Role Negotiation and Interaction: An Exploratory Case Study of the Impact of Management Consultants on ERP System Implementation in SMEs in Taiwan

With growing pressures for collaborative information systems (IS) partnerships, Enterprise Resource Planning (ERP) implementation has been an important activity for improving supply chains efficiency in Small and Medium-Sized Enterprises (SMEs). Historically ERP consultants usually take a product-selling approach in SMEs, providing limited management consultancy services. However, a more constructive role for management consultants has become an emerging and challenging issue. This study explored the involvement of management consultants in ERP implementation, particularly with internal managers, ERP consultants and other project members. Extensive interviews were conducted with management consultants as well as 47 project members from four different SMEs in Taiwan employing ERP consultants. Using a grounded theory methodology, prior literature was used to sensitize the findings to key concepts of importance. The results were then analyzed and we described how owner-managers regard management consultants and how the consultants use role negotiation skills to work with both internal managers and ERP consultants. The study found resistance toward management consultants primarily from managers in SMEs, and not owner-managers. The relationships between management consultants and SME managers also differed from similar relationships in large organizations. Suggestions are also provided for academics and practitioners along with areas for future research to extend these exploratory findings.     

Identification and classification of ERP critical failure factors in Iranian industries

Implementation of Enterprise Resource Planning systems (ERPs) is a complex and costly process, which usually results in serious failures. The majority of previous studies and research projects have been conducted in identifying ERP Critical Success Factors (CSFs) rather than Critical Failure Factors (CFFs). On the other hand, most studies have been devoted to developed countries, while in developing countries, many companies have moved towards using such systems. The majority of IT/IS management standards and guidelines have been developed by technologically-leading countries. But developing countries, which mostly confront with especial challenges, have a different condition from the implicit assumptions of leading countries. Iran is one of these countries that many of its ERP implementation projects led to failure. There is no comprehensive study that identifies ERP CFFs in Iranian industries. The main purpose of this study is to identify such factors and classify them to help other industries, consultants and implementers to prevent failures in the implementation of ERP projects. So, at first, with the semi structured interviews and literature reviews, 47 failure factors were identified. After that a questionnaire developed and sent to ERP project team members in Iranian industries that failed in their ERP projects. Robust Exploratory Factor Analysis (EFA) has been used for data analysis, which finally classified critical failure factors in seven groups named as vendor and consultant, human resources, managerial, project management, processes, organizational and technical. The results of this study have provided a very useful reference for scholars and managers to identify the relevant issues of ERP projects failure in developing countries.     

The consistency among facilitating factors and ERP implementation success: A holistic view of fit

Traditionally, various ERP implementation factors have been deemed critical to success within diverse business environments. The interaction relationships among these ERP implementation success factors, however, have been overlooked. The objective of this study is to explore the interaction patterns among the ERP implementation success factors from a covariation (co-alignment) perspective. We conceptualize the “consistency” among the factors that facilitate ERP implementation and evaluate them in terms of their positive impact on successful ERP implementation. The results from a field survey of 90 Taiwanese manufacturing firms show that the “consistency” among these facilitating factors of ERP implementation had a significant positive impact on ERP implementation success. The factors examined in this study include vendor support, consultant competence, ERP project team member competence, ERP project manager leadership, top management support, and user support. Implications for managers and researchers conclude this study.     

