ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

SCHOOL OF COMMERCE
DEPARTMENT OF PROJECT MANAGEMENT

Factors Affecting Enterprise Resource Planning Project Post

Implementation Success: The Case of Commercial Bank of Ethiopia

By

SELAMAWIT NIBRET

June, 2018
Addis Ababa, Ethiopia

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 Addis Ababa University
College Of Business and Economics School of Commerce
Department Of Project Management

Factors Affecting Enterprise Resource Planning Project Post

Implementation Success: The Case of Commercial Bank of Ethiopia

By

SELAMAWIT NIBRET

Advisor

WORKU MEKONNEN. (PHD.)

Research Project Submitted In Partial Fulfillment of the Requirements for the

Award of Master of Arts Degree in Project Management

June, 2018

Addis Ababa, Ethiopia

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 Addis Ababa University
College Of Business and Economics School of Commerce
Department Of Project Management

This is to certify that the thesis prepared by Selamawit Nibret entitled “Factors Affecting
Enterprise Resource Planning Project Post Implementation Success: The Case of Commercial
Bank of Ethiopia”, which is submitted in partial fulfillment of the requirements for the Award of
Master of Arts Degree in Project Management, complies with the regulations of the University
and meets the accepted standards with respect to originality and quality.

Approved by Board of Examiners:

_____________________________Signature_______________Date______________

Advisor

_____________________________Signature_______________Date______________
Internal Examiner

_____________________________Signature_______________Date______________
External Examiner

____________________________Signature______________Date________________
Chair of Department or Graduate Programs Coordinator

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 Declaration
I, the undersigned, declare that this thesis is my original work and has not been presented for a
degree in any other university and that all sources of materials used for the thesis have been duly
acknowledged.

Declared by: Confirmed by Advisor:

Name: _________________________ Name: ___________________________

Signature: _______________________ Signature: ________________________

Date: ___________________________ Date: ____________________________

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 TABLE OF CONTENTS
CONTENTS PAGE

Abstract ........................................................................................................................................................ iv
Acknowledgement ........................................................................................................................................ v
List of figures ............................................................................................................................................... vi
List of tables................................................................................................................................................. vi
List of acronyms and abbreviations ............................................................................................................ vii
CHAPTER ONE ........................................................................................................................................... 1
INTRODUCTION ........................................................................................................................................ 1
1.1. Background of the Study................................................................................................................... 1
1.2. Statement of the Problem .................................................................................................................. 2
1.3. Research Questions ........................................................................................................................... 4
1.4. Objective of the Research ................................................................................................................. 4
1.4.1. General Objective .......................................................................................................................... 4
1.4.2. Specific Objectives ..................................................................................................................... 5
1.5. Significance of the Study .................................................................................................................. 5
1.6. Scope of the Study ............................................................................................................................ 6
1.7. Limitation of the Study ..................................................................................................................... 6
1.8. Organization of the Thesis ................................................................................................................ 6
CHAPTER TWO .......................................................................................................................................... 7
LITERATURE REVIEW ............................................................................................................................. 7
2.1. Introduction ....................................................................................................................................... 7
2.2. Definition and Concepts of Project ................................................................................................... 7
2.3. Project Implementation Success Factors ........................................................................................... 8
2.4. Definitions and Concepts of ERP Project Implementation ............................................................. 11
2.4.1. Phases in ERP Projects ............................................................................................................. 11
2.4.2. ERP Project Implementation Success and Factors.................................................................... 12
2.5. Empirical Review............................................................................................................................ 15
2.5.1. Top Management Influence in ERP Project Implementation ................................................... 15

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 2.5.2. Human Resource Influence in ERP Implementation ................................................................ 17
2.5.3. Project Teamwork Influence in ERP Implementation .............................................................. 18
2.5.4. Stakeholder Involvement in ERP Implementation .................................................................... 18
2.6. Researchers Conducted On ERP in the Context of Ethiopia .......................................................... 20
2.7. Research Hypothesis ....................................................................................................................... 22
2.8. Theoretical Framework of the Study............................................................................................... 22
2.9. Conceptual Framework ................................................................................................................... 24
CHAPTER THREE .................................................................................................................................... 28
RESEARCH METHODOLOGY ................................................................................................................ 28
3.1. Introduction ..................................................................................................................................... 28
3.2. Research Design .............................................................................................................................. 28
3.4. Sample Size and Sampling Technique ............................................................................................ 29
3.4.1. Sample Size ............................................................................................................................... 29
3.4.2. Sampling Procedure .................................................................................................................. 30
3.5. Data Collection Methods and Approach ......................................................................................... 30
3.5.1. Reflection on Pilot Testing Of the Instrument .......................................................................... 31
3.5.2. Validity of Research Instrument ............................................................................................... 31
3.5.3. Reliability of Research Instrument ........................................................................................... 32
3.6. Data Collection Procedure ............................................................................................................... 32
3.7. Model Specification ........................................................................................................................ 32
3.8. Data Analysis Techniques ............................................................................................................... 33
3.9. Ethical Considerations .................................................................................................................... 33
3.10. Operationalization of Variables .................................................................................................... 33
CHAPTER FOUR ....................................................................................................................................... 35
DATA PRESENTATION, ANALYSIS AND DISCUSSION ................................................................... 35
4.1. Introduction ..................................................................................................................................... 35
4.2. Reliability and Validity ................................................................................................................... 35
4.3. Demographic Information ............................................................................................................... 36
4.4. Descriptive Analysis on Variables of the Study ............................................................................. 37
4.4.1. Top Management’s Influence on Successful Project Implementation ...................................... 37
4.4.2. Human Resource Influence on Successful ERP Project Management...................................... 38
4.4.3. Teamwork Influence on Successful ERP Project Implementation ........................................... 39

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 4.4.4. Stakeholder Involvement and Its Influence on Successful ERP Project Implementation ......... 40
4.4.5. ERP Project Success Critical Factors........................................................................................ 41
4.5. Correlation Analysis ....................................................................................................................... 42
4.6. Regression Analysis ........................................................................................................................ 43
4.7. Hypothesis Test Using Multiple Regressions ................................................................................. 44
4.8. Discussion ....................................................................................................................................... 47
CHAPTER FIVE ........................................................................................................................................ 49
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ............................................................... 49
5.1. Introduction ..................................................................................................................................... 49
5.2. Summary of the major Findings ...................................................................................................... 49
5.3. Conclusion ...................................................................................................................................... 50
5.4. Recommendations ........................................................................................................................... 51
REFERENCE.............................................................................................................................................. 53
APPENDIXES

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 Abstract
The main purpose of this study is identifying project success factors that influence ERP project
post implementation success at Commercial Bank of Ethiopia. ERP plays an important role in
today’s enterprise management and is beginning to be the backbone of organizations. However,
its implementation is complex and risky. Research has been done for ERP project
implementations in numerous environments but there is a serious gap in the literature regarding
post implementation success in the Ethiopia context. Besides, post-implementation
characteristics that can be used to gauge levels of project success, with emphasis on those that
may be unique to banking industry in this research, the researcher had investigated ERP
implementation in CBE which had implemented and used this system. The evaluation was based
on CSFs (Critical Success Factor) which cited as index for success of ERP implementation in
others project implementation researches. Explanatory research design was used for the study,
with a quantitative study methodology to analyze an institution that implements ERP projects.
The target population was 132 Human resource Personnel out of which convenience sampling
technique was used to select a sample size of 60. Data was collected by using questionnaire at
project implementation levels of the organization. The data collected was analyzed using
statistical Package for Social Sciences. The study found that CSFs, human resource competency
and communication and consultation of stakeholders has significant relationship with successful
ERP implementation at CBE. The study also shows all five CSFs are the most important to
success of the ERP project post implementation success at CBE: project mission and objective,
top management support, human resource competency, schedule and plans and communication
and consultation of stakeholders. This study demonstrated that success factors have indeed
evolved according to the type of project and the environment that the project is operating. The
researcher recommended for other banks to consider the five Critical Success Factors while
implementing ERP system in order to realize post implementation benefit. Furthermore,
practical implications to CBE and future studies were highlighted.

Key Words: Project Critical Success Factor, ERP Post implementation success, CBE

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 Acknowledgement
First and for most, I would like to thank God for the courage he gave me in my way to
accomplish this thesis. I would like to sincerely thank my advisor Dr. Worku Mekonnen (PhD)
for his constructive comments, valuable suggestions and good guidance. I would also like to
thank all commercial bank of Ethiopia employees who help me filling the questionnaires and
provide essential information, as fully as possible which is necessary for my research work.
Lastly but not the least, my thanks also go to those who commented on my study and provided
their assistance in any form during my thesis work.

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 List of figures

Figure 1: Conceptual Framework for ERP project Implementation 27

List of tables
Table 3.1: Sampling Frame 29

Table 3.2: Reliability Statistics 31

Table 3.3: Operationalization of Variables 34

Table 4.1 Reliability Test (Cornbach’s Alpha) 36

Table 4.2 Demographic characteristics of respondents 37

Table 4.3 Top Management commitment and involvement in Project Implementation 38

Table 4.4 Human Resource Influence on Successful ERP Project Management 39

Table 4.5 Teamwork Influence on Successful ERP Project Implementation 40

Table 4.6 Stakeholder Involvement and its influence on Successful ERP Project

Implementation 41

Table 4.7 ERP Project Success Critical Factors 42

Table 4.8 Pearson’s Correlations 43

Table 4.9 Model Summary 43

Table 4.10 ANOVAa 44

Table 4.11 Coefficientsa 45

Table 4.12 Summery of hypothesis test 47

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 List of acronyms and abbreviations
CBE Commercial Bank of Ethiopia

CSFs Critical Success Factors

ERP Enterprise Resource Planning

HRI Human resource competency influence

IT Information technology

PIS post implementation success

PMO Project management office

PSCF Project success critical factors

SHI Stakeholders influence

TMI Top management influence

TWI Project teamwork influence

UTE User training and education

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 CHAPTER ONE

INTRODUCTION
1.1. Background of the Study
The drive for higher levels of productivity, effectiveness, and organizational performance
continue to push modern businesses towards adopting enterprise resource planning (ERP)
systems (Ifinedo, Udo, & Ifinedo, 2010). An Enterprise Resource Planning (ERP) system is a
complex package business solution that is designed to automate and integrate business processes
in real time environment (Markus and Tanis, 2000).

Projects to implement these integrated systems have their share of challenges as they require
major investments, and success is far from being assured. Recent statistics show that over 50%
of projects experience cost overruns and over 60% have schedule overruns (Krigsman. 2013). In
order to overcome this complexity, the needs for project management as a methodological
planning and calculated management are stressed (Abdoulmohammad, et. al., 2014).

Pinto and Slevin (1988) define a project as an organization of people dedicated to a specific
purpose or objective. Projects generally involve large, expensive, unique, or high risk
undertakings which have to be completed by a certain date, for a certain amount of money,
within some expected level of performance. At a minimum, all projects need to have well
defined objectives and sufficient resources to carry out all the required tasks. Project
management is a discipline adopted from management and under-pins much economic activity.
In industries as diverse as manufacturing to banking, projects drive business. Project
management, is the process of making decisions and operationalizing certain strategies and
tactics to bring the project to success (Kuen, 2009).

