User participation in ERP Implementation: A Case-based Study

International Journal of Computer Applications Technology and Research
Volume 4– Issue 1, 24 - 29, 2015, ISSN:- 2319–8656
www.ijcat.com 24
User participation in ERP Implementation: A Case-based
Study
Samwel Matende
Faculty of Computing and
Information Management,
KCA University,
Nairobi, Kenya
Patrick Ogao
School of Information and
Communication Technologies,
Technology University of Kenya
Nairobi, Kenya
Josephine Nabukenya
School of Computing and
Informatics Technology,
Makerere University,
Kampala, Uganda
Abstract: Information Systems (IS), such as Enterprise Resource Planning (ERP) systems, are being developed and used in
organizations to achieve their business goals and to enhance organizational effectiveness. The effect of user participation on
successful systems development and implementation of ERP systems continues to be an area of interest to researchers. Common
understanding has been that extensive user participation is not only important, but absolutely essential to system success. Even with
this understanding of user participation as one of the critical factor in successful IS development and implementation, empirical studies
have been unable to conclusively link user participation to systems success. This paper uses a private university as a case study to
examine the role played by user participation in the implementation of an ERP system. In order to achieve its objective, this study
adopted a mixed method where both qualitative and quantitative approaches were used in the collection of data. The results of the
study reveal that user participation has a positive impact on the likelihood of ERP system success, user participation by choice is the
best, user participation leads to better understanding of system requirements, the more participation the more the satisfied the users are,
and participation builds support for the system during implementation. From our results we conclude that user participation in ERP
system implementation is critical for successful implementation.
Keywords: Enterprise Resource Planning, ERP systems, ERP implementation, User Participation.
1. INTRODUCTION
Implementation of an ERP system is a complex IT-related
social phenomenon with a large body of knowledge (Sarkera
and Leeb, 2003). Amoako-Gyampah (2007) asserts that this
implementation involves large expenditures, lengthy periods,
and organizational commitment. An organization that decides
to implement an ERP system is subjected to technological,
information, business processes and people challenges. This
implementation affects users at various levels of the
organization since it cuts across all functional units. These
users range from top management to low level users who use
the system on their day-to-day operations. Earlier studies on
ERP systems that focused on critical success factors, such as
Al-Fawaz et. al. (2008), have identified user participation and
involvement as one the important factors for successful ERP
implementation.
The subject of user participation and involvement in
implementation of information systems has been an area of
interest to researchers and practitioners. Panorama consulting
group (2010) claim that user involvement is one of the most
cited critical success factor in ERP implementation projects.
The result of involving users in the ERP implementation is a
better fit between the resulting system and the business
processes (Panorama Consulting Group, 2013). Users are
invited to participate in an information system development
(ISD) process because they have accumulated rich application
domain knowledge through long period of exposure to their
job context. User participation is advocated in order to
discover users’ needs and points of view, validate
specifications, and hence build better IS for the organization
(Esteves et al., 2005). Other benefits include enhanced
system quality, increased user knowledge about the system,
greater user commitment and user acceptance (Harris and
Weistroffer, 2008).
Ever increasing competition, expanding markets and
enhanced customer expectations are among the challenges
that organizations face today. To overcome these challenges,
Enterprise Resource Planning (ERP) systems offer an
integrated, enterprise-wide view of an organization's corporate
information. According to Ibrahim et al. (2008, pp. 1), “an
ERP software is a set of applications that links systems such
as manufacturing, financial, human resources, data
warehousing, sales force, document management, and after-
sales service together, and helps organizations handle jobs
such as order processing and production scheduling”. This
characteristics differentiates ERP systems from the traditional
information systems that are considered to be information
silos of various operational units of the organization. These
silos are not integrated. Another distinction between ERP
systems and the traditional information systems is the fact that
majority of ERP systems are commercial of the shelf (COTs)
systems which are bought and customized by the
implementing organizations.
Due to their complexities, the implementation of ERP systems
is a process of great complexity strongly involving the whole
company and users at all levels of the organization. This
implementation has many conditions and factors which
potentially influence its success and the success of the entire
project. One of these factors is user participation (Al-Fawaz
et. al., 2008). ERP systems are complex pieces of software.
