Erp System’s

Executive Summary

This research provides an analysis of post-acquisition implementation of an ERP system’s effect on process and operations performance. This analysis is conducted based on a qualitative case study of Wrist Ship Supply´s acquisition of One Source America, and are discussed within three literature streams of post-acquisition, enterprise resource planning and path dependency.

Methods of analysis include coding of semi-structured interviews, in order to give a multi-level understanding of how the implementation of an ERP system post-acquisition affects performance, how it integrate and coordinate the acquired organization and how re-structures said organization.

The research found evidence that of unstructured management and planning was a factor in the problems emerged in the transition-period when integrating and coordinating the two organizations through ERP implementation. Lack of top-level support seems to have made the transition more troublesome than anticipated. Furthermore, the ERP system enabled possibilities of improved process and operational performance, whilst in also constrained flexibility.. The findings also show evidence of restructuring of the acquired organization. This restructuring was negatively affected by a lack of understanding of the importance to incorporate significance of culture and history of both organizations in the planning of implementation.

These findings when discussed with existing theory and found evidence of how initial planning may have affected process efficiency due to a narrow participation. This can have affected efficiency of process in the transition period negatively as the prolonged implementation affected performance and operations.  Furthermore, the discussion gave evidence to how the lack of awareness to an organizations culture and history may have affected the implementation process. Issues of path dependency may have had an impact, as it was a challenge to change the way business was conducted. Additionally, evidence of the enabling and constraining effects of an ERP system on overall process efficiency was found. Interestingly, path dependency may be attributed constraining effects on the restructuring and performance of the organization as the historical and cultural significance often is not accounted for in the planning of implementation and it might slow down process of operations further. Opposed to this it, enabling effects is evident as enhancement of traceability in both operations and performance, enables managers to optimize financial reporting and to provide data at a lower cost. This can enable managers to outperform competitors by offering a more comprehensive product to customers.

        This research give evidence of both positive and negative effects of the implementation of an ERP system on overall process efficiency of an organization in a post-acquisition contexts, as it adds and build to current literature of post-acquisition implementation of ERP, as it include theories of path dependency. It confirms existing theories of effects of an ERP implementation but also offer new insights on the effects of path dependency and historical significance for an organization.