The institutionalization of an organizational innovation, such as an enterprise resource planning (ERP) system, takes place as a continuous adaptation process that includes the development of a support organization, infrastructure, regulations, and norms, as well as the acquired knowledge of the organizational members. This paper aims to provide a structured road map for understanding this complex process and to explain some of the critical issues in institutionalizing ERP in the organization.
Multiple case studies were employed as the research approach. A multiphase design was used to introduce structure to the methodology.
The paper, using a reasonably representative sample, provides valuable insights into the ERP institutionalization process within organizations. It identifies and documents a number of key challenges that organizations face in the three phases of the institutionalization process.
A number of findings from the paper may help managers in successfully institutionalizing ERP systems. The paper identifies 15 key activities and several challenges in executing those activities along with coping strategies that firms employed to face these challenges.
ERP systems mark a major shift in the organizational approach to information systems. The paper uses empirical data from case studies to explore and delineate the ERP institutionalization process in the adopting organizations.
