Enterprise Systems Complexity and its Antecedents : A Grounded-Theory Approach

Purpose – Eighteen Mittelstand companies are studied in Germany to develop a better understanding about drivers of enterprise systems complexity (ESC), as well as its multi-faceted conceptualization. Dimensions and measures for complexity and its antecedents are derived using a grounded theory approach. Findings are explicated using a socio-technical systems theory perspective. Design/Methodology/Approach – Case studies were conducted among German Mittelstand companies by an international research team. A grounded theory approach was followed, with the first phase of the case studies being exploratory, and the second phase being more focused. Findings – Case study findings suggest that ESC is a multi-dimensional construct consisting of the following dimensions: seamlessness, adoption date, number of integrated subsystems, system type/composition, number of functional areas linked, and number of users. Drivers of ESC identified via the case studies include the multi-dimensional constructs of competition, complexity of processes, complexity of products, global operations, and the firm's customer base. Grounded theory development is used to conceptualize the measures of these drivers. Founded in these exploratory observations propositions for future research are developed.Research Limitations/Implications – While we are able to draw conclusions and suggest propositions from our study, our insight is limited to the eighteen case studies conducted. Nevertheless, our findings provide the basis for a model describing and conceptualizing enterprise system complexity and its antecedents. Practical Implications – This paper provides a conceptualization and definition of ESC based on insight from and observations made at eighteen companies. The study also describes drivers that have impacted the degree of ESC, and how this complexity is managed. Individual dimensions of the constructs are discussed. Originality/Value – The research reports on the experiences of companies with enterprise systems, and explores organizational factors determining system complexity; as a sampling frame Mittelstand companies in Southwest Germany are chosen, making this study one of the few exploring enterprise systems within this context. The paper also places ESC within theoretical domains, especially the socio-technical systems theory. The conceptualization of ES complexity and its antecedents presented provides a starting point for future academic research into this area