An ERP system can help people simplify the whole company and centralize all data, allowing for more accurate analytics and a more productive, collaborative, and data-driven workplace environment. Individuals from various develop common meanings through intercultural communication that is a representational, interpretative, transactional, and contextual activity. From the perspective of national culture, ERP systems should be developed in accordance with cultural differences and considering cultural theoretical approaches.
In order to increase the efficiency and effectiveness of organizational processes, it is feasible to suggest that businesses can adapt various technological advancements, for instance, Enterprise Resource Planning, or ERP. ERP is a consolidated, integrated, flexible, and adjustable information service that streamlines corporate operations and preserves all company data in one place (Malik & Khan, 2021). It is a technology solutions product that is more adaptable, sensitive to changing company requirements, and covers all of the corporation’s essential operations (Malik & Khan, 2021). ERP is a company’s underpinning element of business intelligence, providing managers with a unified and comprehensive picture of all processes. It efficiently organizes the business’s functional operations, transforming the firm’s core values to something that is predominantly backed by technology. Information and communication technologies have the potential to profoundly alter the way businesses operate; many companies employ Enterprise Resource Planning systems to increase their productivity (Menon, 2019). ERP systems use corporate information and analytics to deliver a comprehensive overview of a firm’s activities (Menon, 2019). Thus, in general, ERP software is utilized for the purpose of reducing costs, improving transparency, and increasing the velocity of business processes.
In other terms, ERP software networks are integrated into the business activities of organizations; hence, all sphere related to a company, including interpersonal and intercultural, are influenced by ERP implementation. The ERP enables the firm remain functional with contemporary innovation networks by allowing outsiders, for instance, partners and customers, in while keeping insiders, such as internal procedures and staff, out (Uddin et al., 2019). In an entrepreneurial framework, a better understanding of ERP adoption and implementation now encompasses all of the operational key processes to cope with all of the value-creating agencies in downstream and upstream (Uddin et al., 2019). By connecting information about manufacturing, finance, logistics, and human resources, ERP solutions may help a company be more self-aware. An ERP solution may minimize expensive duplicate and mismatched technology by connecting multiple platforms utilized by different parts of an organization. Coherence between the host society and the ERP system culture might be critical to ERP success. Due to the inside company culture, which is symbolic of society culture, ERP program implementation in a globalized context might be fractured.
In fact, it is possible to state that cultural aspects can impact the implementation procedures in terms of ERP. From the perspective of national culture, ERP implementation can become a barrier and drawback for businesses regardless of market segment or type of activity. Companies in developing nations typically employ native ERP systems rather than international software (Ekren et al., 2018). ERP suppliers and experts, on the other hand, have provided several global ERP blueprints incorporating their multi-language and high-quality customization possibilities; nevertheless, there may be certain cultural adaptation issues that arise during ERP program implementation (Ekren et al., 2018). As a result, ERP systems in emerging nations confront several problems, particularly cultural concerns (Ekren et al., 2018). In comparison to ERP initiatives done by worldwide ERP companies, national ERP projects confront unique difficulties (Alkraiji et al., 2020). The uniformity of ERP systems should be investigated in terms of enterprise applications, distributors and partners, strategic partnerships, and ERP complete software consistency. As a result, ERP architects, consultants, and suppliers must first adjust their products and services to various national settings, as well as diverse kinds of businesses within a single nation.
It is compulsory to emphasize the theoretical frameworks that are generally reported in the scholarly literature to explain ERP implementation from the perspective of national culture. For instance, it is feasible to highlight an approach connected to interpersonal and intercultural communication, which is Hofstede’s theory. Some studies use Hofstede’s country dimensions of culture to examine the influence of cultural characteristics on the deployment of ERP systems from a holistic perspective, particularly in the setting of developing countries (Ekren et al., 2018). Furthermore, academic evaluations of ERP systems were undertaken using Hofstede’s local cultural dimensions, accompanied by empirical methodology and cultural differences analyses (Ekren et al., 2018). In ERP implementation, Hofstede’s approach can be utilized in order to obtain an imporved understanding of the basic principles of cultural diversity.
At the same time, this theory neglects personification and individualization since it encompasses general notions that cannot be applicable to everyone. Multiple disciplines overlap in cross-national study on cultural variations across place and time, although the significance of themes varies by academic subject (Beugelsdijk & Welzel, 2018). In cross-cultural psychology and intercultural communication, Hofstede’s dimensional theory of culture reigns supreme (Beugelsdijk & Welzel, 2018). Another theoretical framework that can be used in ERP implementation is Inglehart’ concept. Inglehart tested his hypothesis using World Values Survey data from 43 cultures that were demographically and statistically representative of their people (Kaasa, 2021). This idea is different form Hofstede’s since it emphasizes dynamic cultural transformation; therefore, it can be critically applied to ERP development.
Finally, Schwartz’s elaboration can be mentioned due to its relevance in values and cultural differences research. The Schwartz theory of fundamental values determines various broad human values that can be tied to cultural variables and are distinguished by the underlying objective or desire (Guo et al., 2020). On the basis of distinct investigations at each level, Schwartz’s value-based structure distinguished multiple types of value constructions at the individual and cultural stages (Guo et al., 2020). In general, all the three abovementioned theories have been used to explain ERP implementation in organisations since they assist ERP developers in comprehending cultural differences and features to adjust ERP technologies. These approaches have been empirically tested for ERP context and compared to each other.
In addition, adding to the previously described approaches, ERP risk factors should be underlined. Another study’s major goal is to discover the national criteria that influence ERP adoption risk factors (Zendehdel Nobari et al., 2018). One of the research’s findings is the merging of local ERP implementation specialists’ tacit and explicit knowledge with meta-synthesis findings on national characteristics impacting ERP implementation risk conditions (Zendehdel Nobari et al., 2018). Grounded and multi grounded theoretical aspects were used to uncover national criteria determining implementation risk factors for ERP (Zendehdel Nobari et al., 2018). Grounded theory is a common approach that is used in numerous qualitative and quantitative data production research activities (Chun Tie et al., 2019). The goal of grounded theory is to uncover or develop theory from evidence that has been collected consistently and analyzed through comparative analysis (Chun Tie et al., 2019). In contrast to intercultural theories, grounded theoretical framework can help in the research related to cultural features in ERP elaboration.
Concerning the views of the suitability of culture framework to explain ERP implementation, it is possible to note that cultural aspects are essential in the process of adjusting ERP programs. ERP deployment necessitates a full commitment from the business as well as a substantial change management solution in the context of employees from various cultures (Kiran & Reddy, 2019). At the same time, it is obligatory to state that it is incorrect to focus solely on cultural features. For instance, corporate sensemaking is critical to ERP adoption since it allows the focus organization to obtain a better knowledge of the organization’s particular contextual difficulties (Tan et al., 2020). The contextual factors underlying ERP adoption, in addition, impact the sensemaking architecture (Tan et al., 2020). Thus, given the importance of national culture theoretical framework analysis, it is also necessary to pay attention to other variables and dependencies related to ERP adaptation and implementation.
To summarize, it is possible to state that firms implement different technical breakthroughs, such as Enterprise Resource Planning, or ERP, in order to boost the efficiency and effectiveness of organizational operations. In reality, it is conceivable to argue that cultural factors have an influence on ERP adoption techniques. ERP deployment, independent of market sector or kind of operation, can become a barrier and a detriment for organizations due to national culture. Given the relevance of national culture theoretical framework analysis, additional factors and dependencies connected to ERP adaptation and implementation must also be considered.
References
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