16
2.3.7
ERP Vendor Selection
17
2.3.8
Effective Communication
17
2.3.9
Change Management
17
2.3.10 Risk Management
18
2.3.11 Use of Vendor’s Development and
Acceleration Tools
18
2.3.12 Project Team Composition and Competencies
19
2.3.13 ERP Vendor and Customer Partnership
19
2.3.14 User Involvement
19
2.3.15 Team and Users Training and Education
20
2.3.16 Clear Understanding of Strategic Goals and
Objectives
20
2.3.17 Managing Expectations
20
2.3.18 Minimal Customization
21
2.3.19 Dedicated Resources
21
2.3.20 Technological Infrastructure
22
2.3.21 Data Analysis and Conversion
22
Critical Failure Factors of ERP Implementation
22
2.4.1
Poor Top Executive Support and
Commitment
23
2.4.2
Poor Project Management Effectiveness
23
2.4.3
Poor Change Management
23
2.4.4
Poor Consultant Effectiveness
23
2.4.5
Poor Quality Business Process Reengineering
24
2.4.6
Unrealistic Expectations from Top Executive
24
2.4.7
ERP Software Misfit
24
2.4.8
Poor Communication
24
ix
2.4.9
25
2.4.10 Unclear Requirements
25
2.4.11 Poor Data Conversion and Integration
25
2.4.12 Poor IT Infrastructure
26
2.4.13 Team Member’s High Turnover
26
2.4.14 Poor Training and Education
26
2.4.15 Unrealistic Schedule Estimates
27
2.4.16 Unrealistic Budget Estimates
27
2.4.17 Users’ Resistance to Change
27
2.4.18 Poor Quality Tests
27
2.5
Business Process Reengineering (BPR)
28
2.6
ERP Implementation Methodology
29
2.6.1
Big Bang
29
2.6.2
Phased Rollout
30
2.7
PMI Project Management Body of Knowledge
31
2.8
Project Management Methodology
33
2.8.1
2.9
PRINCE2 (Projects IN Controlled
Environments)
34
2.8.2
Goal Direct Project Management (GDPM)
36
2.8.3
Method123 Project Management
Methodology (MPMM)
38
Project Management Approach to ERP
Implementation
42
2.9.1
Initiating – Project Preparation
43
2.9.2
Planning – Business Blueprinting
43
2.9.3
Executing – Realization
44
2.9.4
Monitoring and Controlling – Final
Preparation
45
Closing – Go Live and Support
46
2.9.5
2.10
3
Over-reliance on Extensive Customization
Chapter Summary
47
RESEARCH METHODOLOGY
48
3.1
Introduction
48
3.2
Research Methods and Methodology
48
x
4
3.2.1
Research Method
48
3.2.2
Research Methodology
49
3.3
Design of Operational Framework
49
3.4
Method of Data Collection
54
3.4.1
Secondary Data Collection
54
3.4.2
Primary Data Collection
55
3.5
Sources of Information
55
3.6
Tools for Data Collection
55
3.7
Data Analysis
56
3.8
Chapter Summary
58
RESEARCH MODEL AND HYPOTHESES
DEVELOPMENT
59
4.1
Introduction
59
4.2
Leadership Core Competencies of a
Transformational Project Manager
59
4.3
Hypotheses Formulation
61
4.4
Hypotheses Development
64
4.4.1
4.4.2
4.4.3
4.4.4
4.4.5
4.4.6
4.4.7
4.4.8
4.4.9
Strategic Coordination of Top Executive’s
Support and Commitment
64
Deep Knowledge of Organization’s Business
Practice and Strategic Direction
64
Development and Managing Effective ERP
Implementation Project Team
65
Coordinating Appropriate ERP Training and
Education for the Organization
65
Application of Effective and Strategic
Change Management Process
66
Enforcement of Effective and Strategic
Change Management Process
66
Building and Managing Effective Project
Teamwork
67
Empowerment of ERP Implementation Team
to Make Decisions
67
Creating Motivation and Satisfaction among
Team Members
68
4.4.10 Application of Dynamic Project Management
xi
Strategies and Methodologies
4.5
5
Chapter Summary
68
70
DATA COLLECTION, ANALYSIS, AND RESULTS
71
5.1
Introduction
71
5.2
Research Instrument
72
5.3
Research Sample
72
5.4
Data Collection
73
5.5
