How to Overcome Transformation Barriers in IT Departments of State-Owned Enterprises

Christoph Ertl, Alexander Herzfeldt, Helmut Krcmar


This paper develops a framework for analyzing organizational change in information technology (IT) departments of state-owned enterprises (SOEs) and applies that framework to a case study of a German airport that is majority-owned by the German federal government. Specifically, we derive a framework from literature to systematically identify transformation barriers for introducing new enterprise resource planning (ERP) systems and business processes in IT departments of SOEs. This framework is based on the punctuated equilibrium model and considers dynamic process incorporation, explicit stakeholder integration, a detailed representation of the change process, and characteristics of public employees as main factors. We then apply the framework in a case study research approach and show how the framework allows identification of transformation barriers hidden to management but involved in the organizational change process (e.g., required change of organizational structures, required change of service-level-agreements). The framework can be a valuable tool for both researchers and practitioners to actively shape the effects of organizational transformation in SOEs and to identify factors that influence the change process.

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