Many countries, especially the developed ones, have benefited the advantages of ERP systems
by highly adopting these systems since early 1990s (Otieno, 2010). Developing countries are
now adopting ERP. However, regardless of the ERP systems advantages and benefits mentioned
here, developing countries like Ethiopia have not yet adopted and benefited much from such
integrative information solutions (Otieno, 2010), which are usually suited to organizations with
large size businesses or services. However, from the few organizations Commercial Bank of

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Ethiopia (CBE) is one of commercial banks currently running in the country, which is finishing
(at production stage) of the ERP system implementation (Foziya, 2017). According to Foziya,
(2017) that factors which affect CBE ERP project implementation are technological,
organizational and people, and recommend the good management strategy and clear
communication during the implementation of the system is a critical issue to success of the ERP.
However, authors like Law et al., (2010); and Wilson, (2012) stressed on the post-
implementation stage which is vital to the long-standing success of the ERP. Thus, it is important
for managers to focus on the post-implementation phase. Hence, requirement of study associated
to post-implementation stage of the ERP is the major incentive for this study.

The history of the Commercial Bank of Ethiopia (CBE) dates back to the establishment of the
State Bank of Ethiopia in 1942. CBE was legally established as a share company in 1963. In
1974, it was merged with the privately owned Addis Ababa Bank (CBE, 2018). Since then, it has
been playing significance roles in the development of the country both economically and
technologically. The bank is a pioneer to introduce modern banking to the country like Western
Union Money Transfer Services and currently working with other 20 money transfer agents like
Money Gram, Atlantic International (Bole), Xpress Money. It has more than 1222 branches
stretched across the country and four branches in South Sudan. It is the leading African bank
with assets of 485.7 billion Birr as of June 30, 2017(CBE, 2018).

Therefore, the purpose of this study is to examining project success factors for post-
implementation Success (PIS) of ERP project in order to gain expected benefits.

1.2. Statement of the Problem

Around the world, companies are more likely to engage in ERP systems (Kanellou & Spathis,
2013 cited on Foziya, 2017). These systems rely on the integration of the entire business of the
company through a common shared database (Rom and Rohde, 2006; Spathis, 2006 cited on
Foziya, 2017). Therefore, information is available in real time for all users. Despite the
significant benefits that ERP systems provide, fewer than 30% of ERP projects are successfully
implemented, i.e. projects completed on time and on budget with all features and functions
operating as specified (Wallace and Kremzar, 2001; Iskanius, 2009). As a pattern,
implementation success evaluated by the ERP implementation budget and time schedule (Yusuf
et al., 2004). Reasons underlying unsuccessful implementation include: dealing with ERP solely
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as software and not as a system; the inability to adopt a new organizational policy to implement
ERP or to cope with the changes created by ERP; projects going over budget; projects being
terminated before the implementation begins; and failure to achieve the planned objectives (Shah
et al., 2011; Zhang et al., 2003). However, most researchers have focused on the study of the
adoption and implementation phases of the ERP system while the post-implementation stage of
ERP has been neglected (Severin et al., 2011). Following the implementation of the system, an
organization should engage a number of activities, such as post-implementation review, support
and maintenance, in order to minimize the risks of failure of ERP projects (Nicolaou, 2006).

Few researches have been conducted in Ethiopia following the start of ERP implementation in
the country (Abiot & Jorge (2012); Sintayehu, (2014); Kibebework (2015) Derese, (2013) and
(Foziya, 2017). Most of this studies conducted on ERP are in the context of finding critical
success factors (CSFs) for the ERP implementation process. For instance, Foziya, (2017) from
Information Science discipline has conducted a study to identify and analyze the organizational,
technological, and individual factors (CSFs) and their influence at each phase of ERP
implementation at commercial bank of Ethiopia (CBE). However, it is not clear and confirmed if
the critical success factors already identified have role and influence in the post-implementation
performance outcomes. As pointed out by Willis and Willis-Brown (2002), researches have
failed to provide an understanding of how these CSFs for implementation stage or exploitation
stage may influence the subsequent performance outcomes of an organisation (Willis & Willis-
Brown, 2002). This creates the gap which this study seeks to bridge, and makes the research
unique.

Previous studies indicate that when the ERP is implemented successfully, it does not means that
the entire ERP project is implemented successfully because if the post implementation phase is
not successful the entire implementation cannot be considered successful (Al- Mashari and Al-
Mudimigh, 2003). As pointed out by Willis and Willis-Brown (2002), even if the ERP system is
successfully implemented, the ‘go-live’ point of the system is not the end of the ERP journey.
Very often, the system post-implementation or exploitation stage is where the real challenges
begin.

Therefore, Wenrich & Ahmad (2009) from project management discipline state that several
activities included in ERP evolution must be managed as separate development projects in order

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to be successful, but they also emphasize that a permanent support structure must be maintained
to cover the ERP users’ operational needs. In this context, projects are used to manage major
changes of the ERP system, while support activities maintain the implemented functionalities.
Thus, the knowledge produced by the different project teams is essential for the support team to
maintain the new ERP functionalities and also serves as a base of knowledge for subsequent
projects. Also, Perera and Withanage, (2008) found that stakeholder involvement, human
resource, teamwork influences and the top Management's involvement in the project after the go-
live has contributed a lot to the project. In general involvement of managers at the
Implementation is higher than that of the post implementation stage and the managers tend to
relax a bit once the system starts the live run. But the manager’s involvement in the post
implementation is very important for the ERP success.

Therefore, this paper was attempt to clarify the post implementation success (PIS) of the ERP
system from project management perspective in the case of CBE by identifying the project
success factors that contribute to the PIS phase of the ERP project.

1.3. Research Questions

By doing so this study will be guided by the following research questions:

1. How does top management determine the post implementation success of ERP project in
Commercial Bank of Ethiopia?
2. What is the influence of human resource on post implementation success of ERP project
in Commercial Bank of Ethiopia?
3. How does project teamwork influence post implementation success of ERP projects in
Commercial Bank of Ethiopia?
4. What is the influence of stakeholder involvement in the post implementation success of
ERP projects in Commercial Bank of Ethiopia?

1.4. Objective of the Research

1.4.1. General Objective
The study has a general objective of identifying project success factors that influence ERP
project post implementation success at Commercial Bank of Ethiopia.

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1.4.2. Specific Objectives
1. To establish how top management support influences the post implementation success of
ERP project in Commercial Bank of Ethiopia.

2. To determine how human resource influences the post implementation success of ERP
project in Commercial Bank of Ethiopia.
3. To examine how project teamwork influences the post implementation success of ERP
project in Commercial Bank of Ethiopia.
4. To establish the influence of stakeholder involvement in the post implementation success
of ERP project in Commercial Bank of Ethiopia.

1.5. Significance of the Study

This study is valuable to a wide section of stakeholders in the banking industry. It will adds to
that growing body of knowledge by identifying post-implementation characteristics that can be
used to gauge levels of project success, with emphasis on those that may be unique to banking
industry.

The policy makers in the industry will hopefully find the information provided by this study
useful as a framework that enables project managers to focus on the factors that contribute to
success in any project implementation (ERP post-implementation environment) within the
financial sector.

The study also hopes to identify problems and suggest solutions in implementation of any
information technology projects (ERP) within commercial bank operations and provision of
services. It will also suggest benchmarks and best practices that could be used in commercial
banks. The study also hopes to be of importance to project managers and top management in the
banking sector in relation to their involvement towards project implementation success within
their organizations.

Finally, the results of this study can also be used to fill the literature gap on ERP project post
implementation success factors in the Ethiopian context and can be used as a reference for future
research work.

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1.6. Scope of the Study
This research is limited in scope by employed quantitative explanatory research design using
project critical success factors in effective project implementation to investigate the factors
affecting ERP post implementation success in banking industry in a case of commercial bank of
Ethiopia project and super user’s office found in Addis Ababa.

1.7. Limitation of the Study

The study has some limitations. The first is the sample size considered in this study. The sample
size is limited but taking more may give deep understanding of the concepts on the system.
Nevertheless, this research is still valid having analyzed the available sample size with the
questionnaire. Secondly, the time required to complete the research was very small and this had
an influence on the researchers’ decision to pick a small number of respondents. So the short
time did not allow an in-depth search (e.g. interview) for more information.

1.8. Organization of the Thesis

The research was organized in five chapters. The first chapter include a general introduction and
background about the topic. It explained statement of the problem, the need or significance of the
research, scope and limitation. Chapter two of the study provide literature reviews on the factors
affecting the successful ERP project implementation based on the variables in the study
objectives. This chapter also included the theoretical framework and conceptual framework on
which the study is premised. The third chapter deals with the methodology of the research, data
collection, and analysis techniques. Chapter four is about analyzing the data, discussion and
results. Finally, chapter five contains conclusions, and recommendations for future works.

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 CHAPTER TWO

LITERATURE REVIEW
2.1. Introduction
This chapter entails a review of literature on the study of the independent and dependent
variables under scrutiny. The first part is a description of the various identified project success
factors. The next part of the chapter introduces the variables and the contribution that these have
on ERP project post implementation success. The chapter also describes the theoretical
framework and conceptual framework on which the study is premised.

2.2. Definition and Concepts of Project

Before attempting a discussion of the project implementation success, it is first important that
some of the key concepts in this chapter be adequately defined.

According to Steiner, (1969, p. 498) “A project is an organization of people dedicated to a

specific purpose or objective. Projects generally involve large, expensive, unique, or high risk
undertakings which have to be completed by a certain date, for a certain amount of money,
within some expected level of performance. At a minimum, all projects need to have well
defined objectives and sufficient resources to carry out all the required tasks”. The second
definition is offered by Cleland and Kerzner (1985, p. 199), “A project is combination of human
and nonhuman resources pulled together in a temporary organization to achieve a specified
purpose”.

A project, then, can be defined as possessing the following characteristics (Slevin & Pinto,
2008):

 A defined beginning and end (specified time to completion).

 A specific, preordained goal or set of goals.
 A series of complex or interrelated activities.
 A limited budget

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What is Successful Project Implementation?

In addition to defining the concept of organizational projects, Project implementation success has
been defined many ways to include a large variety of criteria. However, Slevin and Pinto, (2008)
defined in its simplest terms, project success can be thought of as incorporating four basic facets.
A project is generally considered to be successfully implemented if it;

 Comes in on-schedule (time criterion).

 Comes in on-budget (monetary criterion).
 Achieves basically all the goals originally set for it (effectiveness criterion).
 Is accepted and used by the clients for whom the project is intended (client satisfaction
criterion).
Project management, therefore, is emphasized as the process of making decisions and
operationalizing certain strategies and tactics to bring the project to success (Kuen, et.al. 2009).
According to Baker, Murphy and Fisher (1988), that project success is a matter of perception and
that a project will be most likely to be perceived to be an overall success if the project meets the
technical performance specifications and/or mission to be performed, and if there is a high level
of satisfaction concerning the project outcome among key people on the project team, and key
users or clientele of the project effort.

According to Prabhakar, (2008) schedule and budget performance alone are considered
inadequate as measures of project success, they are still important components of the overall
construct. Quality is intertwined with issues of technical performance, specifications, and
achievement of functional objectives and it is achievement against these criteria that will be most
subject to variation in perception by multiple project stakeholders (Prabhakar, 2008).

2.3. Project Implementation Success Factors

Several researchers have examined project implementation success factors. According to Cleland
(1986) project success is meaningful only if considered from two vantage points: the degree to
which the project's technical performance objective was attained on time and within budget; the
contribution that the project made to the strategic mission of the enterprise. Also Baccarini
(1999) identified two distinct components of project success:

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  Project management success: - This focuses upon the project process and, in particular,
the successful accomplishment of cost, time, and quality objectives. It also considers the
manner in which the project management process was conducted.
 Product success:-This deals with the effects of the project's final product.
According to Kuen, et.al. (2009) there are two main dimensions of project success:

 The first dimension is success measured by the impact on the end user or clients. A
successful manufacturing based project was measured by the usage level of its intended
clients, the clients’ adoption in their daily tasks and the perception of the clients that the
developed project works.
 The second dimension is success measured by the impact on the organization. These
impacts can be in the form of improved organizational performance and decision making
process at the organizational level and plus, the positive impact that the project has on the
stakeholders of the project.
The findings by Tukel and Rom (2001) that the criteria to measure project success has extended
beyond these two traditional measures to cover clients, stakeholders and the project’s ability to
prepare the organization for the future.

