Implementing Crm: Learning Cycles under the Lens of Absorptive Capacity Keywords: Organizational Learning; Absorptive Capacity; Knowledge Management; Erp Implementation

In this paper we focus on the iterative process that occurs within the implementation phase of an ERP which we depict as a series of learning cycles: managers make decisions, identify mistakes, and accumulate experience (lessons learned). We argue that ERP development is a process of continuous evolution with no final design being possible or warranted. Moreover, we argue that ERP implementation is best viewed not as a one-time process but rather as a series of implementation and practical use cycles, each of which encompasses different degrees of reflection and learning such that the system becomes more embedded and better adapted to the context. We examine these “learning cycles” through the lens of absorptive capacity. We take from Cohen and Levinthal‟s (1990) original construct, the concept of “knowledge accumulation.” From its further development we borrow concepts such as double loop learning and absorptive capacity; relative absorptive capacity, that is what a firm can learn in terms of new knowledge acquired through consultancy; how learning cycles can be seen as a dynamic capability, and the importance of framing the learning process within a multilevel perspective. Our case study is based on Alpha Co., an international company with its headquarters in the United States, which sells product development technologies to manufacturing firms. The contribution of this research study is represented by a qualitative study that uses the absorptive capacity framework (that historically has been used with quantitative analysis) to look at the dynamic process of developing the capability to exploit a new ERP. 1 175 Forest Street, Waltham, MA 02452 USA, Phone +1.617.955.4808 [email protected] 2 175 Forest Street, Waltham, MA 02452 USA, Phone +1.781.891.2399 [email protected]