ABSTRACT

This chapter explores the impact of the concurrent implementation of an Enterprise Resource Planning (ERP) and a Knowledge Management (KM) system within a single case company. It considers organizational theory has traditionally posited a dilemma or tension between efficiency and flexibility/innovation. The chapter explores the ways in which the ERP and KM systems were interpreted by the different groups within the case company and how this impacted on organizational efficiency and flexibility. It discusses the findings arising from the case study and concludes by identifying both theoretical and practical implications. Through an interpretative case study, the research confirms that: (1) the two systems can be implemented in tandem to good effect; (2) complementarity between the two systems is possible, although this is not an automatic outcome, it has to be fostered. This complementarity is analyzed in relation to the four mechanisms proposed by Adler, Goldoftas and Levine as vital for the simultaneous development of organizational efficiency and flexibility.