ERP systems transition in small manufacturing companies: the tale of two countries

Abstract

An increasing number of small and medium-sized enterprises (SMEs) are modernising their legacy systems by replacing them with enterprise resource planning (ERP) solutions. This transition process is challenging and prone to failure. SMEs, especially those in developing countries are more likely to suffer from these challenges due to their limited access to financial and human resources. Therefore, this paper investigates the ERP transition process in SMEs of developed and developing countries to address challenges and success factors. This paper uses two case studies to gain a deep understanding of ERP transition. The research shows that the fit between ERP and business processes plays a critical role in the success of the transition project. Also, SMEs in developing countries, compared to developed countries, face more challenges in the transition process due to a lower level of prior experience and limited availability of ERP systems and consultants.