Factors influencing ERP implementation in Indian manufacturing organisations

Abstract

Purpose The purpose of this paper is to present the findings of a study which is based on the results of a comprehensive compilation of literature and subsequent analysis of ERP implementation success factors in the context of Indian micro, small and medium‐scale enterprises (MSMEs). The paper attempts to assess empirically which factors are most critical in the ERP implementation process from the perspective of the Indian MSMEs. This research is potentially aimed at being useful to MSMEs as a guideline, so as to ensure a positive outcome of the implementation process. Design/methodology/approach The paper tries to explore the factors affecting implementation across the stages of ERP implementations using the responses from 98 MSMEs engaged in manufacturing activities. The minimum number of factors explaining the maximum variance in data is determined using confirmatory factor analysis (CFA). The factor analysis is performed on SPSS with the principal component method using the Varimax rotation technique. Findings The results of this study highlights four crucial factors that influence the ERP implementation process in the Indian MSME segment. Broadly, they may be summed up under the following heads: project execution competency; product and vendor perspective; organizational climate; and technical perspective. Originality/value The findings will be beneficial for MSMEs for proper utilization of their limited resources and to pay adequate attention to those factors that are most likely to have an impact on the implementation of the ERP system.

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