Knowledge retention in ERP implementations: the context of UK SMEs

Uchitha Jayawickrama,Shaofeng Liu,Melanie Hudson Smith,Pervaiz Akhtar,Mamoon Al Bashir

doi:10.1080/09537287.2019.1582107

Abstract

Knowledge retention (k-retention) is vital for various enterprise resource planning (ERP) implementations in small and medium-sized enterprises (SMEs), though it is a highly demanding and challenging task. The aim of this paper is to investigate different types of approaches to k-retention and factors influencing k-retention in SMEs. Our study adopts a grounded theory approach with cases based on 12 ERP implementations in UK SMEs. We analyze our data using thematic analysis. The findings reveal specific elements that support the k-retention of ERP package knowledge and business process knowledge. These elements are: k-retention tools, documentation, human capital and the understanding of k-retention challenges. In addition to insights from these aspects, our study reveals two additional factors (project management and organizational culture) that influence ERP package k-retention and business process k-retention. Based on these findings, we develop an ERP k-retention (EKR) framework that can be utilized by SMEs which are considering implementing ERP systems, to facilitate knowledge retention during implementation.

Highlights

In the current UK economy, knowledge is one of the most important organisational resources for creating competitive advantage (McAdam and Galloway 2005; Newell 2015)
This study identifies an ERP knowledge retention (EKR) framework, which consists of several key components based on the empirical findings in the context of Small and Medium-sized Enterprises (SMEs), which is helpful to industry practitioners as both client and implementation partners
The knowledge retention phase was examined as a part of the Knowledge management (KM) lifecycle through previous literature, this was the first attempt to fully investigate knowledge retention in enterprise resource planning (ERP) implementation

Summary

Introduction

In the current UK economy, knowledge is one of the most important organisational resources for creating competitive advantage (McAdam and Galloway 2005; Newell 2015). Most KM research is focused on large organisations and addresses perspectives such as KM strategy, KM implementation, or performance based on KM, among others Liu et al 2014; Jayawickrama, Liu, and Hudson Smith 2014). McAdam and Reid (2001) found that large organisations recognised knowledge and its various aspects and had more resources to develop KM strategies and systems. Small and Medium-sized Enterprises (SMEs), have fewer available resources and their KM and k-retention practices are divergent and less advanced when compared to large organisations (Amani and Fadlalla 2016; Carvalho and Guerrini 2017). KM involves knowledge creation, knowledge transfer, knowledge retention and knowledge application (Sedera and Gable 2010; Jayawickrama, Liu, and Hudson Smith 2016). Knowledge retention is an integral part of the KM lifecycle, which has specialised approaches, activities and tools associated with it

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