Critical Success Factors of Enterprise Resource Planning Implementation in Construction: Case of Turkey

Abstract

Construction is considered as one of the highly fragmented, inefficient, and low-performing industries. Enterprise resource planning (ERP) systems have been used to overcome such problems. However, due to a number of technical and organizational barriers, ERP implementation is very challenging. The major objective of the research reported in this paper is to explore the critical success factors (CSFs) of ERP implementation in the construction industry in developing countries. In this respect, based on an extensive literature review, 14 CSFs were identified and a questionnaire survey was conducted to analyze the role of those CSFs on the performance of ERP implementation. The data is collected from 90 construction firms from Turkey. The statistical analysis results show that top management support and commitment, clear goals and objectives, project team competence, effectiveness of the project leader, and cooperation between team members are the most significant drivers of success. Factor analysis was also employed on the data and the findings suggest three dimensions, namely (1) human factors, (2) organization, and (3) technology. Findings of the research reported in this paper are expected to help senior managers and consultants implement ERP systems in construction firms in an effective manner.