Building infrastructure flexibility through stability: How BPR and requirements definition shape IT capabilities in SMEs

This study examines how two important ERP project management practices, business process reengineering (BPR) and ERP requirements definition (ERD), contribute to IT infrastructure capabilities in small and medium-sized enterprises (SMEs). Drawing on Dynamic Capabilities Theory, the study proposes that BPR and ERD strengthen IT infrastructure stability, which subsequently supports infrastructure flexibility. Using structural equation modeling (SEM) and data from 255 Saudi SMEs, the results show that both BPR and ERD have significant positive effects on infrastructure stability. Infrastructure stability, in turn, has a significant positive effect on flexibility and mediates the effects of both BPR and ERD on infrastructure flexibility. The model explains 58.4% of the variance in infrastructure stability and 37.7% of the variance in infrastructure flexibility. These findings support a stability-first sequence in the development of IT infrastructure capabilities, suggesting that a reliable and integrated technological foundation can facilitate subsequent adaptation and flexibility. The study extends research on ERP project management by showing that project practices can influence not only ERP implementation outcomes but also the longer-term development of IT infrastructure capabilities. For project managers, the findings highlight the importance of process redesign and clear requirements definition as early steps toward building infrastructure flexibility.