The mediating role of knowledge transfer and the effects of client-consultant mutual trust on the performance of enterprise implementation projects

Enterprise systems represent a strategic asset that enables an organization to integrate business processes and data throughout its organization. Firms often rely on consultants to transfer implementation knowledge to their employees and expect successful project outcome; however, widespread project failures raise concerns regarding whether the use of consultants are effective. This study examines whether mutual trust affects knowledge transfer effectiveness which then impacts project outcome. Building on psychological contract, knowledge management, and trust literature, the results of this matched-pair, field survey suggest knowledge transfer mediates the relationship between mutual trust and project outcome. Implications for research and practice are discussed.