Embed Size (px)
Citation preview
1
Studying the impacts of knowledge transfer
during ERP implementation in an organisation
A study submitted in partial fulfilment
of the requirements of the degree of
Masters of Information Systems Management
at
University of Sheffield
by
Arjun ramkumar MURALIDHARAN
September 2010
2
Abstract
Background: The literature review exposes knowledge as strategic assets and it
could be used to gain plenty of benefits for the organisation. ERP implementation
involves multitude knowledge aspect activities; inefficient knowledge management
leads to ERP implementation failure.
Aims: This dissertation aims to examine the impacts of knowledge transfer between
various people involved in ERP implementation. Also this dissertation aims identify
the barriers and benefits of knowledge transfer during ERP implementation.
Methods: Total of 8 Case studies with extremities was carefully selected. Detailed
Checklist was developed based on the literature review and sample cases. The
checklist was able to extract essential data from most case studies. Case study data
findings was analysed and discussed based on checklist questions, this revealed
some interesting results.
Results: The study revealed vendor, User Company, external consultant and
shareholders involved in knowledge transfer during ERP implementation. The study
revealed tacit knowledge, explicit knowledge, organisational knowledge, business
process knowledge and system knowledge exist during ERP implementation. The
barriers preventing knowledge transfer were business and functional barriers like
Reluctance to organisation culture change, communication problems, Selective
group, working from different locations, users fear, Lack of absorptive capacity,
lack of bonding, lack of commitment and lack of interest. Benefits of knowledge
transfer are better understanding, time and cost reduction and successful
customisation of business process. Knowledge transfer assists ERP implementation
in organisations. The enablers for effective knowledge transfer were identified like
rewards and punishment, incentives, use of intranet, teamwork, and trust.
Conclusions: knowledge transfer as one of the important factors for ERP
implementation. But there are many barriers that can prevent knowledge transfer,
which can lead to implementation failure. Thus Effective knowledge transfer only
facilitates successful ERP implementation. Organisations can promote effective
knowledge transfer by giving promotions, more recognition, responsibility and
setting up virtual communities.
3
Acknowledgement
My sincere thanks to my supervisor Dr Alex Peng, for his guidance,
continuous support throughout my dissertation. I am very much indebted
to my supervisor for teaching me the fundamentals, and helping me to
develop my dissertation with his motivation and suggestions.
I wish to thank Dr. Miguel J.B.Nunes and Dr. Lenny Koh for their
inspirational class related to my dissertation in the previous semester.
I wish to thank my personal tutor Dr. Daniela Petrelli for explaining to
me about the whole dissertation process last semester.
I also thank the Almighty GOD for blessing my dissertation towards the
successful completion.
Last but not the least, I wish to acknowledge my parents, Family
members, my uncle and my friends for their encouragement throughout
the development of the project.
4
Table of Contents Chapter 1 : Introduction
1 Introduction ................................................................................................................ 7
1.1 Background information ...................................................................................... 7
1.2 Problem statement & Research Gap .................................................................... 8
1.3 The Research Question ...................................................................................... 10
1.4 Objectives of the study ...................................................................................... 10
1.5 Methodology ..................................................................................................... 11
1.6 Limitation of the study ....................................................................................... 11
1.7 Outline of Dissertation ....................................................................................... 12
Chapter 2 : Literature review of knowledge management
2 Introduction .............................................................................................................. 13
2.1 knowledge ......................................................................................................... 13
2.2 Types of knowledge ........................................................................................... 15
2.3 Organisational Knowledge ................................................................................. 16
2.4 Knowledge as an asset ....................................................................................... 18
2.5 Knowledge management ................................................................................... 19
2.6 Knowledge transfer............................................................................................ 21
2.6.1 Knowledge transfer process ....................................................................... 22
2.7 Knowledge barriers ............................................................................................ 25
2.8 Summary: .......................................................................................................... 28
Chapter 3 : Literature review of ERP and knowledge transfer
3 Introduction .............................................................................................................. 29
3.1 ERP systems ....................................................................................................... 29
3.2 Knowledge transfer during ERP implementation ................................................ 32
3.2.1 Knowledge transfer via Business Process Reengineering (BPR) ................... 33
3.2.2 Knowledge transfer via Best business practices (BBP) ................................. 34
3.3 Summary ........................................................................................................... 36
Chapter 4: Methodology
4 Introduction .............................................................................................................. 37
4.1 Research Methodology ...................................................................................... 37
4.2 Research Approach ............................................................................................ 37
4.3 Research Method .............................................................................................. 40
5
4.3.1 Literature Review ....................................................................................... 41
4.3.2 Case Study ................................................................................................. 41
4.4 Research design ................................................................................................. 43
4.5 Data collection and analysis ............................................................................... 47
4.6 Limitations ......................................................................................................... 50
4.7 Summary: .......................................................................................................... 50
Chapter 5: Data findings and analysis
5 Introduction .............................................................................................................. 51
5.1 Case Study of Rolls Royce (Yusuf et al, 2004) ...................................................... 51
5.1.1 Introduction ............................................................................................... 51
5.1.2 Analysis of Rolls Royce Case study .......................................................... 52
5.1.3 Discussion: ................................................................................................. 55
5.2 Case Study of International engineering limited (Newell et al 2006) ................... 56
5.2.1 Introduction ............................................................................................... 56
5.2.2 Analysis of IEL case study .......................................................................... 56
5.2.3 Discussion: ................................................................................................. 60
5.3 Case Study of Quality engineering limited (Newell et al 2004; Newell et al 2006)
60
5.3.1 Introduction ............................................................................................... 60
5.3.2 Analysis of QEL ........................................................................................... 61
5.3.3 Discussion .................................................................................................. 65
5.4 Case Study of Pratt & Whitney (Tchokogue et al, 2003) ..................................... 65
5.4.1 Introduction ............................................................................................... 65
5.4.2 Analysis of case study ............................................................................... 66
5.4.3 Discussion: ................................................................................................. 69
5.5 Case Study of Omantel (Maguire et al , 2009) .................................................... 69
5.5.1 Introduction ............................................................................................... 69
5.5.2 Analysis of Omantel case study ............................................................... 69
5.5.3 Discussion: ................................................................................................. 73
5.6 Case Study of TechCO (Pan et al, 2007) .............................................................. 73
5.6.1 Introduction ............................................................................................... 73
5.6.2 Analysis of TechCO case study .................................................................... 74
5.6.3 Discussion: ................................................................................................. 78
5.7 Case Study of KEDA (Fung et al,2009) ................................................................ 79
6
5.7.1 Introduction ............................................................................................... 79
5.7.2 Discussion: ................................................................................................. 83
5.8 Case Study of Chinese manufacturing company (Ke et al , 2003) ........................ 84
5.8.1 Introduction ............................................................................................... 84
5.8.2 Analysis of Company M .............................................................................. 84
5.8.3 Discussion: ................................................................................................. 89
5.9 Summary: .......................................................................................................... 89
Chapter 6: Global discussion
6 Introduction .............................................................................................................. 90
Chapter 7: Conclusion
7 Introduction ............................................................................................................ 110
7.1 Conclusion ....................................................................................................... 110
7.2 Further research .............................................................................................. 111
8 References .............................................................................................................. 112
9 Appendix ................................................................................................................. 123
7
CHAPTER ONE
1 Introduction This chapter introduces dissertation study. Section 1.1 provides the background
information, problem statement and research, research question, objectives
methodology, limitations, structure of the whole dissertation.
1.1 Background information
Globally organisations these days want fast growth in their field of operation, thus
have become very competitive (Li et al, 2000). Enterprise Information systems are
implemented in various industries like information technologies, manufacturing
industry, communications industry, service sector industries, electronics industry,
and educational industries (universities). Xu et al (2006) states that ERP systems
have been implemented in many organisations at a fast rate. Rajagopal (2002) and
Bingi et al (1999) estimates that ERP packaged software market share will be worth
one trillion US dollars in 2010.The main reason for the exponential growth of
Enterprise Information systems is the advantages they provide in terms of automated
business process , e-commerce and ebusiness , better communication , co operation
and coordination, reduced inventories , working capital reduction, transparency of
customer needs , improvement of scalability and maintenance, decrease of delivery
time and cycle time , operation non redundancy , data non redundancy ,
competitive advantage over rivals, easy information access from any part of
organisation and flexibility (Xu et al,2006; Yusuf et al., 2004; Rashid et al 2002).
Haines (2003) states ―Enterprise resource planning (ERP) systems are standard
software solutions that provide integrated transaction processing and access to
information that spans multiple organizational units and multiple business
functions‖. This indicates ERP systems are most beneficial for large organisations
that have multiple businesses units operating from multiple sites. ERP systems help
8
to integrate the process of those companies, thus improve the operations in that
company which will result in reduced time and cost, increased efficiency and
productivity, quality benefits, and services.
Knowledge is considered as an important asset in organisations. Competitiveness
among organisations has pushed them to use all the available resources in
organisation for maximising their advantages over their rivals. Thus most
organisations employ knowledge management for collecting and applying all the
exiting knowledge within the organisation. Knowledge management is the
organisation‘s strategy of identifying; capturing all the organisational knowledge and
leveraging organisational knowledge to help the organisation to compete with others
(von Krogh 1998).
ERP implementation process involves creation of knowledge, transferring of
knowledge, codifying the knowledge, developing the knowledge, utilising the
knowledge for enhancing the process (Li Y. Et al, 2006).Thus the ERP
implementation process involves several aspects of knowledge management.
1.2 Problem statement & Research Gap
ERP implementation is one the most difficult and complex process, it needs to be
implemented carefully. Most companies rush into ERP implementation; just because
of various benefits the ERP systems offer to an organisation. Umble et al(2003)
states there is high failure of ERP implementation in organisations. ERP package is
very expensive; it costs millions of dollar for an organisation. ERP implementation is
a time consuming process, any delays in implementation can lead to cost escalations.
Any implementation failure may force a company to bankruptcy like what happened
for Fox Meyer Drug Company. Sometimes situation is very worse that several
companies actually discard their ERP system in the middle of implementation
process due to the implementation challenges and problems (Cliffe,1999).ERP
implementation is one of biggest risks for organisations adopting ERP.
9
Scott (2002) notes that one of the main reasons for failure of ERP implementation in
Fox Meyer Drug Company is the inefficient knowledge transfer and codification of
knowledge. ERP implementation process has too many knowledge management
activities.
ERP implementation in big companies takes place simultaneously at several sites.
Main reasons for ERP implementation failure in those companies has been identified
as poor communication, bad co operation, lack of adequate knowledge. All these
indicate that the reasons for failure in ERP implementation in organisations is in the
knowledge transfer aspects.
Xu et (2008) states that Organisations contain knowledge at various levels like at
individual level, group level , team level , department/unit level ,and organisation
level . Thus there are various kinds of knowledge transfer at different levels.
Employees perceive knowledge as their own, rather than as organisational asset.
Consequently sometimes there is a lack of knowledge sharing among employees.
ERP implementation handles several knowledge that exists in the organisation. ERP
implementation needs communication and support from various people involved in
the implementation process. ERP implementation process has lot of knowledge
transfer from external consultant (Li, 2006). ERP implementation has never been
studied from the context of knowledge transfer in an organisation.
The main problem is that an organisation does not promote awareness among their
employees about knowledge transfer. Organisations implementing ERP fail to
understand the importance of knowledge transfer process during ERP
implementation. Knowledge transfer can help to avoid the reinvention of knowledge
wheel by transferring all the available knowledge to everyone in the organisation.
Thus transferring of any new ideas or innovations about implementation with other
employees can help to implement ERP efficiently without any problems. Argote et al
(2000) knowledge transfer provides organisations with competitive advantage in
their industries. These indicate knowledge transfer during ERP implementation
provide considerable benefits.
10
Lot of research have been done in ERP and knowledge management separately; there
few researches done on knowledge management and ERP together. But there has
been very minimal focus on knowledge transfer involved in ERP implementation.
Therefore this study attempts to contribute to fill this research gap. Therefore this
dissertation is going to study the impacts of knowledge transfer during ERP
implementation of an organisation. This study will check whether Knowledge
transfer facilitates the ERP implementation in an organisation or knowledge transfer
has no major impact on ERP implementation process.
This above diagram indicates the research gap ―knowledge transfer during ERP
implementation‖ within other areas of ERP and knowledge management.
1.3 The Research Question
What are the impacts of knowledge transfer during ERP implementation in
an organisation?
1.4 Objectives of the study
To identify the effects of knowledge transfer during ERP implementation.
To identify the commitment of knowledge transfer among the actors during
ERP implementation.
11
To identify the barriers preventing knowledge transfer during ERP
implementation.
To identify the advantages obtained by knowledge transfer during ERP
implementation.
1.5 Methodology
The author formed a dissertation design to conduct the research on impacts of
knowledge transfer during ERP implementation in an organisation. The author
identifies the objectives and goals of the dissertation .consequently the author forms
a comprehensive literature review on this dissertation study from previous journals, e
books from internet and text books. The author forms complete checklist in the
context of research objectives from literature review. Case studies of different
organisations were collected from secondary sources like journals, company
websites using case study research. The author used Yin (1993) and Stake (1995)
criteria to select the most appropriate case studies for examination. Total of 8 case
studies were used to collect the data samples from case studies. Then the author
analyses and examines data samples from case studies. Finally the data findings are
synthesised and presented as research conclusion.
1.6 Limitation of the study
The limitations for dissertation are
Time constraint due the masters‘ course study.
Certain journals weren‘t free, thus dissertation was affected by cost
constraints.
Companies didn‘t want to involve in this dissertation due to their concerns of
giving away sensitive information. Thus a desktop study approach had to be
used.
12
Finding the appropriate case studies from secondary sources for carrying out
research. There was less number of case studies on knowledge transfer
aspects during ERP implementation. Thus it was necessary to carefully select
case studies with adequate information on knowledge transfer.
1.7 Outline of Dissertation
Structure of dissertation
Chapters Description
Chapter 1 : Introduction This chapter introduces research study, research question
, problem statement , research gap and gives outline of
dissertation.
Chapter 2 : Literature
review of Knowledge
management
This chapter examines the literature to have
comprehensive understanding of Knowledge
management.
Chapter 3 : Literature
review of ERP and
knowledge transfer
This chapter examines the literature to have
comprehensive understanding of ERP and knowledge
transfer.
Chapter 4 :
methodology
This chapter presents methodology of research, criteria
for choosing case studies.
Chapter 5 :Data
findings
This chapter collects data findings from individual
company cases study, consequently conducts data
analysis and discussion of case studies individually.
Chapter 6 : Global
discussion
This chapter presents broad discussion about data of all
the company cases studies.
Chapter 7 : Conclusion This chapter presents conclusion, further research
suggestions.
13
Chapter 2
2 Introduction This chapter presents literature review of knowledge, knowledge management and
knowledge transfer in organisations.
2.1 knowledge
Knowledge is collection of the experience, understanding, capability, skills, fluency,
and expertise acquired by executing processes in organisations. ― knowledge is
termed as a fluid mix of framed experience, norms, ideal , values, contextual
information , and experts proficiency insights that provides a framework for
evaluating and incorporating new experiences and information‖ (Davenport et
al,1998). Knowledge is termed as comprehensible thinking of analysing, examining,
evaluating things and learning them, through which the state of knowing things is
attained (Schubert et al, 1998).
Knowledge exists in the mind of human beings, that person will posses knowledge
and knowledge evolves within that person's brain (Malhotra, 1998). Knowledge is
unique. It develops based on individual interpretations of experience and
understanding.Thus knowledge is a consolidated understanding obtained through
learning or pragmatic expertise, which is used by individuals, groups, teams,
departments, organisation to make examination, take valuable decision and follows
them (Nonaka et al, 1995).
Main perception has been ―Data is raw numbers and facts, information is processed
data, and knowledge is authenticated information‖ among people (Alavi et, 2001;
Dreske 1981; Machlup 1983; Vance 1997) .People has often found it difficult to
differentiate between data, information and knowledge due to their misconception.
There have been lot of efforts by the authors to distinguish data, information and
knowledge.
14
DATA
INFORMATION
KNOWLEDGE
Greater value
Source: Data, Information, Knowledge pyramid (Firestone, 2001: 14-15)
Firestone (2001) explains through pyramid structure that data is at bottom with less
value, while the value of information and knowledge increases with hierarchy level
of the pyramid. Knowledge is useful, it helps make decisions , choices ,
observations .
Data is assumed to be signs, character sequences, patterns, order, raw numbers, facts,
observed and uninterrupted symbols (Alavi et, 2001; Dreske 1981; Machlup 1983;
Vance 1997). Data becomes information whenever it starts making sense or means
something, then it can no more be considered as data (Davenport and Prusak, 1998).
This can be explained with example: 9 percentage is data that has no meaning,
expect it is just fact.
Information is processed data and structured data. It is also said to be Interpreted
symbols and symbol structures (Aamodt, 1995). Appropriate and decisive data
within background that has meaning and understanding is termed as information
(Davenport 1998). Example: 9 percentage organisation growth is just information;
here it denotes the growth attained by the organisation.
15
Knowledge is termed as bringing together of several things like thoughts, views,
ideas, opinions, feelings, perspectives thinking (McDermott, 1999). Albert Einstein
states ―knowledge is experience, everything else is information‖. Knowledge is
developed by humans‘ activities, through the interactions of messages (Nonaka,
1995). Example: knowledge helps to understand 9% growth is good. Here the
previous experience or understanding assists to make a conclusion or decision about
information available.
2.2 Types of knowledge
Knowledge exists in different forms in organisations. Knowledge is generally
classified into explicit knowledge and tacit knowledge (Nonaka , 1994 ; Cavusgil et
al , 2003).
Explicit knowledge is defined as documented Knowledge that contains all the
available data and information in structured form. ―Explicit knowledge is expressed
in formal and systematic language and shared in the form of data, scientific
formulae, specifications, manuals ― (Nonaka et al , 2000). Explicit knowledge is
codified, thus can be accessed by all employees at any time within the organisation.
Explicit knowledge is stored in computers and database now days, thus the
knowledge is of high quality, and dependable (smith, 2001). Explicit knowledge can
be accessed quickly from any part of the organisation or the allied (business partners,
friendly) organisation and it can be transferred to many people at the same time.
Thus Explicit knowledge transfer has become very easy. Employees with high
educational qualifications are needed to use and understand the explicit knowledge
easily, as explicit knowledge contains lot of mathematical expressions, logical
knowledge, analytical knowledge, scientific knowledge, systematic knowledge,
critical knowledge (smith, 2001).
Tacit knowledge is described as Non-verbal, instinctive, and unspecified knowledge
(polyani, 1962). ―Tacit knowledge is technical or cognitive and deeply rooted in
16
action, procedures, routines, commitment, assumptions, ideals, creativity, beliefs,
values, perceptions and emotions of the individuals―(Schon, 1983 ; Nonaka et al ,
2000; smith, 2001) . In other words, tacit knowledge is described as the pragmatic
knowledge that is gained out of doing things by individual and very hard to articulate
. It is the experience that stays in the mind of individual. The individual only would
posses that knowledge, unless it is communicated to others in the organisation. Thus
tacit knowledge remains more like invisible knowledge in organisation, and tacit
knowledge is unknown to organisation other than the employees who posses it.
Tacit knowledge is transferred through face to face conversations, group or team
interactions and other informal methods. Being practical knowledge tacit knowledge
needs to be codified soon, otherwise the employee might not remember the exact
knowledge and experience obtained by doing the process. Also tacit knowledge
transfer is impossible without the assistance of the individual; having specific
knowledge experience (thought process and solution).
After working some time some employees of the organisation may quit to join other
organisations on monetary or non-monetary considerations The employee would
have gradually acquired immense amount of knowledge and gained experience from
working in that organisation Then the organisation not only loses its employee, but
also all the tacit knowledge and experience along with them. This is one of the main
reasons for organisations preferring to have their knowledge in the form of explicit
knowledge, and the organisations always try to convert the tacit knowledge into
codified knowledge. Thus it will be easy for an organisation to share its knowledge
with all its employees, through this measure organisation will not be affected much
by the departure of some of its knowledgeable employees.
2.3 Organisational Knowledge
Organisations are becoming very competitive and also are trying to improve the
performance continuously all the time. Organisations are using all the available
resources to make strategic decisions to achieve their goals. These days‘
organisations are trying to learn from the experiences of other organisations
17
operating in similar environments. They don‘t want to reinvent knowledge wheel,
because duplication of knowledge only results in waste of time, resources and effort
of employees. Knowledge is embedded in organisations, and those organisations
have to codify the knowledge, store the knowledge and reuse the knowledge. As
organisations do not want to lag behind their competitors, they want to utilize
knowledge as a resource for their organisational advantage. Organisational
knowledge is formed through unique patterns of interactions between technologies,
techniques, and people, which cannot be easily imitated by other organizations,
because these interactions are shaped by the organization's unique history and culture
(Bhatt, 2001). Organisational knowledge can be termed as combined knowledge,
experiences and awareness of all the employees that is embedded in the organisation
(Penrose, 1959).