Consequently, many such implementations have been
difficult, lengthy and over budget, were terminated before
completion, and failed to achieve their business objectives
even a year after implementation (Somers and Nelson, 2004).
The significance and risks of ERP make it essential that
organizations focus on ways to improve ERP implementation.
Because of the promise of integration and facilitation on rapid
decision-making, more organizations and institutions globally
are implementing ERP systems (Markus and Tanis, 2000).

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Along with this adoption, there has also been a greater
appreciation of the challenges that arise from implementing
these complex technologies. Al-Mashari (2003) asserts that
many organizations are now adopting ERP systems making
them today's most widespread IT solutions. For the benefits to
be achieved, the ERP implementation should be successful.
Many researchers have identified user participation as a
critical success factor in the implementation of information
systems and ERP systems. The way users participate during
the development of a traditional information system is
different from the way users participate in an ERP
implementation. This paper investigates the role of user
participation in ERP implementation using a private
university as a case study.
The paper is divided into five remaining sections. Section 2
presents a review of related literature on user participation and
past research on ERP implementation. Section 3 describes the
methodology followed in collection and analysis of data. A
brief description of the case study university and how an ERP
system was implemented in this university is presented in
section 4. The data on user participation in the ERP
implementation process is presented in this section. Section 5
gives a brief discussion of the findings while section 6
concludes this paper.
2.REVIEW OF RELATED WORKS
Research on user participation in the past has focused on
identifying the link between user participation or involvement
and success in system development. No conclusive proof of
this link has been offered by these past researches (Cavaye,
1995). Part of the reason for the inconclusive results can be
traced back to the lack of clear definition of what user
participation is. Prior to 1989, user participation and
involvement were used interchangeably. Cavaye (1995)
emphasizes that a clear definition of these terms will resolve
ambiguities which might have brought about several
interpretations of the research findings.
Traditionally, user participation was defined as user
representatives’ participation in IS development process (Ives
and Olson, 1984), with reference to a series of specific
activities undertaken by users (Baroudi et al., 1986). The term
user participation in the information systems discipline used
to be used interchangeably with user involvement till clear
distinction was made between the two by Barki and Hartwick
(1989; 1994).
Barki and Hartwick (1989) argue that user participation and
user involvement are two distinct concepts with different
meanings as used in other disciplines. It is worth noting that in
the IS literature, these two concepts have been used
interchangeably. In trying to differentiate these two concepts,
Barki and Hartwick argue that user participation should be
used to refer to those activities and behaviours of users and
their representatives during the development process of an
information system while on the other hand user involvement
should be used to refer to the subjective psychological state
that reflects the level of importance and personal relevance of
the information system to users. We adopt this understanding
of user participation in this study. We perceive user
participation to be activities of users and their representatives
during the development and implementation of an information
system.
Despite the existence of various methodologies, there is a lack
of measures to secure effective user participation. Qualitative
research has found that users tended to play a marginal,
passive, or symbolic role in IS development (for example,
Beath and Orlikowski, 1994). For example, joint application
development (JAD) fell short in promoting effective user
participation, contrary to common expectation (Davidson,
1999; Gasson, 1999). Although participatory design (PD)
places a strong emphasis on the cooperation between users
and IS developers, there exists little evidence on the
adaptability of this approach beyond the Scandinavian cultural
settings (Carmel et al., 1993).
It is difficult for users to participate meaningful for the
following reasons: (1) Led by IS staff, users tended to be
drowned in technical materials (Davidson, 1999). (2) The
language of communication between the two sides tends to be
technical, often involving a great deal of jargons (Beath and
Orlikowski, 1994; Davidson, 1999). And lastly, (3) Users are
put into a passive position, lacking motivation for substantive
participation (Wilson et al., 1997). These problems prevent
users from participating in IS development in a meaningful
and effective manner. Therefore, there is a clear need for
further research on methods for effective user participation
since users are the domain experts and carry a wealth of
experience when it comes to their operation areas.
Few studies have been conducted on ERP implementation
from the perspective of user participation. However, user
participation issues were also touched upon in two other
bodies of research on ERP implementation, albeit not as the
main focus. The first one investigates critical success factors
for ERP implementation. Secondly, user participation
occasionally appears in recent research on ERP
implementation team from the client side. Prior research has
addressed the following themes: (1) the important role of
absorbing ERP knowledge by the user team (Lorenzo et al.,
2005; Robey et al., 2002); (2) the various types of ERP
knowledge to be learned, such as the functionality of the
software, idea of integration (Ko et al., 2005), and project
management methods (Xu et al., 2006); and (3) factors
affecting the user team’s absorption of ERP related
knowledge (Ko et al., 2005).
