Proposing a Model to Assist Indian Micro,Small and Medium Scale Enterprises in Their ERP Implementation

Abstract

Purpose

The purpose of this article is to present the findings of a study based on analysis of ERP implementation issues in context to Indian micro, small and medium scale enterprises with the objective of highlighting the key issues confronting them.

Design/Methodology/Approach

The research study is based on wide variety of literature review focusing on issues influencing ERP adoption. Responses were collected on the basis of questionnaires and personal interviews given by officials who were closely involved in the implementation process. Initially, factor analysis has been performed on SPSS with principal component analysis using Varimax rotation and the factors were grouped on the basis of factor loading. Further to this, the researchers developed a model by SEM.

Findings

The analysis showed statistically significant relationship between the predictor and the outcome variables for the four hypotheses.

Research Limitations/Implications

Besides the identified issues, there may be other factors that need to be explored. There is also a scope to enhance this research study by taking different industries into consideration and also by factoring the state of the economy and by increasing the number of respondents.

Practical Implications

This study will help information system managers who plan to implement ERP systems in their organisations. It will help those with useable but less than satisfactory ERP implementations to understand the underlying issues why they had problems and it will help them to avoid facing problems in future projects. It will also help those who failed to implement their planned ERP system when they try again; it will help those who have not yet tried. Even ERP vendors can take input from this study in their implementation approach while targeting SME sector.

Originality/Value

There is no published literature that followed a similar approach in identification of critical issues in implementing ERP projects in small and mid-sized organisation in India or any other developing economy.

Keywords

ERP SME implementation factor analysis factors structural equation modelling

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