The Relationship between BPR Strategy and Change Management for the Sustainable Implementation of ERP: An Information Orientation Perspective

Abstract

Enterprise resource planning (ERP) is an IT system that supports the business functions that firms adopt to gain advantages and development possibilities. However, some firms do not show positive financial performance after implementing ERP. Why is this the case? An ERP is an information system (IS) that brings about radical changes within organizations, changing both the IS environment and overall corporate business process, which may cause resistance from the organization’s members. Thus, change management is crucial, in operating a successful ERP, to addressing organizational changes after the adoption of ERP. The objective of this study was to examine the influence that the depth of business process reengineering (BPR) and change management have on ERP performances. To this end, KOSPI companies with more than a year of experience using ERP were analyzed using the structural equation method. This study confirmed mutual relationships between ERP success factors and its performance. In future research, it would be helpful to determine if companies with higher IT performances actually have better financial results.