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Bridging ERP localization barriers: How knowledge sharing drives integration between Chinese firms and global clientele
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DOI：10.1016/j.ipm.2025.104559.png)
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Abstract
En 中文
This study examines the challenges of localizing Enterprise Resource Planning (ERP) systems in China, with a particular focus on managing foreign stakeholder transaction data to ensure seamless implementation and regulatory compliance. It emphasizes the role of knowledge processes in enabling Chinese firms to collaborate effectively with international partners while addressing complex issues related to accounting standards, tax regulations, data privacy, and information security. To explore these relationships, the study applies Partial Least Squares Structural Equation Modeling (PLS-SEM) to survey data collected from 258 firms in the Shanghai Delta region. The results reveal that knowledge-process-driven data security (β = 0.38, p < 0.001) and tax compliance (β = 0.40, p < 0.001) have a significant positive impact on ERP performance. These findings underscore the critical role of knowledge processes in bridging localization gaps, particularly in aligning ERP modules with China's evolving regulatory frameworks. By demonstrating the interplay between knowledge strategies and compliance requirements, this research offers actionable insights for firms navigating ERP localization and for policymakers engaged in cross-border data governance.
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