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The Role of Innovation Projects in Institutionalization: The Case of Resource Planning Systems

This paper addresses the contradiction between the world-wide spread of projects implementing Enterprise Resource Planning (ERP) systems innovation [1] and extensive evidence of implementation failure by applying the lens of institutional theory to the long-run development of this innovation. The paper analyses the contribution of these projects to the institutionalization of RP systems by highlighting three key mechanisms which they advanced: role specialization, the production of discourse and boundary-spanning activities. The paper argues that, in the case of innovation projects, these mechanisms of institutionalization mediate the interplay between project-level implementation and the wider spread of RP systems innovation by shifting the 'knowledge barriers' which arise between the designers and users of an innovation over time [2].