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

Abstract

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.