The list of success factors presented by Slevin and Pinto (2008) is comprehensive. The Project
Management Institute’s Project Management Handbook (2008) presents similar critical success
factors which are: project mission, top management support: willingness of top management to
provide the necessary resources and authority/power for project, project schedule/plan,
stakeholder consultation: communication, consultation, and active listening, personnel, technical
tasks, stakeholder acceptance, monitoring and feedback and trouble shooting. This study will
seek to build from the work of these studies while focusing solely on the banking sector. Jiang,
(2004) reported that there are great similarities in the ranking of the system implementation
success factors offered by Slevin and Pinto (2008) and information system professionals.

Murray, J.P. (2001) describes the nine factors for IT project success.

 appropriate senior management levels of commitment to the project

 adequate project funding
 a well-done set of project requirements and specifications

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  careful development of a comprehensive project plan that incorporates sufficient time and
flexibility to anticipate and deal with unforeseen difficulties as they arise
 an appropriate commitment of time and attention on the part of those outside the IT
department who have requested the project, combined with a willingness to see it through
to the end
 accurate reporting of the status of the project and of potential difficulties as they arise
 a critical assessment of the risks inherent in the project, and potential harm associated
with those risks, and the ability of the project team to manage those risks
 the development of appropriate contingency plans that can be employed should the
project run into problems
 an objective assessment of the ability and willingness of the organization to stay the
project course
Tan (2006) examines set of success factors, which are similar to those mentioned above
including technical characteristics, user involvement, communication, management support and
project team characteristics. Others include the difference between technology provider and
receiver, incentives, infrastructure support and obstacles. Scott (2005) examined the role of
project managers in the IT industry and stated that IT projects need the strategic alignment of
business and technology in organizations to take full advantage of the power of technology. The
business objectives of a project provide the starting point for defining the scope of the project.
Scott (2005) emphasized that project management practices and methodologies need flexibility
to meet changing technology and business demand.

Cooper (2003) put forward a list of eight critical success factors: solid up front homework to
define the product and to justify the project; dedication to the voice of the customer – market and
customer inputs throughout the project; differentiated product with unique benefits and superior
value for the customer; sharp, stable and early product definition before development begins –
target market, concepts, benefits and positioning, features and specifications; a well-planned,
adequately resourced and proficiently executed launch; tough go/kill decision points or gates to
disapprove marginal projects and to remove misallocating of resources; accountable, dedicated,
supported cross-functional teams with strong leaders throughout the entire project from

10
beginning to end and an international orientation, that is, international teams, multi country
market research

2.4. Definitions and Concepts of ERP Project Implementation

Rosemann, (1999) has defined an ERP system as a customizable software package, which
manages data from various organizational activities and provides which fully integrated solutions
to major organizational data management problems. It provides information for both the core
administrative functions, such as human resource management and accounting as well as
integrated modules which can be selected to support key business processes such as
warehousing, production and client management.

Somers, and Ragowsky, (2003) define An ERP system, which is used to manage enterprise data,
has become a vital tool in business decision making. ERP systems help organizations to deal
with supply chain, receiving, inventory management, customer order management, production
planning, shipping, accounting, human resource management and other business functions.

2.4.1. Phases in ERP Projects

Different researchers have identified ERP implementation phases differently. From the past
research works on how an implementation process of an enterprise system should be broken
down into different phases.

The Implementation of an ERP system implies that a company must focus on, evaluate and
define relevant company processes in precise details (Parr and Shanks, 2000). According to Parr
and Shanks (2000) ERP implementation begins with planning. After planning is completed the
project team will move through a number of discrete project phases. After the ERP system is up
and running, there may be post implementation review and later a stabilization phase.

Ross and Vitale (1998) have defined ERP implementation phases as Design, Implementation,
Stabilizing, Continuous Improvement and Transformation. Bancroft et al. (1998) gave stress on
construction, testing and actual implementation phases for ERP implementation. Markus and
Tanis (2000) has identify stages in ERP implementation. According to them, ERP
implementation has following four main phases:

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 1. Chartering - Decisions defining of the business case solution
2. Project - Getting system and end users up and running
3. Shakedown - Stabilizing, eliminating "Bugs", getting to normal operations
4. Onward and upward - Maintaining systems, supporting users, getting results, upgrading
and systems extensions Out of the above the four phases shakedown and onward &
upward phases can be considered as the post ERP implementation stage.

2.4.2. ERP Project Implementation Success and Factors

Measuring the success of an implementation project involves a number of variables but they can
be categorized under three main categories (Information System (IS) success measurement,
Home predetermined goals and Project Success). A successful acquisition of ERP systems can be
achieved in several ways.

Information System (IS) Success Measurement

The DeLone and McLean (1992) model is an important contribution on Information System (IS)
success measurement. This model measures project success in following six dimensions: system
quality, information quality, information use, user satisfaction, individual impact and
organizational impact. Same can be used in measuring the success of an ERP system.

Home Predetermined Goals

Hong and Kim (2002) have proposed a different model. They have defined success as
achievement of home predetermined goals, which include multiple parameters such as time, cost,
and functions.

Project Success

But according to a study done by Baccarini (1999), project success can be attributed to two main
categories as 'Project Management Success' and 'Project Product Success'. By being over time
and/or budget, project can be deemed a project management failure but the resulting product can
be a success. Therefore overall success of a project can be defined as the totality of the project
management success and project product success (i.e. Project Success = Project Management
Success + Project Product Success)

12
Most studies evaluate ERP success by whether the ERP has been implemented within the
scheduled time and/or budget, but do not consider that the final aim of using ERP is to create
business value and enhance business performance. The successful deployment and use of ERP
can have a double effect on the survival and performance of businesses (Markus et al., 2000).
Hence, in order to enhance business performance and create business value implementation of
the ERP projects should be considered as a continuous process (Willis and Willis- Brown, 2002,
Kouki et al., 2010).

Previous studies indicate that when the ERP is implemented successfully, it does not means that
the entire ERP program is implemented successfully because ERP includes three stage of
implementation and if the post implementation phase is not successful the entire implementation
cannot be considered successful (Al- Mashari and Al-Mudimigh, 2003). As a pattern,
implementation success evaluated by the ERP implementation budget and time schedule (Yusuf
et al., 2004). Even so, the post-implementation success of ERP is explained by many criteria i.e.,
organizational performance and the investment rate of return (Sedera and Gable, 2004; Ifinedo et
al., 2010). At the post-implementation phase, organizations mostly concentrate on the benefits
extracted from the operation of ERP in order to obtain advantages from the operated ERP and to
optimize Post- Implementation Success (PIS) of ERP (Al-Mashari et al., 2003; Zhu et al., 2010).

Sayegh, (2010) studied the critical success and failure factors that need to be considered prior to
the implementation of ERP systems to ensure successful project outcomes. In the
implementation phase: Project management (Project Management skills & techniques, Project
Completion) have been highlighted as leading to project success. It has also been highlighted that
people with IT background and knowledge be a part of the implementation team. And
management support & involvement (Top Management Support) the presence of a project
champion and the use of a steering committee are considered as factors that could lead to project
success. The absence of them does not necessarily lead to project failure, but their presence
could assist in attaining project success. For post implementation phase: Performance Evaluation
and Organisational fit of ERP systems/technical support have been classified as part of the post-
implementation phases of an ERP project.

Al-Nimer, (2017) aims to measure the extent of implementing ERP systems in the banking sector
in Jordan, and identify the main factors that influence the implementation decision. The degree

13
of awareness of the employees using the ERP system, the training courses given to them, the
complexity of the system, the shifting process to the ERP system, in addition to the resistance to
change are the main variables that banks face in the process of implementation.

Soltan, et.al. (2015) conducted study with the objective of to introduce a conceptual framework
of the technical CSFs on ERP post-implementation supported by the Technological,
Organizational and Environmental (TOE) theory, and adds the critical factors of ERP data
accuracy, ERP implementation team, ERP implementation strategy and ERP communication
which were not included in the past.

In the literature, success factors of ERP implementation have been widely addressed. However
issues related to post ERP implementation have been addressed by few researchers only. The
post implementation stage of ERP involves a lot of activities and is the period where you see the
result of work done during the project phase. Following the implementation of a system, an
organization would engage in a number of activities such as post-implementation review. Also
during this period, users are tired by working for a long period of time without seeing a result.
Therefore this period is a very stressful period which is crucial in achieving initial goals and
objectives. The following are some of the factors that need attention during this phase: training,
post ERP depression, forecasting future hardware/ software needs, budgeting, identification of
priorities and standards. Wider and Davis (1998) recognize that lack of user training and failure
to completely understand how enterprise application changes business processes are important
factor of failure.

Therefore, the researcher integrated the above project implementation success factors with ERP
project implementation factors and argued that if there is effective project management which
aware and considered the factors in the implementation phase can ensure (deliver) the benefits as
expected (i.e., post-implementation success). According to (Markus & Tanis, 2000; Umble et al.,
2003) Effective project management ensures that the ERP system will be implemented according
to the planned scheme and that the system is able to smoothly connect every aspect of an
organization. This friction-free connection thereby facilitates effective communication and
interaction within the organization.

14
2.5. Empirical Review
The part of the chapter will review studies from project management perspective and empirical
findings related to ERP project implementation which helped to construct the variables namely;
top management support, Human resource, Teamwork and stakeholder involvement, and the
contribution that these have on ERP project post implementation.

2.5.1. Top Management Influence in ERP Project Implementation

Schultz and Slevin (1975) stipulated that management support for projects, or indeed for any
implementation, has long been considered of great importance in distinguishing between their
ultimate success and failure. Beck (1983) sees project management as not only dependent on top
management for authority, direction, and support, but as ultimately the conduit for implementing
top management's plans or goals for the organization. According to Manley (1975) the degree of
top management support for a project will lead to significant variations in the stakeholder’s
degree of acceptance to the project or product. For the purpose of our classification, the factor
top management support refers to both the nature and amount of support the project manager can
expect from management both for him as leader and for the project. Management's support of the
project may involve aspects such as allocation of sufficient resources, be they financial,
manpower or time, as well as the project manager's confidence in their support in the event of
crises.

Organizational leadership is the main responsibility of upper management. When new projects
are proposed, it is important that an organizations senior management team demonstrate their full
support. As long as the new initiative properly aligns with a company’s goals and strategies,
there should be at least one ‘champion’ from senior management who is available to oversee the
plan. Kuen (2009) in a study on critical factors influencing the project success amongst
companies in Malaysia, they found that top management support is positively related to project
success. Kerzner (1987) also found that a project is likely to be successful if visible support and
commitment are present from the top management. The importance of top management support,
as active stakeholders and the clarity of goals throughout the project implementation stage are
found to be strong factors that must be present to ensure a successful project outcome (Kuen,
2009).

15
The need for adequate communication channels is important in creating an atmosphere for
successful project implementation. Communication is not only essential within the project team
itself, but between the team and the rest of the organization as well as with the stakeholder. As a
factor, communication has been developed for the model, it refers not only to feedback
mechanisms, but also the necessity of exchanging information between stakeholders and the rest
of the organization concerning project goals, changes in policies and procedures and status
reports (Bavelas, 1968).

In his study, Kuen, (2009) established that effective communication by itself was not related to
project success. One of the reasons for this finding could be that this element is already
embedded into the other success factors. The communication element is present in the personnel
and stakeholder acceptance factor, success factors such as project mission, top management
support and personnel competency which has led to project success in manufacturing. On the
other hand, researchers Esteves and Pastor (2001); Bhatti (2005), consider it a critical success
factor for the implementation of information systems. This study will seek to investigate the
influence of communication on project implementation as a function of top management support.

