Implementing enterprise resource planning and knowledge management systems in tandem: fostering efficiency and innovation complementarity

• Published in: Information and organization 2003, Vol.13 (1), p.25-52
• Main Authors: Newell, S, Huang, J.C, Galliers, R.D, Pan, S.L
• Format: Article
• Language: English
• Subjects: Concurrent implementation; Enterprise resource planning; Interpretative case study research; Knowledge creation; Knowledge management systems; Organizational efficiency; Organizational flexibility
• ISSN: 1471-7727; 1873-7919
• DOI: 10.1016/S1471-7727(02)00007-6

This paper examines the simultaneous implementation within a single organization of two contemporary managerial information systems—Enterprise Resource Planning (ERP) and Knowledge Management (KM). Exploring their simultaneous deployment within an organization provides an opportunity to examine the resulting interactions and impacts. More specifically, we examine their combined influence on improving organizational efficiency and flexibility, two outcomes which traditional organizational theory suggests are incompatible. Through an interpretative case study, the research confirms that: (1) the two systems can be implemented in tandem to good effect; (2) complementarity between the two systems is possible, although this is not an automatic outcome, it has to be fostered. This complementarity is analyzed in relation to the four mechanisms (namely partitioning, enrichment, metaroutines and switching) proposed by Adler, Goldoftas and Levine (Organization Science 10 (1999) 43), as vital for the simultaneous development of organizational efficiency and flexibility.