Critical elements for a successful enterprise resource planning implementation in small-and medium-sized enterprises

Abstract

The body of research relating to the implementation of enterprise resource planning (ERP) systems in small- and medium-sized enterprises (SMEs) has been increasing rapidly over the last few years. It is important, particularly for SMEs, to recognize the elements for a successful ERP implementation in their environments. This research aims to examine the critical elements that constitute a successful ERP implementation in SMEs. The objective is to identify the constituents within the critical elements. A comprehensive literature review and interviews with eight SMEs in the UK were carried out. The results serve as the basic input into the formation of the critical elements and their constituents. Three main critical elements are formed: critical success factors, critical people and critical uncertainties. Within each critical element, the related constituents are identified. Using the process theory approach, the constituents within each critical element are linked to their specific phase(s) of ERP implementation. Ten constituents for critical success factors were found, nine constituents for critical people and 21 constituents for critical uncertainties. The research suggests that a successful ERP implementation often requires the identification and management of the critical elements and their constituents at each phase of implementation. The results are constructed as a reference framework that aims to provide researchers and practitioners with indicators and guidelines to improve the success rate of ERP implementation in SMEs.