16 International Journal of E-Politics, 2(4), 16-28, October-December 2011 ERP Implementation Across Cultures: A Political Perspective Celia Romm Livermore, Wayne State University, USA Pierluigi Rippa, University of Napoli Federico II, Italy ABSTRACT Implementing an ERP project is a political process. This paper starts with a literature review of organizational politics and its implications to the implementation of ERP systems. The Political Strategies Framework which categorizes different ePolitics strategies in the cases is introduced. The framework is applied in the later sections of the paper to case study data from two companies, one in the US and one in Italy, that both implemented a SAP Enterprise Planning Systems (ERP) with very different outcomes. The discussion highlights the political dynamics in each case and the way in which the framework can help us understand these differences. The conclusion section discusses the differences between the political dynamics in each case and the implications from the findings to broader issues of research on ERP implementation and politics. Keywords: Cross-Cultural, Decision-Making, ERP, Politics, Power, Qualitative Research, System Implementation INTRODUCTION researchers on what organizational politics is, the best that one could do is to chart the The major premise of this paper is that imple- boundaries of the construct in a “framework” menting an ERP project is a political process. that defines which behaviors are within and However, before we discuss the political aspects which behaviors are outside of the definition. of ERP implementation, it is important to define Thus, Drory and Romm (1991) noted that what we mean by “political”. while there was relatively wide consensus A review of the literature on organizational that political behavior involved “influence politics shows that defining this term is not attempts”, and, therefore this characteristic simple. The literature is replete with definitions should be considered central to the definition that often contradict each other. For the purpose of organizational politics (Allen & Porter, 1983; of this paper, we follow a definition proposed Farrell & Petersen, 1982; Mayes & Allen, 1977; by Drory and Romm (1991). These authors Robbins, 1994), they also noted that there are noted that given the lack of consensus among considerable variations among writers as to the means and circumstances that distinguish political from non-political behavior. DOI: 10.4018/jep.2011100102 Copyright © 2011, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. International Journal of E-Politics, 2(4), 16-28, October-December 2011 17 To account for the wide number of at- LITERATURE REVIEW tributes that researchers do not agree are part of organizational politics, Drory and Romm Before we consider the role that organizational (1991) created a conceptual framework or a politics plays in ERP implementation and the “map” of the range of behaviors that should be possible impact of culture on this process, it considered political. Their framework consid- is important to define what an ERP system is. ered organizational politics as a combination We define ERP systems as integrated enterprise of three types of elements: computing system that consist of applications such as manufacturing, logistics, distribution, 1. Necessary elements: In this category the accounting, marketing, finance, and human authors included “influence attempts” and resources. “informal means”, indicating that by defini- Following Robey, Ross, and Boudreau tion, in order to be considered political, an (2002), we make a distinction between two types actor has to attempt to influence another of approaches to research on ERP – the variance actor, using informal means of persuasion. and process approaches. The variance approach, 2. Defining elements: In this category the which has dominated the ERP literature in the authors included whether the actor is an past decade, focuses on the variables that af- individual or a group and whether the fect or are affected by the ERP project, while behavior is directed upward, downward the process approach deals with the manner in or laterally. which the ERP implementation process unfolds 3. Optional or circumstantial elements: In this throughout the life of the project. category the authors listed a number of ele- The major findings from the variance ap- ments mentioned in the literature, includ- proach relate to the factors that lead to successful ing: “the existence of a state of conflict”, outcomes and the nature of the outcomes. Some “working against one’s organization”, of the findings that fit this approach are that top “power attainment”, and “concealment management support of ERP projects, the exis- of motive”. These were all considered tence of an effective project team, and the com- important but not essential for a behavior mitment to change throughout the organization to be defined as political. are the most important factors associated with the success of ERP projects (Brown & Vaessy, Going back to the topic of this paper, the 1999; Wilcocks & Sykes, 2000; Capaldo et al., question arises how can the concept of organiza- 2007; Finney & Corbett, 2007; Osei-Beryson tional politics help us understand the dynamics et al., 2008; Kemp & Low, 2008). of ERP implementation and how can it help us As for the outcomes or benefits that com- explain the differences across cultures? panies derive from implementing ERP systems, In the following sections we will an- the findings from the literature show that clari- swer this question by demonstrating that the fication of managerial objectives, development implementation of ERP systems is essentially of structures to manage across functions, and a political process, namely, a process where the emergence of accountability processes one actor (or more) is attempting to influence within the organization are the major benefits others. We will then apply the Political Strate- that companies report that they derive from gies Framework to the case data to explain the their ERP projects (Deloitte Consulting, 1998). political dynamics in each case study. In contrast to the variance approach, the process approach to ERP research focuses on Copyright © 2011, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. 11 more pages are available in the full version of this document, which may be purchased using the "Add to Cart" button on the product's webpage: www.igi-global.com/article/erp-implementation-across- cultures/58928?camid=4v1 This title is available in InfoSci-Journals, InfoSci-Journal Disciplines Communications and Social Science, InfoSci- Civic Engagement, Sustainable Planning, and Crisis Response eJournal Collection, InfoSci-Communications, Online Engagement, and Media eJournal Collection. 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