Managing readiness in enterprise systems-driven organizational change

Abstract

The introduction of enterprise systems (ES) frequently leads to organizational change, as it involves multiple stakeholders and is associated with fundamental organizational improvements cutting across functional and organizational boundaries. Recognizing that ES implementations are overshadowed by a high failure rate because of resistance to change, this study focuses on the development of readiness for change as a way to ease an IT-driven organizational change, including ES implementations. We find that readiness for change can be enhanced by boosting the relevant individuals' attachment to the organization and their perceived personal competence regardless of the focal ES package and its technological characteristics. We also find that readiness for change positively impacts ES usage intention together with the technological characteristics of the focal ES package. Theoretical and practical implications of the study are discussed along with its limitations.

Keywords:

• Enterprise systems
• Readiness for change
• IS implementation

Acknowledgements

The authors are grateful to Prof. Matthias Rauterberg and three anonymous reviewers for their excellent suggestions. This work was supported by the research program 2007 of Kookmin University in Korea.