Organisational knowledge exists in several forms within the organisation like
practical knowledge, theoretical knowledge, strategic knowledge (Sanchez et
al,1997), habitual knowledge , scientific knowledge (Whitehill, 1997 ; Pemberton
,2000) .This diverse organisational knowledge has huge influence and impact in the
functioning of the organisation (Pemberton, 2000).
Many individual knowledge, group knowledge, teams‘ knowledge, department
knowledge business unit knowledge form together as organisational knowledge.
Employees view knowledge as personal possessions, because the knowledge
develops in their mind and from their experience (Malhotra, 1998) . But the
organisation knowledge includes the knowledge of employees, thus organisation
must develop the mechanism to extract all the knowledge efficiently within the
organisation.
Organisation musts realise the potential of their resources, and create methods to
capture their employees experience, skill, intelligence and to generate broader
knowledge base within the organisation (Bollinger , 2001). Organisational
knowledge helps to utilise organisational resource intelligently, efficiently and
effectively, for offering better organisational services (Penrose, 1959). Thus
18
organisations consider knowledge as a strategic asset, which helps them to make
strategic decisions for obtaining maximum benefits.
2.4 Knowledge as an asset
Knowledge is embedded in all the process of the company and is generated all the
time. Organisation to consider knowledge as a strategic asset; the knowledge must
have main qualities like Valuable, rare, inimitable, non substitutable (Michalisin et al
,1997; Audrey et al ,2001).
Rare: Organisations function in different markets; they have different
operating methods and management principles (Michalisin et al ,1997).
Employees operate under unique situations; they learn lot of things through
doing things and their organisation past experiences. Their knowledge will be
evolving over long time based on their specific experiences like problems
faced, solutions that were tried and solutions that were successful in solving
the problem. Thus the knowledge present in the organisation will be
distinctive.
Valuable: The organisation can utilise ―knowledge to improve their services,
technology, process, products and reduce the exploitation of resources (time,
finance) to be more viable‖ (Audrey et al, 2001). These things will help the
organisation to compete better with their rivals and also will help them have
Valuable gain over them.
Inimitable: As already seen in ―Rare‖ above, the knowledge will be evolved
under unique circumstance. Thinking and understanding of employee‘s in
same organisation can never be identical (Audrey et al ,2001). Employees
will find it hard to interpret and apply the knowledge created by somebody in
their organisation. Thus it is necessary to codify the knowledge properly with
lot of details and immediately from its employees in the organisation. Based
on this, it will not be very hard for others organisations to copy or replicate
knowledge without the assistance of actual knowledge creator.
Non substitutable: The knowledge of the organisation is developed under
specific circumstances and also based on past experience of the organisation
19
(Audrey et al ,2001). All knowledge and experience are obtained under
different conditions. Thus those conditions can never be substituted, neither
the knowledge.
Knowledge assets are categorised into experiential knowledge assets, conceptual
knowledge assets, systemic knowledge assets, routine knowledge assets based on
knowledge development process in the organisation (Nonaka et al , 2000).
2.5 Knowledge management
Knowledge management is a process of creating and acquiring knowledge, transfer
of knowledge, generating new knowledge, coding the knowledge and making the
knowledge available to entire organisation (Chan R., 1999). In others Knowledge
management involves knowledge resource collection, sharing the workers
knowledge with everyone in the organisation, reusing the knowledge to improve the
practices and functioning of organisation.
Organisational knowledge is very significant, as it remains with that company .
Organisational knowledge determines how that Organisation works and is directly
proportional to performance of that Organisation. Organisational knowledge has
provoked organisations to utilise knowledge management for organisation's benefit
by exploiting the available knowledge (Alavi M. et al, 2001).Thus knowledge
management is used to format knowledge into usable structured knowledge for
obtaining optimal organisational results. The knowledge generated is utilised for
efficient functioning of the existing process and improving various process within
the ERP system in organisations.
Management of knowledge is about utilisation of knowledge, developing
organisations knowledge assets for improving effectiveness of organisation process
and achieving objectives of organisation (Davenport et al, 1998). Knowledge is the
big asset of an organisation, knowledge management helps to find solution for
problems competently using knowledge resource and management of knowledge
could result in various high technical innovations.
20
―Knowledge Management is regarded as a process involving managing all kinds of
knowledge to meet existing and emerging needs, to identify and exploit existing and
acquired knowledge assets and to develop new opportunities‖ (Jarrar, 2002 ; Li et al ,
2006). Knowledge management is the strategy of identifying, capturing all the
organisational knowledge (all kinds of knowledge present in an organisation) and
leveraging organisational knowledge to help the organization compete with others
(von Krogh 1998). In other words knowledge management gives that organisation
enormous competitive advantage. Managing the knowledge would lead to better
performance of process in organisations (remove similar process and reduce non
value adding process), improved services and enhanced products, thus would
proportionally increase the market share of its products in long term and also would
result in more benefits like better quality, cost saving, reduction of time and
flexibility to the organisation.
Knowledge Management activities are not just restricted to handling of knowledge.
It does wider activities like knowledge creation, knowledge collection, Knowledge
validation, developing knowledge, Knowledge presentation, Knowledge distribution
or knowledge transfer, application of Knowledge in organisation (Bhatt, 2001). In
other words , knowledge management is a complex method which consists several
vital process that influences performance of organisation.
knowledge is obtained from various sources and all the employees of the
organisation and stored in the knowledge base of the organisation. Knowledge is
reordered, developed into usable knowledge and stored in knowledge databases. All
the employees in the organisation constantly refer the knowledge base and any
problem in knowledge base will affect the organisation severely.
Knowledge must be transferred or distributed to all the employees of the
organisation, thus would enhance their performance in organisation. Knowledge
transfer can be done through several ways like direct transfer between source and
recipient, face to face interaction among employees, email exchange, intranet,
bulletin board , virtual communities in organisation and newsgroup (Bhatt,
2001).Knowledge transfer process is the most important in knowledge management ;
21
if knowledge is not transferred then knowledge management would be ineffective .
Knowledge transfer will be discussed in detail further in next topic.
Knowledge presentation is termed as the reorganising and displaying the knowledge
in different patterns (format) to various employees in organisation, according to the
different styles of each department of the organisation ((Bhatt, 2001).In other words,
Marketing, human resource, operations, Information technology departments
interpret knowledge differently in organisation, having single standard format
knowledge representation will result in several problems. Thus knowledge
presentation will represent the knowledge in understandable format to each
department.
During knowledge application process only efficiency of knowledge base and
performance of knowledge management in organisation could be determined and
evaluated (Gooijer, 2000).Employees apply knowledge for efficient functioning of
organisation and solving problems in the organisation.
Knowledge management is a continuous and repetitive process; good knowledge
management activity will give clear advantage to organisations over their rivals.
Organisations without knowledge management will lose the knowledge during
various process, those organisations are losing vital knowledge which could help
them to better their systems.
2.6 Knowledge transfer
Knowledge transfer can be defined as the process of transferring of acquired
knowledge and skills from source to recipient. There is also vice versa knowledge
transfer from recipient to source which known as reciprocal knowledge transfer.
Knowledge sharing and knowledge transfer are different process but are often seen
as same process. Knowledge sharing is a process where all the things available are
accessible by recipient from source. Knowledge transfer is process of transferring
knowledge to recipient from source, the main difference is that transferred
knowledge here is entirely dependent on source .The source may or may not transfer
essential knowledge which will make it competitive from its recipient.
22
―Knowledge transfer is seen as a process in which an organization recreates and
maintains a complex, causally ambiguous set of routines in a new setting‖
(Szulanski, 1996).In other words, knowledge transfer is a process by which
department (unit of organisation) transfer their knowledge and experience with other
departments within the organisation. Transfer of knowledge from one unit to other
units in organisation, will affect expertise and experience gained by other units
(Argote and Ingram 2000).Transfer of knowledge will help the other units. Else
invention of knowledge wheel process will be duplicated by other units in
organisation, due to lack of knowledge transfer. Duplication of knowledge wheel
invention process would to lead to wastage of resources (time, finance). Thus
knowledge transfer process becomes very vital for the organisation.
2.6.1 Knowledge transfer process
The knowledge transfer process is explained using two organisations, where one
organisation transfers knowledge to another organisation. The four stages of
knowledge transfer as explained by Szulanski (1996) are
Initiation
Knowledge transfer initiation process consists of several activities. First the superior
knowledge present in an organisation must be detected (szulanski, 1996). The best
knowledge only should be used during knowledge transfer,other knowledge have
less significance. The transferring other knowledge that exists in an organisation is
ineffective. Superior knowledge search process in an organisation reveals interesting
results like how good is the knowledge that exists in an organisation compared to
others, How good is the best knowledge that exists and currently who possesses the
best knowledge (Balm, 1992; szulanski, 1996).This will help to analyse and
understand the quality of knowledge present in the organisation. szulanski, (1996)
states that two factors are critically reviewed during initiation stage . Those are
23
1. organisation best knowledge fit
2. possibility of transferring knowledge to other organisation.
Cohen et al (1972) states all the above process help in making decision whether to
proceed with knowledge transfer to other organisation , after that logical sequence is
followed to transfer knowledge in an orderly manner. Thus the Initiation process is
the detailed preparatory process before actual knowledge transfer.
Implementation
Initial task of implementation process is deciding to involve in knowledge transfer
with another organisation (szulanski, 1996). Source of knowledge is the person or
organisation that transfers knowledge to another. Recipient of knowledge is the
person or organisation that receives the knowledge transferred by the source. After
decision making process, there are the following sequence of steps in the
implementation process.
Establishing association between source and recipient of knowledge transfer.
Deciding the method of knowledge transfer between source and recipient.
Sorting out issues between them before knowledge transfer practice.
Thus Knowledge transfer process is modified to suit recipient requirements.
The important thing is to prevent problems by anticipating from past
experiences and also help recipient to understand the transferred knowledge
(Rice et al, 1980).All these steps are done to prevent unsuccessful knowledge
transfer. Otherwise it might lead to huge disaster.
Ramp-up
Szulanski (1996) states during this stage the recipient starts to apply the new
knowledge in organisation. According to szulanski (1996) recipient will not be
familiar with new knowledge, thus recipient will be apprehensive about knowledge.
Also recipient has to handle unforeseen difficulties in using knowledge and
managing the new knowledge will be a challenge for recipient. Generally this stage
24
of knowledge transfer determines the success of knowledge transfer process. If this
process is not performed properly, then the organisation will be intimidated by the
usage of new knowledge. Certain times wrong knowledge usage of transferred
knowledge leads to extreme adversity like crash of the existing process. Performance
of the organisation increases with correct usage of transferred knowledge szulanski
(1996). Recipient tries applying knowledge in organisation like trail and error
method. Accordingly knowledge is not fully integrated in organisation, knowledge is
being tested under different scenarios which provides chance to fix errors (Tyre et al,
1994).Thus partial knowledge usage under test scenarios in organisation prevents
bankruptcy situation due to faulty usage of knowledge.
Integration
According to Szulanski (1996) this stage starts after successful application of
transferred knowledge in the organisation. Next priority is to completely incorporate
the new knowledge in organisation. Regular usage of new transferred knowledge
becomes standard in organisation; this will produce new marks and repeating pattern
(Berger et, 1966). In Fox Meyer Drug Company, the knowledge transferred by
consultant was not integrated properly which lead to failure of organisation.
Integration of knowledge becomes a part of the history of an organisation, where
several of its employees transformed functioning of the organisation using
transferred knowledge from consultant or another organisation.
Various functional areas are transformed and influenced by single functional area
where the actual transfer of knowledge takes place in organisation (Lee and Lee,
2000). This shows that even small knowledge transfer has huge impact over all other
areas of organisation, even though they are not directly involved with knowledge
transfer.
Knowledge transfer of visible process is simple, but the transfer also involves more
complex things like transfer of best business practices, repositioning of employees ,
training the human resource , obtaining tacit knowledge from employees(Szulanski,
1996; Lee and Lee, 2000). During the complex knowledge transfer the transferring
25
process becomes unsystematic, disorderly and extremely difficult .Thus the
knowledge transfer process between source and recipient must be monitored
continuously.
Knowledge must be considered as an asset of the organisation, transfer of knowledge
will help the organisation to make business intelligence decisions. Organisations like
hewlett packard and 3M promote knowledge transfer by giving rewards and
incentives to enhance product or business process (Goh, 2002).
2.7 Knowledge barriers
There are several barriers of knowledge transfer to organisations generally like
source credibility, communication (Joshi et al , 2007), Absorptive capacity ( Wang et
al ,2007) Organisation culture(Alavi M. et al, 2001), Arduous Relationship
(Szulanski, 1996).
Absorptive capacity and effective knowledge transfer
Absorptive capacity can be defined as the capability of extracting knowledge,
understanding knowledge, distribution of knowledge and utilising knowledge after
the transfer of new knowledge (Cohen et al, 1990). In other words absorptive
capacity is very important; it determines the receiving, sharing and usage of
knowledge in the organisation. Consultants and vendors of ERP will transfer lot of
knowledge; without good absorptive capacity the ERP adopting organisation will
suffer. Absorptive capacity was one of the reasons for ERP implementation of fox
Meyer Drug Company. They had staff who lacked experience and required a lot of
training. The situation was very worse because, fox Meyer lacked in house high level
experienced people. Thus a person who has no knowledge or experience of new
knowledge will find it extremely difficult, so it would be hard for them to
differentiate between important and useless information. Recipient of knowledge
plays the most important role in knowledge transfer between the source and
knowledge receiving organisation. Absorptive capacity of receiver seems to be
26
better, if the receiver has previous experience or broad understanding on the new
knowledge that is going to be transferred. organisation that posses good absorptive
capacity will be able to utilise the new knowledge for creating innovative
solutions(Tsai,2001).Thus the absorptive capacity remains major barrier to
knowledge transfer, which results in knowledge transfer ‗stickiness‘‘
(Szulanski,1996).
Source credibility
Thought of recipient and their outlook about source in terms of reliability,
proficiency of knowledge is known as source credibility. If the Knowledge given by
the source is trustable, reputable, dependable, expertise and consistent then the
source is considered to be credible. Source Credibility is one main factor in the
knowledge transfer. If the source is bad or lacks enough knowledge, then the
knowledge and experience transferred will be inadequate for recipient. Recipient
needs to enquire about the source (vendor or consultant of ERP) from previous
recipients of the source. The new recipient then only will know about the credibility
of the source; there is no guarantee about source credibility in the contract between
recipient (ERP adopting organisation) and source (vendor and consultant of ERP).
Credibility of source is crucial in knowledge transfer during ERP implementation; it
determines the quality of knowledge transferred between client( recipient) and
source ( ko et al,2005). If source has high credibility , then the knowledge transfer
process and utilisation of knowledge becomes easier for recipient(client).
Arduous Relationship
Bond or connection among the source and recipient is main factor influencing
(impacting) knowledge transfer (Argote 1999). Knowledge transfer needs lot of
communication (interaction) and co-operation between the source and recipient
(Nonaka 1994). Adverse relationship harms the knowledge transfer process , then
there is lot of mistrust and all knowledge is not transferred. Knowledge transfer is
present through out the ERP implementation process. Also ERP implementation lasts
27
between 1 year to 4 years depending on the size and complexity of the organisation.
Thus it is important not to have bad relationship; otherwise there is lot of chances for
failure of ERP implementation due to arduous relationship. Tacit knowledge
transfers are usually most impacted by arduous relationship between source and
recipient. Tacit knowledge mainly depends on individual interactions, arduous
relationship leads to poor tacit knowledge obtained (Nonaka, 1994).Transfer of tacit
knowledge are influenced by strength of relationship (Cavusgil et al., 2003).
Therefore relationship plays an important role in knowledge transfer process.
Organisations culture
Organisation culture is nothing but the work culture in organisation. organisation
culture is defined ― as complex set of values, beliefs, assumptions, ideals and
symbols based on which operation conducts its business‖ (Barney,1986). Thus each
organisation will have unique culture shaped by the past activities, present work and
future goals. Organisations culture determines employee‘s tendencies towards
knowledge sharing with everyone in organisation (Alavi M. et al, 2001). In some
organisations employees are ready to share their knowledge and support each other,
but in some other organisations employees see their colleagues as competitors where
knowledge sharing is very minimal. An Organisation has to make its work culture
flexible, more encouraging towards knowledge sharing and creating trusts among its
workers. Else invention of knowledge wheel process will be duplicated by
employees of the organisation, due to lack of knowledge sharing. An Organisation
will find it hard to obtain tacit knowledge from its employees.
Communication
Interaction between source and recipient has significant impact on knowledge
transfer. Communication process involves attentive listening and replying, during
which the knowledge or experience is transferred. Good communication will lead to
accurate transfer of knowledge, bad communication would lead to misunderstanding
or false knowledge transfer (Monge et al. 1982).Source and recipient co-operate, co
ordinate, collaborate well with each other, if they have lot of interactions between
28
them. Also the level of communication determines level of close bonding between
each other (Monge et al. 1982).
These are various knowledge transfer barriers that affect knowledge transfer during
ERP implementation. This dissertation will study and will further try to identify
whether there are any more barriers affecting knowledge transfer during ERP
implementation in various organisation. It will also analyse to which extent those
barriers affect knowledge transfer during ERP implementation.
2.8 Summary:
This chapter gives a good understanding about knowledge, knowledge management
and knowledge transfer in organisations.
29
Chapter 3
3 Introduction This chapter presents literature review of Enterprise resource planning and
knowledge transfer in organisations.
3.1 ERP systems
―Enterprise resource planning (ERP) system is a packaged business software system
that enables a company to manage the efficient and effective use of resources
(materials, human resources, finance, etc.) by providing a total, integrated solution
for the organization's information-processing needs―(Nah, 2001). In other words,
ERP Systems facilitate the integration of various business processes and
management functions within the company in order to enhance performance of the
company. Most of the organisations implement ERP systems because of enormous
benefits provided by ERP. The benefits of ERP systems are identified by (Hawking,
2004). The benefits are shown the below
Soure : ERP benefits (Hawking,2004)
ERP implementation has been carried out by numerous companies in the world to
gain competitive advantage over their rivals. Many large companies have adopted
ERP systems that have lead to medium and small companies are quickly moving
towards implementing ERP system (Everdingen et al, 2000).Small and medium
companies have limited resources (financial resource, human resource) for
implementing ERP. But that factor hasn‘t affected them from implementing ERP
30
,because ERP systems provides companies with enormous cost benefits, time
reduction in operating time, integrates all the available data in company into single
database, user friendly . Also Small and medium companies don‘t want to give
competitive advantage to large companies by not implementing ERP. Many
organisations know the risk of implementing ERP system, but still they don‘t want to
lag behind their competitors. Sometimes the organisations are under difficult
situation, where the successful implementation will provide them with vast business
opportunities or implementation failure will lead them to big financial disaster.
ERP systems are complex and its implementation is very difficult, takes lot of time
and very expensive for implementation in companies (Davenport, 1998).There are
high complexities involved while implementing ERP, which have resulted in lot of
failures during implementation. ERP implementation has high failure rates (Umble et
al., 2003). ERP implementation is costly and time consuming process, any delays in
implementation can lead to further cost increases. Many organisations decide quickly
to implement ERP study, rather than conducting feasibility study and studying other
aspects (actual benefits gained from ERP, needs of employees, implementation
issues).
One of the reasons for failure of ERP implementation and usage has been inefficient
Knowledge management. Major issues of inefficient Knowledge management has
been creating knowledge base or converting knowledge into coded form and
transferring appropriate knowledge to all the people in the organisation. ―ERP is an
implementation process of information system, but it is also a process of knowledge
creation, storage/retrieval, transfer and application from knowledge management
(KM) perspectives‖ (Li Y. Et al, 2006). Thus ERP implementation results in
generation of business knowledge transfer and reuse of knowledge will provide
organisation with enormous benefits (cost reduction, time reduction, and improved
quality).).
Srivardhana et al , (2007) has provided the views of various author regarding
knowledge aspects during implementation and post implementation . This is given in
the table.
31
Source : knowledge aspects in ERP system(Srivardhana et al , 2007)
32
The table gives a clear understanding and focus on knowledge aspects during
implementation. This also indicates the importance of knowledge transfer during
ERP implementation and post implementation in an organisation.