Another essential role for senior managers is to ensure that all projects fit within their company’s
vision. According to Christenson and Walker (2004), one of the most significant contributions
that any leader can make to an organization or project is to create and clearly communicate a
shared vision. They continue to say that senior managers must be willing to make them available
in order to discuss the vision and objective(s) of the project and how these relate to
organizational goals and objectives.

Monitoring and feedback refer to the project control processes at each stage of the project
implementation when key personnel receive feedback on how the project is doing in relation to
initial projections. Making allowances for adequate monitoring and feedback mechanisms gives
the project manager the ability to anticipate problems, to oversee corrective measures and to
ensure that no deficiencies are overlooked. Schultz and Slevin (1975) demonstrate the evolving
nature of implementation and model building paradigms to have reached the state including
formal feedback channel between the model builder and the user. From a budgeting perspective,
Souder, (1975) emphasize the importance of constant monitoring and "fine-tuning" of the

16
process of implementation. For the model, monitoring and feedback refers not only to project
schedule and budget, but to monitoring performance of members of the project team.

Perera and Withanageit, (2008) was found that the Top Management's Involvement in the project
after the go-live has contributed a lot to the project. In general involvement of managers at the
implementation is higher than that of the post implementation stage and the managers tend to
relax a bit once the system starts the live run. But the manager’s involvement in the post
Implementation is very important for the ERP success.

Nejib, (2013) identify the key determinants associated with post implementation success. He
conducted a survey of 47 Tunisian companies to determine, first, the relative importance of these
factors in the Tunisian context and study, second, the moderating effect of technical fit. Result of
his study indicates that there is a positive and significant relationship between top management
support and PIS of ERP. The success of the post implementation phase of the ERP system is
closely related to the degree of commitment and enthusiasm of top management to the project.
Top management is expected to support the ERP project during all phases of its life cycle and
particularly in the post implementation phase.

2.5.2. Human Resource Influence in ERP Implementation

The findings of a study by Kuen, (2009) revealed that competent project personnel are
significant to direct project success. A competent project team comprised of a project leader and
members, who are specifically selected, trained and possess the required skills, knowledge and
experience to handle the demands of the project. When the project is complete and being
introduced to the stakeholders or end users, the ability of the team members to convince and sell
the benefits of the project is important to ensure that the project is readily accepted by the
stakeholders.

Elia, et. al., (2015) examines the knowledge transfer process in ERP post-implementation
projects, and specifically between the ERP project teams and the IT support team. And highlights
the necessity of relying on both formal and informal knowledge transfer mechanisms to cover
recurring and ad hoc exchanges between the different stakeholders responsible for the evolution
of an ERP. The paper also highlights the impact of the ERP integrator and its different inclusion
strategies that are critical for the knowledge being shared by the ERP project stakeholder.

17
2.5.3. Project Teamwork Influence in ERP Implementation
Effectiveness is influenced by the characteristics of the people in the project team, in the quality
of their relations and in their capacity to understand the needs, requests and priorities of the
stakeholders (Gido & Clements, 1999). Self-managed work teams are unique because the team
takes full responsibility for its own work. It is defined as a method that allows workers to be
responsible for organizing, regulating and controlling the various aspects and conditions of their
jobs in order to affect the outcome (Roper & Phillips, 2007). It is expected that everyone in the
team has a vested interest in the overall success of the project and does whatever is expected of
them during their tenure at the project. However, these teams require a lot of time to be formed
and become effective and efficient channels through which project success rates can be
increased.

Roper and Phillips (2007) state that, members with little experience in autonomous environments
should be assisted through team building training and other support activities so that they can
function well on their project teams. Having strong interpersonal skills is a vital part of the self-
managed work team environment. Team members have to be objective, engage in active
listening, support opposing viewpoints and value the successes of individual team members of an
organization. Roper & Phillips (2004) continue to say that, although they must work properly as
a team, they also need to be outward-facing because they will need the assistance of those that
are not part of their project work team.

2.5.4. Stakeholder Involvement in ERP Implementation

The "stakeholder" is referred to here as anyone who will ultimately be making use of the result of
the project, and can be either an external customer or a department within the organization. The
need for stakeholder consultation has been found to be increasingly important in the successful
implementation of a project. Indeed, Manley (1973) found that the degree to which stakeholders
are personally involved in the implementation process will cause great variation in their support
for that project. A Standish Group survey (2001) shows stakeholder involvement as the number
one reason for successful projects followed by executive management support and a clear
statement of requirements.

18
Further, Kolb and Frohman (1970) viewed stakeholder consultation as the first stage in a
program to implement change. As this factor was derived for the model, stakeholder consultation
expresses the necessity of taking into account the needs of stakeholder or users of the project.
Once the project manager is aware of the major stakeholders, he is better able to accurately
determine if their needs are being met.

Commercial banks are at detriment if they chose to ignore stakeholders point of view as they are
a service-oriented sector which relies more on customer orientation unlike those in the
manufacturing sector. Urban, (1993) established that the most important factor in the success of
new product development is to understand the voice of the customer. It was found that
stakeholder consultation is more influential in service-oriented projects such as information
technology (Tukel & Rom, 2001) and marketing based projects.

In addition, to stakeholder consultation at an earlier stage in the project implementation process;

it remains of ultimate importance to determine whether the stakeholders for whom the project
has been initiated will accept it. Stakeholder acceptance refers to the final stage in the
implementation process, at which point the ultimate efficacy of the project is determined. Too
often project managers make the mistake of believing that if they handle the other stages of the
implementation process well, the stakeholder will accept the resulting project.

Stakeholder acceptance is a stage in project implementation that must be managed like any other.
As an implementation strategy, Lucas (1979) discusses the importance of user participation in
the early stages of system development as a way of improving the likelihood of later acceptance.
Bean and Radnor (1979) examine the use of "intermediaries" to act as a liaison between the
designer, or implementation team, and the project's potential users as a method to aid in
stakeholder acceptance. Bhatti (2005) found out that user involvement refers to a psychological
state of the individual and is defined as the importance and personal relevance of a system to a
user. It is also defined it as the user’s participation in the implementation process. There are two
areas for user involvement when the company decides to implement a system: (1) user
involvement in the stage of definition of the company’s system needs, and (2) user participation
in the implementation of systems. The function of the system rely on the user to use the system
after going live, and recognizes the user as a significant factor in the implementation.

19
In the implementation process, many projects fail due to lack of proper user training. The main
reason for education and training programs for project implementation is to make the user
comfortable with the system and increase their expertise and knowledge level. Project related
concepts, features of the project, and hands-on-training are all important dimensions of training
program for implementation. Training should not only be on how to use the new system, but also
on new processes and should give a clear understanding on its integration into the existing
system.

2.6. Researchers Conducted On ERP in the Context of Ethiopia

Abiot and Gorge (2012) conducted a case study on a successful ERP implementation in an
Ethiopian company called Mesfin industrial engineering. The main objective of the study was to
examine the implementation of ERP system considering the key technical, business and cultural
dimensions. The research was carried out within the case company by having a detailed look at
the issues behind the process. The researchers finally recommended that it is necessary to study
and report more ERP implementations in different Ethiopian companies.

Derese (2013) conducted study on ensuring successful ERP implementation framework at Ethio-
Telecom with the main objective to present experiences that were obtained from a successful
ERP implementation project. The researcher used a case study approach with qualitative and
quantitative methods. The researcher developed a framework that identified CSFs that need to be
addressed during pre-implementation, implementation and post-implementation phases. The
researcher also recommended that more researches should be conducted to identify more
contextual factors.

Another study by Sintayehu (2014) also conducted on the success factors for implementation of
Enterprise Resource Planning system at Ethiopian Airlines. The objective of the study was to
investigate CSFs and sharing experiences to other Ethiopian organizations with similar context
and environment. The researcher has used a qualitative case study strategy like interviews,
observations and an online survey questionnaire (supplementary) as main data collection
techniques. Finally, the researcher identified twenty factors that can be critical for the success of
ERP system implementation in the context of Ethiopia. These factors are project planning, top
management support, project management and leadership, capability of consultants, change
management and communication, organizational readiness and overall knowledge transfer. The
20
researcher also recommended more single and multiple case studies of ERP implementation
should be conducted in Ethiopian organizations to strengthen the findings of success factors.

Also Elsa (2015) carried research on ERP post-implementation management framework on

Ethiopian Airlines. The main objective of this study was to investigate technical, organizational,
and operational issues of ERP post-implementation success in the context of Ethiopian airlines
and design a solution framework to address those issues. The researcher has employed both
quantitative and qualitative research approach. Therefore, survey questionnaire and interview
contents were prepared based on the defined research model by partially adapting from existing
literature and developed her own. Finally, the researcher has developed a high-level ERP post
implementation management framework.

Another study by Kibebework (2015) also conducted focusing on the challenges and current
status of ERP implementation, the case of Mugher and Derba cement industries. The main
objective of this study is to assess the challenges and current status of ERP implementation in
both companies, and have used both quantitative and qualitative research approaches. The
researcher has found factors that affect ERP implementation, namely; disregarding
organizational, people and strategy factors that encompass top management support, users
training and education, effective project management, user involvement, suitability of software
and hardware communication and data accuracy creates great challenge for the success of an
ERP implementation. The researcher also found that, there is an explicit linkage between critical
success factors and ERP implementation stages. Knowing such relation and determining which
critical success factor are best needed in which ERP implementation stage may enable
organizations to successfully implement an ERP.

Saron, (2017) conducted study with the purpose of evaluating the success of ERP
implementation in Heineken Breweries S.C. study result shows all six CSFs are the most
important to success of the ERP implementation at Heineken: top management support, project
team competency, user training and education, interdepartmental communication, Business
Process Reengineering and Consultant Involvement.

In addition, Foziya, (2017) conducted study focusing on Commercial bank of Ethiopia. The
purpose of this study is to identify and analyze the organizational, technological, and individual

21
factors and their influence at each phase of ERP implementation. Based on detail review of
literatures, the researcher selected and used research model for the study that consists of
technological, organizational and individual factors affecting the implementation of ERP system.
The researcher has employed a case study in which qualitative research method was also used to
collect and analyze data. Pattern matching technique was used to analyze the data collected
through interview, direct observation and participation. The study revealed that factors which
affect ERP implementation as technological, organizational and people, the stages of CBE ERP
implementation (requirement analysis, solution design, solution built and test, and production
transition and support), the impacts of these factors in their associated stage and current status
(progress) of ERP implementation in commercial bank of Ethiopia in general. Finally
recommend the good management strategy and clear communication during the implementation
of the system is a critical issue to success of the ERP.

2.7. Research Hypothesis

The purpose of this study is to examine the project critical success factors for ERP project post
implementation success in CBE. Depending on the review of empirical studies made around the
world, the researcher has developed the following hypothesis.

H1: The Post Implementation Success of ERP is positively related to top management
support.
H2: The Post Implementation Success of ERP is positively related to human resource
competency.
H3: The Post Implementation Success of ERP is positively related to project teamwork
influence.
H4: The Post Implementation Success of ERP is positively related to stakeholder’s
involvement.

2.8. Theoretical Framework of the Study

Research indicates that communication remains a very important component of the success or
failure of a project. Andersen (1987), Baguley (1995), Humphrey and Stokes (2000) found that
more than 83% of survey respondents identified communication as the most important skill
required of project managers and their teams in their success factors studies. As such,

22
communication is premised to be an important factor and this is also a function of the leadership
aspect within the organization and also among members of the project team.

