Critical success factors of ERP implementation in SMEs

This paper is aimed at reviewing present state of the art (1998-March 2019) on the impact of Enterprise Resource Planning (ERP) implementation in Small and Medium Enterprises (SMEs). It includes critical success factors and critical failure factors.
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Critical success factors of ERP implementation in SMEs Journal of Project Management 4 (2019) 267–280 Contents lists available at GrowingScience Journal of Project Management homepage: www.GrowingScience.com Critical success factors of ERP implementation in SMEs Talluri Sai Kirana* and A Vasudeva Reddyb a Research Scholar Koneru Lakshmaiah Education Foundation, Green Fields, Vaddeswaram, Guntur, Andhra Pradesh, India-522502, India b Assistant Professor, Koneru Lakshmaiah Education Foundation, Green Fields, Vaddeswaram, Guntur, Andhra Pradesh, India-522502, India CHRONICLE ABSTRACT Article history: This paper is aimed at reviewing present state of the art (1998-March 2019) on the impact Received: May 8 2019 of Enterprise Resource Planning (ERP) implementation in Small and Medium Enterprises Received in revised format: June (SMEs). It includes critical success factors and critical failure factors. The technique depends 2 2019 on writing survey for optional information gathering. It characterizes the expressions that Accepted: June 9 2019 Available online: are utilized to get explore papers from databases and advanced studies on the ERP imple- June 9 2019 mentation in SMEs. It additionally incorporates the consideration and prohibition criteria to Keywords: improve nature of papers. At that point methodical audit is made on the accessible papers to Enterprise Resource Planning research the effect of ERP usage in SMEs. Critical factors are identified for success and (ERP) failure of ERP implementations and actual impact of the same on SMEs (add actual success Small and medium enterprises and failure factors here besides impact). The research found in this paper has limitations in ERP implementation terms of the period of which research papers have been reviewed. An implicit limitation is Failures that it does not consider an empirical study except focusing on the state of the art found in Success factor Project the research area. However, its insights will have potential benefits and the directions for future work. This paper contributes to the research on the impact of ERP implementation on SMEs either positively or negatively. It discovers critical success factors, critical failure fac- tors and impact through secondary data collection method. The insights will help SMEs and stakeholders of SMEs and ERP service providers learn about the reasons for failure or suc- cess and take necessary course of action. © 2019 by the authors; licensee Growing Science, Canada. 1. Introduction Small and Medium Enterprises have been striving to get up to date with new technological trends. With respect to various functions associated with different departments, it is understood that they are in need or more comprehensive technology or application like ERP (Zach, 2012; Aremu et al., 2018; Adam et al., 2011; Dlodlo, 2011; Njihia & Mwirigi, 2014). The following sub sections pro- vide more details. 1.1 Role of SMEs SMEs play pivotal role in the economy of a country. Their role is in terms of employment genera- tion, production, equitable distribution of income and contribution to exports. SMEs can be of two kinds basically. The first category is the traditional cottage industries like coir industries, handicrafts * Corresponding author. E-mail address: taallurisaiikirran@outlook.com (T. S. Kiran) © 2019 by the authors; licensee Growing Science, Canada doi: 10.5267/j.jpm.2019.6.001           268   and village industries while the second category is modern SMEs. The former is mostly unorganized and located in semi urban and rural areas. They may not need power operated equipment and need less investment and technology. However, they are crucial in providing employment, at least part time, to large number of populations in a country. Those SMEs can supply essential products that can be consumed by masses and even they can be exported. The latter on the other hand are rela- tively large of labor and investment. There are small scale sectors that will have specific contribu- tions (Hashi, 2019; Antero, 2015; Tsamantanis & Kogetsidis, 2006). The contributions include the leverage of manufacturing sector and country’s GDP significantly; adds value to the GDP with contributions in manufacturing. They can contribute in the export pro- motion through balancing of payment accounts. Unlike large scale organizations that may lead to inequalities in terms of income and wealth, SMEs help in equal distribution of wealth and income. Moreover, small sectors increase in providing opportunities to a large number of entrepreneurs. They can also help in releasing scarce capital for productive use. They can get benefited of lean production and use cost-effective ...