3.2 Knowledge transfer during ERP implementation
Transfer of business knowledge is incorporated in the fundamental architecture of
the business software package into ERP implementing organisation (Lee and Lee,
2000). Knowledge transfer is fundamental process during ERP implementation and
will involve various actors (external, internal). Knowledge transferred among
internal actors is known as Internal knowledge transfer, while knowledge transfer
between internal actor and external actors is known as external knowledge transfer.
Facilitating Knowledge transfer across all level of organisation is about capturing the
best practices from external and internal sources from various actors during ERP
system implementation (Al-Mashari et al, 2000). Knowledge transfer takes place.
Knowledge transfer takes place during various implementation stages among
different individuals, teams, groups, units, departments, divisions, and external
actors within organisation (Xu et al, 2008). Knowledge transfer during ERP
implementation makes the employees work easier and also helps them to solve the
problem.
Knowledge transfer has multiple objectives during ERP implementation, which
makes it very complex process and challenging for operationalisation.
Implementation of ERP is not possible for organisation without knowledge transfer
guidance from external source, as the organisation would not posses enough
knowledge and expertise for ERP implementation (Rubenstein et al., 2001).
Knowledge transfer from external source will enable organisations to restructure its
business process during implementation to suit ERP system. Thus continuous and
stable knowledge transfer is necessary for organisation from external sources for
implementation of ERP system.
Knowledge transfer in certain companies was inefficient during ERP implementation
.These had impact on the way the ERP implementation in organisations was carried
out. Sometimes the actors involved were incapable, lacked motivation, interest and
33
experience .Some actors became more self-centred, considered knowledge as their
own and thought that possessing knowledge made them more valuable. Thus they
didn‘t transfer the important knowledge obtained from external source to their
organisation. Organisation must promote knowledge transfer among its employees
during ERP implementation.
Effective Transfer of knowledge will lead to successful implementation, better
maintenance and develop ERP system, which would create better fit between
organisation and ERP system (Davenport, 2000; Wang et al, 2007). Thus Effective
Transfer of knowledge during implementation and usage of ERP will provide
organisations the competitive edge over the other organisation
―ERP implementation is process through which the best practical fits of explicit
business processes are brought to the organization along with other business rules
using knowledge transfer from various sources to the organisation‖ (Lee and Lee,
2000). During ERP implementation knowledge transfer takes place through business
process re-engineering and best business practices in an organisation.
3.2.1 Knowledge transfer via Business Process Reengineering (BPR)
The ERP system is not customised fit the existing process of organisation (Lee et al,
2003).
ERP standard software provided by the vendor, that‘s needs to be adjusted according
to needs of organisation. ERP implementation process contains lot of knowledge
transfer among the various people involved in the implementation. Olson (2004)
states most organisation use business process reengineering to customise the ERP
systems. Organisation will find it difficult to change lot of their existing process to
suit the ERP system implementation and this activity might be time consuming
process.
Business process re-engineering (BPR) is reforming activity through which essential
reshaping or redesigning or rethinking or restructuring or reorganising of
organisational process and functioning of organisation for maximising the
organisational benefits (Hammer, 1993) .In other words , the all the business
34
processes in the organisation are reorganised for gaining performance , cost , time
and other benefits ( better services , operation efficiency).
Organisation employees will only know about existing business process in the
organisation. Employees from several business units are used to customise the ERP
system; they only will have special knowledge about their business process. But the
only thing is that those employees will lack customisation knowledge about ERP
system. The organisations will find it tough to customise the process on their own
(lack of experience) without the support of external consultants. Li (2006) states
external sources transfer knowledge to organisation for restructuring the key
business process of organisation to suit the ERP system. Employees use business
process re-engineering for finding the optimal business processes that would
compatible with new ERP system. Business process re-engineering allows the
organisation to reorganise the working the entire organisation, during which each
and every process is checked whether it is essential or not. Based on these above
process, business process re-engineering successfully customises most essential
business process to fit the new ERP system. Olson (2004) states business process re-
engineering is associated to ERP implementation, to attain organisational benefits
the business process had to be modified according to the new system.
Olson (2004) states there are high failure rates of business process re-engineering in
organisation. Olson found that employees‘ unwillingness for organisational change,
bad communication are the reasons for failure of business process re-engineering in
organisation.
3.2.2 Knowledge transfer via Best business practices (BBP)
Best business practices are incorporated by companies possessing ERP. Lee (2001)
states that best business practices are nothing but ERP with business process re-
engineering integrated in business process reference models. Vendor and consultant
spend various resources to find optimal business method for carrying out work in
organisation. Consultants mainly interact a lot with experts in the user company.
Olson (2004) states external consultants evolve proficiency for categorised optimal
35
business practices. These indicate external consultants interact and support the
organisation throughout the ERP implementation process. Thus the organisation
employees gain lot of experience and expertise from the consultants. Certain
organisations educate about the best business practices to their employees for
achieving maximum organisational performance.
Best practice is nothing but most efficient way of doing things. Szulanski (1996)
states that transferring of best business practices means intimating the particular
practice from the organisation that has achieved excellence of doing same kind
practice. In others words, transfer of best practices means comparing and analysing
the practices of the organisation with optimal business practices available in other
organisations. After which those practices in the organisation are improved to
achieve efficiency.
Practices can be defined as way the things are carried out in the organisation.
Practices of every organisation determine their functioning and performance.
Practices are formed based on the organisation objectives, goals, top management,
regulations, industry. Practice advance with more experience and exposure of
organisation. Organisations continuously improve their practices to achieve the best
results for them. Szulanski (1996) states the best practices were transferred among
the source and recipient initially before ERP implementation. This particular process
is done to check whether both actors involved in knowledge transfer have same set
of practices, which makes things easier.
Somers (2000) states that organisation adopt ERP systems for regulating their best
practices, organisation believe ERP systems will improve their business practices
drastically. ERP systems utilise the strategic beneficial practices which help to make
the organisation competitive and efficient over other organisations.
Szulanski (1996) discusses the various problems that could affect best business
practices transfer between organisations; those are absorptive capacity of the
recipient, casual ambiguity, Bad relationship among source and recipient. These
indicate the knowledge transfer problems that exist in organisation. Also these
indicate the need for having good knowledge transfer within organisation. Thus best
36
business practices transfer will have significant impact in organisation implementing
ERP system.
3.3 Summary
This chapter gives a good understanding about ERP systems and Knowledge
transfer. The author has discussed about ERP system, benefits of ERP that is leading
companies towards ERP implementation, ERP system from knowledge context,
Knowledge transfer during ERP implementation. The author also has explained
about knowledge transfer via BRP and BBP during erp implementation..
37
Chapter 4
4 Introduction This chapter presents the methodology of dissertation. It explains the methodology
used by the dissertation.
4.1 Research Methodology
Walliman (2001) defines research as ―a term loosely used in everyday speech to
describe a multitude of activities‖. Research is an extreme method used to obtain
new results with evidence through detailed examination on particular topic.
Research methodology will determine how a good research can be carried out
successfully. Research methodology is a planned approach that investigates
hypothesis with research design and collection of data (Mason, 1996). Research
methodology is the most effective technique for collection of data and useful in
obtaining data findings (Bryman, 2001). There are different research methodologies
like Qualitative, Quantitative, Inductive, and Deductive (Saunders et al., 2000;
Fischer 1979). For any project appropriate research methodology must be carefully
determined, because it will have an impact on collection of data, analysis of data,
data findings and conclusion of research (Saunders et al., 2000). Choosing an
inappropriate research methodology will lead to wrong findings or finding with no
use, thus the research strategy is the most important for a credible research.
4.2 Research Approach
Strauss et al (1998) state inductive approach lets theory to be derived from the data
while carrying out research. Deductive approach will test the theory; the data
obtained through research will be evaluated to check consistency of theory.
According to Saunders et al (2003) inductive approach seems the best suited
approach for dissertation that has limitations (time, cost, getting adequate data),
rather than deductive approach. So this dissertation will use inductive approach for
study. Inductive approach will allow the theory evolve through progress made in
dissertation through evaluation of data analysis, modification of theory as continuous
and evolving process with dissertation (Saunders et al, 2003). In other words
inductive approach used on assumptions (hypothesis); questions are developed to
38
evaluate the assumptions; questions would lead to broad study on particular area;
study would result in collection and analysis of data and analysis will develop
theory with strong evidence. Walliman (2001) and Ford (2002) states that common
truths are established with evidence using inductive approach on developing
theoretical conclusion from specific cases. Case study method is used for
investigation due to reluctance of companies to involve with dissertation about
knowledge transfer during ERP implementation. The companies perceive that they
would give sensitive data and which would enable others companies to understand
their business operations and process. ―The case study approach refers to a group of
methods which emphasize qualitative analysis‖ [Gable, 1994; Yin, 1984].
Framework of case study survey Inductive approach (bhandari et al, 2005) is based
on Yin (1984) induction approach which consists of background study, collection of
secondary data, analysis of case study, derivation of theory. But Framework of case
study survey Inductive approach (bhandari et al, 2005) was developed specific to
case study methodology; it has clear focus, good strategy and effective approach to
derive theory using case study analysis. Thus the Framework of case study survey
Inductive approach seems to be most suited for this dissertation.
Figure: Framework of case study survey Inductive approach (bhandari et al, 2005)
39
Initial process in inductive approach is obtaining all facts, information, fundamental
knowledge of research area (Saunders et al, 2003). Based on the initial facts and
hypothesis, questions are developed to determine facts for obtaining theory. Glesne
and Peshkin (1992) states that actual Inductive approach begins with dissertation
question (problem statement).Here Dissertation question is regarding the impact of
Knowledge transfer during ERP implementation in an organisation, it includes issues
like benefits, barriers of Knowledge transfer and Does Knowledge transfer enhance
ERP implementation. The dissertation question will only help to identify the
research gap that exists in the particular area of study.
Next induction approach is literature review; here critical review of background
research area study is performed. Literature review of this dissertation consisted of
topics like knowledge, types of knowledge , knowledge as asset , organisational
knowledge , knowledge management , knowledge transfer in organisations ,
knowledge transfer barriers, ERP implementation , knowledge transfer during ERP
implementation. In induction approach, critical review of literature becomes an
integral part of research strategy. Also literature review becomes more significant
where the dissertation uses case studies for obtaining data findings.
Based on the comprehensive understanding of literature review, key questions
(checklist of 5-10 questions) are developed to address the research gaps and examine
area of study for extracting a new theory.
Next is the selection of case studies; determining the appropriate case studies for
dissertation is a complicated process (Yin, 1993). Findings are dependent on case
studies; the findings will vary according to case studies. Usage of wrong case studies
will lead to dissertation not finding all the issues affecting company; dissertation
capability is restricted to available case study material and disastrous findings. Thus
Case studies will have proportional impact on the results of the findings.
Yin (1993), Stake (1995) have given certain criteria for choosing right case studies.
They are
- All case studies must be examined, case studies with various perspectives
must be chosen.
40
- Most relevant case study to topic of study
- Organisation of different types
- Organisation from different countries
- Case studies where large amount of data can be collected
- Case studies where lot of knowledge can be obtained
Rowley (2002) notes ―Case selection must be determined by the research purpose,
questions, propositions and theoretical context, but there will also be other
constraints that impact on case selection‖. Thus using above criteria, this dissertation
will try to find right mix of case studies.
Key questions are applied to case studies, data is collected. Collected data from each
case study is analysed critically. Analyse results from various case studies are
collected, reorganised according to checklist categories .Then the results from all
case studies are critically reviewed together and findings of review are obtained.
Further, important findings synthesised to meet research objectives. Finally based on
condensed findings, detailed theory with confirmation and proof is evolved. The
extended theory strengthens dissertation on knowledge transfers during ERP
implementation in organisations.
Further literature review, case study, analysis of case study and synthesis of findings,
theory extension is explained in research methods and research design sections.
4.3 Research Method
This dissertation will use literature review and case study as research method. Thus
basically this dissertation will evaluate the past research work and try to extract new
findings according to the objectives using case studies.
McNeill (1990) has classified the data into two types. They are primary data and
secondary data. According to the author, Primary data is the data obtained from
41
questionnaire, interviews,and survey. Secondary data is thendata obtained from
company reports, online case studies and other external sources. This dissertation
will use secondary data for carrying out research.
4.3.1 Literature Review
Literature review helps to understand all the knowledge, concepts, hypothesis,
strategies, principles, issues, latest development, perceptions, and existing theory in
research area (Busha and Harter, 1980). Thus it facilitate to have broaden
knowledge of research area background study. Literature review of this dissertation
was developed using journals, e book from Internet and text books from university
library. This dissertation involved performing literature review on different areas like
knowledge management, knowledge transfer and ERP implementation. There was
inadequate material (facts or data) about knowledge transfer during ERP
implementation dissertation, thus carrying thorough study became a necessity.
Literature review helped to determine actual research gap, checklist, identity the
advantages, problems, and type of case studies.
4.3.2 Case Study
Case study method is very effective and general qualitative research method (Alavi
et al, 1992; Orlikowski et al, 1991). Yin (1989) terms case study as ―an empirical
inquiry that investigates a contemporary phenomenon within its real-life context
when the boundaries between phenomenon and context are not clearly evident and in
which multiple sources of evidence are used‖. Case study methodologies are used for
study the existing theory and perform analysis on it.
Eisenhardt (1989) and Rowley (2002) state that whenever an existing knowledge or
information (theory) is insufficient for a particular research study area, then case
study is the most appropriate research methodology. Case study methodology is
incremental approach that evolves new theory through research process. Case study
methodology will involve examination, analysis of organisation reports and studies
done on organisation which will help deep understanding of issues affecting the
42
organisation (Zainal, 2007). Case study methodology will help to obtain more data
within context of case study (Yin, 2003). Also Case study methodologies are more
suitable for large investigation of dissertation with limitations (Burns, 2000).
Figure : Benbasat et (1987) Table of key case studies characteristics
Above Benbasat et (1987) key case studies characteristics will help to perform
dissertation using case study research satisfactorily.
Saunders (2000) notes that the case study methodology carries out an exhaustive
investigation on multiple or single case studies to extract comprehensive knowledge,
which is necessity for dissertation that needs deep awareness of the research
background.
Saunders (2000) notes that answers or solutions to why, how and what questions are
obtained from case studies using case study approach. From Saunders works , this
dissertation develops questions like how effective is knowledge transfer during ERP
implementation, What are the benefits of knowledge transfer during ERP
implementation and why there is need to spread awareness about knowledge transfer
in an organisation which tries to address the research gap using case studies answers.
43
4.4 Research design
Research design is defined as sequence that is used to collect data, analyse data,
synthesise data and develop conclusion using data finding for dissertation question
(Rowley, 2002 ). Yin (1994) terms research design as ―an action plan for getting
from here to there, where ―here‖ may be defined as the initial set of questions to be
answered, and ―there‖ is some set of conclusions about the questions‖. Among
―here‖ and ―there‖ are several steps of research in coherent order which helps to
evolve a theory with strong evidence. In other words, research design is nothing but
a logical design that helps carry out good research. Research design is the most
essential part of research; every experimental or pragmatic research has a proper
research design that might be embedded (implicit) in them or explicit. Yin (1993)
states that research design impacts the ability to achieve the research objectives,
carrying out detailed case study analysis and data analysis during research. Rowley
(2002) states that a research design must contain questions, propositions, analysis,
relation of data with propositions, conditions for understanding, re frame and
synthesising the findings of a research study.
Yin (1994) has proposed four different types of case study research design.
Figure : Types of case studies research design adopted from Yin (1994)
Benbasat et al (1987) and Yin (1989) suggest that single case is suitable only when
- Devised theory can be evaluated on complete case study
- Case study is exceptional ( extraordinary)
- Case is revelatory
44
This dissertation doesn‘t fit into single case study recommendations. Thus this
dissertation will adapt type 4 multiple case embedded research design. Use of
multiple case study scenarios strengthens the findings of the research; it will reflect
the reality with true facts where the context and phenomenon boundaries are not
clear.
Rowley (2002) notes ―Multiple case embedded designs identify a number of sub
units (such as roles or locations , other organisations) each of which is explored
individually; results from these units are drawn together to yield an overall picture‖.
Thus it gives the findings dependability as the research was done on a broad
research area.
Selection of case studies is vital in multi-case study approach. Thus the Yin (1993),
Stake (1995) criteria are used to select the most appropriate case studies for
dissertation. Case studies don‘t reflect the various perspectives of an organisation.
To overcome this problem in case study, multiple case study methodology will be
applied on organisations from different industrial sectors of different countries.
Multiple case study methodology will help to collect and analyse different case
studies with extremities which would help in attaining better case study findings
with various perspectives for dissertation (Pettigrew 1988; Eisenhardt,1989). Thus
the case study findings will be more credible with strong confirmation.
Stake (1995) noted that 10 case studies were needed to establish satisfactory results
for dissertation. But due to lack of adequate case studies on knowledge transfer
during ERP implementation ,a reasonable sample of 8 case studies were taken up for
this dissertation study. These 8 case studies were chosen based on Yin (1993), Stake
(1995). Then case studies of big companies like Rolls Royce, IEL, QEL, Pratt &
Whitney Canada, Omantel, TechCO, Keda, and Company M were chosen. These
companies were operating in different business industries from different countries
like Omantel from Oman, Keda from china, Pratt & Whitney from Canada. These
extreme case studies will give diverse findings for dissertation study.
45
Figure: Eisenhardt (1989) Process of Building Theory from Case Study Research
Table
46
Eisenhardt (1989) suggests an elaborate sequence of deriving theory from case study
research. Process of building theory from case study research is logical; process that
will help to develop comprehensive theory. This dissertation will follow Eisenhardt
works to derive a well defined theory.
Yin (1994) multiple case study approach is used to analyse the collected data.
According yin there are 3 phases in multiple case study approach. First research
design phase, already lot of discussion has been carried out earlier regarding
selection of case studies. Other part is design data collection protocol (checklist), it is
developed based on analysis and critical review of literature on knowledge transfer
during ERP implementation (developing checklist to extract data from case study).
Single case collection & analysis is the next phase of multiple case study approach,
during this phase checklist is applied to each case study individually. Then each case
study data is collected & analysed extensively separately and Individual report
regarding each case study is written from data findings (observation and comments
regarding knowledge transfer during ERP implementation are noted). Cross case
analysis is the final phase; here all the findings from all case studies are compared
with each other. The data and case reports of case studies are critically reviewed,
findings of dissertation synthesised (condensed) and based on which conclusion is
derived.
Figure: Yin (1994) multiple case study approach
47
4.5 Data collection and analysis
Checklist consists of a list of key criteria questions that will help to collect data by
applying task on case studies. Checklist directly impacts the dissertation; checklist
will determine what kind of data could be extracted from case study.
Checklists attains detailed knowledge about dissertation by adding various things to
the dissertation evaluation like validity, reliability, consistency, stability, integrity,
legitimacy, and credibility (Scriven, 2000).Checklist is well defined , focused and
contains a set of tasks that need to be performed or set of questions that needed to be
used to obtain data collection from case studies.
Checklists are very essential for dissertation. Check list helps to remember what to
do, check whether all the tasks performed rightly, what to find in dissertation (
wingate , 2002).
Checklist objectives were developed from critical literature review and
comprehensive background study carried out on knowledge transfer during ERP
implementation. They are
- Checklist must be effective to obtain all data from case studies.
- Must be able to extract key results
- Checklist must be able compare and contrast all the case studies
- Checklist must be able to clearly identify the issues relating to dissertation
like advantages, disadvantages, challenges and benefits.
These objectives will be very helpful to create a good checklist.
Yin (1984) states that a checklist must posses the following characteristics for
consistent data analysis:
Checklist must be universal for all case studies, the checklist parameters must
not be based on single organisation
48
Checklist must be neutral indicating both weakness and strengths of case
study
Data analysis must be easy to understand
Based on the above Yin (1984) reflection the checklist for this dissertation was
developed This checklist mainly concentrates on important areas of knowledge
transfer during ERP implementation like types of knowledge, among whom the
knowledge transfer occurs, benefits of knowledge transfer and barriers of knowledge
transfer.
Factor Evaluation Applied
to case
study
observation
1. What are kinds of knowledge transferred during ERP
implementation?
- -Is transfer of explicit knowledge easier than tacit
knowledge in organisation?
2. Between whom does Knowledge transfer happen during
ERP implementation of an organisation?
- Are external people involved in knowledge transfer
dedicated?
- Does internal knowledge transfer occur between
several teams involved in erp implementation
within organisation?
