Characteristics of the Multiple Attribute Decision Making Methodology in Enterprise Resource Planning Software Decisions

Abstract

Realising information technology (IT) decisions and implementations are consistently seen as major challenges of business management faced with increasingly complex IT environments. This article seeks to increase the awareness of the multiple attributive decision making methodology (MADM) in the context of enterprise resource planning (ERP) projects and provides empirical insights based on 209 datasets originating from a primary, national and industry independent survey. The given MADM topics comprise strategic alignment, attributes with associated importance weightings, considered and chosen systems, methodical utilisation, follow-up controlling, and finally MADM relevance in terms of a possible connection between MADM and ERP success. The results in particular show that while the ERP decision problem seems to be structured based on the MADM principle, the minority of decision makers rely on a formal MADM method. The empirically tested measurement model indicates that success according to expectations was achieved at a greater level of magnitude in firms supported by a formal MADM method, especially in terms of financial firm level impact and service quality.