ERP system integration: An inter-organizational challenge in the dynamic business environment

Abstract

The number of ERP system integration challenges has recently increased as ERP systems need to be integrated not only with the other business information systems inside the organization but also with the systems of business partners. We examined the development and integration of a customized ERP system used by a global manufacturing enterprise by interviewing 21 industrial experts. By using Grounded Theory as the data analysis approach, four groups of factors influencing ERP system integration were revealed. Business environment sets the constraints for integration that is governed in a dynamic organizational landscape, hindered by political agendas. Besides the ERP system vendor, many other ERP development network partners contribute to ERP system integration. The complexity of system level can further distract the integration efforts. Our findings can help managers to guide their strategic decision making on integration issues.