- Is there any resistance to knowledge transfer
within organisation?
- How effective is knowledge transfer between
source and recipient?
- Are there lot of interactions between source and
recipient occurring during erp implementation?
- What are the methods used to spread awareness
49
about knowledge transfer in organisation?
- Any training given to employees for knowledge
transfer?
4. What are benefits of knowledge transfer during ERP
implementation?
- Is ERP implementation successful due knowledge
transfer?
- Is the cost, time involved in erp implementation
considerably reduced due to knowledge transfer?
- Has knowledge transfer helped to customize the
business process of organisation during ERP
implementation?
4. What are the barriers preventing knowledge transfer
during ERP implementation?
- Is there enough trust between source and recipient?
- Does knowledge transferred by source have good
credibility?
- Do recipient have good knowledge absorptive
capacity in knowledge transfer process?
- Does the source, recipient have good
communication skills?
- Is the recipient applying knowledge properly
during ERP implementation?
5. other observation
This question will observe the related aspects of
knowledge transfer during ERP implementation. These
details will help to evolve better understand of the study
topic.
50
The dissertation covered two big topics like ERP implementation and knowledge
transfer Due to the checklist being the other limitation, complete and detailed
checklist could not be developed, otherwise checklist will lead dissertation with too
much of details. Also dissertation would need lot of time and would become very
difficult to study knowledge transfer during ERP implementation in depth .Thus
checklist with five main question were developed to evaluate dissertation , it was
made sure that those five questions covered most important aspects of knowledge
transfer during ERP implementation.
4.6 Limitations
Very less case studies were available together with knowledge management and ERP
implementation. Thus extensive search had to be done within limited time.
Knowledge transfer aspect was present only implicitly during ERP implementation
case studies, thus finding case study, obtaining data, analysing data took more time.
Initially sample size of 10 case studies was planned, but due to severe limitation a
reasonable 8 case studies were used for this dissertation.
4.7 Summary:
This chapter gives the detailed methodology used for this dissertation study. The
checklist has been developed based on the literature review.
51
Chapter 5
5 Introduction This chapter presents the findings of the dissertation study. The author presents the
company introduction, then analysis the company case studies and discussion. Total
of 8 company case studies details was collected from secondary sources like
journals, company websites for conducting research.
5.1 Case Study of Rolls Royce (Yusuf et al, 2004)
5.1.1 Introduction
Charles Stewart Rolls and Henry Royce established Rolls Royce Company in 1906.
Rolls Royce essentially bought other companies for its consolidation and strategic
business advantages. Also Rolls Royce is present in diverse industries like Civil
Aerospace, Defence Aerospace, Marine, Energy, Nuclear, and Services industry.
Various other systems in Rolls Royce
Rolls Royce has tried 1500 different systems at different points of time to manage
various processes in its diverse business. legacy systems were becoming unreliable,
time , cost consuming and inefficient because the data provided by them were
approximate, inconsistent and delays in processing data MERLIN system was
evolved in 1980, it was a recent system used by Rolls Royce. Tracking of transferred
work between various sites was difficult, especially of work underway at one site
and transferred to another site. Thus Rolls Royce USA in 1998 wanted to implement
new system SAP R3 for its changing customer needs and improving existing
practices.
52
5.1.2 Analysis of Rolls Royce Case study
Between whom does Knowledge transfer happen during ERP
implementation of an organisation?
The case notes that Rolls Royce formed the ERP project team comprising of EDS
specialists‘ management team, SAP specialist, Rolls Royce specialist internal
experts, and experienced employees (experience in managing business relationships,
pervious internal systems). The knowledge transfer occurs between the project team
members and also with operational business unit‘s team during project
implementation. The Case study notes employees of Rolls Royce were classified as
specialists and mass users for the convenience of knowledge transfer process. There
are different knowledge transfers occurring in Rolls Royce.
External knowledge transfer
SAP transferred its high level knowledge and expertise to Rolls Royce specialist
experts.
EDS consultants with internal experts transferred their knowledge through
training to Rolls Royce normal users. Thus more than 10,000 normal
employees in Rolls Royce gained knowledge through knowledge transfer.
The case notes that external consultants showed commitment and support by
giving training to Rolls Royce employees and helped them to identify the
right processes for the new system.
During SAP R3 implementation Rolls Royce project team conducted few more
successive workshops for various reasons. In High Level Process
Confirmation Workshops 200 line personnel employees shared knowledge
and their experience regarding existing processes with Core project team
(case study). These workshops were used to discuss improving customisation
of important and existing Rolls Royce processes in the new system. Next
Business Simulation Workshops were attended by 300 line personnel
employees, where workshops helped to create good Arduous Relationship
between them and Core project team. This was done to avoid future
53
problems like non initiation of knowledge transfer, bad co operation, and
lack of trust that could affect SAP R3 implementation successfully.
Internal knowledge transfer
After gaining knowledge, specialist experts transfer knowledge through
training to expert users within Rolls Royce organisation.
This indicates the project team members involved in knowledge transfer during ERP
implementation. Thus both external knowledge transfer and internal knowledge
transfer took place in Rolls Royce during ERP implementation.
What kinds of knowledge are transferred during ERP implementation?
Knowledge transfer took place by means of training in Rolls Royce. Specialist,
experts transferred technical knowledge. The case notes that SAP used seminars to
transfer knowledge and expertise to specialists. Simonin (1999) states that seminar is
a formal method of swapping or transferring knowledge (explicit knowledge
transfer). Specialists and EDS consultants transferred their knowledge and
experience to normal Rolls Royce employees through seminars and it was supported
by informal meetings and presentations for knowledge transfer. Informal meetings
are where pragmatic knowledge, ideals, creativity and experiences that are not
codified are shared (Nonaka et al, 2005). Nonaka et al (2005) states that
presentations are direct method of explicit knowledge transfer, but it needed tacit
knowledge explanation along with it for understanding of the source. Thus SAP and
EDS consultants will transfer both explicit knowledge and tacit knowledge for
implementation of SAP R3 in Rolls Royce.
What are the benefits of knowledge transfer during ERP implementation?
There are several benefits of knowledge transfer during SAP R3 implementation in
Rolls Royce
54
- The case notes that workshops and seminars were organised for transferring
knowledge to employees regarding how they should customise the
operational practices with SAP R3. Knowledge transfer facilitated them to
choose business process reengineering for redesigning the process to suit
SAP R3. During SAP R3 implementation either existing process in the
organisation (working or existing process) or ERP software must be
customised to fit each other. Customisation of existing process in Rolls
Royce was done to avoid customisation of SAP R3 software. The case
observes that Customisation of SAP R3 software would have made
implementation process very costly and more time consuming. Also case
notes that SAP R3 was relatively new software thus would be very difficult
to customise and implement in Rolls Royce satisfactorily. Thus effective
knowledge transfer facilitates customisation of SAP R3 in Rolls Royce.
- Knowledge transfer among project team members and Rolls Royce normal
employees during most implementation stages assists in SAP R3
implementation.
- After the Business Simulation Workshops, there was good bonding among
the line personnel employees and project core team.
- After Knowledge transfer through initial training, Rolls Royce employees
learned about implementing new ERP system.
- After ERP implementation through Knowledge transfer in the form of
training Rolls Royce employees gained knowledge about operating new ERP
system.
What are the barriers preventing knowledge transfer during ERP
implementation?
Organisation culture change: The case notes that initially there was reluctance
among Rolls Royce employees in accepting new system implementation and along
with knowledge transferred. This was due to employees‘ familiarity with the old
system; employees used old system as their criteria for comparing the new system.
55
The case observes that employees preferred certain old system functioning to the
new system. This indicates certain of the employees were not ready for change, thus
additional training was given to normal employees regarding new system and
process of new system. The case observes that employee concerns on culture
changes were also addressed in training and also project team divided the entire
organisation into operational business units for SAP R3 implementation.
Other observation
The case study notes that there have been good knowledge transfer and lot of
interactions among project team members including external consultants (SAP, EDS
specialists) and normal employees during implementation in Rolls Royce through
training process, meetings. This indicates that there is trust between project team,
and enough bonding to share knowledge. The successful training process shows that
external consultants and internal specialist have good communication skills. Thus all
these will help to have effective knowledge transfer during SAP R3 implementation.
The case notes that the project changes made at phase 2 stage of project
implementation, lead to increase in cost and time. Thus cost and time increase is not
related to knowledge transfer during implementation.
5.1.3 Discussion:
Case study analysis gives SAP R3 implementation in Rolls Royce. SAP R3 was
implemented efficiently with the use of knowledge transfer from external consultant
and experienced employees in Rolls Royce. Knowledge transfer resulted in benefits
like easy SAP R3 customisation, successful implementation, and better
understanding of operating system. Organisation culture change was identified as
barrier, it was overcome by giving adequate training and raising awareness. External
consultants seemed very committed and interested in implementing SAP R3.
56
5.2 Case Study of International engineering limited (Newell et al
2006)
5.2.1 Introduction
International engineering limited (IEL) is a company present in 70 countries
worldwide having a staff strength of about 60000. This organisation is present in
heavy engineering industry with market cap of more than 100 million Pound and it‘s
headquarter is in UK. In 1995, a comprehensive study was undertaken over 4 months
to determine the feasibility and possibility of ERP system in IEL. IEL reported latest
developments often regarding the study to its Staff; it also received their suggestions
and queries about study. Consequently IEL choose to implement SAP R3 in most of
its units. This case study concentrates manufacturing division SAP R3
implementation.
5.2.2 Analysis of IEL case study
Between whom does Knowledge transfer happen during ERP implementation
in an organisation?
The case notes that IEL established central ERP manufacturing project team to
implement SAP R3. Project team consists of three external consultants and 14
internal members from its manufacturing divisional units. Project team was assigned
group of senior managers to oversee their functioning. Meetings were held for these
people to transfer their experience and knowledge with each other. There are
different knowledge transfers occurring in IEL
External knowledge transfer
Commitment and interest: External IT consultants had interactions with the project
team regarding the new system during various stage of SAP R3 implementation.
Those IT consultants tried to explain about operation and performance of new SAP
R3 to IEL normal employees. External IT consultants were giving their suggestion
on customisation of process and practices with SAP R3 software. External IT
consultants were interacting even with normal staff of IEL regarding the project, thus
they were committed and actively transferring knowledge during implementation.
57
This indicates that IT consultants had keen interest and supported the SAP R3
implementation. This commitment can enable them to transfer knowledge
effectively.
Internal knowledge transfer
Meetings were used by project team internal members to share their
experience and knowledge among themselves.
Team work: Work packages were assigned to a team; the team consisted of
experts and non experts. Work packages became joint responsibilities of
expert and non expert, where they understood their responsibilities and
worked together as a team closely. This closeness of employees resulted in
knowledge transfer among them and good utilisation of transferred
knowledge.
Use of intranet: This meant that any IEL employee can share their knowledge
and innovative ideas regarding implementing SAP R3 with project team
directly. They can also give suggestions and clarify their queries. Also
project team give important information regarding project to normal
employees at the same time. Using intranet can reduce cost and time needed
for transferring knowledge to large number of normal employees at the same
time. This indicates intranet was an effective medium for knowledge transfer
during implementation.
Thus Internal knowledge transfer occurred through meetings and intranet, where
normal users and project internal members where exchanging knowledge regarding
SAP R3 implementation.
These indicate there was good internal and external knowledge transfer during SAP
R3 implementation in IEL. Also it indicates project team members involved in
knowledge transfer during ERP implementation.
58
What kinds of knowledge are transferred during ERP implementation?
The case notes that there were face to face meetings among team members of the
project. Here tacit knowledge had been transferred in the form of project members
sharing their ideas, knowledge and experience. The case observes that intranet was
set up in IEL for internal communication; this was used by project team internal
members to interact with normal employees. There the project team members were
uploading information in the form of files and documents (explicit knowledge) about
SAP R3 implementation over the intranet. The case observes that normal employees
were giving their opinion, asking queries and solutions through intranet to project
members. Thus here both explicit and tacit knowledge transfer took place during
SAP R3 implementation in IEL. The case study evidence suggests that generally
tacit knowledge transfer was more than explicit knowledge transfer.
What are benefits of knowledge transfer during ERP implementation?
The benefits of knowledge transfer during SAP R3 implementation in IEL are
Good knowledge transfer during various stages of implementation assisted in
IEL SAP R3 implementation.
Knowledge transfer from IT consultants and normal users helped to customise
practices and process to fit the software. Thus customisation was easily
achieved.
The case notes that knowledge transfer between project team and members from
different divisional units across globe helped to evolve standard ERP system
(SAP R3) for all its units.
The case study indicates knowledge transfer helps to reduce the cost and time
needed for SAP R3 implementation.
Knowledge transfer using Intranet helps in organisational learning. Anybody in
organisation can learns about various things happening in the organisation
and they can share views and opinions. Thus it helps in continuous learning
about new things happening in organisation.
59
Also use intranet helps to communicate with higher level employees easily.
Innovative ideas, solutions can be shared with higher level employees
directly.
After knowledge transfer in form of training, the employees had a better
understanding.
What are the barriers preventing knowledge transfer during ERP
implementation?
There were few barriers preventing knowledge transfer in IEL. These are
The case observes that consultation and discussion were held to decide about
the existing process and things that needed change. For this purpose experts
from different units and project team members had deep interactions.
Because they had different views and objectives, they could not accept each
other‘s diverse knowledge or expertise or opinion (knowledge transfer
barrier). Thus it was referred to a group of senior managers; those managers
decided whose knowledge must be used to identify the process for new SAP
R3 system. This whole activity consumed lot of time as it involved too many
people, thus the time needed for implementation increased.
Intranet was used to receive novel ideas from normal employees. But
sometimes certain employees were giving opposing views for personal
interest; this made few employees disinterested while transferring their
knowledge.
Other observations
The reasons for good knowledge transfer in IEL during SAP R3 implementation are
Selection of project team: The case notes that IEL choose the right team with
expertise of exiting process and reasonable background knowledge about ERP
systems (team with right mix of knowledge). Consequently knowledge transfer will
be easier among project team members (members will understand the knowledge)
60
and they will have high absorption knowledge capacity. The project team members
will also apply the transferred knowledge correctly for improving SAP R3
implementation. Hence good project team would result in effective knowledge
transfer.
Bonding: The case notes that there was strong bonding between members of project
team. This was established through team building exercises and meetings during
implementation among project team. Good bonding helped to create more trust
among project team (Child, 2001). This bonding and trust facilitated more
knowledge transfer among them.
5.2.3 Discussion:
IEL case studies show how effective knowledge transfer can be carried out during
ERP implementation. Selection of project team, Commitment and interest of project
members, Team work, Use of intranet, bonding were the identified factors
facilitating effective knowledge transfer. Also contradictory diverse knowledge
transfer becomes a knowledge transfer barrier during SAP R3 implementation. Thus
this case study indicates effective knowledge transfer is the main reason for SAP R3
implementation successfully.
5.3 Case Study of Quality engineering limited (Newell et al 2004;
Newell et al 2006)
5.3.1 Introduction
Quality engineering limited (QEL) is an international organisation that has 40000
staff and it is present in 30 countries. QEL had 1600 legacy systems. In 1998 it's new
CEO decided to change existing systems with single ERP system (SAP R3)
throughout the organisation. SAP R3 was chosen before for implementation by one
of the QEL units. QEL decided it was better to implement SAP R3 for the entire
organisation at the same time, thus to have a single unified system. This case study
concentrates Human resource division SAP R3 implementation.
61
5.3.2 Analysis of QEL
Between whom does Knowledge transfer happen during ERP
implementation of an organisation?
QEL HR director formed SAP R3 project team with senior manager as project
manager, two IT external consultants, five employees of QEL, and they were
supervised by QEL senior HR managers. These were various people involved in
SAP R3 implementation, supposed to be transferring knowledge effectively for
successful implementation. But their knowledge transfer (interactions) was not
useful for implementation, even that knowledge transfer was very less or none
sometimes. Workshop was conducted for getting internal knowledge about mapping
QEL existing process from employees, but the knowledge provided by them to
owner of work package was not diverse ( it was not new knowledge ). Meetings were
organised for capturing external knowledge from IT consultants, certain IT
consultant overshadow the entire meeting. Thus QEL project team didn‘t understand
knowledge transferred from consultant, due to lack of enough conversation and
explanation about SAP R3. Thus internal and external knowledge transfer was
ineffective during SAP R3 implementation.
What are kinds of knowledge transferred during ERP implementation?
Workshops and meetings were conducted by QEL for transferring knowledge
regarding SAP R3 project. Explicit knowledge was available in the form of online
training courses and workshops during SAP R3 implementation. Workshop is where
both explicit knowledge and tacit knowledge were transferred, it was difficult to
explain explicit knowledge without tacit knowledge in workshops, and presentations
(polanyi , 1962 ; howell , 2001). Meetings consisted of tacit knowledge transfer
between participants (Desouza , 2003). Tacit knowledge was available through
meetings of SAP R3 project team. But there was no proper transfer of both kinds
knowledge due to various reasons in QEL.
62
What are the benefits of knowledge transfer during ERP implementation?
This question becomes inappropriate to QEL case study, due to the lack of
knowledge transfer. And also SAP R3 implementation is a failure in QEL .
What are the barriers preventing knowledge transfer during ERP
implementation?
There were many knowledge transfer barriers during SAP R3 implementation. They
are
Lack of commitment and interest: The case notes that IT consultants viewed
their job just as translation of process maps. IT consultants did not transfer their IT
knowledge even when the project team members had difficulties. The case observes
that IT consultants never involved in any interactions with QEL members, they were
either occupied with their own work in computers or intermingled with their own
members. Thus IT consultants lacked interest and commitment generally.
QEL project internal members were given online training courses (knowledge
transfer) regarding ERP. The case notes that most of them did not attend except for a
single member, because of his curiosity and passion for IT. The case observes that
members who gained knowledge did not transfer the knowledge to others. This
indicates that there is resistance to knowledge transfer. QEL project internal
members placed their personal interests before organisation and were uncommitted
to their job.
Workshops were conducted for potential users of SAP R3 system (normal
employees) by QEL project members at the beginning stage of SAP R3
implementation. This was a mistake of the project team as they had little experience
and preparation for the workshop was poor. The case observes that normal potential
users did not gain anything through knowledge transfer, they found hard to
understand SAP R3 and this made them feel disinterested. Hence it was an expensive
process without any useful result. Now the same activity has to be repeated after
implementation, otherwise the employees will find it hard to use the new system.
63
Thus this indicates that poor knowledge transfer actually increases the cost and time
involved in QEL SAP R3 project.
Wrong selection of project team: Some mistakes committed by QEL are
QEL brought together project members with diverse knowledge, but they had
their own objectives for joining the project implementation team.
Assigning placement student Rebecca with information systems degree as project
member in project team, she lacked practical experience though she had
knowledge about SAP R3 system.
External IT consultants background must have been checked, QEL must have
enquired about those IT consultants from previous organisation who have
worked with IT consultants. Their support, attitude and dedication towards
project were awful (pitiable).
No team work: Main mistake was committed by QEL; it spilt the project into
different Workpackages. QEL assigned workpackages responsibilities to individuals
rather than to a team. Thus those individuals were working in parallel without much
communication or transfer of knowledge or co operation with each other on their
workpackages. The case observes that even though they should have implemented
SAP R3 together, they were working separately in the same location.
Workpackages was used to implement SAP R3 to the entire organisation; a team
with diverse ideas on particular area should have been involved for a single
workpackage. But QEL allocated Workpackages ownership to a project member
who had expertise in particular area. This is a big mistake, as the case observes that
single project member would work on workpackage with predetermined thought
based on his previous experience and knowledge. If a team was assigned, then they
would share and transfer knowledge with each other. Through that process best
practical solutions could have been found for workpackage, which would have
enhanced SAP R3 implementation.
64
Selective group: QEL workpackages needed experts‘ knowledge and experience to
customize business process for adjusting with SAP R3 software. For this purpose
QEL conducted workshops. The case notes that the owner of workpackages invited
people whom they knew (selective group) from Headquarters alone, even though
SAP R3 was being implemented for the entire organisation. The identification of
process results was not diverse, thus this activity was just a waste. Actual activity
was aimed at getting knowledge for customisation of QEL process during SAP R3
implementation. Thus it shows that poor knowledge transfer
Lack of bonding: QEL project members have never worked with each other
previously. The case notes that there were no workshops or informal meeting or
group sessions for QEL project members, as they joined separately in different
weeks. They also continued to work individually without much interaction between
them during various implementation stages of SAP R3. Thus there was a lack of
strong relationship, trust and no bonding between them. Newell et al (2006) states
that bonding and strong relationship are the important factors that assist knowledge
transfer or knowledge sharing among individuals and teams. Child (2001) states that
there is relationship between bonding and trust, trust determines level of bonding
among organisation. Thus lack of bonding shows, that there is low level of trust
between project members of SAP R3 implementation in QEL.
