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An Analysis of the Relationship Between Organizational Behavior Within Europe’s Manufacturing Small Medium Enterprises (SMEs) and Enterprise Resource Planning System (ERP) Implementation Success

  • Over the decades, several reasons like globalization, pressure from large counterparts (SMEs suppliers and customers), outstanding performances and advantages of competitors have driven SMEs to adopt standardized and integrated Enterprise resources planning (ERP) systems. However, implementing an ERP system is a very complex and risky project mainly for SMEs which can lead to ERP implementation ineffectiveness. There are many causes of ERP ineffectiveness, but important one mainly for SMEs is a lacking connection to organizational behavior (including structure and culture) during the ERP implementation, which may lead to misfits between existing organization behavior (structure and culture) and ERP systems because of two separate characters. The integration and standardization nature of ERP systems may not be compatible with all aspects of existing organizational behavior, and it is likely that some aspects or dimensions in organizational behavior influence the ERP implementation success or failure. Based on the theory of organizational structure and culture and the prior literature, this study examines which traditional organizational structure indicators (centralization and formalization), and on the other hand, culture indicators (team orientation and change orientation) affect the implementation of an ERP system. The finding ensures that a high degree of centralization and formalization dimensions of organizational structure has a positive, significant influence on ERP implementation effectiveness. Likewise, there is a positive and significant relationship between team orientation and change orientation of organizational culture with ERP project success. By analysing two firms of Estonia and Germany, this study declares that SMEs have a moderate attention towards their ERP implementation projects which shows that it is not always a problem of ERP implementation failure and proves that SMEs should be focusing not only on technical aspects of ERP system but on organizational aspects particularly on structure and culture as well that may increase the success chance of ERP implementation.

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Author:Khatri Prabha
Advisor:Rütger Conzelmann
Document Type:Bachelor Thesis
Year of Completion:2019
Granting Institution:Hochschule Furtwangen
Date of final exam:2019/02/27
Release Date:2019/07/22
Tag:Enterprise resource planning system (ERP); Manufacturing small medium enterprises (SMEs); Organizational hehavior
Degree Program:IBM - International Business Management
Functional area:Andere/Other
Licence (German):License LogoEs gilt das UrhG