An exploratory study of alignment ERP implementation and organizational development activities in a newly established firm

Abstract

Purpose

The importance of alignment of enterprise resource planning (ERP) implementation for organizational strategies has been widely recognized. However, ERP implementation in the context of new ventures has not yet been convincingly demonstrated. Furthermore, how to align ERP implementation with organizational development in new ventures deserves further examination as new ventures are in the emergency or early growth stage and thus have distinct concerns in adopting ERP. Against this background, the main purpose of this paper is to explore how ERP implementation can facilitate the organization development of new ventures.

Design/methodology/approach

This study adopts an in‐depth case study method for gathering and analyzing data. The case research strategy allows the exploration of unforeseen phenomena and offers insights into the inter‐dependencies among the factors captured in the study. It is believed that case study research will be most appropriate in gaining in‐depth knowledge of the practices of ERP implementation in new venture development.

Findings

Drawing on an in‐depth case study from a Taiwanese IC design house, this study shows that, to leverage the value of ERP system, the implementation should consider the firm's growth stages, the unique industrial characteristics, the influences from the business group, and the alignment of the internal control and audit function, corporate governance, and information technology governance.

Practical implications

The findings of this study contribute to the literature on ERP implementation and organization development in new ventures. The implications and future research directions are also discussed.

Originality/value

This single case study has provided valuable insights into the practice of ERP implementation. Furthermore, data analysis of this study provides a set of vocabularies that researchers and practitioners could employ in similar organizational processes as in new ventures. Accordingly, future ERP implementation processes can be compared and benchmarked.

Citation

Chen, J. (2009), "An exploratory study of alignment ERP implementation and organizational development activities in a newly established firm", Journal of Enterprise Information Management, Vol. 22 No. 3, pp. 298-316. https://doi.org/10.1108/17410390910949733