Organizational Learning in ERP Implementation: An Exploratory Study of Strategic Renewal

This paper reports on a case study of a large firm that implemented an enterprise resource planning (ERP) system in China. We propose that ERP implementation is a process of organizational strategic renewal. Focusing on the firm’s assimilating new learning (exploration) and using what has been learned (exploitation), we study the transference of learning among three levels individual, group and organization, following the organizational learning framework proposed by Crossan and her colleagues (1999). The results suggest that a strong leadership and creating a crisis in the organization make people accept the ERP implementation project and contribute innovative ideas. Mechanisms to encourage learning and core teams consisting of multidisciplinary personnel that bring knowledge of all aspects together are necessary for achieving strategic renewal by the adoption of ERP systems. While it is important to get external knowledge from consultants, the involvement of senior and mid-level managers in the ERP implementation is critical for the organization to strike a balance of adaptation to and customization of the ERP system. Such a balance ensures the success of ERP projects in China.