The Influence of Organisational Culture on the Implementation of Enterprise Resource Planning
The critical key success factors, which have to be targeted with appropriate change management, are the user acceptance and support of a new Enterprise Resource Planning (ERP) system at the early implementation stages. This becomes even more important in Arab context where national and organisational culture with a different value and belief system, resulting in different management styles, might not complement with Western business culture embedded in the predefined standard business processes of existing ERP packages. This study explains and critically evaluates research into national and organizational culture and the influence of different national cultures on the implementation and reengineering process of ERP packages in an Arab context. Using a case study, realized through a quantitative survey testing five of Martinsons’s and Davison’s propositions in a Libyan sample company, confirmed the expected results from the literature review that culture has an impact on the implementation process and that employee empowerment is an unavoidable consequence of an ERP implementation.
[1] Seddon, P. B., Shanks, G., & Willcocks, L. (Eds.), "Second-wave enterprise resource planning systems”, New York: Cambridge University, 2003.
[2] Fang, L., & Patrecia, S. (2005). Critical Success Factors in ERP Implementation. (Master thesis, Jànkàping International Business School).
[3] Yang C, and Su Y, ‘why are enterprise resource planning systems indispensable to supply chain management’, European journal of operational research, production, manufacturing, and logistics, 2009.
[4] Holland, C., Kawalek, P., & Light, B. ‘Beyond ERP systems: innovative strategies for competitive advantage’, In Proceedings of the Seventh European Conference on Information Systems. Copenhagen, Denmark: Copenhagen Business School, 1999a.
[5] Chang, S. I., & Gable, G. A ‘Delphi examination of public sector ERP lifecycle implementation, management and support issues’, Journal of Decision Systems, Special Issue on ERP and their implications for Decision Making, 2001.
[6] Mabert, V., Soni, A., & Venkataramanan, M. ‘Enterprise resource planning survey of US manufacturing firm’, Production and Inventory Management Journal, 41(2), 52-58, 2000.
[7] Klaus, H., Rosemann, M., and Gable, G.G.,What is ERP?, Information Systems Frontiers (2:2), pp. 141- 162, 2000.
[8] Mushavhanamadi K., Mbohwa C., The Impact of Enterprise Resource Planning System (ERP) in a South African Company, International Journal of Social, Management, Economics and Business Engineering Vol:7 No:11, 2013
[9] Kumar, V., Maheshwari, B., & Kumar, U. ‘ERP systems implementation: Best practices in Canadian government organizations’, Government Information Quarterly, 19, 147–172, 2002.
[10] Markus, M. L., & Tanis, C. ‘The enterprise systems experience-from adoption to success. In framin the domains of IT research: glimpsing the future through the past, Zmud, R. W. (Eds.), Cincinnati, OH:Pinnaflex Educational Resources, 2000.
[11] Sambamurthy, V., & Kirsch, L. J. ‘An integrative framework of the information systems development proces’ Decision Science, 31(2), 391-411, 2000.
[12] Grabski, S. V., & Leech, S. A. ‘Complementary controls and ERP implementation success’. International Journal of Accounting Information Systems, 8, 17 – 39, 2007.
[13] Hofstede, G. (1994) Cultures and Organizations: Software of the mind, Harper Collins Business.
[14] Trompenaars, F., Hamden-Turner, C. (2000) Riding on the waves of culture: Understanding Cultural Diversity in Business, Nicholas Brealey Publishing.
[15] Law, C. C. H., Chen, C. C., & Wu, B. J. P., ‘Managing the full ERP life-cycle: Considerations of maintenance and support requirements and IT governance practice as integral elements of the formula for successful ERP adoption’, Computers in Industry, 61, 297–30, 2010.
[16] Krumbholz, M., Maiden, N. (2001) “The implementation of enterprise resource planning packages in different organisational and national cultures”, Information Systems. Vol 26 No 3, pp.185-204.
[17] Martinsons, M.G., Davison R. M. (2000) “Cultural considerations in business process change”, URL: http://www.is.cityu.edu.hk/research/publication/ working_paper00.htm.
[18] Adler, N.J. (1997) International Dimensions of Organizational Behavior. South – Western College Publishing.
[19] Hofstede, G. (1998) “Attitudes, Values and Organisational Culture: Disentangling the Concepts”, Organization Studies, Vol 19 No 1, pp.477-492.
[20] McSweeney, B. (2002) “Hofstede’s model of national cultural difference and their consequences: A triumph of faith – a failure of analysis”, Human Relations, Vol 55 No 1, pp.89–118
[1] Seddon, P. B., Shanks, G., & Willcocks, L. (Eds.), "Second-wave enterprise resource planning systems”, New York: Cambridge University, 2003.