Critical success factors for ERP implementation in SMEs

ERP implementation is regarded as complex, cumbersome and costly, and, very often, it exceeds the initial estimated resources. The process involves a thorough examination of the business processes in the organisation; selection of the best available software solution that matches the requirements of the enterprise; configuration of the selected systems;, training of staff; and customisation of the selected software solutions including development of required interfaces. Finally, the existing MIS of the organisation is replaced totally or partially by the new system. All the implementation processes should be carried out without affecting the daily operations across the whole enterprise. This can only be achieved by having an understanding of the key elements forming the infrastructure of the organisation, an effective plan for the implementation and an effective procedure to measure and evaluate the project throughout the implementation process. This paper presents the results of a study to identify and analyse the interrelationships of the critical issues involved in the implementation of ERP in small and medium sized enterprises (SMEs). Three basic research questions were addressed. First, what are the main critical success factors? Second, how do these factors interact throughout the implementation process? Third, which factors have their highest impact and in what stages? In order to answer these questions, over 50 relevant papers were critically reviewed to identify the main critical success factors (CSFs) for ERP implementation in large organisations. Then, the applicability of the identified CSFs to SMEs was investigated. Next, an industrial survey was also undertaken to identify which CSF has highest impact in what stages. The findings on relationships of the critical success factors have been utilised to develop a tool to monitor, and eventually improve, ERP implementations for SMEs. In the development of the tool, eight people from industry and academia with experience of ERP implementations were interviewed with the aim of validating the model being developed. The overall results provide useful pointers to the interplay of organisational and operational factors for the successful implementation of ERP.     

Blending bureaucratic and collaborative management styles to achieve control ambidexterity in IS projects

Managing information systems (IS) projects requires what we refer to as ‘control ambidexterity’, which is the use of different types of control to meet conflicting demands. This leads to the use of contrasting styles of IS project management and creates tensions in managerial practice, neither of which are well understood. We address this theoretical gap in our understanding based on an exploratory case study of an IS implementation project in the financial services industry. Adopting the lens of management styles as a meta-theoretical perspective, we sought to address two research questions: (1) Which management style(s) do IS project managers draw upon in practice and why? (2) What kinds of tensions result for IS project managers and team members from drawing upon contrasting management styles in combination – and how do IS project managers and team members deal with these tensions? Two contrasting styles of management emerged from our data – bureaucratic and collaborative – that are drawn upon by IS project managers to achieve control ambidexterity. Furthermore, drawing upon these two different styles in combination within the confines of a single project creates tensions. We explore these tensions and present an illustrative example of how IS project managers can deal with these tensions successfully in practice. Specifically, we find that they can be dealt with effectively by a tandem of two project managers who share responsibility for managing the IS project. The findings of this study have important implications for our understanding of control ambidexterity in IS projects.     

A tale of two coalitions – marginalising the users while successfully implementing an enterprise resource planning system

Classic analyses of system implementations view user participation as a key element for successful implementation. However, under some conditions, avoiding user participation offers an alternative route to a successful implementation; this is advisable especially when the user network is weak and aligning user needs with the technological capabilities will take too much resource. To illustrate such situation, we analyse how a successful implementation outcome of an enterprise resource planning (ERP) system emerged in a recently established conglomeration of two previously independent universities. The ERP was used to replace several legacy student administration systems for both political and functional reasons. It was deemed successful by both project consultants and the new university's management while the users were marginalised (‘black boxed’) and left to ‘pick up the pieces’ of an incomplete system using traditional methods such as shadow systems and work‐a‐rounds. Using a process approach and an actor–network theory ‘reading’ of related socio‐technical events, we demonstrate how three networks of actors – management, the project team and the administrative users – collided and influenced the implementation outcome and how the management and project network established the ERP as a reliable ally while at the same time the users – while being enrolled in the network – were betrayed through marginalisation. Our analysis also suggests a useful way to conduct a ‘follow the network’ analysis explaining and accounting for the observed implementation outcome. We illustrate the benefits of using a socio‐technical processual analysis and show how stable actor networks must be constructed during large‐scale information technology change and how different actor groups perceive and influence differently the implementation outcome.     