These were various barriers that prevented knowledge transfer in QEL organisation.
The recipient here is QEL; it took no action to solve the knowledge transfer
problems that exist in the organisation. Here the knowledge transfer is insufficient or
hardly present, thus the knowledge transfer aspects of absorptive capacity, applying
knowledge transferred, knowledge transfer enhancing customisation of ERP could
not be studied.
65
Other observation
QEL reviewed benefits of SAP R3 after 12months from starting of implementation
process, but found no benefits. Consequently QEL abandoned the implementation
after some time. Thus the SAP R3 implementation was a failure in QEL. Actual
reason for not finding any new benefits was, because QEL did not implement SAP
R3 properly due to lack of knowledge transfer among its employees and external
consultants.
5.3.3 Discussion
Main reason for failure of SAP R3 implementation in QEL is the lack of actual
knowledge transfer among project team, external consultants or even with normal
QEL employees. Interactions among them would have helped to carry out the
implementation process sequentially and successfully. All the members had limited
knowledge (lacked adequate knowledge) for implementing SAP R3, but they also
lack will to interact with others. Bonding among employees was very poor, which
also made interaction process among them too difficult. This case study gives good
perspective of knowledge transfer barriers like lack of bonding, selective group, lack
of commitment and interest, No team work, Wrong selection of project team that can
lead to unsuccessful implementation of SAP R3. This case study indicates the
significance of knowledge transfer during ERP system implementation.
5.4 Case Study of Pratt & Whitney (Tchokogue et al, 2003)
5.4.1 Introduction
Pratt & Whitney Canada is a multinational company that has 9200 employees and it
has customers in more than 180 countries. Pratt Whitney is a sister company of
United Technologies Corporation. Pratt Whitney wants to integrate certain process,
remove unnecessary process through the reduction of work process, and to decrease
inventory and operational cost. Pratt Whitney wants to implement a system that can
meet large project needs for aeronautical industry. The new system would substitute
66
the existing 35 legacy systems and SAP R2 system in Pratt Whitney. Thus Pratt
Whitney decided to implement TES (total enterprise system) with SAP R3 in 1996.
5.4.2 Analysis of case study
Between whom does Knowledge transfer happen during ERP
implementation of an organisation?
Pratt Whitney formed a project team consisting of 7 groups with a total of 345
employees and external consultants, employees assigned in the team are specialities,
experienced persons who possessed broad knowledge and they were from diverse
organisation functions. The case notes that the organisation appointed a team that
represents all the organisation functions like sales and distribution, production
planning, materials management, finance, IT ,and Change management . The case
observes that Pratt Whitney appointed this large project team for achieving
successful implementation through effective transfer of knowledge, experience and
expertise. External consultants transferred their knowledge and experience (external
knowledge transfer) in form the of training 110 Pratt Whitney employees, through
which employees acquired expertise and became internal trainers. The case notes
that the external consultants effectively transferred knowledge to internal trainers
through continuous communication and training process. The case observes that at
any stage of project implementation there were up to 355 people involved along with
45 external consultants. Thus there was effective knowledge transfer among
stakeholders, which helped to achieve project goals during various stages of
implementation.
The case notes that internal trainers transferred their technical and business
knowledge (internal knowledge transfer) to 3000 Pratt Whitney employees. The case
observes that external change management consultants and power users transferred
knowledge to change management team, which will assist change management team
in change management process during project implementation. This indicates both
external knowledge transfer and internal knowledge occurred in Pratt Whitney
67
during implementation and these indicate that the project team members were
involved in knowledge transfer during ERP implementation.
What kinds of knowledge are transferred during ERP implementation?
Training is the biggest form of knowledge and expertise transfer occurring in the
organisation. The case notes that the internal trainers knowledge training consisted of
technical knowledge and business related knowledge, and they use internal resources
for training. During the training the internal trainers would share their broad
knowledge, expertise (tacit knowledge), give suggestions and caution related project
implementation. The case observes that internal trainers used 150 diverse manuals
(explicit knowledge) for different employees during knowledge training process.
Thus it strengthens Polanyi (1962) and Howell (2001) works which says that explicit
knowledge cannot be effectively transferred without tacit knowledge explanation
during events like training, workshops, conference. This indicates during project
implementation in Pratt Whitney both explicit and tacit knowledge are transferred.
The internal trainers were continuously supported by external consultants during
TES with SAP R3 implementation process.
What are the benefits of knowledge transfer during ERP implementation?
Pratt Whitney successfully implemented TES with SAP R3 using knowledge transfer
during training process and communication throughout the implementation. The case
notes that TES with SAP R3 implementation will result in benefits like cost savings,
productivity increase, and good returns for organisation
The case notes that Change management was carried out in Pratt Whitney using
knowledge transfer among external change consultants, power users, change agents,
change leadership and knowledge transfer teams, change champions and
implementation committee during project implementation. Change leadership and
knowledge transfer teams found right employees from various change areas to be
involved in change management. The case observes that knowledge transfer between
employees and change agents helped to anticipate the future problems, strength and
68
weakness of processes in the organisation and consequently to analyse the system
comprehensively and to evolve appropriate change strategy during project
implementation.
What are the barriers preventing knowledge transfer during ERP
implementation?
This question becomes inappropriate to Pratt Whitney case study, due to the lack of
information about knowledge barrier in case study.
Other observation:
The case notes that Pratt Whitney studied and analysed SAP, Oracle, and BAAN
regarding each vendor system strengths, weakness and suitability for Pratt Whitney's
business process.
The case notes that Pratt Whitney conducted number of preparatory and post training
activities like change session, follow up session, briefing communication and
feedback plan before training process to increase basic knowledge and understanding
among employees. The case observes that Pratt Whitney used additional tools for
preparatory and post training activities like follow-up teams used to check the level
of knowledge acquired during training process , checking employee readiness
through readiness assessment, and getting employee response through employee
feedback forum. If the recipient doesn‘t possess adequate awareness to acquire
knowledge, then transfer knowledge becomes ineffective. Pratt Whitney carried out
above activities for ensuring good understanding among employees, which would
result in employees acquiring knowledge effectively from training process. This
indicates that level of recipient understanding determines successful knowledge
transfer. Thus Pratt Whitney organisation ensures effective knowledge transfer in the
training process during project implementation.
69
5.4.3 Discussion:
Thus this case indicates knowledge transfer process during of ERP implementation
and post implementation stage in an organisation. Pratt Whitney successfully
implemented TES with SAP R3 using knowledge transfer during several stages of
implementation. Pratt Whitney involved a big project team to gain diverse
knowledge during implementation; diverse knowledge will help in successful
implementation.
5.5 Case Study of Omantel (Maguire et al , 2009)
5.5.1 Introduction
Omantel is a telephone communication company in Oman; Omanmobile is the
subsidiary of Omantel that provides mobilephone services. Omantel has been
operating for 40 years, it also provides broadband services from recent past. Omantel
and Omanmobile together have 2600 employees‘. Omantel group reported about
$108 million as profit in 2006. Omantel wanted to improve its network technology,
which will help Omantel to posses convenient work flow. Omantel was very
committed to its customers; it wanted to give them better services. Thus Omantel
decided to implement ERP.
5.5.2 Analysis of Omantel case study
Between whom does Knowledge transfer happen during ERP
implementation of an organisation?
The case notes that Omantel held consultation programme with stakeholders like its
employees, customers , supplier, Omanmobile , regulator of Oman and its competitor
nawars where Omantel gets awareness , good understanding about ERP project. The
case observes that consultation programme established stakeholder requirements like
ERP implementation timing, pausing of implementation during special event,
70
implementation being within regulator standards. Omantel thought interactions with
all the stakeholders will help them to design complete implementation programme.
This consultation was held to receive diverse requirements and views from all
stakeholders, this will encourage those stakeholders to interact or share knowledge
with Omantel. The case notes that oracle technical team (external consultants)
transferred knowledge to oracle IT/IS staff during implementation. The case
observes that trainers trained gave training (knowledge transfer) to normal Omantel
employees, but the internal trainers were less in number. Thus both internal
knowledge and external knowledge transfer occurs during ERP implementation in
Omantel. These indicate Omantel, Omantel stakeholders, Oracle involved in
knowledge transfer during ERP implementation.
What kinds of knowledge are transferred during ERP implementation?
The case notes that consultation programme was held during starting stage of
implementation, where all the stakeholders would have shared knowledge (tacit
knowledge) regarding implementation with Omantel.
The case notes that workshops were held to choose vendor, all the stakeholders and
Omantel employees gained knowledge from various vendor proposals. Proposals
had included various detailed documents of implementation, evidences, vendor
experience, ideas (explicit knowledge, tacit knowledge transfer) regarding ERP
project and carrying out implementation. Thus both explicit knowledge and tacit
knowledge transfer occurs during ERP implementation in Omantel.
What are the benefits of knowledge transfer during ERP implementation?
There are benefits of knowledge transfer during ERP implementation. They are
ERP project implementation was supported by knowledge transfer among
project team during various implementation stages.
Consultation programme (knowledge transfer) helped to get complete ERP
implementation plan reflecting the stakeholders‘ views.
71
The case notes that Omantel and Oracle redesigned (customise) several
Omantel products by interacting and jointly working with each other, initial
tests results show many products wont be affected by the new system .
What are the barriers preventing knowledge transfer during ERP
implementation?
There are several barriers preventing knowledge transfer. They are
The case notes that Omantel had less number of IT/IS staff to acquire all the
knowledge and expertise from oracle. The case observes that shortage of
Omantel employees created communication problems between Omantel and
oracle technical team. This indicates that lack of sufficient staff resulted in
poor transfer of knowledge to oracle regarding the existing system and
process (legacy systems), Omantel IT/IS staff were inefficient and did not
engage in effective interaction with oracle technical team. The case observes
that due to the above reasons ERP was implemented with delays in Omantel,
thus inadequate staff involved in project becomes knowledge transfer
barrier.
The case notes that Omantel employees articulated that Oracle did not transfer all
the necessary knowledge for implementation. The case observes that Omantel
technical employees thought Oracle consultants were reluctant,
unenthusiastic for sharing knowledge and Oracle consultants had less time to
involve in knowledge transfer. These were the thoughts of Omantel
employees during initial stages of the project.
The case notes that Omantel appointed team leaders as responsible for each of
their domains respectively and overall management accountability was fixed
to Omantel project manager and they were supported by oracle consultants‘
integration team. This project team functioned as two parallel teams, which
lead to poor knowledge transfer, communication and interaction between
them. The case observes that project team was restructured where
management accountability was with project manager; technical and
72
consultancy accountability was fixed with Oracle consultants. Thus the
problem was solved by changing the structure of the team.
The case notes that few employees didn‘t know that a new system had been
implemented, even after the ERP implementation. The case observes that
ERP project team did not interact with all the Omantel employees, and they
do not know anything about the new system. Thus lack of promoting
awareness and communication becomes knowledge transfer barrier.
Inefficient training will lead to less knowledge transferred, and less
understanding of the new system. The situation of employees forgetting the
acquired knowledge indicates that these employees‘ posses less absorptive
capacity.
Other observation
The case notes that enough training was not given to employees, most employees
were trained after ERP implementation and nearly fifteen percentage of employees
received no training. The case also observe that many employees did not remember
acquired knowledge from previous training 7months ago, because of the lack of
regular practice. Thus they had to be retrained; this increased the cost of training.
This indicates that training programme was not handled properly. The case notes that
lack of sufficient staff is another reason for the slow phased training process in
Omantel. This indicates that there isn‘t effective knowledge transfer during training
process.
The case notes that Omantel called for bids and proposals for vendor selection
process. The case observes that Workshop was held for evaluation of vendor where
Omantel stakeholders (including Omanmobile), other business companies associated
with Omantel like Al-Ufug prepaid card unit,and various vendors with their
proposals participated. Workshop is a form of knowledge transfer, where various
vendors give their proposal regarding best ERP software and implementation to
Omantel. The Omantel stakeholders will know their business process and operations.
73
These proposals will help Omantel stakeholders to understand about ERP system and
implementation process through knowledge transfer from various vendors. Based on
various proposals, Omantel stakeholders will choose the best suitable vendor for
Omantel with pragmatic knowledge and experience. Omantel selected Oracle as the
vendor for ERP project implementation. The case observes that Oracle was chosen
based on its infrastructure, proficiency, skills. Oracle would have studied the
Omantel business, process and also would have general interaction with Omantel
before giving its initial proposal. Through this process Oracle would have gained
knowledge about Omantel. Thus there is 2 ways knowledge transfer during vendor
selection stage. Omantel lacked adequate experience to implement ERP project, thus
Oracle also became the external consultant for ERP project
5.5.3 Discussion:
This case indicates that there is knowledge transfer from the pre implementation of
ERP. Omantel should have carried out detailed background check of oracle and
getting information from previous oracle clients before choosing oracle as vendor.
Omantel should have assigned more IT/IS staff or employed new staff, lack of
sufficient staff affected knowledge transfer sometimes during implementation. Also
if the Omantel employees were collocated with oracle consultants there would have
been close bonding and more interactions between them. There was knowledge
transfer occurring in Omantel during ERP implementation, but it was not very
effective. ERP implementation delays and cost increase could have been avoided if
there was effective knowledge transfer during ERP implementation.
5.6 Case Study of TechCO (Pan et al, 2007)
5.6.1 Introduction
TechCO (TechCO*) is a global organisation that has large workforce and it is
present in more than 190 countries. The case notes that this organisation has diverse
businesses like financial services, oil, transportation, and manufacturing. TechCo has
its operations in diverse industries across globe; it uses intranet and information
technology. TechCO wants all its diverse businesses to utilise the ecommerce
74
opportunities, that will help them to increase their sales. Also TechCO wanted to
combine new emerging needs into the core business. Consequently based on these
factors, TechCO decided to implement SAP R3 system for their business.For this
purpose the project implementation was split based on different regions, they are
Asia pacific, Europe, and United states. Here this case study concentrates on SAP R3
implementation in Asia pacific division.
TechCO*: The case notes that the name of company has been changed to TechCO;
actual company didn‘t want its name to be published.
5.6.2 Analysis of TechCO case study
Between whom does Knowledge transfer happen during ERP
implementation of an organisation?
TechCO appointed 21 members ERP project (SAP R3) implementation team. The
case notes that the team comprised of core members, regional branch representatives,
staff members from local branches and External IT consultants. A Steering
committee was formed; they were the deciding authority for approving business
process and resources for the ERP project. Steering committee had eight experienced
top management project sponsors, who will assist in implementation. The case notes
that other than the above mentioned people , 100 more people like 50 power users ,
27 business unit heads and others will engage formally and informally in the project.
There are different types of knowledge transfers occurring in TechCO.
Internal knowledge transfer / External knowledge transfer
Internal knowledge transfer took place in the form of discussion and documents
exchange between various business units. The case observes that face to face
meeting took place between project team and business partners for learning about
business practices and process.
75
Commitment and interest: The case notes that external IT consultants transferred
their knowledge (external knowledge transfer) to the project team for identifying
business process and partners. This indicates their commitment to the project. They
also helped the organisation to integrate the existing knowledge, through which
reinvention of wheel is avoided in the organisation. This shows external consultants'
interest and support to SAP R3 project implementation in TechCO. The case
observes that knowledge integration process was successful due to the knowledge
transferred by external consultants, thus it indicate that external consultants are a
credible knowledge source. This indicates that a high level of commitment and
interest will result in effective knowledge transfer.
Bonding: The ERP project team had never worked together before this SAP R3
package implementation. The case notes that team leader of project team organised
electronic meetings, social interactions for increasing proximity and better bonding
of team member. Here both internal knowledge,and external knowledge transfer
takes place because the project team consists of internal members and external
consultants. The team leader thought these actions will help the team to involve in
knowledge transfer and there would be good interaction between team members.
These were the steps taken to create strong bonding among the team members.
The case notes that regular formal and informal meetings were organised by project
team with business units heads and managers. This helped the team to evolve strong
relationship with business heads and managers. Strong bonding promotes more
knowledge transfer interactions among the people (newel, 2006). This indicates that
strong relationship will increase the trust and commitment, thus would lead to
effective knowledge transfer between project team and business units.
Thus here both external and internal knowledge transfer took place during ERP
project implementation. Also it indicates that there was knowledge transfer between
members of project team including external IT consultant, business partners and
various business units within TechCO.
76
What kinds of knowledge are transferred during ERP implementation?
Explicit knowledge was transferred in the form of documented information or
knowledge between various business units. Tacit knowledge was transferred in the
form of participative discussions, face to face discussions, and informal meetings
within the organisation. The case notes that formal meetings (explicit knowledge
transfer) were organised for various business owners and managers with project
team. Thus here both explicit knowledge and tacit knowledge had been transferred
during ERP project (SAP R3) implementation. The case notes that more tacit
knowledge was transferred (more discussions, informal meetings, user communities)
than explicit knowledge transfer during implementation. .
What are the benefits of knowledge transfer during ERP implementation?
There are various benefits of knowledge transfer during SAP R3 package
implementation. They are
User communities: User communities acted as forum for users to transfer
their thoughts, ideas, knowledge and experience with others. The case notes
that discussion in user communities was mostly informal; informal
communications increase closeness, increased knowledge sharing and leads
to better understanding among employees (root, 1988). The case observes
that communities were helpful in finding solutions through knowledge
transfer among members for queries or problems raised by the users. User
communities helped members to operate ERP system efficiently; user
communities with frequent knowledge transfers assisted the employees in
solving their difficulties. User communities helped knowledge transfer during
ERP project implementation.
The case notes that the project team promoted knowledge transfer and
frequent interaction during implementation within the organisation. Project
team used knowledge transfer to gain the existing knowledge from all the
TechCO employees and project team members. Thus ERP project team
avoided reinvention of existing knowledge (rediscovering the wheel) in
organisation. This process will helps to save time and cost by using existing
77
knowledge to enhance implementation, rather trying to create knowledge that
already exists in the organisation.
The case study indicates based on Tsai (2001), that knowledge transfer
among project team and normal employees during SAP R3 package
implementation facilitates shared learning in organisation.
The case notes that knowledge sharing during TechCO implementation
helped to transform complex process through integrating those processes
efficiently. This made the business process simple and effective, thus reduced
the cost drastically for TechCO after implementation.
What are the barriers preventing knowledge transfer during ERP
implementation?
There are several barriers preventing knowledge transfer during ERP (SAP R3)
project. They are
Wrong project team selection: The case notes that project team members had
diverse knowledge, but their knowledge background, experience and
organisational practices were completely different from each other. The case
observes that the project team lacked common understanding, which made
knowledge transfer harder between them. Even if the team member transfers
knowledge, project team will have no or less awareness or familiarity or
understanding of the knowledge transferred. The case observes that project
team members needed 2 months to understand and acquire the overall
background knowledge (obtaining diverse knowledge), knowledge about
local business process and best practices of organisation. Hence the project
had faced problems initially due to the lack of common understanding. Thus
it is necessary to choose a right team with right mix of knowledge, which will
ensure efficient functioning of project team from the beginning.
Users fear: The case notes that the users showed resistance for involving in
discussions using their knowledge about legacy systems. Users thought
78
giving away wrong information or unintentional deceptive information will
create numerous problems during implementation. Users are only
accountable and liable for information given out by them. Accountability
threatens the users, thus users didn‘t involve much in knowledge transfer.
Also the case observes that users of business units were using legacy systems
as their criterion, this prevented them from changing and learning according
to the needs of the new system. Consequently they didn‘t want to absorb
knowledge that was being transferred to them by others. All these indicate
the users' fears and lack of interest for new system among users in business
units were preventing knowledge transfer during ERP project
implementation.
Other observation:
TechCO committed a big mistake after ERP project implementation. The case notes
that TechCO stopped the running legacy systems immediately and project team was
broken down. Without regular knowledge transfer and constant support, employees
found it difficult to operate the new system. TechCO formed centralized service
centre team comprising of 30 experienced members, they are to help to solve
problems arising while transferring their knowledge to employees. Thus knowledge
transfer is needed throughout all the stages of implementation and post
implementation stage. This indicates that knowledge transfer is essential until
employees learn to operate the new system. And it is advisable to phase out the old
system in stages than in one go, This will help the organisation to run smoothly even
in the event of the new system crashing.