This study identified the Action Center Based theory of leadership by Adair (1973) as the most
appropriate for the research. The model is founded on the basis that the action-centered leader
gets the job done through the work team relationships with fellow managers and members of the
project team. According to Adair’s explanation, an action-centered leader must; 1) direct the job
to be done (task structuring), 2) support and review the individuals doing it and 3) co-ordinate
and foster the work team as a whole. These entail component processes and activities that require
the services of competent professionals to work together as a team.

Project managers have to understand the roles and participation of people in the project including
stakeholders and beneficiaries as well as manage the expectations of all those involved. It is
useful to conduct a stakeholders’ analysis during project initiation to determine their level of
participation in the project. Ownership of the project by beneficiaries must be emphasized
because ultimately, they will be the ones using, interacting and sustaining the products or
systems developed by the project.

According to Mikkelsen and Riis (1998), the central task of any manager regardless of their field
is to navigate between the conflicting demands of time, cost and performance. The project
manager constantly has to weigh these demands against each other and trade off one against the
other as time delays may increase cost. Juggling this triangle of time, cost and performance is
one of the roles that cut across all areas of any project manager’s responsibility.

Although there is usually a designated leader, the team is empowered to take control of its
projects, which creates an environment of high performance, effectiveness and commitment. In
other situations, there is a rotating leader based on the project stage and/or technical
requirements. For instance, in the CBE context, projects involve the Human Resource,
Information Technology, Customer Care, Finance, districts, branches and Credit Departments
(CBE PMO, 2017). In the product development system each of these departments plays an active
role in the project development process. It is expected that everyone on the team has a strong
interest in the outcome of the project, and therefore each individual takes charge and does what
is needed to meet objectives.

23
Self-managed work teams are unique because the team takes full responsibility for its own work.
It is defined as a method that allows workers to be responsible for organizing, regulating, and
controlling the various aspects and conditions of their jobs in order to affect the outcome. The
model becomes appropriate for the study as project management and team work at the workplace
becomes the way of the future organization. According to this theory the project leader will
therefore benefit from being low in direction; instead she/he should be “delegating” and
“participating” most of the time.

2.9. Conceptual Framework

The conceptual framework illustrates how the four independent variables, Top management
support, Human resource, teamwork and stakeholder involvement interrelate in order to
influence ERP project post implementation success factors.

Several authors have discussed the importance of clearly defining goals at the outset of the
project. Morris (1983) classified the initial stage of project management as consisting of a
feasibility decision. Are the goals clear and can they succeed? Bardach's (1977) six-step
implementation process begins with instructions to state the plan and its objectives. For both
these authors and the purposes of our study, Project Mission has been found to refer to the
condition where the goals of the project are clear and understood, not only by the project team
involved, but by the other departments in the organization. Underlying themes of responses
classified into this factor include statements concerning clarification of goals as well as belief in
the likelihood of project success.

Top Management Support as noted by Schultz and Slevin (1975), management support for
projects, or indeed for any implementation, has long been considered of great importance in
distinguishing between their ultimate success and failure. Beck (1983) sees project management
as not only dependent on top management for authority, direction, and support, but as ultimately
the conduit for implementing top management's plans, or goals, for the organization. Further,
Manley (1973) shows that the degree of management support for a project will lead to significant
variations in the clients' degree of ultimate acceptance or resistance to that project or product. For
the purposes of our classification, the factor Top Management Support refers to both the nature
and amount of support the project manager can expect from management both for himself as
leader and for the project. Management's support of the project may involve aspects such as
24
allocation of sufficient resources (financial, manpower, time, etc.) as well as the project
manager's confidence in their support in the event of crises.

Another research indicates that communication remains a very important component of the
success or failure of a project. Andersen (1987), Baguley (1995), Humphrey and Stokes (2000)
found that more than 83% of survey respondents identified communication as the most important
skill required of project managers and their teams in their success factors studies. As such,
communication is premised to be an important factor and this is also a function of the leadership
aspect within the organization and also among members of the project team. Hence, top
management support with its key indicators as, Nature of support, Type of support and
communication.

The need for client consultation has been found to be increasingly important in attempting to
successfully implement a project. Indeed, Manley (1973) found that the degree to which clients
are personally involved in the implementation process will cause great variation in their support
for that project. Further, in the context of the consulting process, Kolb and Frohman (1970) view
client consultation as the first stage in a program to implement change. As this factor was
derived for the model, Client Consultation expresses the necessity of taking into account the
needs of the future clients, or users, of the project. It is, therefore, important to determine
whether clients for the project have been identified. Once the project manager is aware of the
major clients, he is better able to accurately determine if their needs are being met.

An important, but often overlooked, aspect of the implementation process concerns the nature of
the human resource/personnel involved. In many situations, personnel for the project team are
chosen with less-than-full regard for the skills necessary to actively contribute to implementation
success. Some current writers on implementations are including the personnel variable in the
equation for project team performance and project success. Hammond (1979) has developed a
contingency model of the implementation process which includes "people" as a situational
variable whose knowledge, skills, goals, and personalities must be considered in assessing the
environment of the organization. Only after such a diagnosis takes place can the project
management team begin to set objectives and design the implementation approach. For the
model, Personnel, as a factor, is concerned with developing a project team with the requisite
skills to perform their function. Further, it is important to determine whether project management

25
has built sufficient commitment toward project success on the part of team members. Hence,
Human resource with its key indicators as Training offered, Project Experience and qualification.

Project schedule refers to the importance of developing a detailed plan of the required stages of
the implementation process. Ginzberg (1979) has drawn parallels between the stages of the
implementation process. Nutt (1983) further emphasizes the importance of process planning,
breaking down planning into four stages: formulation, conceptualization, detailing, and
evaluation. Project Schedule/ Plans refers to the degree to which time schedules, milestones,
manpower, and equipment requirements are specified. Further, the schedule should include a
satisfactory measurement system as a way of judging actual performance against budget and
time allowances.

Self-managed work teams are unique because the team takes full responsibility for its own work.
It is defined as a method that allows workers to be responsible for organizing, regulating, and
controlling the various aspects and conditions of their jobs in order to affect the outcome.

Stakeholder involvement, with its key indicators as, Consultation, Project participation and
Training. Project managers have to understand the roles and participation of people in the project
including stakeholders and beneficiaries as well as manage the expectations of all those involved.
It is useful to conduct a stakeholders’ analysis during project initiation to determine their level of
participation in the project. Ownership of the project by beneficiaries must be emphasized
because ultimately, they will be the ones using, interacting and sustaining the products or
systems developed by the project.

It is important that the implementation be well managed by people who understand the project.
In addition, there must exist adequate technology to support the project. Technical Tasks refers
to the necessity of not only having the necessary personnel for the implementation team, but
ensuring that they possess the necessary technical skills and have adequate technology to
perform their tasks. Steven Alter (1979), writing on implementation risk analysis, identifies two
of the eight risk factors as being caused by technical incompatibility: the user's unfamiliarity
with the systems or technology, and cost ineffectiveness.

Finally, the researcher able to identify project success factors (which affect effective project
management) and ERP project implementation success factors and integrate the factors which

26
influence project post implementation success. Top management support with its key indicators
as, Nature of support, Type of support and communication: Human resource with its key
indicators as Training offered, Project Experience and qualification: teamwork with Its key
indicators as Team recruitment, Team coordination and Team roles and stakeholder involvement
with its key indicators as, Consultation, Project participation and Training interrelate in order to
influence ERP project implementation to deliver the expected benefit (post implementation
success).

Figure 1: Conceptual Framework for ERP project Implementation

Independent Variables Dependent variable

Top Management
influence in Project
implementation

Human Resource
competency influence in
project implementation
ERP Project post
implementation
Project Teamwork
success
influence in project
implementation

Stakeholders
Influence in project
implementation

Source: Developed by the researcher from the literature review.

27
 CHAPTER THREE

RESEARCH METHODOLOGY
3.1. Introduction
Research Methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically (Kothari, 2004). This
chapter consists of research design, study population, sampling design, data collection
instruments, data collection procedures and data analysis. The researcher also gives a validation
of the chosen methodology adopted in the research to make its findings objective. The
operationalization table of the study variables is also provided.

3.2. Research Design

In order to answer the general research question and the objective, the researcher used both
descriptive and explanatory research design. Explanatory studies are valuable when studies are
meant to establish causal relationships between different variables. Examining a situation or a
problem to explain the relationship between variables would be the outcome of an explanatory
study (Saunders et al., 2007). The researcher also adopted the descriptive research design for
answering the specific research questions. As the name suggests, this design refers to a set of
methods and procedures that describe variables. Descriptive studies portray the variables by
answering who, what, and how questions (Babbie, 2002). For this research, since this research
aims to explain and assess the situation of ERP system implementation in CBE, it is important to
understand certain concepts on the data. So, descriptive research was used for the case of this
research. The output of this research would also be focused on explanatory studies where
understanding the cause and effect of variables are of importance to the researcher.

This study employed Quantitative approach. Quantitative approach involves counting and
measuring (quantifying) using numbers to explain certain answers. They give out descriptive
data such as mean, frequency and correlation as they draw significant relations between variables
(Gillham, 2000).

28
3.3. Population and Sampling Design

Creswell, (1999) describe a population as the entire group of individuals or items under
consideration in any field of inquiry and have a common attribute. The study targeted four ERP
projects implemented by the CBE in Addis Ababa. Addis Ababa selected because it is the
headquarters of CBE and pilot branches which undertake the ERP implementation. The study
premises this because projects are rolled out from A.A and later to other nationwide branches.
The study sought respondents which comprises of end users (from departments which the project
implemented), project team (a Project Manager and the project team) and management. The
accessible population of this study consisted of a total of 132 personnel respondents.

3.4. Sample Size and Sampling Technique

This section of the Study discusses how the sample size was arrived at and the sampling
technique involved.

3.4.1. Sample Size

The term sample refers to a segment of the population selected for research to represent the
population as a whole (Kotler & Armstrong, 2006). According to Mugenda and Mugenda (2003),
in a descriptive research, a sample size of 10-30% is a good representative of the population
which also helps in reducing sampling errors. Other factors that were considered in choosing the
sample size were resources in funds and time. Therefore the sample of the study was 60
respondents’ equals to 45% ratio considered adequate to represent the population.

Table 3.1: Sampling Frame

Clusters Population Percent (%) Sample

Management 3 100 3
Project team: includes the project manager and the team 25 100 25
End users From the respective departments 105 30 32
Total 132 60
Source: CBE (2018)

29
3.4.2. Sampling Procedure
The sample consists of three main clusters which are end users, project team and management.
End users are those staffs who enters the data in the system, extract data from the system or have
any other interaction with the system. The project team is the end-user first contact, when it
comes to issues or requirements to the application, method and process. The management is the
decision maker based on the output of the system.

The study were used the convenience sampling technique to select various level managers who
oversee the various ERP projects being implemented in the CBE. With the convenience sampling
method, the researcher used his personal judgment to select those respondents that best suited the
purposes of the study and those that are believed to have the information being sought.

3.5. Data Collection Methods and Approach

Various sources were used to collect data for this study. Techniques that will be used in data
collection include questionnaire and documentary review.

Primary Data

The primary data are those which are collected for the first time and thus happen to be original in
character (Kothari, 2004). In this study, the primary data were collected through questionnaires
adopted from related studies and modified by the researcher. Kothari (2004) terms the
questionnaire as the most appropriate instrument due to its ability to collect a large amount of
information in a reasonably quick span of time.

The data collection tool that the study were used is questionnaires with close ended items. The
questionnaire is a popular method of collecting data because researchers can gather information
fairly easily and the responses are easily coded (Sommer & Sommer, 2001).

