The Importance of Culture in ERP Adoption – A Case Study Analysis

Abstract

The purpose of this study is to explore the importance of culture in ERP adoption and to understand why ERP projects commonly fail. This study identifies culture as an underlying issue for such failures. The researchers use the Handy model of culture as a self-diagnosis tool for culture and organisational change that can be utilised as a facilitator for culture and ERP adoption success. This study uses a case study analysis as a qualitative approach to identify a diverse array of perceptions across hierarchical structures within a selected organisation who has recently adopted a cultural change program prior to adoption. Our study found that a cultural change led to enhanced communication, leadership and a sense of coherency across the whole organisation. We argue that if the organisation continues to improve its culture then successful ERP adoption could become a reality rather than an ideal.