Toward an ‘IT Conflict-Resistance Theory’: action research during IT pre-implementation

Most empirical research on users’ resistance toward Information Technology (IT) has been conducted after implementation of IT in organisations. Little research has been done on the way individual and group resistance emerges and evolves during prior stages of projects. This focus on pre-implementation phases is important since Information Systems (IS) managers need to anticipate potential conflicts and users’ resistance that can involve project failure. While IS literature has separately developed theories on resistance and conflicts, we conceptualise a whole theoretic-system we call ‘IT Conflict-Resistance Theory’ (IT-CRT). This theory is used as driver for a 2-year action research project conducted at Netia Corporation (a worldwide leader in video and audio broadcasting) during preliminary phases of its Enterprise Resource Planning (ERP) implementation project. According to our findings, while conflicts toward IT implementation are often considered to have negative effects and require being actively managed by top managers, the case study delivers an alternative observation: a passive-like attitude of managers during the IT pre-implantation phase does not prevent the resolution of a socio-political oriented conflict between two groups of employees. Our observations illustrate how the avoidance management style invites team members to cope with conflict situations and to express tacit causes of resistance. While most Management Information System methods tend naturally to maximise users’ satisfaction and to reduce potential resistance, the IT-CRT theory developed in this article supports an alternative approach: enhancing resistance in order to anticipate and resolve latent conflicts that are directly or indirectly related to the project. The underlying message of this article for researchers and practitioners is to consider users’ resistance toward IT as a key process embedded into IT choices and IS design.     

Using resource-based view theory to assess the value of ERP commercial-packages in SMEs

This study explores the enterprise resource planning (ERP) variations in value on small and medium enterprises (SMEs) across four commercial-packages (Microsoft NAV, SAP All-in-one, ORACLE JDE, and SAGE X3). Grounded on the resource-based view (RBV) theory of the firm, we assess a research model linking three determinants; ERP use, collaboration, and analytics to explain the ERP value in three effects (individual productivity, management control, and customer satisfaction). Using a survey data set of 883 firms across European SMEs we test the theoretical model through structural equation modelling. This study provides empirical evidence on how European SMEs find value from the top four commercial-packaged ERPs. Whereas for Dynamics and ORACLE the most important factor is analytics system capability, for SAP and SAGE it is greater collaboration system capability. Furthermore, for SAP and ORACLE greater ERP use is perceived as an important factor, but not for Dynamics and SAGE. In addition, the study finds that both collaboration and analytics capabilities are the greatest differentiators to ERP value, which is consistent with the RBV. The finding provide guidance to business implementation strategies and to software development. The limitations and future work of the study are noted.     

A multicriteria approach for risks assessment in ERP maintenance

Enterprise resource planning (ERP) systems cannot remain static after their implementation, they need maintenance. ERP maintenance is a key process required by the rapidly changing business environment and the usual software maintenance needs. However, these projects are highly complex and risky. So, the risks management associated with ERP maintenance projects is crucial to attain a satisfactory performance. Unfortunately, ERP maintenance risks have not been studied in depth. For this reason, this paper presents a general risks taxonomy. It gathers together the risks affecting the performance of ERP maintenance. Moreover, the authors use the analytic hierarchy process (AHP) methodology to analyze the risks factors identified. It helps managers, vendors, consultants, auditors, users and IT staff to manage ERP maintenance better. Results suggest that the most critical stage in ERP maintenance is the first phase, which receives, identifies, classifies and ranks the software modification. The most important hazards in ERP maintenance are the cooperation and commitment of ERP users and managers.     

Retracted: Human factors of knowledge sharing intention among taiwanese enterprises: a preliminary study

Knowledge management (KM) is very important in the business world of today. The Taiwanese government has recognized the importance of KM in helping small and medium enterprises (SMEs) to innovate through both their internal core competencies and external resources. They have the KM promotion project to combine resources from the information service industry and the academic sector in order to assist SMEs, and have been attempting to introduce the process of KM since 1993. The motivation, opportunity, and ability (MOA) framework has been applied to study how this MOA availability drives knowledge sharing in large enterprises. This study investigates the factors or barriers that influence the intention of knowledge sharing in Taiwanese SMEs through the MOA framework. It should help business managers identify the motivational elements that can encourage investment in it, and then propose pragmatic suggestions for introducing KM initiatives in order to reinvigorate the numbers of KM‐implementing SMEs in Taiwan. © 2012 Wiley Periodicals, Inc.     

