Modeling the Impact of Leadership on Change Management Decisions Using System Dynamics Simulation

Many firms are shifting from legacy systems to Enterprise Resource Planning (ERP) system solutions. ERP is a project requiring extensive change management to expect implementation success. It entails severe technological changes, and significant organizational behavior and business process changes. Despite this, the research has not thoroughly investigated the relationship between change management challenges and ERP deployment. This research examines and assesses how leadership factors will aid transformational decision-making in implementing ERP. Empirical research reveals that leadership responsibilities like proper communication between leaders and employees, enhancing core-team productivity, improving re-engineering process quality, and top management commitment will promote implementation success. The research problem is defined using the Relative Importance Index (RII). The dynamic behavior of ERP implementation was then analyzed and validated using the System Dynamics (SD) technique. The findings emphasize the importance of numerous leadership elements in change management decisions and how they will influence the long-term effectiveness of ERP deployment.