The questionnaire were divided into 6 sections, where section 1 comprises of the socio-
demographic data; Section 2, top management support; Section 3 – personnel; section 4 was
comprise teamwork related items; section 5 was comprises items relating to stakeholder
involvement and section 6 comprises project success factors was included in the questionnaire
which dealt with the critical success factors to project implementation identified in the literature

30
review. The survey questionnaire item was self-administered to the targeted respondents who
were members of the project office and in the targeted departments of CBE.

Secondary Data

Secondary data are those that are already available, and refer to data that have already been
collected and analyzed by someone else (Kothari, 2004).

Documentary Review

Various documents were used to collect information needed. In this regard, the relevant
Information from published and unpublished documents including text books, journals,
Company’s reports and publications related to project implementation success factors, ERP
implementation, dissertations, online Materials, training manuals and different papers related to
Enterprise resource planning (ERP) are used in the study.

3.5.1. Reflection on Pilot Testing Of the Instrument

Pilot testing involves conducting a preliminary test of data collection tools and procedures to
identify and eliminate problems, allowing programs to make corrective changes or adjustments
before actually collecting data from the target population. Pilot testing allow to assess the
question’s validity and the likely reliability of the data (Ranjit, 2011). The researcher conducted
a pilot test among 10 members of the target population which were excluded from the final
sample respondents in order to identify inconsistencies with the research instruments in regard to
the research questions and research techniques which will be then adjusted and modified.

3.5.2. Validity of Research Instrument

In order to establish the validity of the study instrument the researcher were consulted with the
university supervisor on whether there was a causal relationship between the independent and
dependent variables of the study. The researcher was also self – administer the questionnaire and
explained the instrument concepts to the respondents which enhanced its face validity as
recommended by Greener (2008) to encourage and motivate respondents to participate in the
study.

31
3.5.3. Reliability of Research Instrument
The data were tested for its reliability using Cronbach’s alpha. The Cronbach’s Alpha has been
used to measure the internal consistency of the scale in this research for the estimation of the
consistency of the individual respond to items within the scale. (Nunnally, 1978) Found that a
scale of 0.7 that was widely accepted as consistent and reliable in social science research.

Table 3.2: Reliability Statistics

Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.957 .956 32

Source: Analysis of Survey data 2018, using SPSS 25

The overall internal consistency of 32 items was tested and the result showed the high Alpha
value (á=0.956). Thus, it concluded that the questionnaire was reliable and consistent, because
the Alpha value greater than 0.70.
3.6. Data Collection Procedure
The researcher will sought a letter of transmittal from the Addis Ababa University in order to
facilitate the process of data collection. The researcher will introduced himself to the CBE head
office relevant authorities to begin the data collection processes in the sampled project office.
The researcher will approached respondents introducing the purpose of the study and self –
administer the questionnaire.

3.7. Model Specification

The major aim of this research is to identify the factors which influence ERP project
implementation success: Relationship between top management support and involvement (TMI),
human resource influence (HRI), project teamwork influence (TWI), stakeholder involvement
(SHI) with ERP project implementation success (PSCF). The variables are taken from different
papers discussed in the literatures taking into consideration the availability of data. The
regression model of this study is estimated in the following form:
PSCF = β0 + β1 TMI+ β2 HRI+ β3 TWI+ β4 SHI + ε
Where: β0 = constant, β1 - β4 Coefficients of the regression equation, ε = Coefficient of errors
Source: Developed for the research

32
3.8. Data Analysis Techniques
The researcher will collect the needed data by administrating a questionnaire to employee of
CBE. After that, collected data rearranged, edited and calculated in order to become complete
data that is needed for this study. The study will utilize two sets of statistical methods:
descriptive statistical methods to analyze the variables of the study and their basic qualities, and
statistical tests to test the hypotheses of the study (coefficient, correlations of the variables and
test simple regression), in order to measure the type and degree of analysis and the relationships
between the variables of the study. The data were analyzed and presented inform of table.

To see the relationships of the four explanatory independent variables of the study on ERP
project implementation success in Commercial Bank of Ethiopia reliability test and regression
analysis were conducted. The findings of Likert scale measures were evaluated according to
Kazdin; the score from 1-1.80 is strongly disagree, from 1.81- 2.61 is disagree, from 2.62-3.41 is
neutral, from 3.42-4.21 is agree, and 4.22-5 is considered strongly agree in a five point Likert
scale. (Kazdin, 1992).

3.9. Ethical Considerations

The principle of voluntary participation was adhered to and respondents were not coerced into
participating in the research. The research ensured confidentiality. Individual permission will
sought from CBE, and individuals expected to participate in the study. The respondents were
informed of the consent and the purpose of this research study. To ensure confidentiality, names
of the respondents has not be used in the study.

3.10. Operationalization of Variables

The operational definition of variables describe the independent and dependent variables as well
as their sub-variables as measurable indicators of the study as shown in the table below:

33
Table 3.3: Operationalization of Variables

Independent variable Indicators

Top Management influence  Communication
 Resource acquisition and allocation
 Commitment and support
Human Resource competency influence  Training offered
 Project experience
 Qualifications

Project Teamwork influence  Team recruitment

 Team coordination
 Team roles

Stakeholder influence  Consultation

 Participation
 Training

Dependent variable  Project Mission and goal

 Project implementation Success  Top Management Support
 Project schedule
 Communication and consultation
 Technical Tasks

34
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1. Introduction
This chapter presents the analysis of data collected and a discussion of the findings on the factors
influencing successful ERP projects implementation at the CBE. The data analysis, presentation
and interpretation are in the form of tables that show frequency, percentages, means, standard
deviation and inferential statistics.

Out of the 60 questionnaires distributed 52 were properly filled and usable for further analysis.
This chapter presents the descriptive analysis on variables of the study and results of regression
analysis that constitute the main findings of this study. All the data were coded and entered in to
SPSS version 25 and inferences were made based on the statistical results.

4.2. Reliability and Validity

A reliability test is used to assess consistency in measurement items. If a research tool is
consistent, stable, predictable and accurate, it is said to be reliable. The greater the degree of
consistency and stability in an instrument, the greater its reliability. (Bhattacherjee, 2012)
defined reliability as the degree to which the measure of a construct is consistent or dependable.
Internal consistency reliability test was used to determine reliability of the questionnaire by
calculating Cronbach’s Alpha which is used to measure the internal consistency of the
measurement items. If a coefficient alpha is between 0.6 and 0.7 it indicates that there is fair
reliability, Higher Alpha coefficients indicate higher scale reliability (Joseph, 2003). As shown
in table below this study demonstrates high internal consistency and the total Cronbach Alpha
coefficient is .956. Therefore, this study demonstrates high reliability.

35
Table 4.1 Reliability test (Cronbach's Alpha)

Dimensions Cronbach's Alpha

Top management influence .785
Human resource influence .691
Project team work influence .868
Stakeholders influence .890
Project success critical factors .904
Total scale .956
Source: Analysis of Survey data 2018, using SPSS 25

4.3. Demographic Information

The study sought to examine the demographic information of the respondents. The data sought
included gender, age, education and working experience with CBE. The results are as presented
in the following sections.

In regard to their gender 67.3% were male and 32.7 % were female as indicated in Table 4.2. In
the sample selected 9.6 % of the respondents were of the ages between 18 – 25 years, 78.8 %
were 26 – 33 years, 11.5 % of the respondents were of the ages 34 – 41 as shown in Table 4.2.
This implies that the majority of the workforce is between the ages of 26 – 33 years. This
indicates that there are more young employees in the organization which during implementation
could have a positive result during training, coping up with organizational change and creating a
fluent communication among departments. In regard to their education level, 65.4 % of the
respondents were undergraduate, 30.8 % were post-graduate holders and 3.8 % were other as
depicted in Table 4.3. Those who had worked for less than 3 year were 21 %, 4 – 6 years were
40.4 %, 7 – 9 years were 25 % and those who had worked for 10 years and more than were 13.5
%. The academic qualification and experience of respondents is expected to enhance the quality
of the data as they are likely to understand the questioner and forward their view fairly
accurately.

36
Table 4.2 Demographic characteristics of respondents

Items Frequency Percent

Gender MALE 35 67.3
FEMALE 17 32.7
Total 52 100.0
Age 18-25 5 9.6
26-33 41 78.8
34-41 6 11.5
Total 52 100.0
Education of Respondents UNDERGRADUATE 34 65.4
POST-GRADUATE 16 30.8
OTHER 2 3.8
Total 52 100.0
Experience of Respondents at CBE LESS THAN 3 11 21.2
4-6 21 40.4
7-9 13 25.0
10 AND MORE THAN 7 13.5
Total 52 100.0
Source: Analysis of Survey data 2018, using SPSS 25

4.4. Descriptive Analysis on Variables of the Study

The different factors that can affect implementation of ERP in CBE ,Top Management Support,
human resource competency, teamwork influence, stakeholder involvement and ERP project
success critical factors have been stated in the literature review and were analyzed as presented
here below.

4.4.1. Top Management’s Influence on Successful Project Implementation

This study sought to determine the influence that top management support had on the
implementation of projects within CBE. The researcher provided 8 (as shown in table 4.3)
questions and offered these questions to all sampled respondents. The final result showed that the
grand mean of top management support is 3.83. This means that top management had an
appropriate support of ERP implementation regarding allocation of resource, delegation of
authority, and motivation of employees. Overall, top management has played an instrumental
role in the implementation process. The result obtained above was consistent to previous studies

37
of (Huang, 2010), (Joycelyn L. Harrison, 1997), which considers top management support is one
of the most important factors for success of ERP implementation.

Table 4.3 Top Management Influence in on Successful Project Implementation

Items N
Mean Std.
Deviation
Projects initiated are well funded and enjoy sufficient resources for 52 3.90 .846
implementation
Top management has allocated all the required resources (time, 52 3.90 .869
budget and money) for ERP implementation.
There’s a clarity in the vision, mission and objectives of the 52 4.17 .550
organization
The organizational structure complements the project implementation 52 3.62 .771
process
There’s a clear channel of communication between the project team 52 3.77 .877
and top management
Top management has clear knowledge about the objectives of ERP. 52 3.90 .934
There were regular cross functional meeting to discuss about the 52 4.02 .939
ERP.
Communication team was set to solve the departmental conflicts that 52 3.38 .953
arise during the implementation.
Grand mean 3.83
Source: Analysis of Survey data 2018, using SPSS 25

4.4.2. Human Resource Influence on Successful ERP Project Management

For investigating project team competency five questions were designed. As represented in Table
4.4, the total mean value 3.41 for this variable showed that project team was competent. This
means the project was composed of skilled, qualified and experienced people who had a good
knowledge in business and technical aspects. The result consistence with results of a research
done by (Joycelyn L. Harrison, 1997). (Emad Abu-Shanab, 2015), who showed human resource
is one of the most important factor for successful ERP implementation.

38
Table 4.4 Human Resource Influence on Successful ERP Project Implementation

Items N Mean Std.

Deviation
The team members were skilled or qualified. 52 3.71 .825
The ERP project has been the top and only priority for the team. 52 3.79 1.091
The team members had a knowledge of the key issues relating to 52 3.77 .899
ERP implementation.
The project team had experienced in previous ERP implementations. 52 2.69 1.147
The team members has carefully been selected based on their 52 3.10 1.053
knowledge and ability to accept change.
Grand mean 3.41
Source: Analysis of Survey data 2018, using SPSS 25

4.4.3. Teamwork Influence on Successful ERP Project Implementation

In project management, it is expected that everyone in the team has a vested interest in the
overall success of the project and does whatever is expected of them during their tenure at the
project. However, these teams require a lot of time to be formed and become effective and
efficient channels through which project success rates can be increased.

