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Impact of parent-subsidiary conflict on ERP implementation

Jose V. Gavidia (College of Charleston, Charleston, South Carolina, USA)

Journal of Enterprise Information Management

ISSN: 1741-0398

Article publication date: 8 February 2016

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Abstract

Purpose

In spite of the large body of literature on success factors of enterprise resource planning (ERP) implementation, there is a need to explore its multinational dimension. The purpose of this paper is to explore the impact of the conflict between parent and subsidiary on the process of ERP implementation in a multinational enterprise (MNE).

Design/methodology/approach

Using an interpretive case study methodology, this paper analyses the theoretical frameworks of parent-subsidiary conflict and applies them to interpret an in-depth case study and generate a set of managerial prescriptions.

Findings

Theoretical analysis and case evidence suggest that managing parent-subsidiary conflict is a critical success factor of ERP implementation in MNEs.

Research limitations/implications

This case relates to a diversified multinational group producing a variety of materials through subsidiaries. The data collection includes multiple sources in the company, and strong theoretical development provides a high level of generalizability. The paper shows that managers should consider the impact of conflict from the planning stages of any multinational ERP implementation.

Practical implications

A detailed set of practical managerial prescriptions is derived from case and theoretical analysis. These prescriptions provide guidance to multinational managers planning a successful global ERP rollout.

Originality/value

Although parent-subsidiary conflict is clearly a major factor in multinational ERP implementations, this topic has never been analysed in detail in the literature. This paper breaks new ground applying grounded theoretical frameworks of parent-subsidiary conflict to an implementation case, and providing managerial guidance for implementation decisions.

Keywords

Citation

Gavidia, J.V. (2016), "Impact of parent-subsidiary conflict on ERP implementation", Journal of Enterprise Information Management, Vol. 29 No. 1, pp. 97-117. https://doi.org/10.1108/JEIM-03-2014-0034

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited