ERP Implementation: An Application of Nadler’s Congruence Model

Abstract

Most of the literature on implementation of Enterprise Resource Planning (ERP) systems focuses upon identification of critical success factors, which fails to cater for the complex and integrative nature of ERP implementation. This study provides a comprehensive explanation of inter-relationships of a variety of factors at play during ERP implementation using Nadler’s Congruence Model (Nadler and Tushman, 1980) and Roggers’ Diffusion of Innovation Model (Roggers, 1983). Results verify Nadler’s proposition of complex inter-relationships of organizational components. For example, communication about ERP implementation impacts skills and knowledge, creates a collaborative environment, reduces uncertainty and increases exposure through training. The collaborative work culture created through communication further impacts skills and knowledge as well as formal coordination between departments. The aforementioned facilitators were further found to impact decision to use the system by affecting the stages proposed by Roggers, i.e. awareness, perceived value and motivation. Overall, communication was found to be the most important factor throughout implementation. Thus ERP implementation requires subsequent changes in all of organizational elements, and success can only be guaranteed if these elements are in harmony with each other.