The Influence of Customer-Vendor Communication and Power Relations on Successful Implementation of Enterprise Resource Planning (ERP): The Mediation Role of ERP Fit

Authors

  • Tumsifu Elly University of Dar es Salaam
  • Victor Wilson University of Dar es Salaam

Abstract

The study investigates the influence of power relations and effective communication between ERP customers and vendors, on ERP fit and implementation success. Explanatory research involving a survey of 297 manufacturing firms in Tanzania was conducted. The data collected were analysed using partial least square structural equation modelling. The results indicate that manufacturers with higher levels of customer-vendor power relationships have a positive impact on ERP fit; at the same time, higher levels of ERP fit have a positive impact on implementation success. The results further show that effective communication between ERP customers and vendors has a positive relationship with ERP fit and ERP implementation success. ERP fit was also found to mediate ERP customer-vendor power relationships and ERP implementation success. A complementary partial mediation of ERP fit was found between effective ERP customer-vendor communication and ERP implementation success. The findings of this study extend the theoretical understanding of the interdependence of strategic alignment, power relations and relationship marketing in a long-term ERP customer-vendor relationship. This study departs from normative enactments that addressed task-technology fit, ease of use of technology    and system relevance, and considers the governance of the customer-vendor relationship as important to ERP implementation and success. The study recommends that sustainable relationships are indeed the precursor to ERP fit and implementation success. Otherwise, one-off, rushed purchases of off-the-shelf enterprise systems could result into implementation problems. Therefore, companies need to prioritize long-term, sustainable communication and relationships with vendors over short-lived acquisition, implementation and conversion strategies.

Author Biographies

Tumsifu Elly, University of Dar es Salaam

Senior Lecturer

Victor Wilson, University of Dar es Salaam

Lecturer

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Published

2022-12-31

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Vol. 25 No. 2 (2022): Business Management Review

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