In order to study teamwork influence factor the researcher designed eight questions (see table
4.5). The final result showed that the mean of this variable is 3.49. The mean value indicates that
organization wide training program with appropriate training materials which targets on the
entire business process and ERP application was designed and provided by highly qualified
trainers. This result is also supported by other researchers like (Emad Abu-Shanab, 2015),
(Severin V. Grabski, 2011) and (AL-Sabaawi, 2015) which considers project team is one of the
most important critical success factor for ERP implementation.

39
Table 4.5 Teamwork Influence on Successful ERP Project Implementation

Items N Mean Std.

Deviation
The organization has provided all resources required for training. 52 3.52 1.019
Training materials (manual) have been customized for each specific 52 3.71 .936
Jobs and built by CBE functional Experts
An organization-wide training program has been placed and all 52 2.96 1.298
employees where involved
Enough time was allocated for ERP training. 52 3.48 1.000
Training program was handled by highly qualified consultants and 52 3.46 .979
trainers.
Team roles and responsibilities are well understood by the project 52 3.65 1.027
team
Team is technically qualified for their roles and responsibilities in 52 3.52 .960
the project
There is a cooperative spirit among the team and individuals 52 3.62 1.069
Grand mean 3.49
Source: Analysis of Survey data 2018, using SPSS 25

4.4.4. Stakeholder Involvement and Its Influence on Successful ERP Project

Implementation
As presented in Table 4.6 below, the researcher designed six questions which include education,
training, communication and consultation. The final result showed that the total mean 3.47
indicated that stakeholders are involved in the implementation stage of the project process.
Urban et al. (1993) indicated that the most important factor in the success of new product
development, is to understand the voice of the customer (the end users in the organization). It
was found that stakeholder consultation is more influential in service-oriented projects such as
information technology (Tukel & Rom, 2001) and marketing.

Also, the total mean value indicates that organization wide training program with appropriate
training materials which targets on the entire business process and ERP application was designed
and provided by highly qualified trainers. This result is also supported by other researchers like
(Emad Abu-Shanab, 2015), (Severin V. Grabski, 2011) and (AL-Sabaawi, 2015) which considers
UTE is one of the most important critical success factor for ERP implementation.

40
Table 4.6 Stakeholder Involvement and its influence on Successful ERP Project
Implementation

Items N Mean Std.

Deviation
Education and training is afforded for end users 52 3.58 1.073

Training programs were properly and well designed for end users. 52 3.35 1.027

The project as initiated due to stakeholder expectation 52 3.56 .895

Project leaders are in constant communication with the end users of 52 3.40 1.107
the product.
The project goals go beyond particular departments to the overall 52 3.69 .981
goal of the organization
Users have an opportunity to participate in the monitoring and 52 3.23 1.041
evaluation of projects
Grand mean 3.47
Source: Analysis of Survey data 2018, using SPSS 25

4.4.5. ERP Project Success Critical Factors

Respondents agreed that project mission has clearly defined goals and direction with 3.73
indicating this. Top management was also cited as a critical factor for project success with 4.17.
Communication with and consultation of all stakeholders, showed 3.96. Schedule and plans
detailing specification of implementation had 3.88. Technical tasks which showed the ability of
the required technology and expertise were 3.92 as a critical project success factor. The total
mean value for this section is 3.93. The results are consistent with Manley (1973); Schultz and
Slevin (1975) and Beck (1983) regarding management support for projects. The importance of
developing a detailed Project Schedule Plans with Ginzberg (1979) and Nutt (1983). About
Communication and consultation of all stakeholders with Kolb and Frohman (1970) and Manley
(1973). Technical tasks with the work of Steven Alter (1979).

41
Table 4.7 ERP Project Success Critical Factors

Items N Mean Std.

Deviation
The organizations ERP project mission clearly defined goals and 52 3.73 .931
direction of the project
Top management support is very important on implementation of 52 4.17 1.004
ERP project
Communication with and consultation of all stakeholders have 52 3.96 .989
positive effect on ERP project implementation
Schedule and plans detailed specification of ERP implementation 52 3.88 .943
have positive effect in its implementation
Technical ability of the required technology and expertise of the 52 3.92 1.007
project team is very important in the ERP project implementation
Grand mean 3.93
Source: Analysis of Survey data 2018, using SPSS 25

4.5. Correlation Analysis

Prior to investigating the relationship between two quantitative variables, it is always helpful to
create a graphical representation that includes both of these variables. Such a graphical
representation is called a scatterplot. A scatterplot displays the strength, direction, and form of
the relationship between two quantitative variables, for this study the simple scatterplot graph
illustrates a linear relationship. This means that the points on the scatterplot closely resemble a
straight line. (See appendix ii).

Firstly, referring to table 4.8 the Pearson Correlation Analysis (PCA) evaluated the project
success critical factors with the top management influence, human resource influence, project
teamwork influence and stakeholders influence and found human resource influence and
stakeholders influence have strong correlation with project success critical factors with a p value
0.000 and p value 0.022 with a Pearson R value of 0.980, and 0.780 respectively. Human
resource influence and stakeholders influence was a significant predictor of PSCF. Each

42
component of the project success critical factors had a significant proportion of its variance
explained by Human resource influence and stakeholders influence.

Table 4.8 Pearson’s Correlations

PSCF TMI HRI TWI SHI

PSCF 1
TMI .230 1
HRI .980** .329 1
TWI -.371 -.507 -.401 1
SHI .780* .339 .766* -.257 1
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

4.6. Regression Analysis

Regression analysis is a statistical tool for the investigation of relationships between variables.
As with correlation, regression is used to analyze the relation between two continuous (scale)
variables. However, regression is better suited for studying functional dependencies between
factors. The term functional dependency implies that X (partially) determines the level of Y. in
this study, multiple regression analysis was carried out to get the predictive value of the
constructs considered.

The study conducted a multiple regression analysis for the independent variables and the
dependent variable. Coefficient of determination explains the extent to which changes in the
dependent variable can be explained by the change in the independent variables or the percentage
of variation in the dependent variable (PSCF) that is explained by all the four independent
variables (top management influence (TMI), human resource influence (HRI), teamwork
competency influence (TWI) and stakeholder influence (SHI)). As indicated below in the model
summery (Table 4.9) the appropriate indicators of the variable used to identify the PSCF were
explore. That is, the value of Adjusted R square used to identify how much of the variance in the
dependent variable (PSCF) identified by the model.

43
Table 4.9 Model Summary

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .987a .974 .939 .50208
a. Predictors: (Constant), SHI, TWI, TMI, HRI

The larger the value of Adjusted R square, the better the model is. The overall contribution of
TMI, HRI, TWI and SHI accounted for 93.9 % (Adjusted R Square .939). The rest 6.1 %
represents other independent variables not included in this study. Therefore, the result gives a
further research may include and investigate the other (5.7 %) factors influencing ERP project
post implementation success.

The F statistic is the regression mean square (MSR) divided by the residual mean square (MSE).
If the significance value of the F statistic is small (smaller than say 0.05) then the independent
variables do a good job explaining the variation in the dependent variable. If the significance
value of F is larger than say 0.05 then the independent variables do not explain the variation in
the dependent variable, and the null hypothesis that all the population values for the regression
coefficients are 0 is accepted. In this case, from the (table 4.10) below it can be concluded that
the model specification is correct since F statistic value is 28.099 and the p value is 0.010, which
is less than significance level of 0.05.

Table 4.10 ANOVAa

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 28.333 4 7.083 28.099 .010b
Residual .756 3 .252
Total 29.090 7
a. Dependent Variable: PSCF

b. Predictors: (Constant), SHI, TWI, TMI, HRI

4.7. Hypothesis Test Using Multiple Regressions

In any regression model, the +ve or –ve sign of beta (β) shows the effect (increase or decrease)
of the independent variables coefficients over the independent variable. And as shown in Table
4.10 below, beta sign of all the independent variables shows the effect of the predicting
independent variables. That means any proportional increase in the independent variables lead to
a proportional increase in the dependent variable.

44
Table 4.11 Coefficientsa
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) 5.203 6.032 .863 .452
TMI -1.082 .934 -.129 -1.159 .330
HRI 1.049 .173 .929 6.045 .009
TWI -.336 1.008 -.038 -.333 .761
SHI .129 .188 .102 .689 .540
a. Dependent Variable: PSCF

The multiple regression model with all four predictors produced R² = .974, F = 28.099, p < .010.
As can be seen in Table4.11, HRI (β= 1.049, p = .009), scales had significant positive regression
weights, indicating HRI in project implementation with higher scores on these scales were
expected to have higher influence on ERP project post implementation success after controlling
for the other variables in the model. TMI (β= -1.082, p value = 0.330), has a significant negative
weight (opposite in sign from its correlation with the criterion), indicating that after project
implementation TMI with higher value were expected to have lower influence on ERP project
post implementation success. SHI (β= 0.129, p=.540) has positive relationship but not
significant. TWI (β= -0.336 p= .761) has negative effect on PIS ERP project. Both TMI and TWI
did not contribute to the multiple regression model. There for the bank should give more focus
on HRI and SHI factors.

The coefficient of regression in table 4.10, above were used in coming up with the model below:

PSCF= 5.203+ -1.082TMI + 1.049HRI + -0.336TWI + 0.129SHI

WHERE:

PSCF= project success critical factors

TMI= top management influence

HRI= human resource competency influence

45
TWI= project teamwork influence

SHI= stakeholders influence

The regression results obtained from the model were utilized to test the hypotheses developed in
chapter two. The researcher test the relationship between project success critical factors and each
independent (top management influence, human resource competency influence, project
teamwork influence, stakeholder’s influence.) variable to test either to confirm or to reject the
hypothesis.

H 1: The Post Implementation Success of ERP is positively related to top management

influence
The negative beta sign and a statistically significant result of top management support and
involvement significant relationship with ERP project post implementation success with (b= -
1.082, P = 0.330), which is above 0.05 or 0.01. Rejected the proposed hypothesis.
H 2: The Post Implementation Success of ERP is positively related to human resource
competency influence
In the above table 4.10 as shown the positive beta sign and a statistically significant result of the
human resource competency influence on ERP project implementation success positively
(b=1.049, P= 0.009), which is significant for P < 0.05. It has stronger significance relationship
and supports the proposed hypothesis.
H 3: The Post Implementation Success of ERP is positively related to project teamwork
influence
The negative beta sign and a statistically significant result of project teamwork influence
significant relationship with ERP project post implementation success with (b= -0.336, P =
0.761), which is above P < 0.05. Rejects the proposed hypothesis.
H 4: The Post Implementation Success of ERP is positively related to stakeholder’s
involvement
In the above table 4.10 as shown the positive beta sign result of the stakeholder influence and
statistically insignificant with ERP project implementation success positively (b=0.129, P=
0.540), which is insignificant for P more than 0.05. It has insignificance relationship but supports
the proposed hypothesis.

