How Does an Enterprise System Implementation Change Interpersonal Relationships in Organizations

Bala, H., Venkatesh, V., Ganster, D.C. and Rai, A., How Does an Enterprise System Implementation Change Interpersonal Relationships in Organizations. Industrial Management & Data Systems, Forthcoming

Kelley School of Business Research Paper No. 2021-27

40 Pages Posted: 24 May 2021

See all articles by Hillol Bala

Hillol Bala

Indiana University - Kelley School of Business - Department of Operation & Decision Technologies

Viswanath Venkatesh

Virginia Polytechnic Institute and State University - Pamplin College of Business

Daniel C. Ganster

Colorado State University, Fort Collins - Department of Management

Arun Rai

Georgia State University - J. Mack Robinson College of Business

Date Written: 2020

Abstract

Although research has suggested that enterprise system (ES) implementations have major impacts on employee job characteristics and outcomes, there has been limited research that has examined the impacts of ES implementations on interpersonal relationships over time. Building on and extending recent studies that have examined changes in employee job characteristics and outcomes during an ES implementation, this research examined the nature, extent, determinants, and outcomes of changes in an important interpersonal relationship construct—coworker exchange (CWX)—following an ES implementation. CWX is considered a critical aspect of employees’ job and an important determinant of their success in the workplace. Drawing on social exchange theory, we theorize that employees will perceive a change in CWX following an ES implementation.
A longitudinal field study over a period of 6 months among 249 employees was conducted. Latent growth modeling was used to analyze the data.

We found that employees’ work process characteristics, namely perceived process complexity, perceived process rigidity, and perceived process radicalness, significantly explained change, i.e., decline in our case, in CWX during the shakedown phase of an ES implementation. The decreasing trajectory of change in CWX led to declining job performance and job satisfaction.

The role of CWX and its importance in the context of ES implementations is a key novel element of this work.

Keywords: enterprise systems, work process, process characteristics, latent growth modeling, coworker exchange (CWX), job performance, job satisfaction

Suggested Citation

Bala, Hillol and Venkatesh, Viswanath and Ganster, Daniel C. and Rai, Arun, How Does an Enterprise System Implementation Change Interpersonal Relationships in Organizations (2020). Bala, H., Venkatesh, V., Ganster, D.C. and Rai, A., How Does an Enterprise System Implementation Change Interpersonal Relationships in Organizations. Industrial Management & Data Systems, Forthcoming, Kelley School of Business Research Paper No. 2021-27, Available at SSRN: https://ssrn.com/abstract=3846974 or http://dx.doi.org/10.2139/ssrn.3846974

Hillol Bala

Indiana University - Kelley School of Business - Department of Operation & Decision Technologies ( email )

Business 670
1309 E. Tenth Street
Bloomington, IN 47401
United States

Viswanath Venkatesh (Contact Author)

Virginia Polytechnic Institute and State University - Pamplin College of Business ( email )

VA
United States

HOME PAGE: http://vvenkatesh.com

Daniel C. Ganster

Colorado State University, Fort Collins - Department of Management ( email )

College of Business
Fort Collins, CO 80523-1275
United States

Arun Rai

Georgia State University - J. Mack Robinson College of Business ( email )

P.O. Box 4050
Atlanta, GA 30303-3083
United States

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