Social and Cultural Challenges in ERP Implementation

Abstract

This paper studies the differential practices of change management in organizations of western origin and compares it with the best practices prevalent in Indian organizations, with special emphasis on social and cultural challenges faced in these countries. Since Enterprise Resource Planning (ERP), as part of an information and communication technology (ICT) initiative, is frequently associated with organization change and transformation in relation to its adaptation, it has been used as the context in this study. The impact of social factors and cultural challenges on change management processes and elements are compared and contrasted using multiple case studies from USA, Canada, European (Western/Eastern) and Indian organizations who have adopted ERP technologies. The conceptual framework highlights cultural and social factors that affect ERP implementation, and offers suggestions to researchers to empirically test these influences using sophisticated analytical methods and develop change strategies and practices in response to these challenges. Further, it also draws attention to the need for a contemporary, result-oriented, quantitatively measurable framework of change management at the individual and enterprise levels. It is expected that such an approach would result in better buy-in from all stakeholders in terms of increased accountability.

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