Due to the complex nature of these systems, there have been
reports of ERP implementation projects that do not succeed.
Sumner (2000) states that there are a number of potential
explanations for these failures. The failures can broadly be
classified as human/organizational reasons such as lack of
strong and committed leadership, technical reasons such as
challenges or difficulties that arise from software
customization and testing and economic reasons such as lack
of economic planning and justification). Sumner (2000)
further asserts that as much as each of these classes is
important there appears to be a growing consensus among
researchers that human factors are critical to the success of
ERP projects.
In summary, the significance of user participation, as an
important issue in ISD, has not been duly recognized in ERP
implementation research. Research on ERP implementation
from the perspective of user participation is lacking, and this
could be an area of significant research contribution.
3. METHODOLOGY
A case study methodology was used in this study. The data
collected for the purposes of this study comes from one case
study conducted in a private university in Kenya. Qualitative
data collection method (mainly semi-structured interviews)
and quantitative data collection method (mainly a
questionnaire were utilized. The interviewees were heads of
departments, internal ERP project manager and IT

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technicians. The questionnaire was administered using an
online tool (SurveyMonkey) and it focused on the end users in
various departments such as Finance, Human Resource,
Registrar's office, Examinations and some teaching staff. The
users who filled the questionnaire were identified by the IT
Manager and the internal ERP project manager.
The survey questionnaire asked for information on user
participation in the ERP implementations. ERP
implementation has different phases and the users participated
in either all or some of these phases. The questionnaire was
four pages long and had a total of 16 questions addressing the
various phases of ERP implementation. The questions in the
survey required multiple responses while others were open-
ended. The responses were encoded using a mix of check
boxes (for multiple choices), radio buttons (for single choice)
and open-ended answers. After the initial development of the
survey questionnaire, it was sent to two ERP project leaders
from our case study university and the ERP vendor. The
primary objective was to test whether the instrument provided
consistent and accurate information. Their responses were
checked against the information collected during the case
study. In addition, the questionnaire was checked by two ERP
consultants. Based on the information provided by these
experts, the instrument was fine-tuned and finalized.
The Case Study University
The case study was a private university in Kenya located in
Nairobi which has adopted an ERP system and implemented
several modules in several functional units. The university has
broken down the ERP system into modules that handle several
of its functional departments/units. These include finance,
human resource, student management (admissions and
examinations management). Other modules have been left out
to be installed in the future. The university has four campuses
which are all connected together and use the ERP system. At
present, it employs in excess of 300 staff (both administration
and teaching). This university is among the first private
universities to implement an ERP system.
Before the implementation of the ERP system, the university
had a legacy system that was not complex and was mainly
used in the finance function. All other functional units used
either a spreadsheet or a database application. All units were
operating as information silos with no link or connection to
other functional units. Prior to the implementation of the ERP
system, the campuses were operating in isolation.
ERP Implementation in the Case Study
Institution
The process of implementing the ERP system in the case
study institution was triggered by the desire to have an
integrated information system that will integrate the
information generated from different functional units into one
seamless system.
The university management set up an ERP Project committee
which comprised of the ICT Director, an ERP Project
Manager (a newly appointed staff) and representatives from
the Academic and Administration divisions. This is the
committee that was mandated by the university's management
to spearhead the ERP adoption and implementation project.
This committee commenced its work mid 2004.
The ERP lifecycle framework proposed by Esteves and Pastor
(1999), figure 1 below, presents the main phases that the case
study university followed in the implementation of the ERP
system. A review of literature reveals that there is no
consensus regarding the ERP lifecycle phases.
