Cultural Challenges of ERP Implementation in Middle-Eastern Oil & Gas Sector: An Action Research Approach.

Abstract

The purpose of this paper was to examine the cultural barriers that existed at various stages of the Enterprise Resource Planning (ERP) implementation process, using the Middle-Eastern oil and gas sector as a case study. Due to a variety of cultural implications, ERP implementation rates in the oil and gas sector in Middle-Eastern developing countries are extremely low. Although the literature highlighted numerous ERP implementation theories that attempted to overcome the cultural complexities of ERP systems, there are few studies that have framed these complexities using action research theory in order to provide potential solutions to these challenges, particularly in Middle-Eastern developing countries where cultural settings are distinct from those in Western developed countries. Action research AR, in conjunction with documentation, observations, and interviews, aided in the exploration of the culturally complex barriers encountered during the pre-implementation (plan and propose), implementation (do), and post-implementation (assess and improve) stages of ERP projects conducted within a Middle-Eastern oil and gas organisation. This article confirms numerous cultural implications at each stage of the ERP implementation process, including team conflict, managerial authority, and a lack of an IT culture, all of which contributed to the project's delay. Other impediments, such as a lack of commitment to training and technophobia, persisted throughout the post-implementation phase and the subsequent follow-up experience under the recent COVID-19 pandemic. This article contributes to theory and practise by highlighting the culturally complex barriers that underpin many ERP implementations in the Middle Eastern oil and gas sector. This information can assist practitioners and researchers in developing future research and ideas to mitigate future ERP implementation challenges in this region.