[2] Fang, L., & Patrecia, S. (2005). Critical Success Factors in ERP Implementation. (Master thesis, Jànkàping International Business School).
[3] Yang C, and Su Y, ‘why are enterprise resource planning systems indispensable to supply chain management’, European journal of operational research, production, manufacturing, and logistics, 2009.
[4] Holland, C., Kawalek, P., & Light, B. ‘Beyond ERP systems: innovative strategies for competitive advantage’, In Proceedings of the Seventh European Conference on Information Systems. Copenhagen, Denmark: Copenhagen Business School, 1999a.
[5] Chang, S. I., & Gable, G. A ‘Delphi examination of public sector ERP lifecycle implementation, management and support issues’, Journal of Decision Systems, Special Issue on ERP and their implications for Decision Making, 2001.
[6] Mabert, V., Soni, A., & Venkataramanan, M. ‘Enterprise resource planning survey of US manufacturing firm’, Production and Inventory Management Journal, 41(2), 52-58, 2000.
[7] Klaus, H., Rosemann, M., and Gable, G.G.,What is ERP?, Information Systems Frontiers (2:2), pp. 141- 162, 2000.
[8] Mushavhanamadi K., Mbohwa C., The Impact of Enterprise Resource Planning System (ERP) in a South African Company, International Journal of Social, Management, Economics and Business Engineering Vol:7 No:11, 2013
[9] Kumar, V., Maheshwari, B., & Kumar, U. ‘ERP systems implementation: Best practices in Canadian government organizations’, Government Information Quarterly, 19, 147–172, 2002.
[10] Markus, M. L., & Tanis, C. ‘The enterprise systems experience-from adoption to success. In framin the domains of IT research: glimpsing the future through the past, Zmud, R. W. (Eds.), Cincinnati, OH:Pinnaflex Educational Resources, 2000.
[11] Sambamurthy, V., & Kirsch, L. J. ‘An integrative framework of the information systems development proces’ Decision Science, 31(2), 391-411, 2000.
[12] Grabski, S. V., & Leech, S. A. ‘Complementary controls and ERP implementation success’. International Journal of Accounting Information Systems, 8, 17 – 39, 2007.
[13] Hofstede, G. (1994) Cultures and Organizations: Software of the mind, Harper Collins Business.
[14] Trompenaars, F., Hamden-Turner, C. (2000) Riding on the waves of culture: Understanding Cultural Diversity in Business, Nicholas Brealey Publishing.
[15] Law, C. C. H., Chen, C. C., & Wu, B. J. P., ‘Managing the full ERP life-cycle: Considerations of maintenance and support requirements and IT governance practice as integral elements of the formula for successful ERP adoption’, Computers in Industry, 61, 297–30, 2010.
[16] Krumbholz, M., Maiden, N. (2001) “The implementation of enterprise resource planning packages in different organisational and national cultures”, Information Systems. Vol 26 No 3, pp.185-204.
[17] Martinsons, M.G., Davison R. M. (2000) “Cultural considerations in business process change”, URL: http://www.is.cityu.edu.hk/research/publication/ working_paper00.htm.
[18] Adler, N.J. (1997) International Dimensions of Organizational Behavior. South – Western College Publishing.
[19] Hofstede, G. (1998) “Attitudes, Values and Organisational Culture: Disentangling the Concepts”, Organization Studies, Vol 19 No 1, pp.477-492.
[20] McSweeney, B. (2002) “Hofstede’s model of national cultural difference and their consequences: A triumph of faith – a failure of analysis”, Human Relations, Vol 55 No 1, pp.89–118
@article{"International Journal of Business, Human and Social Sciences:73542", author = "Redha M. Elhuni", title = "The Influence of Organisational Culture on the Implementation of Enterprise Resource Planning", abstract = "The critical key success factors, which have to be targeted with appropriate change management, are the user acceptance and support of a new Enterprise Resource Planning (ERP) system at the early implementation stages. This becomes even more important in Arab context where national and organisational culture with a different value and belief system, resulting in different management styles, might not complement with Western business culture embedded in the predefined standard business processes of existing ERP packages. This study explains and critically evaluates research into national and organizational culture and the influence of different national cultures on the implementation and reengineering process of ERP packages in an Arab context. Using a case study, realized through a quantitative survey testing five of Martinsons’s and Davison’s propositions in a Libyan sample company, confirmed the expected results from the literature review that culture has an impact on the implementation process and that employee empowerment is an unavoidable consequence of an ERP implementation.", keywords = "Enterprise resource planning, ERP systems, organisational culture, Arab context.", volume = "10", number = "7", pages = "2469-6", }