46
Table 4.12 summery of hypothesis test
Independent Variables Expected Relationships with Actual Hypothesis Status
ERP Post implementation success result
Top management influence + - Reject
Human resource influence + + Accepted
Project teamwork influence + - Reject
Stakeholders influence + + Accepted

4.8. Discussion
Projects implemented in the organization require the support of top management as it promotes
acceptance and success of the project in the organization. The descriptive findings showed that
the need for top management influence in the stage of the implementation is agreed by the
respondents related to project success in CBE, which is in line with the findings of Kerzner
(1987) that a project is likely to be successful if visible support and commitment are present from
the top and executive management. However, the results of the regression (beta -1.082) was
negative and insignificant level and in line with Ke & Wei, (2006), few leaders have realized the
importance of their roles at the post-implementation stage because most of them deem that all
activities after implementation are the duties of the IT department.
Human resource competency influence is a crucial factor influencing the success of projects in
the organization as different members of staff are involved in the delivery of project objectives
(beta 1.049). This result also confirms with previous researches by (Joycelyn L. Harrison, 1997)
and (Emad Abu-Shanab, 2015) that state project team competency to be an influential in the
implementation of ERP. This finding could imply that project team competency is one of the
critical success factor for the successful implementation of ERP in CBE. Another study by
Cooke-Davies (2002) supports the notion that the competence of project personnel contributes
significantly to project success.
The work environment requires individuals with strong interpersonal skills, for teamwork to be
effective, and thus have a positive effective on projects being undertaken. Cooperative spirit
among team members, coordination in performance of activities and team roles and
responsibilities were ranked highly in the research findings (3.49 mean value). This reinforces

47
earlier findings which stipulate that human dimensions exist in nearly all critical factors related
to project success. (Cooke-Davis, 2002). However, the regression result (-0.336) was the
negative and insignificant. The effectiveness of teams is influenced by the mutual support
between members. Hoegl and Gemuenden (2001) emphasizes the importance of team members
not competing (e.g. for resources or prestige) but to cooperate in order to achieve a common
goal. The level of mutual support impacts the team performance through its influence on
communication and coordination within the team itself. Training on team building and other
support activities are crucial for members who lack experience working in autonomous
environments. (Roper and Phillips, 2007).
The study found that stakeholders (users) were indeed involved in project processes at CBE
(3.47 grand mean). The regression result (0.129) is positive but not significant. Their
involvement was at the implementation stage where they were educated and trained on a new
developed system. This findings consistence with Soraya (2003), reported that it is important to
make the users feel they are part of the project and their input is highly valuable for the overall
success of the project.

48
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1. Introduction
The following chapter presents a summary of the major findings on factors influencing
successful ERP project post implementation in Commercial Bank of Ethiopia. It also presents
conclusions and recommendations. Areas of further research are also included.

5.2. Summary of the major Findings

In line with the objective of the research i.e. to identify project success factors that influence
ERP project post implementation success at Commercial Bank of Ethiopia.

The researcher has adopted questionnaires to gather firsthand information from the respondents
with heterogeneous age bracket, level of education, field of study, and service period. Then,
reliability and validity test was conducted in order to check the inconsistency of the data. As the
reliability test confirmed the consistency of the data for the analysis, the collected data from the
respondents was analyzed using SPSS.

 The descriptive result showed that the grand mean of top management support is 3.83.
This means that top management had an appropriate support of ERP implementation
regarding allocation of resource, delegation of authority, and motivation of employees.
 Human resource influence on successful ERP Project Implementation with the total mean
value 3.41 and showed that project team was competent. This means the project was
composed of skilled, qualified and experienced people who had a good knowledge in
business and technical aspects.
 The descriptive result showed that the mean of teamwork influence on successful ERP
Project Implementation variable is 3.49. The mean value indicates that organization wide
training program with appropriate training materials which targets on the entire business
process and ERP application was designed and provided by highly qualified trainers.
 The descriptive result showed that the total mean 3.47 indicated that stakeholders are
involved in the implementation stage of the project process. The mean value also
indicates that organization wide training program with appropriate training materials

49
 which targets on the entire business process and ERP application was designed and
provided by highly qualified trainers.
 The results of the multiple regression analysis show that human resource influence (β=
1.049, p = .009), have significant positive and stakeholder involvement (β= 0.129,
p=.540) have positive but not significant relationship between ERP project post
implementation successes.
 Top management involvement and project teamwork influence has negative effect on the
ERP project post implementation success.

5.3. Conclusion
 The study demonstrated the empirical support for earlier researchers’ theoretical work on
factors that affect successful project implementation and management such as studies by
Belout (1998), Clarke (1999), Cooke- Davies (2002) and Bin and Heiser (2004). The
factors which are empirically supported are top management support, project mission,
project team competency, schedule and plans and client acceptance and effective
communication with relative mean value of 3.93, this is very indeed indicator of success
of ERP project post implementation.
 Top management influence has been found to be important factor of implementing
successfully the ERP system but the study concludes that top management support needs
to be focused on the initiation and realization of benefits from specific ERP project post
implementation stage, rather than the narrowly defined project activities while in
implementation. Top management is the most significant factor influencing the success of
ERP project implementations. For benefits to be realized after post implementation,
organizational changes are required which must emanate from top management and the
support thereof (Ward et al. 1996, Markus et al. 2000, Cooke-Davies 2002).
 Human resource competency influence also plays a significant role to success the ERP
implementation. The findings of this study revealed that competent project personnel are
significant to direct project success. Qualification in terms of professional training in
project management would further boost the overall effectiveness of the project team.
Training will also assist the members with skills that are able to measure the success of
the projects in meeting intended objectives after the implementation. This is also

50
 supported by the results obtained from an empirical research conducted by Belassi and
Tukel (1996) where project managers’ skills are the most critical factors in manufacturing
projects.
 The project team work influence also plays a significant role to success the ERP
implementation. But, when the project is completed and later being introduced to the
clients or end users, the ability of the team members to convince and sell the benefits of
the project is important to ensure that the project are readily accepted by the clients.
Effectiveness is influenced by the characteristics of the people in the project team, in the
quality of their relations with each other and in their capacity to understand the needs,
requests and priorities of the stakeholders (Gido & Clements, 1999).
 Stakeholders influence were important to success of CBE ERP implementation. This was
one of main PCSFs for ERP project post implementation success. Lucas (1979), discusses
the importance of user participation in early stages of system development, as a way of
increasing later acceptance of the final project. CBE, using different means, has involved
its stakeholders in their intended projects in order to guarantee acceptance in the post
implementation stage. The company has designed training materials that focuses on end
users.

This study demonstrated that project implementation success factors have indeed evolved in the
post implementation stage according to the type of project and the environment that the project is
operating.

5.4. Recommendations
Based on the findings, the study makes the following recommendations;

1. The top management at Commercial Bank of Ethiopia should engage in consistent

communication and continued supporting the project from the very beginning and should
inform and motivate employees of the company in all stages of ERP implementation so
as to identify their needs and progress in achieving ERP post implementation success.
This should include provision of resources such as training requirements and material
resources required for ERP project post implementation. Therefore CBE needs to put
more emphasis on support from top management to the users.

51
 2. To make sure the post implementation success, human resource competency should
strengthen by providing training to the project team and users in order to increase their
knowledge and expertise.
3. A competent project team comprised a project leader with its members, who are
specifically selected, trained and possessed the required skills, knowledge and experience
to handle the demands of the project post implementation stage is required.
4. The study recommends that staff should be encouraged to work in teams through
collaborative activities to achieve organizational goals and to assist the work in specific
project teams. This should entail teambuilding activities and exercises among staff in the
different departments at CBE in realizing the benefits of the project.
5. Other Ethiopian organizations specifically banks planning to implement ERP system can
consider implementing all critical success factors identified in this study as input for
realizing their ERP project post implementation success.

Further Research Recommendation

This study has focused on factors influencing ERP project post implementation success within
CBE. However based on the limitation encountered and the reported findings of this research it is
necessary to provide directions for further research. An interesting potential future research
initiative would be to use a mixed approach with a larger number of respondents and other
project success factors in order to generalize the results obtained in this study.

52
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 APPENDIX I
ADDIS ABABA UNIVERSTY

COLLEGE OF BUSINESS AND ECONOMICS

SCHOOL OF COMMERCE

The purpose of this questionnaire is to collect primary data for conducting a study on the topic, “Factors
affecting Enterprise Resource planning project post implementation success: The case of
Commercial Bank of Ethiopia “as partial fulfillment to the completion of the Master of Arts Degree in
project management.

This study is purely for academic purpose and in no ways that affects the respondent’s personality. It will
be kept confidential. So that, you’re genuine view, frank opinion & timely responses are very valuable in
determining the success of the study. Therefore you are kindly requested to extend your cooperation
honestly by providing relevant information and filling out of this questionnaire that is prepared for this
intention.

General Instruction
 ERP- Enterprise resource planning
 No need to write your name
 In all case where answer options available please tick () the appropriate box.
 I thank you for your volentery and timely response.
Name: - SELAM NIBRET Tel. 091 370 1581
Email:-selamawitnibret8@gmail.com

Section 1: Demographic Data

1. Gender?

Male Female

2. Age?

18-25 years 26-33 years 34-41 years 42-49 years 50 years and above

3. What is your highest level of education?

Undergraduate Post-Graduate other

59
 4. How long have you worked in your current position within the Commercial Bank of Ethiopia?

Less than 3 year 4-6 years 7-9 years 10 years & more than

Please indicate with a (√) to the statement with a rating on the scale of 1 to 5. (1= strongly disagree, 2 =
disagree, 3 = Neutral, 4 = agree, 5 = strongly agree)

Section 2. The following statements relate to the commitment and involvement of the top management in
the implementation of ERP projects within commercial bank of Ethiopia.

SNO. Statements SD D N A SA

Section two: the commitment and involvement of the top

management

1 Projects initiated are well funded and enjoy sufficient resources for
implementation
2 Top management has allocated all the required resources (time,
budget and money) for ERP implementation.
3 There’s a clarity in the vision, mission and objectives of the
organization
4 The organizational structure complements the project
implementation process
5 There’s a clear channel of communication between the project
team and top management
6 Top management has clear knowledge about the objectives of ERP.
There were regular cross functional meeting to discuss about the
7 ERP.
8 Communication team was set to solve the departmental conflicts that
arise during the implementation.

Section 3. Human Resource Influence on Successful Project Management in terms of training they took
and past experience of similar projects.

60
SNO. Statements SD D N A SA

Section 3: Human Resource Influence on Successful ERP Project Management

1 The team members were skilled or qualified.
2 The ERP project has been the top and only priority for the team.
3 The team members had a knowledge of the key issues relating to
ERP implementation.
4 The project team had experience in previous ERP implementations.
5 The team members has carefully been selected based on their
knowledge and ability to accept change.

Section 4. The influence of personnel and team work in the successful implementation of projects in
commercial bank of Ethiopia.

SNO. Statements SD D N A SA
Section 4: Teamwork Influence on Successful ERP Project
Implementation

1 The organization has provided all resources required for training.

2 Training materials (manual) have been customized for each specific
Jobs and built by CBE functional
experts
3 An organization-wide training program has been placed and
all employees where involved
4 Enough time was allocated for ERP training.
5 Training program was handled by highly qualified consultants and
trainers.
6 Team roles and responsibilities are well understood by the project
team
7 The team members are technically qualified for their roles and
responsibilities in the project
8 There is a cooperative spirit among the team and individuals

61
 Section 5. The influence of stakeholder involvement in the successful implementation of projects in
commercial bank of Ethiopia.

SNO. Statements SD D N A SA

Section five: Stakeholder Involvement and its influence on Successful ERP Project Implementation
1 Education and training is afforded for end users
2 Training programs were properly and well designed for end users.
3 The project as initiated due to stakeholder expectation
4 Project leaders are in constant communication with the end users of
the product.
5 The project goals go beyond particular departments to the overall
goal of the organization
6 Users have an opportunity to participate in the monitoring and
evaluation of projects
Section 6. Project Success Critical Factors.

SNO. Statements SD D N A SA

Section six: ERP Project Success Critical Factors

1 The organizations ERP project mission clearly defined goals and
direction of the project
2 Top management support is very important on implementation of
ERP project
3 Communication with and consultation of all stakeholders have
positive effect on ERP project implementation
4 Schedule and plans detailed specification of ERP implementation
have positive effect in its implementation
5 Technical ability of the required technology and expertise of the
project team is very important in the ERP project implementation

Thank you for your participation.

62
 APPENDIX II

Simple scatterplot test

63