| Organizations become more homogenous when they adapt to the external environment for survival and competitiveness. Institutional theorists call this phenomenon "isomorphism," which is a constraining process that forces organizations---through coercive, mimetic, or normative pressures---to resemble each other when facing the same set of environmental conditions. In recent years, concerns about cost-efficiency and standardization of information technology (IT) have led organizations to rely more heavily on IT to enhance their business operations. Enterprise resource planning (ERP) systems enable the tight integration of all necessary business functions into a single system. Typically, a database, designed to standardize organizational IT platforms and business processes, is shared throughout an organization. The high adoption rate of ERP systems among the biggest corporations has pressured other organizations to adopt ERP systems. Information system (IS) researchers call this phenomenon "technical isomorphism".;This study examines the effects of ERP implementation on organizational homogeneity from the viewpoint of institutional theory. Through mediating factors, such as the extent of ERP implementation and software adaptation, this study also investigates the effects of organizational homogeneity on the core competencies of user-organizations. It addresses four important issues: (a) whether institutional pressures lead to organizational homogenization; (b) whether institutional pressures affect the extent of ERP implementation in organizations; (c) whether the extent of ERP implementation affects software adaptation and subsequently, homogenization; and (d) whether the core competencies of organizations are ultimately affected by the adoption of technology.;This study's findings contribute to our understanding on the effects of ERP implementation in organizations, particularly on the IT and business activities. They open a whole new arena of research into the impact of technology on organizational abilities, providing a new set of constructs, relationships, antecedents, and dependent variables. Moreover, this study provides the necessary evidence on the occurrence of homogenization, its origins, and its consequences. It also provides valuable guidelines in finding a balance between conformity and retaining the uniqueness of companies, which is regarded as a source of core competencies. Thus, the research findings can help organizations redirect their focus and efforts into ERP implementation, saving millions of dollars in the process. |
