Performance evaluation of ERP implementation in Indian SMEs

Pramod Trimbakrao Kale · Sukhwant Singh Banwait · S.C. Laroiya

94 citations0/0 files storedJournal of Manufacturing Technology Management

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ERP Systems Implementation and Impact Quality and Supply Management Corporate Governance and Management

Abstract

Purpose The purpose of this paper is to find out whether and how Indian small to medium‐sized enterprises (SMEs) are benefiting because of enterprise resource planning (ERP) implementation, through survey‐based research. This will help other SMEs take appropriate decisions about ERP implementation. Design/methodology/approach The research is exploratory in nature, a survey methodology is used for study and it is cross‐checked with the personal interviews of the key personnel in the SMEs and the ERP vendors. A structured questionnaire was developed to get the information. Findings The survey of 130 SMEs in one of the industrially advanced cities reveals that most of them have implemented ERP to integrate the existing information system and found ERP implementation mainly beneficial in reducing inventory, improving customer services and improving communications. Top management support, and user involvement and participation are found to be the major contributors of ERP success. Research limitations/implications The research is targeted on SMEs in one part of India and hence it has limitations in terms of scope. However, the results are quite encouraging with very good response from the SMEs, though the industry‐institute interactions are not so strong. Other SMEs, planning to implement ERP in the near future, will be highly benefited from the performance evaluation of ERP in Indian SMEs. Originality/value This paper demonstrates how Indian SMEs have benefited from ERP implementation. The findings will encourage Indian SMEs to implement ERP when facing challenges of the competitive market.

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References

1999Critical Issues Affecting an ERP Implementation 1999A critical success factors model for ERP implementation 1998Beyond the productivity paradox 2000Mission Critical: Realizing the Promise of Enterprise Systems 2000Learning from adopters' experiences with ERP: problems encountered and success achieved 2005Performance measurement systems in SMEs: A review for a research agenda 2000Enterprise resource planning: cultural fits and misfits n.d.CULTURAL FITS AND MISFITS: IS ERP A UNIVERSAL SOLUTION?

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