Factors affecting the adoption of information and communication technology in small and medium enterprises: a perspective from rural Saudi Arabia

ABSTRACT

Small and medium enterprises (SMEs) can play an important role in the national economy of developing countries. The adoption of information and communication technology (ICT) has enabled local SMEs to participate in the international market. However, little research has addressed issues related to SMEs adopting ICTs, especially in rural areas of Middle Eastern developing countries such as Saudi Arabia. Using the extended technology-organization-environment framework with personal innovativeness, this study examined the factors that influence the adoption of ICTs among SMEs in rural areas of Saudi Arabia. The study found that relative advantages, top management support, culture, regulatory environment, owner/manager innovativeness and ICT knowledge had a significant relationship with ICT adoption among SMEs in Saudi Arabia, whereas compatibility, complexity and a competitive environment had no significant relationship with ICT adoption. The findings of this study will potentially help SME managers/owners and the Saudi government in the successful adoption and diffusion of ICT in SMEs located in rural areas in Saudi Arabia.     

The Use of an ERP System to Facilitate Regulatory Compliance

This article reports the findings of a case study conducted in a multinational organization that aims to investigate how an enterprise resource planning system (ERP) can facilitate control over reporting processes and thus ensure compliance with regulatory requirements. The findings demonstrate how the use of an ERP to comply with financial regulation can impact organizational roles. In particular, IT managers must ensure that the ERP addresses regulatory requirements for internal control over financial reporting.     

Team building criteria in software projects: A mix-method replicated study

ContextThe internal composition of a work team is an important antecedent of team performance and the criteria used to select team members play an important role in determining team composition. However, there are only a handful of empirical studies about the use of team building criteria in the software industry.ObjectiveThe goal of this article is to identify criteria used in industrial practice to select members of a software project team, and to look for relationships between the use of these criteria and project success. In addition, we expect to contribute with findings about the use of replication in empirical studies involving human factors in software engineering.MethodOur research was based on an iterative mix-method, replication strategy. In the first iteration, we used qualitative research to identify team-building criteria interviewing software project managers from industry. Then, we performed a cross-sectional survey to assess the correlations of the use of these criteria and project success. In the second iteration, we used the results of a systematic mapping study to complement the set of team building criteria. Finally, we performed a replication of the survey research with variations to verify and improve the results.ResultsOur results showed that the consistent use team building criteria correlated significantly with project success, and the criteria related to human factors, such as personality and behavior, presented the strongest correlations. The results of the replication did not reproduce the results of the original survey with respect to the correlations between criteria and success goals. Nevertheless, the variations in the design and the difference in the sample of projects allowed us to conclude that the two results were compatible, increasing our confidence on the existence of the correlations.ConclusionOur findings indicated that carefully selecting team member for software teams is likely to positively influence the projects in which these teams participate. Besides, it seems that the type of development method used can moderate (increase or decrease) this influence. In addition, our study showed that the choice of sampling technique is not straightforward given the many interacting factors affecting this type of investigation.     

The ERP Revolution: Surviving vs. Thriving

This paper presents preliminary findings from a research project that examined how firms are generating business value from their investments in enterprise resource planning (ERP) systems. The research, which was done jointly with Benchmarking Partners, describes the stages of ERP implementation, the obstacles that firms encountered in generating benefits from the systems, and some critical success factors for getting business value from the implementation of an ERP system in business.     

MINIMIZING RESISTANCE TO TECHNOLOGICAL CHANGE A Power and Politics Approach

Abstract

To minimize organizational resistance to implementation of an automated project management tool, a technology team at Apollo Computer used a power and politics approach emphasizing the role of coalitions in decision making. The team built a coalition favorable toward the new tool by involving key project managers in all phases of the implementation process.     

