ERP and organizational change

Abstract

Purpose The study aims to explore the processes of implementing an enterprise resource planning (ERP) system in a public service organization operating in an emerging market economy, namely, the United Arab Emirates (UAE). Design/methodology/approach The study draws on Laughlin’s (1991) model of organizational change to highlight how the introduction of an ERP system, particularly its accounting modules, disrupted the adopting organization’s modes of thinking and its members’ practices. It uses a case study methodology. Data collection methods included semistructured interviews, documentary evidence and personal observation. Findings The case study findings show that despite implementation and customization problems, the organization’s employees were forced to use the ERP system. The findings also highlight how the ERP system was acted upon to mobilize the organization’s members toward a new era of information technology. However, the misfit between pre- and post-ERP system accounting practices led to some organizational members to form absorbing groups that questioned accounting-based ERP system organizational changes. The top management’s persistent desire to adopt the ERP system through forcing the organization’s employees to use the system’s modules led the organization to undergo what Laughlin (1991) calls “colonization” organizational change. Research limitation/implications The use of a case study methodology inherently limits the generalizability of the study’s findings. The case study was carried out over a relatively short timeframe, namely, ten months. Therefore, the use of a longitudinal case study to examine accounting-based ERP organizational change is recommended. Practical implications The study provides insights that can assist top management in formulating organizational change strategies. It also provides insights about emerging economies’ regulatory particularities that influence ERP system implementation. Originality/value The study is one of the first studies that utilizes Laughlin’s (1991) model of organizational change to examine accounting-based ERP organizational change in an emerging market economy.