The factors causing the failure of foreign Enterprises Resource Planning (ERP)System in Pakistan

Abstract

Purpose: The basic purpose of the study is to examine the factors causing failure of Foreign Enterprises Resource planning (ERP) systems in Pakistan and to define parameters for the success. The foreign ERP systems include any software package imported from foreign countries. These packages are successful in foreign but most of them fail in Pakistan due to certain factors. Design/ Methodology: Study is based on interpretive philosophy and inductive reasoning approach is being used as the new issue has been addressed. Research describes the issue in terms of how/why/what etc. The concern is with the testing of qualitative and quantitative data analysis. Methodology of Interviews, questionnaires addressing the ERP providing company and organizations where ERP was implemented and failed and previous studies has been taken to test the validity of factors for the failure. Findings: After the tests, very strong interdependence of independent and dependent variable was found, ignoring any independent factor will lead to the failure of any foreign ERP system in Pakistan. Practical Implications: It is recommended that factors should be considered properly during implementation and if needs of the customer and other factors are not identified then the problem of failure will be in implementation process. Originality/Value: There are many examples for the failure of Foreign ERP systems like SAP, Oracle etc, in Pakistan. Most probably National Assembly, AGPR, NLC, Printing industry and Oil refineries etc, are example for the failure. This study defines the parameters and draws practical approaches to be followed during ERP implementation process in any organization. Keywords; ERP as Enterprises Resource Planning, Foreign ERP System as software solution of various foreign companies, Pakistan, BPR as Business Process Re-engineering,