ERP Implementation in China:
Tales from Two Chinese Mid-sized Companies

Yi Xiang
Manchester Business School
The University of Manchester
Email: audry2009@googlemail.com
&
Mike Newman Manchester Business School The University of Manchester and Norwegian School of Economics, and Business Administration, Bergen Email: mike.newman@manchester.ac.uk

EXTENDED ABSTRACT

We perceive ERP implementation to be a socio-technical (S-T) change process. In this research, we develop and use an S-T process model (Lyytinen and Newman 2008), to analyse and compare ERP implementation cases in two Chinese mid-sized companies. We aim to investigate the utility of using a parallel process model in the analysis and explanation of complex IS implementation cases. Meanwhile, this research also focuses on identifying the significance of BPR and vendor selection in the ERP implementation process.

By implementing modern information systems, organizations are supposed to gain or sustain competitive advantages in the globalized marketplace (Avison and Malaurent, 2007). As a multi-module transactional-based information system which integrates most standard processes to manage almost all aspects of the business operations of an enterprise (Kumar and Hillegersberg, 2000), an Enterprise Resource Planning (ERP) system is considered as the best solution for those fast growing organizations which seek to improve productivity, provide competitive power and satisfy customer demands.

Mainstream ERP research emphasises studying western ERP package implementations large organizations (Davison, 2002). In contrast, our research focuses on two Chinese SMEs (Small Medium-sized Enterprises) and the implementation of Chinese ERP packages.

The reason we select our research site as China is that, firstly, the ERP industry has experienced a high growth in China in last decade. Being encouraged by Chinese government and threatened by overseas rivals after accession to