5.6.3 Discussion:
Case study analysis gives ERP project implementation in TechCO. Wrong project
team selection and user fear were identified as the barriers of knowledge transfer.
Commitment and interest, bonding and user communities will help in effective
knowledge during TechCO ERP project implementation. Cost reduction,
79
organisation learning, avoiding reinventing existing knowledge and successful
implementation were seen as the benefits of knowledge transfer in TechCO.
5.7 Case Study of KEDA (Fung et al,2009)
5.7.1 Introduction
Lu Qin established Keda organisation in 1992, Keda started a ceramic machine
manufacturing unit. Keda's fast growth was creating some problems in its
performance. Various Keda business units were operating individually; there were
lot of task, data redundancy and duplication. These were contributing to the increase
in cost and time. Thus Keda decided to implement ERP within the organisation. Here
this case study is going to focus on ERP implementation.
5.7.2 Analysis of keda case study
Between whom does Knowledge transfer happen s during ERP
implementation of an organisation ?
The case notes that keda formed a team comprising of all the departments key users
(departmental managers or operating staff), external consultants from digital china
management system, senior executives, project manager, all the IT staff, and some
SAP members. There are different types of knowledge transfers occurring in keda.
External knowledge transfer
Here in keda, key users are the core members; they have knowledge about all
business process. Key users transfer knowledge about these processes to
external consultants and IT officers for evolving common understanding.
External Consultants support key users by sharing their knowledge and
experience regarding implementation of new system (external knowledge
transfer). The case observes that IT staff transfer their IT knowledge required
by the key user.
80
The case notes that consultants transfer knowledge (operating the new
system) in the form training a chosen few key users, and those key users
became internal trainers.
Internal knowledge transfer
The case observes that internal trainers (key users trained by consultants)
transferred their knowledge, experience about the operation of system and
operating manuals to all normal employees of keda. Thus there was effective
knowledge transfer during ERP implementation.
The case notes that the top level management and key users are committed to
the project; this will ensure effective knowledge transfer between them.
Thus both internal knowledge and external knowledge transfer takes place during
ERP implementation in keda. Also it indicates project team members involved in
knowledge transfer during ERP implementation.
What kinds of knowledge are transferred during ERP implementation?
The case notes that Key users will design process, write their specifications, needs
and would give it to IT specialists. Thus the written document (explicit knowledge
transfer) will help IT specialist understand key users needs and implement their
requirements accordingly. Internal trainers transfer acquired knowledge, expertise,
experience in the form of training (tacit knowledge transfer), and give operating
manuals (explicit knowledge transfer) about operating new system to all normal
users of keda. The case observes that External consultants will support the key users
through knowledge transfer and IT officer will transfer their technical knowledge
(tacit knowledge transfer). Thus both explicit and tacit knowledge transfer occurs
during ERP implementation in keda.
81
What are the benefits of knowledge transfer during ERP implementation?
There are benefits of knowledge transfer during ERP implementation. Those are
External consultants transfer their knowledge, experience to keda staff for
identifying, re engineering the process and design (customisation) to suit the
new system.
Knowledge Transfer from consultant and internal trainers (trained by
consultants) in the form of training to normal keda employees will help to
operate the new system efficiently. The case notes that testing is a form of
knowledge acquiring, were tester learns from operating the system in diverse
simulated scenario. This knowledge can be transferred to other users for
operating new systems effectively.
ERP project in keda was implemented successfully through knowledge sharing
among the members of the project team and other keda staff.
After knowledge transfer in the form of training, the users had a better
understanding.
What are the barriers preventing knowledge transfer during ERP
implementation?
There are several barriers preventing knowledge transfer. These are
The case notes that departmental managers were co-located with other project
team members; they could not carry out their departmental job effectively.
Consequently they had to manage their departments‘ tasks in parallel; they
could work for their departmental tasks only after their implementation work.
And also carrying out departmental tasks from another place was too
difficult. This indicates that departmental managers will be under lot of
pressure from both their tasks (departmental and implementation work), this
would lead to inefficient functioning. Due to these departmental managers
may miss their project meetings; they won‘t be committed, interested and
supportive during implementation. Thus they won‘t participate or effectively
82
involve in receiving knowledge or transferring knowledge with other project
team members. This will be a barrier preventing knowledge transfer during
ERP implementation.
The case notes that there were diverse views among various module owners,
also amidst module owner and consultant about carrying out certain process
and tasks during implementation. This will prevent knowledge transfer
among them during implementation. The case notes that for solving this
problem, discussions will be held between them for reaching a consensus or
else project management staff will make final decision.
Other observations
Keda departmental managers weren‘t totally accepting the implementation plans due
to various reasons, this could result in them missing meetings or not involving
knowledge transfer during implementation. The case notes that Keda director
introduced reward and punishment method to solve the problem. The case observes
that reward was given for managers working normally for long time every day
(departmental and implementation work). Punishment in the form of working in
canteen was given to those who weren‘t attending meetings and not supporting other
project members (not sharing knowledge and experience). Meetings are a form of
knowledge transfer where everybody shares knowledge, thus it is important for
departmental mangers to attend meetings. These measures will ensure effective
knowledge transfer between project team members.
Keda lacked enough expertise and experience for developing its own system, and
also it will take lot of time to develop the system. Thus Keda invited various external
vendors for choosing the best ERP system, Keda allowed them to learn about its
operations and analyse about Keda's requirements. The case notes that consequently
vendors transferred knowledge regarding their various software packages which are
appropriate to Keda's requirements, vendors shared their previous experience and
expertise, and vendors shared knowledge about other things that affect
implementation. Through these processes the Keda management gained common
knowledge about computerisation, customisation of systems, ERP.
83
The case observes that Keda conducted detailed background check of the vendors
and their previous implementation from previous vendor clients. Hence Keda team
went to various vendor client sites, through which they gained knowledge about
implementation, various implementation problems. These things will help Keda to
prevent various problems during implementation and give general idea about
handling problems associated with implementation. Also these visits will enable
Keda to learn about vendor interest, level of commitment, support shown towards its
client during implementation. Based on the above process Keda invited 9 final
vendors for giving their detailed presentation about ERP software and
implementation. Consequently Keda employees involved in vendor selection would
share the knowledge about presentation among them. The case observes that vendors
are rated based on best matching vendor software meeting Keda management
requirements and goals. Finally SAP was chosen as the ERP vendor, because of the
experience and previous successful implementation by SAP. These show that
knowledge transfer and sharing occurs from pre implementation stage of the system.
5.7.2 Discussion:
Case study analysis gives ERP implementation in Keda. ERP was successfully
implemented in keda. Top management were committed and supportive of project
implementation. Reward and punishment method seemed good, which ensured there
was effective knowledge transfer. Keda must find a way to reduce workload of
departmental managers; beyond certain point any method won‘t ensure their
effective participation. This case shows the detailed vendor selection process before
implementation, and knowledge transfer is even found during that process. Thus this
case indicates knowledge transfer process is essential part of ERP implementation,
knowledge transfer occurs from preparatory stage of implementation, during
implementation, post implementation stage (operating system after implementation).
84
5.8 Case Study of Chinese manufacturing company (Ke et al , 2003)
5.8.1 Introduction
The name of the company is not revealed in this case study, due to privacy concerns
of the company. But for this case analysis, it is named as company ―M‖. Company
M has large workforce and it is a big Chinese manufacturing organisation. Company
M has old legacy systems, which is not effective and it cannot manage with rapid
growth of the company. Consequently the legacy systems are slow, cannot handle
the various business units at diverse locations competently. Hence Company M has
made a decision to implement ERP for combining systems and different business
process.
5.8.2 Analysis of Company M
Between whom does Knowledge transfer happen during ERP implementation
of an organisation?
The case notes that Company M formed a project team comprising of steering
committee (top management), working committee (senior managers), project
function groups (important employees from diverse departments), IT group and
consulting group (external consultants). There are different types of knowledge
transfers occurring in Company M.
External knowledge transfer
Trust: The case notes that both external consulting group and Company M share
values, good trust among them. This good trust will lead more knowledge
transfer and interactions between them. Also higher level of trust will lead to
transferring high quality knowledge and most essential knowledge, which
will enhance ERP implementation.
The case notes that consulting group will support the organisation to customise
the ERP system. The case observes that during above process, consulting
group will transfer knowledge regarding the good and bad things of
customisation of ERP from its previous customisation experience.
85
Bonding: The case notes that Company M was closely functioning with
Consultants during ERP customisation. This indicates that company M and
consulting group had good bonding (strong relationship) with each other.
Good bonding will help them to have effective knowledge transfer.
The case notes that external consulting group gave training (knowledge transfer)
to all the group and committee members involved in ERP implementation.
The case observes that training was for explaining business process vocally,
drawing illustration to represent their ideas and handling business issues
regarding business process
Internal knowledge transfer
The case notes that Company M acquired comprehensive knowledge and
understanding about company practices and business process from all its
employees using questionnaire survey. The case observes that Company M
asked employees to give their idea and advices, this shows Company M
completely involves all its employees during implementation. This indicates
that Company M involved knowledge transfer and wanted to collect and
utilise all the knowledge available within the organisation during
implementation.
The case notes that function groups developed detailed understanding of other
department functioning through knowledge transfer among diverse business
units and function group members during implementation.
The case notes that IT group and consulting group jointly organised training
(knowledge transfer) for functional groups and other employees regarding
operating the new ERP system. Here the IT group will transfer knowledge
regarding IT skills and consulting group transfer knowledge regarding
general operational aspects of the new ERP system. This indicates that the
knowledge transfer occurs immediately after ERP implementation in an
organisation.
Incentives: The case notes that company M encouraged employees to create new
and novel ideas for implementing ERP, optimising business process. The
case observes that company M offered employees incentives for sharing their
86
new ideas with project team. These resulted in employees participating in
ERP implementation with eagerness and developing new ideas. Thus
Company M will benefit from new ideas and those ideas will be shared with
everyone involved in the ERP implementation. Providing Incentives will
promote generation of new ideas, thoughts, and transferring those ideas,and
thoughts with everyone.
These indicate most of the project team members are involved in knowledge
transfer during ERP implementation. It also indicates that there was both external
and internal knowledge transfer during ERP implementation in company M. Also
these indicate that external consultants where committed and supportive
throughout the ERP implementation process.
What kinds of knowledge are transferred during ERP implementation?
Company M obtained knowledge from its employees by using questionnaire survey
(explicit knowledge transfer). The Functional groups create and maintain ISO 9000
documents, because they were involved in ISO 9000 process. The case notes that
working committee and functional group gained knowledge by reading organisation
ISO 9000 documents (explicit knowledge transfer) regarding the management
hierarchy and business practices. The case observes that meetings were held for
functional groups to discuss about business process and innovative ideas.
The case notes that Company M held workshop and assemblies (explicit knowledge
transfer) for their employees to understand about business process and practices. The
case observes that consulting group offered training to various groups and committee
members in Workshop, Training is conducted using both explicit knowledge and
tacit knowledge. Training is given using user manuals, verbal suggestions and
solutions. Also it is difficult to transfer explicit knowledge without explanation,
giving additional information (tacit knowledge) and ideas (Polanyi 1962; Howell
2001).Thus both explicit knowledge and tacit knowledge are transferred during ERP
implementation in Company M.
87
What are the benefits of knowledge transfer during ERP implementation?
There are benefits of knowledge transfer during ERP implementation. They are
Knowledge transfer among project team during most implementation stages
helps ERP implementation in Company M .
Consultation group, working committee, functional group and other company
M employees shared their knowledge through which the ERP and business
process are successfully customised to fit the organisation.
After Knowledge transfer through training various groups and committee
had a better understanding of representing business process.
After Knowledge transfer through training, normal employees of the
Company M learned about operating new ERP system.
Broad knowledge transfer among various groups and employees involved in
ERP implementation would lead to organisational learning. Organisational
learning in company M will be regarding ERP in general, ERP
implementation, implementation problems and solutions, business process
and practices. Thus the various group members and employees would acquire
knowledge, experience and pragmatic expertise through knowledge transfer
during ERP implementation.
88
What are the barriers preventing knowledge transfer during ERP
implementation?
There are barriers preventing knowledge transfer during ERP implementation. They
are
- The case notes that the various groups and Company M employees used to
work separately at different locations. This meant sometimes that there used
to be not enough knowledge transfer between. The solution is to co-locate the
teams during implementation process.
- The case also observes that diverse knowledge would be transferred by
various groups and Company M employees‘ during implementation, and
consolidating that knowledge is a difficult process. During synthesis of
knowledge, some transferred knowledge might not be included due to
inappropriateness. If the employees who transferred knowledge are not
included in consolidated knowledge they become discouraged. Then they
don‘t involve in efficient knowledge transfer during implementation. Thus it
is important to consolidate all the transferred knowledge and also to explain
inappropriateness of knowledge that is not included.
Other observation
The case notes that project team used to interact and review the development of ERP
implementation, during which they will discuss various implementation issues and
solution for enhancing implementation process. The case observes that project team
checks whether any planned worked is behind schedule , consequently more
resources ( finance , employees etc) will be assigned to that particular work which is
behind schedule and that they also will be finished on time. This indicates that
knowledge sharing is continuously occurring between project team members during
implementation.
89
5.8.3 Discussion:
There is effective knowledge transfer during implementation. The reasons for
effective knowledge transfer are good bonding, trust, committed external
consultants, good understanding among company M employees. Incentives were
given to promote effective knowledge transfer during ERP implementation. The
barriers of knowledge transfer such as teams located separately, diverse knowledge
integration problems prevent further knowledge transfer. This case study also
indicates that there is knowledge transfer like training given for operating new
system after ERP implementation. This particular case study indicates effective
knowledge transfer facilitates successful ERP system implementation.
5.9 Summary:
The author collects the data from case studies ,analyses and dicusses the each case
study individually
90
Chapter 6
6 Introduction This chapter presents broad discussion about data findings of all the company cases
studies.
Global discussion
Complete synopsis of the findings is represented by the diagram below. Overall
findings are discussed, evaluated and synthesised in the global discussion.
91
Questions 1 to 5 are the various questions used to collect the data from case studies.
Between whom does Knowledge transfer happen during ERP implementation
*Here √ denotes yes
92
The case analysis indicates that knowledge transfer took place among User
Company, external consultants, vendor, and stakeholders during ERP
implementation. Chan (1999) had identified actors involved in ERP implementation,
which is given below in the table. Xu et al, (2008) has identified important players
and their activities during ERP implementation.
Source : Actors involved in ERP implementation (Chan,1999)
Source : Key players and key activities of ERP implementation table (Xu et al,2008)
Different cases found that various people of User Company involved in knowledge
transfer within themselves or with external sources (consultants, vendor, and
stakeholders). Those various people are Steering committee/senior managers /top
managers, Project sponsor, internal experts/ Specialist/key users/functional
teams/groups, Change Management Team, Different business units/ departments,
Internal IT employees, Normal Users/Employees. These people involved in
knowledge transfer during various times at different stages of the ERP
implementation. User Company has indepth knowledge about products, services,
business process, past organisational knowledge and their competitor strategies; all
those various factors could be used to design proper ERP system (Li et al,
93
2006).This detailed knowledge is possessed by several people of User Company.
Thus knowledge transfer occurs between different people from various departments.
Vendor Company‘s sales person / Marketing person and Specialist/System support
involve in knowledge transfer with User Company. Vendor of ERP will provide
standard ERP hardware, software, implementation manual and other important
documents needed by the User Company (haines, 2003). Marketing person / Sales
person gives proposal (knowledge transfer) during initial Vendor selection stage to
User Company. During which the Marketing person / Sales person explains about
ERP, benefits of ERP, implementation problems, Vendor company software and
strategy to user company selection panel. The ERP Vendor Specialist/System
support will give the basic knowledge regarding implementing the ERP through their
knowledge transfer, also will give necessary instructions and required initial training
to the User Company (Li, 2006).Selection of Vendor and Vendor support is
illustrated in Omantel, Keda and Rolls Royce cases.
The case found external consultant companies specialist / technical consultant /IT
consultants involve in knowledge transfer with User Company. Most important
knowledge transfer from Specialist /Technical consultant to User Company is
regarding redesigning user company business process within the organisation to
align with ERP system during implementation (Li, 2006). The case analysis
identified most vital information is given by consulting company is the Knowledge
of ERP implementation in other companies, in the perspective of successful
implementation and mistakes that led to the failure of ERP implementation. The
external consultants continuously transfer knowledge through out the ERP
implementation process; this has been indicated in all the case companies studied in
the previous chapter.
Stakeholders involve in knowledge transfer with User Company during ERP
implementation. Stakeholder consists of customers, suppliers, sister/group/subsidiary
companies and some competitor. Customer and supplier give their requirements
(knowledge transfer) to User Company, thus user company implements new system
accordingly (Bingi et al, 1999). If the stakeholders (Supplier, group/subsidiary
companies and competitor) had implemented ERP system already, then they share
94
their knowledge, experience, information regarding implementation problems, and
benefits to User Company. Stakeholder knowledge transfer is indicated in the
Omantel case study.
Source : Knowledge transfer and utilisation during ERP implementation(Li et
al,2006)
The above table shows the knowledge transfer during pre implementation,
implementation stage of ERP like training, manuals, documents , selection of
vendor, and transferring of knowledge . And also shows the utilisation of knowledge
implementation of ERP system.
Many authors (Haines, 2003; Zeitz, 1996; Davenport, 1998; Jiang, Klein, & Balloun,
1996) have identified several issues that determine successfully ERP implementation
using knowledge possessed by the organisations. The issues are
95
ERP Consultant must have good knowledge base and ERP vendor must be
highly experienced
Amount of knowledge possessed by the ERP implementing organisation
(implementer of ERP)
Level of Knowledge transfer among ERP implementer, ERP consultant, ERP
vendor
Degree of interest and support of vendors and consultant to ERP implementer
during ERP implementation.
These are knowledge activites taking place during ERP implementation and the
various people in knowledge transfer . Thus this verify and strengths author
findings.
What kinds of knowledge are transferred during ERP implementation?
96
Tacit knowledge: The case analysis defines tacit knowledge as undocumented known
knowledge obtained by doing things. Tacit knowledge remains in the mind of the
person. Tacit knowledge is described as Non verbal, instinctive, and unspecified
knowledge (polyani, 1962) Tacit knowledge is cognitive, state of knowingness. Tacit
knowledge develops through experience gained, practical knowledge and thinking
process. Thus Tacit knowledge is precious , it can give significant benefits (Polanyi,
1966). Most companies‘ cases analysis and polyani (1962) indicate that tacit
knowledge transfer took place in face to face discussions, informal meetings, group
or team interactions, intranet, user communities, presentations and training.
Explicit knowledge: The case analysis defines explicit knowledge as structured and
codified knowledge existing in the organisation. The case found explicit knowledge
exists in the form of manuals, files, documents, presentation files, knowledge base
etc. Explicit knowledge is easier to transfer and it can be transferred to many people
at the same time (Dhanaraj et al, 2004). Most companies‘ cases analysis indicates
explicit knowledge transfer took place through workshops, conferences, formal
meeting, user communities, training and presentations. Explicit knowledge can be
easily gained and utilised efficiently (polyani, 1962).
Organisational knowledge: Organisational knowledge is pooled knowledge of all the
employees‘ regarding various things in the organisation; this knowledge is unique
and stays within the organisation (Tsoukas et al,2001;Penrose,1959). Knowledge
about the organisation is shared among all the employees, it constantly evolves with
time. The cases analysis found Organisational knowledge exists in the organisation
in the form of organisation documents, organisation training, organisation practices,
and sometimes in organisation database. In Company M case, organisational
knowledge is obtained from all employees using questionnaire survey.
System knowledge: System knowledge is the knowledge and details about the
system. Vendor and external consultants will posses the knowledge about the system
(Li, 2006). The case analysis System knowledge includes the knowledge of system
implementation, knowledge of operating the system, handling the problems
happening in the system. System knowledge is essential during ERP implementation;
without adequate system knowledge ERP implementation is not possible. User
company uses Knowledge of system as the main criteria for choosing vendor and
97
external consultants (Wei et al, 2005).This is indicated in the keda case, where
various vendor proposals were obtained, evaluated .Finally SAP was chosen based
on superior implementation experience (system knowledge).
Business process knowledge: Business process knowledge is defined as knowledge
about various business processes in the organisation. User Company has the
knowledge about important business process and business practices in the
organisation. External consultant only poses the knowledge of restructuring or
reorganising business process to suit the new system (LEE et al, 2000). Thus the
business process knowledge is about identifying the important business process that
fit the ERP System. Most companies‘ cases analysis indicates business process
knowledge is transferred during the ERP customisation process in the organisation.
