ERP implementation failures in China: Case studies with implications for ERP vendors

Chinese enterprise resource planning (ERP) vendors have been able to defend the challenge from global ERP leaders such as SAP and Oracle. This article seeks possible reasons for major international ERP vendors not being able to dominate the Chinese ERP market. Taking an ensemble view of technology, we conceptualize ERP systems as being embedded in complex social contexts, which heavily influence ERP implementation and use. Based on this conceptualization, we contend that a historical perspective and a social-cultural perspective can offer a rich understanding on ERP implementations in China. From the historical perspective, this paper describes China's ERP evolution and compares it with the ERP evolution in Western countries. From the social-cultural perspective, five cases in which foreign ERP vendors have failed in their Chinese implementations are presented and analyzed. Eight factors are identified which have contributed to ERP failure. Implications of the findings for future ERP implementations in China are discussed.