Level of Harmonization and ERP Architecture in Multinational Corporations

Fatemeh Rahimi, Charles Møller

    Research output: Contribution to book/anthology/report/conference proceedingArticle in proceedingResearchpeer-review

    Abstract

    While one-site, one-instance implementation was the common practice during the infancy of ERP systems, the growing business trend towards globalization and the advancement of ERP and telecommunication technology have increased the popularity of centralized single-instance ERP systems among multinational corporations. The ERP distribution decision in MNCs has been mainly associated with the corporate strategy and governance structure. As global ERP deployment benefits mainly come from business consolidation, and as there are significant costs and risks associated with centralized ERP implementations, this paper investigates the influence of level of harmonization in the choice of ERP architecture in MNCs. Though the findings indicate a negative relation between the level of harmonization and a centralized ERP systems’ effectiveness, the study identifies the choice of ERP architecture to be more directly affected by the factors prohibiting further divergence, namely the corporate business process governance structure and the degree of similarity of its business models.
    Original languageEnglish
    Title of host publicationInformation Systems: Transforming the Future : Proceedings of the 24th Australasian Conference on Information Systems
    Number of pages11
    Publication date2013
    Article number262
    Publication statusPublished - 2013
    EventThe 24th ACIS - Australasian Conference on Information Systems - City campus, RMIT University, Australia. Hosted by the School of Business IT and Logistics, Melbourne, Australia
    Duration: 4 Dec 20136 Dec 2013

    Conference

    ConferenceThe 24th ACIS - Australasian Conference on Information Systems
    LocationCity campus, RMIT University, Australia. Hosted by the School of Business IT and Logistics
    Country/TerritoryAustralia
    CityMelbourne
    Period04/12/201306/12/2013

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