All these are the various kinds of knowledge transferred during ERP implementation.
Thus for ERP implementation, most of these knowledge transfer should have
occurred in the organisation. Tacit and Explicit knowledge transfer are common than
other knowledge transfer.
98
Knowledge barriers preventing knowledge transfer during ERP
implementation
Reluctance to Organisation culture change: The case analysis found employees
are well used to the old system; it is finding difficult for them to change in
accordance with new system. Organisation culture change is the state of
99
Organisation employees‘ willingness to adapt or change according to new culture.
Most organisation employees are reluctant to sudden change of organisation culture
(Meyerson, 1987). Employees use old system as the criteria to compare the new
system, employees think certain old system process is much better than new system.
The case analysis identified there is some non acceptance/reluctance to new system,
which will bring new culture. Thus the organisation employees do not receive or
transfer their knowledge during ERP implementation with vendor and consultant.
This is indicated in Rolls Royce case, where the employees expected the new system
to function like the old system. Also Getting used to the change initially would be
difficult, but providing awareness sessions and training will remove the reluctance to
organisation culture change.
Lack of bonding: Weak bonding means the team members won‘t mingle or
cooperate or transfer knowledge with others, team members will not be comfortable
working as a team . This means that the team members would share weak ties with
others (Granovetter, 1973). The case analysis found weak bonding or bad cohesion
of a team affects the performance of the team. Thus lack of bonding is knowledge
barrier preventing knowledge transfer. The case analysis identified lack of bonding
affects knowledge transfer during all the stages of ERP implementation, and ERP
implementation needs continuous interactions among the whole project team. The
effects of lack of bonding is indicated in the case of TechCO company. Lack of
bonding cane be overcome by having team building exercises, induction meetings,
electronic meetings through video conferences and informal discussions. All these
activities will help to establish strong ties, good understanding and cordial
relationships among team members.
Wrong selection of project team: Project team must be carefully selected; they
determine the success of ERP implementation. Project team must have good
knowledge and flexibility. Knowledge transfer won‘t take place effectively between
the bad project team, due to the misunderstandings and lack of sufficient knowledge
that exists in the team. Also project team must represent all the departments of an
organisation; else missing department's business can‘t be added to the new system.
100
There won‘t be any co operation or interaction between bad project team, wrong
project selection can result in ERP implementation failure. The QEL cases study
indicates wrong project team selection resulted in ineffective knowledge transfer.
Working from different locations: The case analysis found cohesiveness, bonding
and interaction are much less among the project team members working from
multiple sites. The case analysis identified awareness and understanding about
project and progress of project will be less among team members at multiple sites
and coordination and co operation will be inefficient among project team members.
Also it is found that knowledge transfer, communication among team members at
multiple sites is much lesser than project teams co located. Sapsed et al (2005) states
that ―firm may co-locate the workers of a project to enjoy the benefits for knowledge
transfer, to permit access to communities of interaction already in the area, not to
mention less exotic benefits of the improved performance effects of co-location
resulting from the impact of pressure and inspection‖. This indicates co location of
project team results in enormous knowledge transfer benefits. Project manager will
not be able to inspect and examine the team members from different locations, thus
they will have less pressure to share their knowledge with others. Thus ERP team
members working from different locations is a barrier preventing Knowledge
transfer. Best solution to this problem is to co locate the ERP team, Co location
increases closeness. This co location will result in more knowledge interaction
among team members and different business units. Otherwise this problem can be
solved by using video conference meetings, forming virtual team (McDonough,
2001).
Users fear: The case analysis found employees (user) had few fears regarding
sharing their knowledge with other team members. The case analysis identified users
fear that transferring knowledge will result in competition and threaten their position
in the organisation. Users thought sharing their knowledge with other units will
reduce their superiority over them (Bjorkman, 2004). The case analysis identified
User also feared about transferring misleading or wrong knowledge to others; they
were accountable for transferring good beneficial knowledge. Consequently users
involve in less number of knowledge transfer during ERP implementation. Thus user
101
fear is a barrier preventing knowledge transfer. This problem can be solved by
awareness sessions, giving incentives or promotion for people involving in
knowledge transfers during ERP implementation. Solving the user fear results in
better knowledge sharing among the users (Nelson et al , 1996).
Lack of absorptive capacity: Already lot has been discussed about lack of
absorptive capacity in chapter 2. According to Cohen (1990) absorptive capacity is
important for effective knowledge transfer to take place in the organisation. The case
analysis found recipient must have retentive or absorptive capacity to receive and
utilise knowledge efficiently. Lack of absorptive capacity means recipient forgets the
received knowledge or utilises the knowledge wrongly. Knowledge transfer to
recipient with poor absorptive capacity is a waste. Thus lack of absorptive capacity
affects the effective knowledge transfer in the organisation. This problem can be
overcome by giving training to people involving in knowledge transfer. The Omantel
company case indicates that the normal users lacked absorptive capacity; they forgot
the knowledge gained about operating new system after training. Thus these people
could not train others in the organisation. Also bad absorptive capacity resulted in
increased cost and time due to retraining of employees during implementation.
Communication problems: Already Communication problems had been discussed
in chapter 2. According to Monge et al. (1982) and Berman et al (1989) good
communication among project team will result in more knowledge transfer and co
operation between project team members. The case analysis found that the
communication problems lead to less interaction, inefficient knowledge transfer
among project team members. Communication problems will result in less
collaboration, less co-operation, and less association among team members.
Communication problems are the most common barrier preventing knowledge
transfer. This problem can be overcome by having informal meeting and discussions
among project members.
102
Lack of commitment and interest: User company and external consultant
commitment is an important factor throughout the ERP implementation(Gable et al
1999). The case analysis found that the commitment and interest determines the
amount of knowledge transferred by the source. If various people involved in ERP
implementation are not committed and interested, then they wouldn‘t transfer
essential knowledge needed for ERP implementation. In QEL case study lack of
commitment and interest is indicated by external consultant, who spends most of
their time in front of computer and do not interact with project team. Lack of
commitment and interest problem can be solved by giving incentives, promotions for
internal members, while the external consultants and vendors have to be carefully
selected to avoid this situation.
Selective group knowledge transfer: The case analysis found during ERP
implementation employees choose to transfer their knowledge to selected people
rather than transferring knowledge to all employees. This occurs because some
employees consider knowledge as their personal asset and transfer knowledge to
some chosen people. The case analysis found that selecting a group with previous
same knowledge background is very bad. When those selective group members
posses same knowledge before and after the knowledge transfer, then the knowledge
transferred between those group members is useless. Thus Selective knowledge
transfer is a barrier preventing knowledge transfer to all the employees. Pea (1987)
identified selective knowledge transfer is barrier preventing knowledge transfer in
social groups or teams. This problem can be overcome by reward and punishment
method, where giving reward to those people transferring knowledge to all the
employees and punishing those employees involving in selective knowledge transfer.
Diverse views: The case analysis found that effective knowledge transfer doesn‘t
take place properly , when project team consists of people with diverse views. The
case analysis found that when there is no common understanding between the project
team members, they stick to their point of views. Consequently they don‘t co operate
and transfer knowledge with other members of the project team. Sometimes conflicts
arise regarding which knowledge to be transferred, that is referred to senior manager.
103
These are various barriers preventing knowledge transfer during ERP
implementation. All these barriers preventing knowledge transfer are business and
functional barriers rather than technical knowledge barriers.
Benefits of effective knowledge transfer
104
There are several benefits of knowledge transfer during ERP implementation. These
are
Customisation of business process to fit the ERP system: The case analysis found
ERP systems are not customized to organisations. The user company might find it
difficult to change lot of their process to suit the ERP implementation without
external consultant support(knowledge transfer) and this activity might be a time
consuming process (Li et al, 2006). The case analysis identified the following
- External consultant posses general knowledge and experience of
restructuring or reorganising or redesigning the business process to best fit
the ERP system.
- The internal experts or specialists from various departments know about
essential business process needed by the organisation.
- The external consultant and internal experts/specialists share their
knowledge with each other and identify the business process that fit the ERP
system. This is also noted by LEE et al (2000).Hence a good two way
knowledge transfer among User Company and external consultants will lead
to a successful customisation of business process to fit the ERP system.
- Using all the above factors it was evaluated that the User Company needs
constant and continuous interaction with external consultant throughout the
business process customisation.
Most companies cases analysis indicate that transferring of knowledge,
experience and expertise among external consultant and internal
experts/specialists resulted in successful customisation of business process
suiting the ERP system. Thus business process customisation to fit the ERP
system is a benefit of effective knowledge transfer during ERP implementation.
Better understanding: The case analysis found that the knowledge transfer results
in better understanding among employees. Training is a structured form of
knowledge transfer, where knowledge transferring results in absorbing and learning
of transferred knowledge. Mathieu et al (1992) states that training results in
105
awareness, better understanding and high performance. The case analysis identified
the following
- After Knowledge transfer employees had a comprehensive understanding and
more knowledge about various processes during ERP implementation. Lot of
interactions among employees results in transfer of ideas and increases
employees level of knowledge about ERP, ERP implementation process.
- The employees‘ better understanding helps them to utilise thhe acquired
knowledge for enhancing ERP implementation. Better understanding helps
employees to perform their tasks efficiently and effectively. Thus better
understanding among all the employees greatly improves the functioning of
the whole organisation. Also knowledge transfer in organisation ensures
learning within organisation.
The cases analysis of various companies shows that training (knowledge transfer)
lead to better understanding of different process during ERP implementation. The
case companies‘ evidence suggests that better understanding and performance is also
attained through knowledge sharing in meeting, workshops, presentations and
conference.
Time reduction and cost reduction benefits: The case analysis found that
knowledge transfer among employees‘ results in Time reduction and cost reduction
benefits. Spekman et al (2002) states that knowledge transferring activities lead to
cost benefits. The case analysis identified Knowledge transfer helps to optimise
several ERP implementation procedures, which will enhance performance of ERP
implementation process. Thus it results in cost and time reduction benefits. Techno,
IEL, Pratt & Whitney companies indicated cost reduction, while Techno, IEL
companies had time reduction due to the knowledge transfer. In some other case
studies there was time, cost increases, but those were due to the ERP implementation
problems and not because of knowledge transfer.
106
Knowledge transfer assisting in ERP implementation: The case analysis of
various companies found knowledge transfer assists ERP implementation. With no
knowledge transfer among external consultants, vendor, internal members of the
organisation the ERP implementation is difficult. Knowledge transfer may not be the
single most important factor for successful ERP implementation, but knowledge
transfer affects ERP implementation decisively. This indicated by most of the case
companies‘ analysis, where good knowledge transfer helps in successful ERP
implementation and provides various implementation benefits enormously. The case
analysis notes that poor knowledge transfer in QEL resulted in ERP failure. The case
analysis establishes that effective knowledge transfer is one of the important factors
that help in successful implementation. Also knowledge transfer makes
implementation process easier and less complex. Hence Knowledge transfer
significantly benefits ERP implementation.
The case analysis found intangible knowledge transfer benefits like work becoming
easier, better implementation, more interaction, better support from internal
members. Knowledge transfer provides several benefits for employees day to day
and in times of need during implementation. These benefits are invisible, not much
noticed.
Other observation:
This question was essentially used to study other related aspects of knowledge
transfer during ERP implementation .This other observation noted many things
about related aspects of knowledge transfer like bonding , project team selection ,
commitment , Cost and time increasing not due to knowledge transfer , vendor
selection and other related facts knowledge transferring during ERP
implementation in various case studies. The most interesting finding about related
aspects of knowledge transfer is Vendor selection. All the other observations are
combined with question 1, 3 and 4 based on their similarities.
Vendor selection: The case identifies that vendor selection as a knowledge transfer
process during ERP implementation. The case analysis notes that there is lot of
107
initial knowledge transfer activity from which user company benefits. The
knowledge transfer processes during vendor selection phase are
Wei (2005) states that basic information is obtained from vendors using ERP
specification questionnaire.
Request for proposal is used for getting vendor proposals from vendor
(Verville, 2002). Consequently various vendors present their proposals.
Vendor proposal includes information regarding ERP, implementation of
ERP, anticipated implementation problems, vendor company software and
strategy as noted in keda case study.
Based on all these, vendor suiting to the user company objectives and goals is
chosen. The keda and Omantel case companies‘ analysis indicate that vendor
selection stage is where vendor transfers knowledge to User Company, and
vendor selection becomes knowledge transfer process. Thus vendor selection
stage is a knowledge transfer process during ERP implementation.
108
Enablers for effective knowledge transfer during ERP implementation.
109
Based on question 1, 4 and 5 the enablers for effective knowledge transfer during
ERP implementation are identified and produced. These are some of important
factors that make users to involve effective knowledge transfer.
The case analysis found Good commitment and interest, Good bonding, trust, good
teamwork, good project team selection increases the interactions and knowledge
transfer among project team members during ERP implementation. The case analysis
identified intranet, user communities, questionnaire survey was helpful in getting the
knowledge from all the employees at a same time. User communities, intranet helped
to share knowledge within anyone in organisation easily and accurately. The case
analysis also identified giving of incentives, rewards and punishment helped to
promote knowledge transfer during ERP implementation. All these factors help to
achieve effective knowledge transfer among them during ERP implementation.
6.1 Summary:
The discussion chapter help to discuss the impacts of knowledge transfer during ERP
implementation.
110
Chapter 7
7 Introduction This chapter presents the research conclusion in perspective of the research
objectives and further research suggestions based on the findings of this topic.
7.1 Conclusion
This dissertation study findings meet most of the research objectives. Literature of
knowledge management, knowledge transfer and ERP systems were reviewed and
evaluated using journals and books, which gave the author comprehensive
understanding of dissertation study. The author as well attempted to examine
knowledge transfer during ERP systems implementation and the possible barriers of
knowledge transfer.
Based on literature review a checklist was developed to conduct the research on the
sample company case studies regarding the knowledge transfer during ERP
implementation. The dissertation findings revealed some interesting results. The
findings revealed that the user company (organisation adopting ERP), vendor,
external consultants, and organisation stake holders are involved in knowledge
transfer during ERP implementation. The knowledge barriers preventing knowledge
transfer were identified. These knowledge transfer barriers were more of business
and organisational functional barriers rather being technical barriers. Main benefits
were identified as successful business process customisation to fit ERP and better
understanding of employees after knowledge transfer. Findings also revealed a set of
enablers, these enablers can be used to compare knowledge transfers activities of
organisation during ERP implementation. These enablers will help to achieve
effective knowledge transfer among the people involved in the implementation
process.
The findings indicated that organisations can improve their knowledge transfer
process during ERP implementation. Also more awareness and training could be
given to employees about knowledge transfer and its significance initially before
ERP implementation. Further the project manager must inspect and observe the
employees regarding knowledge transfer. Subsequent actions should be taken to
avoid inefficient knowledge transfer during ERP implementation. This will helpful
to limit the effect of inefficient knowledge transfer and new actions will help to
implement ERP system.
The dissertation study has identified knowledge transfer as one of the important
factors for ERP implementation in an organisation. Knowledge transfer process
results in several tangible benefits and many invisible intangible benefits for the
organisation during ERP implementation. Knowledge transfer processes avoids the
111
reinvention of knowledge wheel in the organisation implementing ERP. But there are
many barriers that prevent knowledge transfer during ERP implementation. These
barriers lead to inefficient knowledge transfer in the organisation. Inefficient
knowledge transfer is a waste; will lead to ERP implementation failure. Thus
Effective knowledge transfer in an organisation facilitates successful ERP
implementation in the organisation. The author believes further steps like giving
rewards, incentives, promotions, more recognition among employees, pay based on
performance and intra company virtual communities help in enhancing the quality
and increase in the quantum of knowledge transfer among employees.
7.2 Further research
This dissertation performed in depth study of the knowledge transfer impact during
ERP implementation in an organisation. Research is an evolving and continuous
process, it doesn‘t stop with findings of this study.
This dissertation has found knowledge transfer takes place in the pre implementation
and post implementation stages of ERP in an organisation. Knowledge transfer in an
organisation is a continuous process; it can give organisations competitive advantage
and enormous benefits over their competitors. But due to the masters‘ study
constraints (time, dissertation word length, cost) these two topics could not be
studied exhaustively. Hence there is always a possibility for further detailed research
study to be conducted on knowledge transfer process during operation of ERP
system in an organisation. Knowledge transfer during operation of ERP system can
help in continuously improving the efficiency of operating process and procedures in
the organisation.
Due to constraints like time, word length and reluctance of companies to involve
themselves in this research, a total of 8 case studies were used for this dissertation
study. But nevertheless the same research of knowledge transfer during ERP
implementation in an organisation could be carried out as onsite research at the
company or on large number of case studies. These can verify, strengthen and refine
these study findings or may produce different results. On site research at companies
would be able to identify the intangible benefits of knowledge transfer during ERP
implementation.
Knowledge transfer and ERP are two interesting topics; there is lot of potential for
further research in these areas. The author will involve himself in further research
based on this study at different points of time in future.
Word count: 2644
112
8 References
Aamodt, A., & Nygard, M., 1995. Different roles and mutual
dependencies of data, information, and knowledge - an AI perspective on
their integration, Data and Knowledge Engineering,16, pp 191-222.
Ahmed S., Blessing L.T.M.,and Wallace K.M.,(1999). The relationships
between data, information and knowledge based on a preliminary study
of engineering designers, ASME Design Theory and Methodology, Las
Vegas, NV,PP.1-10.
Alavi, M. & Carlson, P., 1992, .A review of MIS research and
disciplinary development., Journal of Management Information Systems,
8 (4), 45-62.
Alavi, M., & Leidner, D. E., 2001. Knowledge Management and
Knowledge Management Systems: Conceptual Foundations and Research
Issues, MIS Quarterly, 25(1), pp. 107-136.
Al-Mashari, M., & Zairi M., 2000. The effective application of SAP R/3:
a proposed model of best practice. Logistics Information Management,
13(3), pp. 156–166.
Argote, L., & Ingram , P., 2000. Knowledge Transfer: A Basis for
Competitive Advantage in Firms, Organizational Behavior and Human
Decision Processes, 82(1), pp. 150-169.
Argote, L., 1999.Organizational Learning: Creating, Retaining and
Transferring Knowledge, Kluwer Academic Publishers, Boston.
Balm, G. J., 1992. Benchmarking: A Practitioner's Guide for Becoming
and Staying Best of the Best. QPMA Press, Schaumberg, IL.
Barney, J. B.,1986. Organisational culture: Can it be a source of sustained
complex advantage?, Academy of management review , 11(3) , 656-665.
Benbasat, I., Goldstein, D. K., and Mead, M. , 1987. The Case Research
Strategy in Studies of Information Systems, MIS Quarterly, 11(3), pp.
369–386.
Berger, P. L. & Luckman T. ,(1966). The Social Construction of Reality:
A Treatise in the Sociology of Knowledge. Doubleday, Garden City, NY.
113
Bhandari P. , Nunes, M. B. , Annansingh, F., 2005 . Analysing the
penetration of knowledge management practices in organisations through
a survey of case studies, 4th European Conference on Research Methods:
In Business, pp. 37-46.
Bhatt, G., 2001. Knowledge management in organizations: examining the
interaction between technologies, techniques, and people, Journal of
Knowledge Management, 5(1), pp. 68-75.
Bingi, P., Sharma, M.K. and Godla, J. 1999, Critical issues affecting an
ERP implementation, Information Systems Management, 16(3), pp. 7-14.
Bjorkman, I. W. Barner-Rasmussen, L. Li., 2004. Managing knowledge
transfer in MNCs: The impact of headquarters control mechanisms.
Journal of International Business Studies, 35,pp. 443–455.
Bollinger A. S., & Smith R. D.,2001.Managing organizational knowledge
as a strategic asset, Journal of Knowledge Management, 5(1), pp.8 – 18.
Bontis, N., 1999. Managing organisational knowledge by diagnosing
intellectual capital: framing and advancing the state of the field ,
International Journal of Technology Management, 18(5-8), PP. 433 –
462
Bryman, A., 2002. Research Methods and Organisation Studies, London:
Routledge.
Burns, R. B., 2000. Introduction to research methods, London: SAGE
Publications, 4th edition.
Busha, C. H.,& Harter, S.P., 1980. Research Methods in
Librarianship:Techniques and Interpretation. New York: Academic
Press.
Cavusgil S. T., Calantone, R.J., and Zhao, Y., 2003. Tacit knowledge
transfer and firm innovation capability, Journal of Business & Industrial
Marketing, 18(1), pp. 6-21.
