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Cultural Challenges of ERP Implementation in Middle-Eastern Oil & Gas Sector: An Action Research Approach

Author

Listed:
  • Mohammed Ali

    (University of Manchester)

  • Farag Edghiem

    (Institute of Management Greater Manchester)

  • Eman Saleh Alkhalifah

    (Princess Nourah Bint Abdulrahman University)

Abstract

The purpose of this paper was to examine the cultural barriers that existed at various stages of the Enterprise Resource Planning (ERP) implementation process, using the Middle-Eastern oil and gas sector as a case study. Due to a variety of cultural implications, ERP implementation rates in the oil and gas sector in Middle-Eastern developing countries are extremely low. Although the literature highlighted numerous ERP implementation theories that attempted to overcome the cultural complexities of ERP systems, there are few studies that have framed these complexities using action research theory in order to provide potential solutions to these challenges, particularly in Middle-Eastern developing countries where cultural settings are distinct from those in Western developed countries. Action research AR, in conjunction with documentation, observations, and interviews, aided in the exploration of the culturally complex barriers encountered during the pre-implementation (plan and propose), implementation (do), and post-implementation (assess and improve) stages of ERP projects conducted within a Middle-Eastern oil and gas organisation. This article confirms numerous cultural implications at each stage of the ERP implementation process, including team conflict, managerial authority, and a lack of an IT culture, all of which contributed to the project's delay. Other impediments, such as a lack of commitment to training and technophobia, persisted throughout the post-implementation phase and the subsequent follow-up experience under the recent COVID-19 pandemic. This article contributes to theory and practise by highlighting the culturally complex barriers that underpin many ERP implementations in the Middle Eastern oil and gas sector. This information can assist practitioners and researchers in developing future research and ideas to mitigate future ERP implementation challenges in this region.

Suggested Citation

  • Mohammed Ali & Farag Edghiem & Eman Saleh Alkhalifah, 2023. "Cultural Challenges of ERP Implementation in Middle-Eastern Oil & Gas Sector: An Action Research Approach," Systemic Practice and Action Research, Springer, vol. 36(1), pages 111-140, February.
  • Handle: RePEc:spr:syspar:v:36:y:2023:i:1:d:10.1007_s11213-022-09600-4
    DOI: 10.1007/s11213-022-09600-4
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    References listed on IDEAS

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    1. Adel M. Aladwani, 2001. "IT Planning Effectiveness in a Developing Country," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 4(3), pages 51-65, July.
    2. Satya S. Chakravorty & Ronald E. Dulaney & Richard M. Franza, 2016. "ERP implementation failures: a case study and analysis," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 21(4), pages 462-476.
    3. D. Saravanan & Dennis Joseph, 2016. "Implementation and cultural issues going together for successful adoption of ERP systems," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 23(1), pages 87-96.
    4. Frank Blackler, 1993. "Knowledge And The Theory Of Organizations: Organizations As Activity Systems And The Reframing Of Management," Journal of Management Studies, Wiley Blackwell, vol. 30(6), pages 863-884, November.
    5. Sapna Poti & Sanghamitra Bhattacharyya & T.J. Kamalanabhan, 2011. "Social and Cultural Challenges in ERP Implementation: A Comparative Study Across Countries and Cultures," International Journal of Information Systems and Social Change (IJISSC), IGI Global, vol. 2(4), pages 44-67, October.
    6. Pierluigi Zerbino & Davide Aloini & Riccardo Dulmin & Valeria Mininno, 2017. "Framing ERP Success from an Information Systems Failure Perspective: A Measurement Endeavor," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 15(2), pages 31-47, April.
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