ABSTRACT

The volatility of current business environment requires companies to adapt to new processes and systems to satisfy customer requirements as well as remaining competitive (Rho et al, 2001). Business enterprise is inherently a complex entity. There are many risks involved in the changes that an enterprise needs to go through in order to transform itself to a more competitive form (Beasley et al, 2005). Typical risks include collaboration, confidentiality, intellectual property, transfer of goods, conflicts, opportunity loss, product liability and others. Inappropriate actions can be taken if the information is out of date (Kutsch & Hall, 2005) or the employee performance can be seriously affected (Lin & Wei, 2006). Kwon et al (2007) reported that those enterprises going through significant organisational change and downsizing of IT function was not simply reducing the workforce in the IT department. It also eliminated communication and information-processing conduits necessary for effective communication and coordination.