Chan, R., 1999.knowledge management for implementing ERP in Smes.
3RD Annual SAP Asia Pacific SAPPHIRE, pp. 21-39.
Child, J., 2001. Trust—The fundamental bond in global
collaboration,Organizational Dynamics, 29(4),pp.274-288.
114
Clarke, T., Rollo, C., 2001.Corporate initiatives in knowledge
management, Education & Training, 43(4/5), pp.206 – 214.
Cliffe S., 1999. ERP implementation, Harvard Business Review ,77,pp.
16–17.
Cohen, M.D., March, J.G., and Olsen J.P., 1972. A garbage can model of
organizational choice. Administrative Science Quarterly, 17, pp. 1-25.
Cohen, W. M.& Levinthal D. , 1990. Absorptive capacity: A new
perspective on learning and innovation,.Administrative Science
Quarterly, 35(1), pp.128-152.
Coleman, J.S. (1988). Social capital in the creation of human capital.
American Journal of Sociology, 94, pp.95–120.
Davenport, T. H., 2000. Mission critical: Realizing the promise of
enterprise systems, Boston, Harvard Business School Press.
Davenport, T., 1998. Putting the enterprise into the enterprise System,
Harvard Business Review, 76 (4), pp.121–131.
Davenport, T., and Prusak, L., 1998. Working Knowledge, Harvard
Business School Press, Cambridge, MA.
Desouza, K. C., 2003. Facilitating Tacit knowledge exchange,
Communications of ACM, 46 (6) PP. 85-88.
Dhanaraj, C., Lyles, M.A., Steensma, H.K. and Tihanyi, L., 2004.
Managing tacit and explicit knowledge transfer in IJVs: the role of
relational embeddedness and the impact on performance, Journal of
International Business Studies, 35, pp. 428–442.
Dixon, N.M. 2000. Common Knowledge: How Companies Thrive By
Sharing What They Know. Boston, MA: Harvard Business School Press,
2000.
Dretske, F,1981. Knowledge and the Flow of Information, MIT Press,
Cambridge, MA.
Eisenhardt K. M., 1989. Building Theories from Case Study Research.
The Academy of Management Review, 14( 4), pp. 532-550.
Esteves, J., 2009. A Benefits Realization Road-Map Framework for ERP
Usage in Small and Medium-Sized Enterprises. Journal of Enterprise
Information Management, 22(1/2),pp. 25-35.
115
Everdingen, Y. V. , Hillegersberg J. V. , and Waarts, E., 2000. ERP
adoption by European midsize companies, COMMUNICATIONS OF
THE ACM, 43(4), pp. 27-31.
Fahey, L., & Prusak, L., 1998.The Eleven Deadliest Sins of Knowledge
Management, California Management Review 40(3), pp. 265-276.
Firestone, J.M., 2001. Key Issues in Knowledge Management, Journal of
KMCI, 1, pp. 14-15
Fischer, R. A., 1979. The Inductive-Deductive Controversy Revisited.
The Modern Language Journal, Vol. 63(3), pp. 98-105
Ford, N., 2002 .Designing Your Methods of Investigation, University Of
Sheffield:UK.
Fung C. Y., Fang Y., and Wang H. Q., 2009. Teaching Case: Leading
the Change - ERP Implementation at Keda, 17th European Conference
on Information Systems. PP. 1-20.
Gable, G. G., 1994. Integrating Case Study and Survey Research
Methods: An Example in Information Systems, European Journal of
Information Systems,3(2), pp.112-126.
Glesne, C., & Peshkin, A., 1992. Becoming Qualitative Researchers.
London: Longman.
Goh, S. C., 2002.Managing effective knowledge transfer: an integrative
framework and some practice implications, Journal of Knowledge
Management, pp.23-30.
Gooijer, J. D., 2000. Designing a knowledge management performance
framework, Journal of Knowledge Management, 4(4), pp.303 – 310.
Granovetter, M.. 1973. The strength of weak ties. American Journal of
Sociology, 78, pp.1360–1380.
Graziano, A.M., Raulin, M.L., 2004. Research Methods, fifth ed. Allyn
and Bacon, Boston.
Haines M. N., & Goodhue, D. L., 2003. Implementation Partner
Involvement and Knowledge Transfer in the Context of ERP
Implementations, INTERNATIONAL JOURNAL OF HUMAN–
COMPUTER INTERACTION, 16(1), pp. 23–38.
116
Hawking, P., Stein, A., and Foster, S.,2004. Revisiting ERP Systems:
Benefit Realization. Proceedings of 37th Hawaii International Conference
on System Sciences (HICSS ‘04), Big Island, Hawaii, 2004.pp1-8.
Howells J. R. L., 2002. Tacit knowledge, innovation and economic
geography , urban studies,39(5/6) ,pp. 871-884.
Jarrar, Y., 2002. Knowledge management: learning for organizational
experience. Managerial Auditing Journal, 17(6),pp. 322–328.
Jonathan D. Pemberton,& George H. Stonehouse, (2000) "Organisational
learning and knowledge assets – an essential partnership", Learning
Organization, The, Vol. 7 Iss: 4, pp.184 – 194
Joshi, K. D., Sarker, S., and Sarker, S., 2007. knowledge transfer within
information systems development teams:Examining the role of
knowledge source attributes, Decision Support Systems, 43, pp. 322–335.
Ke, W., Wei K. K., Chau P., and Deng Z.,2003. Organizational
Learning in ERP Implementation: An Exploratory Study of Strategic
Renewal, Ninth Americas Conference on Information Systems, pp. 1124-
1133.
Kim, D. H., 1993. The link between individual and organizational
learning. Sloan Management Review, 33(1), pp. 37-50.
Ko D., Kirsch L., and King W., 2005. Antecedents of Knowledge
Transfer from Consultations to Clients in Enterprise System
Implementation, MIS Quarterly, 29 (1), pp. 59–86.
Lee, Z., & Lee, J., 2000. An ERP implementation case from a knowledge
transfer perspective, Journal of Information Technology,15, pp. 281-288.
Li ,Y. , Liao, X. W., and Lei H. Z., 2006. A Knowledge Management
System for ERP Implementation , Systems Research and Behavioral
Science,23,pp.157-168.
Li, H.,& Li, L., 2000. Integrating systems concepts into manufacturing
information systems. Systems Research and Behavioral Science, 17,pp.
135–147.
Machlup, F., 1980. Knowledge: Its Creation, Distribution, and
Economic Significance, Volume I,Princeton University Press, Princeton.
117
Maguire S., Ojiako U., and Said A., 2009. ERP implementation in
Omantel: a case study, Industrial Management & Data Systems, 110(1),
pp.78 – 92.
Malhotra, Y., 1998. Knowledge management for the new world of
business[online], Available at: http://www.brint.com/km/whatis.htm
[Accessed: 16th june 2010].
Mason, J., 1996, Qualitative Researching. London: Sage Publications.
Mathieu J. E., Tannenbaum S. I., Salas E. 1992. Influences of Individual
and Situational Characteristics on Measures of Training Effectiveness.
The Academy of Management Journal, 35(4) ,pp. 828-847.
McDermott, R., 1999. Why information technology inspired but cannot
deliver knowledge management. California Management Review, 41 (4),
103-117
McDonough, E., Kahn, K., and Barczak, G.,2001. An Investigation of the
Use of Global, Virtual, and Collocated New Product Development
Teams, The Journal of Product Innovation Management, 18(2), pp. 110-
120.
McNeill, P., 1990. Research Methods. London: Poutledge
Meyerson, D., & Martin J., 1987 . cultural change : an intergration of
three different views . Journal of Management studies, 24(6),pp. 623-647.
Michalisin, M.D., Smith, R.D., and Kline, D.M., 1997. In search of
strategic assets, The International Journal of Organizational Analysis, 5,
pp. 360-87.
Monge, P., Bachman, S., Dillard, J., and Eisenberg, E., 1982.
Communicator Competence in the Workplace: Model Testing and Scale
Development,‖ in Communication Yearbook, M. Burgoon (Ed.),
Transaction Books, New Brunswick, NJ, pp. 505-527.
Nah, F.F.H., Lau J.L.S., and Kuang, J., 2001. Critical factors for
successful implementation of enterprise systems, Business Process
Management, 7(3), pp. 285-296.
Nelson, K.M., Cooprider, J.G.,1996. The contribution of shared
knowledge to IS group performance, MIS Quarterly, 20(4), pp. 409–429.
118
Newell, S., Huang, J.,and Tansley, C., 2006, ERP Implementation: A
Knowledge Integration Challenge for the Project Team, Knowledge and
Process Management,13(4), pp. 227–238.
Newell, S., Tansley, C., and Huang, J 2004.Social Capital and
Knowledge Integration in an ERP Project Team: The Importance of
Bridging and Bonding, British Journal of Management, 15, pp. 43-57.
Nonaka, I. &Takeuchi, H., 1995. The knowledge-creating company: how
Japanese companies create the dynamics of innovation. NewYork:
Oxford University Press.
Nonaka, I., & Toyama, R., 2005. The theory of the knowledge-creating
firm: subjectivity, objectivity and synthesis, Industrial and Corporate
Change, 14,pp. 419-436.
Nonaka, I., 1994. A dynamic theory of organizational knowledge
creation, Organization Science,5(1), pp. 14-37.
Nonaka, I., Toyama, R., and Konno, N., 2000. SECI, Ba and Leadership:
a Unified Model of Dynamic Knowledge Creation ,LONG RANGE
PLANNING,33(1), pp. 5-34
Olson, D.L., 2004. Managerial Issues of Enterprise Resource Planning
Systems. Boston: McGraw-Hill.
Orlikowski, W.J., & Baroudi, J.J., 1991. Studying Information
Technology in Organizations: Research Approaches and Assumptions.
Information Systems Research, 2,pp. 1-28.
Pan, S.L., Newell S., Huang, J., and Galliers, R.D., 2007. Overcoming
Knowledge Management challenges during ERP implementation: the
need to integrate and share different types of knowledge, Journal of the
American Society for Information Science and Technology, 58(3) 404–19.
Pea, R. D., 1987. Socializing the knowledge transfer problem.
International Journal of Educational Research, 11, pp.639-663.
Pemberton, J. D.,& Stonehouse G. H, 2000.Organisational learning and
knowledge assets – an essential partnership, Learning Organization, 7(4),
pp.184 – 194.
Penrose E. (1959). The Theory of the Growth of the Firm. New York:
Wiley.
119
Pettigrew, A., 1988. Longitudinal field research on change: Theory and
practice. Paper Presented at the National Science Foundation Conference
on Longitudinal Research Methods in Organizations, Austin.
POLANYI, M., 1962. Tacit knowing: its bearing on some problems of
philosophy, Review of Modern Physics, 34, pp. 601–616.
POLANYI, M.,1966. The logic of tacit inference, philosophy, PP. 1-18
Rajagopal, P., 2002. An innovation-diffusion view of implementation of
enterprise resource planning (ERP) systems and development of research
model. Information & Management ,40,pp. 87–114.
Rashid, M. A., Hossain, L.,and Patrick, J. D., 2002. The evolution of
ERP Systems: A historical perspective. In L. Hossain, J. D. Patrick, & M.
A. Rashid (Eds.), Enterprise Resource Planning: Global opportunities &
challenges, pp. 1-16, Hershey, PA: Idea Group Publishing.
Rice, R. E., and Rogers E. M. ,1980. Reinvention in the innovation
process. Knowledge: Creation, Diffusion, Utilization, 1(4), pp. 499-514.
Root, R. W., 1988. Design Of A Multi-Media Vehicle For Social
Browsing, Proceedings ACM CSCW‘88 Computer- Supported
Cooperative Work, PP. 25-38.
Rousey, J.,& Sharma, J.,2010. Is less more when using and creating
checklists[Online]. pp.1-13. Available
at:http://sunset.usc.edu/gsaw/gsaw2007/s4b/rousey.pdf. [Accessed 10th
AUGUST 2010].
Rowley, J., 2002. Using Case Studies in Research, Management
Research, News 25 (1), PP. 16-27.
Rubenstein M. B., Liebowitz J., and Buchwalter, J., 2001. A systems
thinking framework for knowledge management. Decision Support
Systems 31,pp.5–16.
Sanchez, R. & Heene, A. (1997), Strategic Learning and Knowledge
Management, John Wiley & Sons, New York and Chichester.
Sapsed, J., Gann D., Marshall N., and Salter A., 2005. From here to
eternity?: The practice of knowledge transfer in dispersed and co-located
project organizations, European Planning Studies, 13, pp.831–851.
120
Saunders M. , Lewis P. , and Thornhill, A., 2003. Research methods for
business students, 3rd edition. Pearson Education Limited .
Saunders M. , Lewis P. , and Thornhill, A., 2003. Research methods for
business students, 3rd edition. Pearson Education Limited .
Saunders, A., Lewis, P.,and Thornhill, A., 2000, Research method for
business students, Prentice Hall: England
Schon, D. A., 1983. The Reflective Practitioner, Basic Books, New York.
Schubert, P., Lincke, D., and Schmid, B. .A., 1998. Global Knowledge
Medium as a Virtual Community: The NetAcademy Concept,
Proceedings of the Fourth Americas Conference on Information Systems,
E. Hoadley and I. Benbasat . Baltimore, pp.618-620.
Scott, J. E., & Vessey, I., 2002.Managing Risks in Enterprise Systems
Implementations, Communications of the ACM, 45(4), 2002, pp. 74-81.
Scriven, M., 2000. THE LOGIC AND METHODOLOGY OF
CHECKLISTS. Western Michigan University, [Online]. pp.1-11.
Available at: http://preval.org/documentos/2075.pdf.[Accessed 16th june
2010].
Simonin, B. 1999. Ambiguity and the process of knowledge transfer in
strategic alliances, Strategic Management Journal, 20,pp. 595–623.
Skok, W., & Legge ,M., 2001. Evaluating enterprise resource planning
(ERP) systems using an interpretive approach, ACM SIGCPR Conference
on Computer Personnel Research, pp. 189-197.
Smith, E., A., 2001. The role of tacit and explicit knowledge in the
workplace, Journal of Knowledge Management, 5(4), pp.311 – 321.
Somers, T.M., Nelson, K., & Ragowsky, A., 2000. Enterprise resource
planning (ERP) for the next millenium: development of an integrative
framework and implications for research, Proceedings of the Americas
Conference on Information Systems (AMCIS), pp. 998-1004.
Spekman, R. E., Spear, J., and Kamauff, J.,2002. Supply chain
competency: learning as a key component, Supply Chain Management:
An International Journal, 7 (1), pp.41 – 55
121
Srivardhana, T., & Pawlowski S. D. ,2007. ERP systems as an enabler of
sustained business process innovation: A knowledge-based view. Journal
of Strategic Information Systems ,16(1)pp. 51-69.
Stake, R.E., 1995. The Art of case study research, Sage Publication:
London
Strauss, A., & Corbin, J., 1998. Basics of qualitative research,2nd
edition, Newbury Park, CA: Sage.
Szulanski, G., 1996. Exploring internal stickness: Impediments to the
transfer of best practice within the firm. Strategic Management
Journal,17, pp. 27–43.
Tchokogue,´ A., Bareil, C., and Duguary C., 2005. Key lessons from the
implementation of an ERP at Pratt & Whitney Canada, International
Journal of Production Economics, 95, pp.151–163.
Tsai, W., 2001. Knowledge transfer in intraorganizational networks:
Effects of network position and absorptive capacity on business unit
innovation and performance. Academy of Management Journal, 44(5),
pp.996–1004.
Tsoukas, H., & Vladimirou, E.,2001. What is Organizational
Knowledge?, Journal of Management Studies, 38(7), pp.973-993.
Tyre, M. J., & Orlikowski W. J., 1994. Windows of opportunity:
Temporal pattems of technological adaptation in organization.
Organization Science, 5(1), pp. 98-118.
Umble E., Haft R.,and Umble M. 2003, Enterprise resource planning:
implementation procedures and critical success factors, European Journal
of Operational Research, 146,pp.241–257.
Vance, D. M., 1997. Information, Knowledge and Wisdom: The
Epistemic Hierarchy and Computer Based Information System, in
Proceedings of the Third Americas Conference on Information Systems,
B. Perkins and I. Vessey (eds.), Indianapolis, IN.
Verville, J., & Halingten, A., 2002. An investigation of decision process
for selecting an ERP software: the case of ESC, Management Decision,
40(3), pp. 206-216.
122
VonKrogh, G., 1998. Care in Knowledge Creation,. California
Management Review 40(3), pp. 133-153.
Walliman, N. 2001. Your Research Project: A step by step guide for the
first time researcher. London: Sage Publications.
Wang, E. T. G., Lin, C. C., Jiang, J. J. , and Klein, G., 2007. Improving
enterprise resource planning (ERP) fit to organizational process through
knowledge transfer, International Journal of Information Management,
27, pp. 200–212.
Wei, C C., Chien, C F., Wang M. J. J.,2005. An AHP-based approach to
ERP system selection. ,International Journal of Production Economics,
96 (1), pp.47–62.
Whitehill, M.,1997. Knowledge-based strategy to deliver sustained
competitive advantage, Long Range Planning, 30(4), pp. 621-7.
WINGATE, L. A., 2002. The evaluation checklist project: the inside
scoop on content, process, policies, impact, and challenges. In:
AMERICAN EVALUATION ASSOCIATION CONFERENCE, 2002,
Washington, DC. Paper presented … Washington, DC, 2002.
XU, L., WANG, C., LUO, X., and SHI, Z., 2006. Integrating knowledge
management and ERP in enterprise information systems, Systems
Research and Behavioral Science, 23,pp. 147–156.
Yin, R. K., 1984. Case Study Research: Design and Methods, Sage
Publications, Beverly Hills, California.
Yin, R., 1993, Applications of Case Study Research. London: Sage
Publications.
Yin, R., 1994. Case Study Research: Design and Methods. London: Sage
Publications.
Yin, R., K., 2003. Applications of case study research. Sage
Publications,3rd edition .
Yin, R.K .1989. Case study research—design and methods. Applied
Social Research Methods Series, second edition, 5, Newbury Park (CA):
Sage Publications.
123
Yusuf, Y., Gunasekaran, A., and Abthorpe, M.,S., 2004. Enterprise
information systems project implementation: A case study of ERP in
Rolls-Royce, Journal of Production Economics, 87,pp. 251–266.
Zainal, Z., 2007.Case study as a research method, Jurnal Kemanusiaan,
9, pp.1-6.
9 Appendix
Case study references
1. Fung C. Y., Fang Y., and Wang H. Q., 2009. Teaching Case: Leading the
Change - ERP Implementation at Keda, 17th European Conference on
Information Systems. PP. 1-20.
2. Ke, W., Wei K. K., Chau P., and Deng Z.,2003. Organizational Learning in
ERP Implementation: An Exploratory Study of Strategic Renewal, Ninth
Americas Conference on Information Systems, pp. 1124-1133.
3. Maguire S., Ojiako U., and Said A., 2009. ERP implementation in Omantel: a
case study, Industrial Management & Data Systems, 110(1), pp.78 – 92.
4. Newell, S., Huang, J.,and Tansley, C., 2006, ERP Implementation: A
Knowledge Integration Challenge for the Project Team, Knowledge and
Process Management,13(4), pp. 227–238.
5. Newell, S., Tansley, C., and Huang, J 2004.Social Capital and Knowledge
Integration in an ERP Project Team: The Importance of Bridging and
Bonding, British Journal of Management, 15, pp. 43-57.
6. Pan, S.L., Newell S., Huang, J., and Galliers, R.D., 2007. Overcoming
Knowledge Management challenges during ERP implementation: the need to
integrate and share different types of knowledge, Journal of the American
Society for Information Science and Technology, 58(3) 404–19.
124
7. Tchokogue,´ A., Bareil, C., and Duguary C., 2005. Key lessons from the
implementation of an ERP at Pratt & Whitney Canada, International Journal
of Production Economics, 95, pp.151–163.
8. Yusuf, Y., Gunasekaran, A., and Abthorpe, M.,S., 2004. Enterprise
information systems project implementation: A case study of ERP in Rolls-
Royce, Journal of Production Economics, 87,pp. 251–266.
![AN INVESTIGATION INTO QUERIES SUBMITTED TO THE EUROPEANA …dagda.shef.ac.uk/dispub/dissertations/2011-12/External/SilveyE.pdf · (Europeana, [2012?]d), excluding the top-ranked Text](https://img.pdfslide.net/doc/110x75/5f63e4a8a0990e0224047a06/an-investigation-into-queries-submitted-to-the-europeana-dagdashefacukdispubdissertations2011-12external.jpg)
