Contextual factors affecting the integration of enterprise systems in post-merger oil and gas companies

Abstract

This study examines the contextual factors of the external business environment, organization, information systems, and enterprise system software as they affect integration of enterprise resource planning (ERP) systems after a merger or acquisition in the oil and gas industry. A multiple case study method using primary and secondary data revealed: ERPs are operational necessities rather than strategic differentiators; best practice adoption is a viable alternative that supports successful integration of cultures and knowledge from two experienced organizations; schedules are extended when best practices from both companies are consolidated into a single instance; consolidation facilitates Sarbanes-Oxley compliance and lowers the cost of ownership; imposing acquirer systems on targets facilitates timely decision-making and shorter schedules.

Keywords:

• Enterprise resource planning
• Business integration
• Enterprise application integration
• Inter- and intra-organizational information systems

Acknowledgement

The authors would like to thank those individuals from the surveyed firms for their time and valuable insight.

Notes

†Sarbanes Oxley legislation, passed in 2002, was a result of the fraud and reporting scandals of the early 2000s. Among other requirements, the legislation specified additional reporting for publicly traded firms, accelerated reporting deadlines, required the establishment of disclosure control processes, and clarified data retention requirements.

†To provide informant confidentiality, company names have been disguised and citations of company-specific secondary documents have been omitted.

†No additional factors were uncovered in the responses or from other sources.

‡Unless otherwise noted, all industry information is from Vital (2003).