Abstract

Although Enterprise Resource Planning (ERP) offers many benefits to the construction industry, construction companies still hesitate to adopt ERP systems. This may be due to long-term practiced ad-hoc behaviors in the construction industry, which do not match with the standard procedures embedded in ERP systems. Therefore, through this research, it is expected to evaluate the gap between construction procedures and ERP procedures technically. Hence, to obtain indicative data for the study, a questionnaire was designed and distributed to selected 210 individuals among contractors, subcontractors, and clients in the Sri-Lankan construction industry who have used ERP. In total, 174 completed questionnaires were returned and then statistically analyzed using Chi-Square test with the Mini tab tool. It is concluded that there is a significant gap between the construction procedures and ERP procedures in identified fields related to the construction industry. The highest significant gap exists in the field of Inventory management with Chi-Square 158.766 > 9.48. And HRM (142.366), Asset Management (130.264), Finance Management (126.267), Site Operation (103.793), Project management (53.88), Purchases (34.324), Petty cash (28.337), Estimating and Tendering (22.148), Sub-Contractor management (0.492) respectively. Ultimately with the identified gaps, a framework was established to meet the organizational processes and ERP processes.

Highlights

  • Before Enterprise Resource Planning (ERP) came in to play Information technology/ Information systems (IT/IS) used by the construction industry was very less, as the construction industry had its unique features [1,12,13]

  • After the statistical analysis it is concluded that there is a significant gap between construction procedures and ERP procedures in every field related to the construction industry

  • The gap was followed because of the specific demands on functionality in construction organizations, that were outside the standards of the ERP system [22,23]

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Summary

Introduction

Before ERP came in to play Information technology/ Information systems (IT/IS) used by the construction industry was very less, as the construction industry had its unique features [1,12,13]. Task uncertainty and task interdependence combine with standardization. Low task uncertainty leads to create a good fit between the systems. Some of the companies are capable of customizing the ERP system according to their requirements so that they do not have to change their working environment much. These customization processes are costly and risky [1,4, 15,20]

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