The Determinants of Enterprise Resource Planning System Implementation using Modified DeLone & McLean Model of Information System Success

Abstract

Consumer Goods Ltd. has implemented an ERP system, namely, SAP (System Application & Product in Data Processing). This system has been used for more than 17 years. In its development, it has become the backbone and core system. The objective of this study is to measure the level of success of the implementation of its ERP system. The study aimed to investigate the benefit obtained from the application, which parts of the system needed revision, improvement, or need maintenance. This study adopted the Delone McLean Information System Success model (2003), using the SEM Partial Least Square method. The results showed that the system use Variable was significantly influenced by the information quality and service quality variables. The user satisfaction variable was significantly influenced by the variable system quality and service quality and system usage. The net benefit variable was significantly influenced by the system use variable and user satisfaction and the system quality variable. System quality variables provided the most powerful influence on the net benefits of implementing the ERP SAP system. Information quality and service quality variables proved not to have a significant effect on the net benefits.