Enterprise Systems and Organizational Issues in IS


There is anecdotal evidence that standards enforced by ERP systems are often in conflict with userdemands. With lesser customization, ERP implementation projects are more likley to finish on timeand budget; however, customization makes users happy. Also, in customised ERP, organisations runthe risk of losing out on the benfit of best-processes factored in ERP packages. Organizations aretherefore faced with a dilemma of whether to customize the ERP package for user satisfaction andacceptance or re-engineering existing business processes to match ERP enforced standards to achievebenefits of best-processes and improve organizational performance. In this resesearch we investigatethis issue. Our findings indicate that the level of ERP customization has significant moderatinginfluence on the relationship between user satisfaction and operational performance in organizations.Our findings also indicate that the level of user satisfaction in customized ERP implementations ishigh but the high satisfaction does not translate to operational performance because of the negativemoderating effect of ERP customization. Implications of the findings are discussed.