The reciprocal influence of parent-subsidiary relationships and enterprise systems implementation: an exploratory study using power differential perspective

The implementation of the Enterprise Systems in a subsidiary company of corporate group should be treated with caution. While the organisational changes and control could be introduced through the implementation of Enterprise Systems, the subtlety of power and the power differential in the relationships between holding and subsidiary companies may derail the objectives of the implementation. Despite the Enterprise Systems may be supportive to the exercise of authority of the holding company, the failure of the holding company to deliver guidelines as well as resources could be detrimental to the implementation of the Enterprise Systems as well as the entire corporate group.