Organizational Learning in
the Context of ERP
Implementation
Dr. Jimmy Huang (Nottingham University)
Prof. Sue Newell (Bentley College)
Prof. Robert D. Galliers (Bentley College)
Introduction
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Research importance, objectives and
motivation
Theoretical foundations
Methods
Case background and discussion
Conceptualizing ERP implementation
Implications
Importance
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The growing popularity of Enterprise
Resource Planning (ERP) systems
The increasing failure in ERP
implementation
The mounting difficulties in
maximizing IT investment
Research Objectives
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To develop an integrative
organizational learning perspective to
examine technology implementation
To conceptualize learning processes
and dynamics within the context of
ERP implementation
Research Motivations
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Organizational learning literature is
often under-valued by researchers in
the area of technology
implementation
The need to develop an alternative
theoretical perspective to make
sense of ERP implementation
Theoretical Foundations
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Overriding theoretical framework: A
logic of opposition (Robey &
Boudreau, 1999)
Theoretical perspective:
Organizational learning theories
A conceptual model of enterprise
system experience cycle (Markus &
Tanis, 2000)
A Logic of Opposition
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Shortfalls of the deterministic logic
The interplay between promoting and
opposing forces in the context of ITrelated organizational change
The four theoretical perspectives
proposed:
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Politics
Culture
Institution theory
Organizational learning
Organizational Learning
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The tension between cognitive and
behavioral change
Learning modes:
• Generative versus adaptive learning
• Single-loop versus double-loop learning
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The importance of time
The inclusion or exclusion of context
Enterprise System Experience
Cycle
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Project chartering
The project
Shakedown
Onward and upward
Methods
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An interpretive in-depth longitudinal
case study
Research context
Data collection
• 37 semi-structured interviews
• Documentation
• Observation
• Informal dialogues
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Data analysis
Case Background
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Growing competition pressure: Low profit
margin, reducing demands and a very
mature market
A business case was conducted in 1995
and implementation started in mid-1996
A nearly 3 year project for Europe &
North America
The new system went live at the beginning
of 1999
Case Discussion
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Project chartering
• The involvement of IT service provider &
business case
• Enhancing users’ awareness and
understanding of ERP
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The project
• Mapping existing & new business
processes
• Configuring ERP software
Case Discussion
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Shakedown
• Some of the organizational changes, i.e.
suppliers, logistics and centralization
• Performance benchmark
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Onward and upward
• Developing synergy from ERP and
knowledge management program
Conceptualizing ERP
Implementation
Learning Mode
Adaptive learning
Generative learning
Context
independent
Learning Context
Context
dependent
Onward Upward
Shakedown
The Project
Project Chartering
Conceptualizing ERP
Implementation
Learning Mode
Adaptive learning
Context
independent
Learning Context
Context
dependent
Onward
Shakedown
Stakeholders’
Learning prior to
ERP Project
Generative learning
Upward
Creating synergy
through integration
The Project
Project Chartering
Implications
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ERP experience cycle as a learning
experience
Learning is not an universal concept
throughout the cycle of ERP
implementation
Stakeholders’, in particular user group’s,
learning is often under-valued and poorly
managed
The need to integrate ERP with other
organizational initiatives