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The Effect of ERP Customizing on User Satisfaction and Firm Performance  

Jung, Seung-Min (Graduate School of Business Administration, Yonsei University)
Kim, Joon-S. (Graduate School of Business Administration, Yonsei University)
Publication Information
Information Systems Review / v.4, no.2, 2002 , pp. 257-272 More about this Journal
Abstract
For the successful implementation of ERP systems, it is very important to solve the issue of "misfits", that is, the gaps between the functionality offered by the ERP package and the required by the adopting organization. To solve the "misfit" issue, adapting to the new functionality has been recommended instead of customizing the ERP package. However, these claims are mostly based on case studies and anecdotal evidence with limited empirical justification. The purpose of this study is, therefore, to study the effect of ERP customizing on user satisfaction and firm performance. In this study, we also examine the differences in the effects of ERP customizing among three customizing types: modification, add-on development (to use 'user exit'), and add-on development (not to use 'user exit'). According to the empirical field study, we find no significant differences in user satisfaction and firm performance by overall customizing (total of three customizing types) level. However, we find significant differences in user satisfaction and firm performance by add-on development level. And the influences of customizing types on user satisfaction and firm performance are significantly affected by the functionality level offered by the ERP system and BPR level. These results indicate that ERP customizing may not always be the incorrect choice for solving the "misfit" issue.
Keywords
ERP; Misfit; BPR; User exit; Customizing;
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