How an organization changes in ERP implementation: a Taiwan semiconductor case study

Purpose – Enterprise resources planning (ERP) systems often produce intangible benefits and implementation problems related to social and human factors. Implementing an enterprise system in an organization is a complex process. ERP evaluation should treat the human and social effects and the broader organizational consequences. The interpretive approach adopted here by virtue of an in depth case study aims to provide an understanding of the context of ERP‐system implementation, the process over time of mutual influence between the system and its context, how political action takes place, and how cultural attitudes and values changed during the ERP implementation. Design/methodology/approach – The collection of data rested on both interviews with staff at various levels of the subject organization and careful examination of available archived records. Findings – The paper finds that ERP implementation improved business processes, communication, and the interaction between users and customers. Power issues are problematic to the success of the implementation. Understanding the values of individuals and groups, and managing the power balances, are requisite in the ERP implementation. This paper suggests that human‐resource management requires deep consideration in the implementation processes. Originality/value – The paper makes a contribution by enhancing the understanding of ERP‐implementation context and the context's interaction with the implementation. This paper provides additional lessons that could be useful to organizations in evaluating ERP implementation.