Project preparedness and the emergence of implementation problems in ERP projects

The problems that organizations face in implementing an enterprise-wide ERP project are linked to their level of understanding of what is involved in such an endeavor and how it influences their initial preparations. We sought to demonstrate empirically the causal relationship between the organization's preparedness and the emergence of implementation problems. We examined four case studies to extract insight into the criticality of certain factors and the type of problems created when no moderating measures were taken by project managers. Consequently, we developed a predictor-outcome model mapping a lack of preparedness with implementation problems.     

Corporate Motivation to Risk Prevention: Applied Exploratory Analysis in Construction Sector in Catalonia

In this article, we have undertaken an exploratory analysis of the extrinsic and intrinsic factors affecting an employer's safety motivation in the construction industry, and their correlation with firm size, management level, and perceived risk. We have employed a model based on previous research by Michael Wright for the Health and Safety Executive (UK). Methods: A sample of managers from 198 construction firms in Catalonia (Spain) were interviewed collecting relevant data. The exploratory factor analysis of this data detected two factors: extrinsic (prosecution, inspection, external pressure) and intrinsic (legal, responsibility, internal involvement). Confirmatory factor analysis did not rule out the presence of extrinsic and intrinsic factors (Wright), and the analysis with covariates (MIMIC model) showed significant positive relationships between extrinsic factors, management level, and perceived risk. It also showed a significant positive relationship between intrinsic factors and firm size. Conclusion: The aim of this study was to make a preliminary diagnostic of an employer's safety motivation. Our findings indicate that it is possible to develop external motivators (advice from inspection bodies, union activities, publicity of prosecution records, etc.) that are addressed to top managers and to firms more exposed to risk. We have also found that it is possible to develop internal motivators by introducing experience modification ratings, social accounting, advertising in the mass media, and promotion campaigns, particularly among bigger firms. Our findings will be useful to government agencies, company managers, and consultants and may be adapted for use in motivating midlevel staff to adopt participatory intervention programs.© 2011 Wiley Periodicals, Inc.     

Active ERP implementation management: A Real Options perspective

Although enterprise resources planning (ERP) implementation has been one of the most significant challenges of the last decade, it comes with a surprisingly high failure rate due to its high risk nature. The risks of ERP implementation, which involve both technical and social uncertainties, must to be effectively managed. Traditional ERP practices address the implementation of ERP as a static process. Such practices focus on structure, not on ERP as something that will meet the needs of a changing organization. As a result, many relevant uncertainties that cannot be predefined are not accommodated, and cause the implementation fail in the form of project delay and cost overruns. The objective of this paper is to propose an active ERP implementation management perspective to manage ERP risks based on the Real Options (RO) theory, which addresses uncertainties over time, resolves uncertainties in changing environments that cannot be predefined. By actively managing ERP implementation, managers can improve their flexibility, take appropriate action to respond to the often-changing ERP environment, and achieve a more successful ERP implementation.     

A multilevel explanation of end-user computing satisfaction with an enterprise resource planning system within an international manufacturing organization

The present research results assume that end-user computing satisfaction (EUCS) of an enterprise resource planning system (ERP system) depends on users’ positive perception of determinants on multiple organizational levels. Hence, rather than investigating a precise theory of narrow focus, this research addresses the users’ view of the impact of major project and organizational issues on EUCS. This requires a multilevel approach to research. A hierarchical regression analysis based on data from 123 middle managers and super-users from a single company with operating units in 10 western European countries confirmed this theory. Still, a path analysis suggests that determinants representing the near user environment (communication and decision-making patterns between users and experts locally during the ERP system implementation process, and communication with peers in organizational units other than that of the respondent) contribute more consistently to EUCS than determinants on other organizational levels. User training plays a role in helping users understand the relevance of ERP system project business objectives, but training does not help in explaining EUCS. The study points to future research in the areas of instrument development as well as an increased understanding of stakeholders’ views, determinant definitions, relationships among determinants, and measures of ERP system outcome.