Initial Findings from the Questionnaire
74
5.6
Demographic Findings
75
5.7
Hypotheses Findings
77
5.7.1
5.7.2
5.7.3
5.7.4
5.7.5
5.7.6
5.7.7
5.7.8
5.7.9
5.8
5.9
Strategic Coordination of Top Executive’s
Support and Commitment
77
Deep Knowledge of Organization’s Business
Practice and Strategic Direction
78
Development and Managing Effective ERP
Implementation Project Team
79
Coordinating Appropriate ERP Training and
Education for the Organization
80
Application of Effective and Strategic Risk
Management Process
81
Enforcement of Effective and Strategic
Change Management Process
82
Building and Managing Effective Project
Teamwork
83
Empowerment of ERP Implementation Team
To Make Decisions
84
Creating Motivation and Satisfaction among
Team Members
85
5.7.10 Application of Dynamic Project Management
Strategies and Methodologies
86
PLS (Partial Least Square) Path Modelling
87
5.8.1
Reflection Measurement Model
87
5.8.2
Structural Model
88
Statistical Analysis
88
5.9.1
89
Bootstrapping
xii
5.9.2
5.10
5.11
6
PLS Algorithm
89
Results
91
5.10.1 Path Coefficients
91
5.10.2 Composite Reliability, AVE, R Square, and
Cronbach’s Alpha
93
5.10.3 Latent Variable Correlation
95
5.10.4 Cross Loading
95
Chapter Summary
99
CONCLUSION AND FUTURE WORK
100
6.1
Introduction
100
6.2
Research Contributions
100
6.2.1
Theoretical Implications
102
6.2.2
Practical Implications
102
6.3
Conclusions
103
6.4
Limitations and Recommendations for Future Work
108
REFERENCES
Appendices A - C
110
116 - 131
xiii
LIST OF TABLES
TABLE NO.
TITLE
PAGE
2.1
Overview of Goal Directed Project Management
38
3.1
Description of Operational Framework
52
4.1
Leadership core competence qualities reference
69
5.1
Hypotheses abbreviations
91
5.2
Path coefficients
93
5.3
Composite reliability, AVE, R Square, and
Cronbach’s alpha
94
5.4
Latent variable correlation
95
5.5
Cross Loading
96
5.6
Hypotheses testing
97
5.7
Summary of Hypotheses testing
98
xiv
LIST OF FIGURES
FIGURE NO.
TITLE
PAGE
1.1
Research Strategy Diagram (RSD)
8
2.1
Literature Map Diagram (LMD)
11
2.2
Prince2 processes
35
2.3
People System Organization (PSO) project
37
2.4
MPMM project management lifecycle
40
2.5
Six steps of MPMM initiation phase
40
2.6
Ten steps of MPMM planning phase
41
2.7
Three steps and nine management task of MPMM
executive Phase
41
2.8
Two steps of MPMM closure phase
42
3.1
Operational Framework
51
4.1
Leadership core competence model of an ERP
Implementation project
60
5.1
Years of ERP working experience
75
5.2
Types of respondents
75
5.3
Type of ERP modules used by respondents
76
5.4
Size of employees in respondents’ organizations
76
5.5
Strategic coordination of top executive’s support
and commitment
78
Deep knowledge of organization’s business practice
and strategic direction
79
Development and managing effective ERP
implementation project team
80
Coordinating appropriate ERP training and
education for the organization
81
Application of effective and strategic change
eanagement process
82
5.6
5.7
5.8
5.9
5.10
Enforcement of effective and strategic change
xv
management process
83
5.11
Building and managing effective project teamwork
84
5.12
Empowerment of ERP implementation team to
make decisions
85
Creating motivation and satisfaction among team
members
86
Application of dynamic project management
strategies and methodologies
87
5.15
Bootstrapping computation
89
5.16
PLS algorithm computation
90
5.13
5.14
xvi
LIST OF APPENDICES
APPENDIX
TITLE
PAGE
A
Research Questionnaire
116
B
PACIS2013 Acceptance Letter
123
C
PACIS2013 Accepted Paper
124