Source: Presented at the IEEE Conference on Engineering Management 2003 Social-embed-ness of ERP Systems in KM Practices Ji-Hong Park School of Information Studies Syracuse University Liaquat Hossain School of Information Studies Syracuse University

Background Research Purpose To examine the impact of ERP systems for facilitating the process of organizational knowledge creation To apply Social Construction of Technology (SCOT) approach as a useful paradigm of research for integrating ERP systems in KM practices

Background (con’t) Research Motivation Problems of ERP Systems Importance of Organizational Knowledge Creation Today’s organizational environment is dynamically changing, so that creating knowledge is more important than merely processing it efficiently (Nonaka & Takeuchi, 1995) Social aspects of information systems use (Kling,1999) and knowledge creation (Nonaka & Takeuchi, 1995)

Overview of Concept ERP Systems Utilize enterprise-wide resources to integrate applications and processes of various functions such as financials, human resources, operations & logistics, and sales & marketing Knowledge Management Practice Ongoing organizational practice to enhance knowledge creation through active knowledge transfer among individuals

Overview of Concept (con’t) Organizational Knowledge Creation (Nonaka & Takeuchi, 1995) Socialization Human  Human Externalization Human  Computer Sys Internalization Computer Sys  Human Combination IT Sys  Computer Sys Tacit Knowledge Explicit Knowledge Tacit Knowledge

Overview of Concept (con’t) Social Construction of Technology (SCOT) (Bijker, 1995) Step 1. Relevant social groups are formed Step 2. Various interpretations exist Social Group A Artifact Social Group D Social Group B Social Group C Artifact Social Group C Interpretation A Interpretation D Interpretation C Interpretation B Social Group A Social Group D Social Group B

Overview of Concept (con’t) SCOT (con’t) Step 3. Controversies are reduced and consensus is reached Artifact Stabilization Closure Social Group A Interpretation B Social Group D Social Group C Dropped out by social process Dominant group remains Social Construction Social Group B

Application of SCOT to ERP Systems Social Construction Social Group B Social Group A ERP System Local Computer System Social Group A Interpretation B Social Group C Dropped Out Dominant Group remains Social Group C Interpretation A Social Group B Dropped Out Dominant Group remains Social Construction Info network Local Computer System Info network

Conceptual Framework Non- Socialized IntegrationSocialized Integration Individual A Local Computer System A Socially- embedded ERP System Socialization Externalization Internalization Externalization Combination Local Computer System B Individual B Individual A Local Computer System A Non-socially- embedded ERP System Socialization Externalization Internalization Externalization Combination Local Computer System B Individual B : Active Knowledge Transfer: Inactive Knowledge Transfer

Conclusions Socialization is the key issue in ERP- driven KM practices Trust may play a critical role in socialization ERP implementation should consider social context of each sub-division

References Allee, V. (2000). Reconfiguring the value network. Journal of Business Strategy, 21(4), Jul-Aug, Bijker, W.E. (1995). Of bycycles, bakelites, and bulbs: toward a theory of sociotechnical change. Cambridge, MA: MIT Press. Kling, R. (1999). What is social informatics and why does it matter? D-Lib Magazine, 5(1), January. Nonaka, I., & Takeuchi, H. (1995). The knowledge creating company: How Japanese companies create the dynamics of innovation. New York: Oxford University Press. Sveiby, K.E. (2000). A knowledge-based theory of the firm to guide strategy formulation. Presented at ANZAM Conference, April, 2000.