Figure 1: ERP Lifecycle Framework. Source: Esteves and
Pastor (1999)
In the Adoption decision phase, the ERP Project committee
reviewed the need for a new ERP system against the
information needs of the university. This involved identifying
the university strategic direction with regard to information
systems solutions that best address the critical business
challenges and improve the organizational strategy. The
outcome of this phase is clear definition of system
requirements, its goals and benefits, and an analysis of the
impact of adoption at a business and organizational level. The
Acquisition phase consists of the product selection that best
fits the requirements of the organization. This aims at
minimizing the need for customization during the
implementation phase (Esteves and Pastor, 1999). Factors
such as price, training and maintenance services are analyzed
and, the contractual agreement played a major role in the
identification of the ERP vendor. The committee settled on
Microsoft Dynamics NAV as the ERP system to adopt. At this
point, a team from the ERP vendor was constituted and liaised
with the committee on the university side to continue with the
ERP implementation.
During the Implementation phase, focus shifted from the ERP
Project committee to the ICT department and the system
developers from the vendor's side for the technical aspects of
the implementation. This phase consists of the customization
or parameterization and adaptation of the ERP package
acquired according to the needs of the organization/institution
(Esteves and Pastor, 1999). Other than the financial module,
all the others required customization to meet the needs of the
university. It is during this phase that the user participation
was evident since they are considered to be the domain
experts. This participation is discussed further in the next
section.
The case university is currently in the Use and maintenance
and the Evolution phases which involve the use of the product
in a way that returns expected benefits and minimizes
disruption and the integration of more capabilities into the
ERP systems. The ERP system is under a maintenance
contract which provides for any maintenance if and when it
malfunctions and has to be corrected, special optimization

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requests have to be met, and general systems improvements
have to be made. The university has also added more modules
onto the system such as the Procurement and is the process of
adding Customer Relations Management (CRM).
4. FINDINGS
A total of fifteen users who had been identified by the IT
manager and the internal ERP project manager as those that
had participated in the various phases of the implementation
process responded to the questionnaire. A web link was sent
to them by email. As mentioned in the methodology section,
these users come from different functional units of the
university.
User participation in the ERP implementation in the case
study university was evidence in all phases of the
implementation. Users from different departments and
sections of the university were selected to participate in the
ERP implementation. These sections included finance, human
resource, registrar office (which included Exams and
Admission sections) and faculties. 29% participated in project
definition, 62 % participated in requirements definition.
In terms of what capacity the users participated in the
implementation 62% participated as end users who use the
system in their daily operations while 38% participated as
representatives of their departments/sections. A good example
for this case was in the finance department where a team of
users was identified by the department head to participate in
the implementation process since the whole department would
not be allowed to participate due to the critical nature of the
department and provision of services to the clients.
With regard to the area that they participated in whether
technical (which involved identification and purchase of the
hardware and ERP software), social (human interface design,
for example, design of forms, reports, etc) or module
implementation (for example, participation in the
implementation of a specific module such the finance or HR
module), 36% of the users participated in the social aspect
while 64% participated in module implementation. 30% of the
users also participated in the testing of the system. The users
who stated that they had participated in the social aspect were
more interested with how the interfaces looked like and
positioning of the menu items on the forms while the those
that participated in module implementation were instrumental
in the technical aspects of the system such as the modules
meeting the requirements of the department.
In terms of communication from top management and ERP
Project committee to the users is concerned, 53% stated that
to a large extent users were adequately briefed about the ERP
implementation process before it started, 82% were given an
opportunity to perform various tasks relating to the
implementation. 65% of users agreed that there was adequate
communication between the ERP experts and users during the
implementation process. With regard to reviewing of the work
done by the ERP vendors, 56% of the users stated that they
were given an opportunity to review the work done by the
ERP vendors.
In assessing whether the ERP implementation was successful
or a failure, 55% of the users stated that it was a success while
45% indicated that the implementation was average to below
average. No user stated that the implementation was a total
failure. 55% of the users are satisfied with the system most of
the time while 42% are only satisfied some of the time when
using the system. 15% of the users considered the
implementation of the ERP system to be very successful, 40%
consider the implementation to be successful, and 25% think
it is average while 20% of the users believe that the
implementation is below average.
5. DISCUSSION
In the case study university, there is evidence that there was
effort by the university management to involve users in the
ERP implementation process. The setting up of the ERP
Project Committee to spearhead the implementation provided
a form of project team that would engage users within the
university and the experts from the ERP vendor team. The
university has no policy on user participation when it comes
to system development or implementation and hence not
institutionalized.
