inquiring the veracity of recent developments in the area of information system
implementation with a focus on the project-based industry, the aforementioned
research objectives are of both theoretical and practical significance. The discrepancy
between the desired and actual outcomes of ERP system implementations highlights a
possible gap between what is offered in theory by researchers and what is used by
practitioners. There have already been a considerable number of existing studies
addressing the risk management issues of ERP systems. However, according to a
recent literature survey (Aloini, Dulmin, & Mininno, 2007), many of those extant
studies aim to discover and analyze the critical success factors (CSFs) rather than the
risk factors that lead to ERP implementation failure. Also, most of the studies
investigating ERP risks simply list the risk factors and suffer from a lack of
systematic efforts in critically evaluating factors. Furthermore, in spite of the
attempts to identify various risk factors, quantitative analysis of ERP implementation
risks is quite rare, making it difficult to undertake thorough risk management in
practice. In addition, few, if any, research deals with ERP risk management in
project-based industries considering their fragmented nature. This research intends to
fill the gap in literature and become an addition to the body of knowledge in ERP
system implementation and risk management.
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This research will also provide a useful methodological framework for the
management of project-based firms to improve the decision making process on ERP
system adoption and implementation. As ERP projects are more expensive, timeconsuming, complex and failure-prone than most other IT applications, sound risk
management is the key to the success of ERP implementations. Equipped with the
approach developed in this research, practitioners will be enabled to effectively
analyze, assess, mitigate, and minimize the risks of ERP implementation. Also, by
taking risk management into account, firms of project-based nature would be more
prepared for ERP system implementation, thus increasing the acceptance of ERP
systems in the industry.