An ERP system is a complex system that integrates the
various functional units of an organization presenting uniform
and real time information to these units. It comprises different
modules that may be implemented at one go or in a phased
approach. The ERP systems adopted by the university are a
Commercial-Of-The-Shelf (COTS) system. The university
adopted a phased approach where modules of some key
functional units were implemented first. Users participated in
different phases of the implementation with some
participating in the project definition, others in requirements
definition while others in the module implementation and
testing.
Users were allowed to interact with the ERP experts from the
vendor’s team where their contributions were considered and
taken seriously. This presented them with an opportunity to
share their expertise and knowledge in their domain area.
Departmental/section heads requested the users to participate
voluntarily in the various meetings and sessions during the
implementation.
The present study confirms the role played by user
participation in ERP implementation. Users presented insights
into their areas of operations which made it easier to identify
the system requirements. During the meetings, the needs of
the users were also discovered and incorporated into the
implemented system. This was achieved through
customization of some features of the system. Due to the
participation, most users have accepted the system and are
using it.
This study illustrates that user participation indeed contributes
greatly to the success of ERP implementation. The successful
elicitation of what were complex requirements led to a better
understanding of both the business practices that the ERP
system presents and the operations and duties performed by
users.
6. CONCLUSION
The introduction of a new information system such as an ERP
system will definitely change the way people work. These
changes arise from new a platform, new and different
interfaces, data entry is changed and report formats are
different. Users often find these changes unnecessary and
therefore refuse to accept them. One of the ways to address
and reduce the impact of these changes is to encourage user
participation in the implementation of ERP systems.
ERP implementations are expensive and complex
undertakings, but once they are successfully implemented,
significant improvements can be achieved such as easier

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access to reliable information, elimination of redundant data
and operations, reduction of cycle times, increased efficiency
hence reducing costs (Zhang et al., 2003). This
implementation differs from that of any traditional
information system due to that it integrates different
functional units of the organization. This leads to dramatic
changes on how work is carried out, organizational structure
and on the way people do their jobs. Most ERP systems are
not built but adopted and thus they involve a mix of business
process re-engineering (BPR) and package customization.
This makes them unique and their implementation goes
beyond technical concerns but also a socio-technical
challenge since it affects how users perform their tasks.
ERP implementation differs from traditional systems
development where the key focus has shifted from a heavy
emphasis on technical analysis and programming towards
business process design and human elements (Gibson et al.,
1999). Unlike most home-grown legacy systems or those
systems that are developed internally that were designed to fit
individual working convention, ERP systems provide best
practices, in other words generic processes and functions at
their outset.
Aligning standard ERP processes with the organization’s
business process is considered to be an important step in the
ERP implementation process (Botta-Genoulaz et al., 2005).
Implementing a packaged ERP system inevitably changes the
way people work. Successful implementation of an ERP
system requires cooperation among different parties and
departments.
In this paper, we investigated the contribution made by user
participation in the ERP implementation process. A private
university that implemented an ERP system was used as a
case study. The implementation process followed the ERP
lifecycle framework presented in figure 1 above. User
participation positively impacted the implementation process
and the majority of the users stated that the process was
successful. Information systems are designed for use by users
during their daily operations hence they are considered to be
user-interfaced. This is also true of ERP systems which are
designed to provide information processing capability to
support the strategy, operations, management analysis, and
decision-making functions in an organization. The user is at
the center of an information system. Our study confirms that
user participation is a critical to the success of the ERP
implementation process.
There is a need, however, to investigate the role played by
users in the process of customizing these commercially-of-
the-shelf systems that have been designed for an educational
institution. Educational institutions have different business
processes unlike the manufacturing organizations. One of the
limitations of this study was the fact that the adopted ERP
system is not developed with university operations in mind.
This system is strong on its financial modules. Another area
for further research could be to investigate the role of user
participation in internally developed ERP systems especially
in Higher Education Institutions (HEIs).
In conclusion, we would like to reiterate the fact that ERP
implementation is a complex IT-related social phenomenon. A
substantial number of ERP implementations fail with a
number of potential explanations for these failures presented.
These failures, according to literature, may broadly be
classified as human/organizational, technical, and economic.
While each of these is important, there appears to be a
growing consensus among researchers that human factors,
more than technical or economic, are critical to the success of
ERP projects.
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