IDEAS home Printed from https://ideas.repec.org/a/eee/ininma/v30y2010i1p28-37.html
   My bibliography  Save this article

Critical decisions for ERP integration: Small business issues

Author

Listed:
  • Malhotra, Rajiv
  • Temponi, Cecilia

Abstract

Small enterprises are facing significant challenges to become suppliers of bigger customers due to the excessive costs associated with accessing a vast market of potential customers. It is essential for small businesses to adopt an ERP system to maintain control of their operations and to compete globally. An ERP implementation is expensive and risky for all businesses, but it is still more challenging for small businesses, which have particular characteristics. We identified from archived literature, key decisions necessary in selecting and implementing an ERP system. While these critical decisions are applicable to all types of businesses, the focus of this research was to recommend the best practices for each one of these key decisions for small businesses. We interviewed six small businesses to recommend best practices for the critical decisions: (1) project team structure, (2) implementation strategy, (3) database conversion strategy, (4) transition technique, (5) risk management strategy and (6) change management strategy. Our results indicate that these best practices greatly enhanced the success of an ERP implementation for small businesses. Further, we recommend studying the impact of ERP systems on the small business’ participation in supply chain management.

Suggested Citation

  • Malhotra, Rajiv & Temponi, Cecilia, 2010. "Critical decisions for ERP integration: Small business issues," International Journal of Information Management, Elsevier, vol. 30(1), pages 28-37.
    • Handle: RePEc:eee:ininma:v:30:y:2010:i:1:p:28-37
    DOI: 10.1016/j.ijinfomgt.2009.03.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0268401209000280
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijinfomgt.2009.03.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sun, Albert Y.T. & Yazdani, Abe & Overend, John D., 2005. "Achievement assessment for enterprise resource planning (ERP) system implementations based on critical success factors (CSFs)," International Journal of Production Economics, Elsevier, vol. 98(2), pages 189-203, November.
    2. Yen, HsiuJu Rebecca & Sheu, Chwen, 2004. "Aligning ERP implementation with competitive priorities of manufacturing firms: An exploratory study," International Journal of Production Economics, Elsevier, vol. 92(3), pages 207-220, December.
    3. Mabert, Vincent A. & Soni, Ashok & Venkataramanan, M. A., 2001. "Enterprise resource planning: common myths versus evolving reality," Business Horizons, Elsevier, vol. 44(3), pages 69-76.
    4. Yap, Cs & Soh, Cpp & Raman, Ks, 1992. "Information systems success factors in small business," Omega, Elsevier, vol. 20(5-6), pages 597-609.
    5. A. B. Ibrahim & J. R. Goodwin, 1986. "Perceived Causes of Success in Small Business," Entrepreneurship Theory and Practice, , vol. 11(2), pages 41-50, October.
    6. Walter W.C. Chung, T.S. Wong, 2002. "The development of a network strategy for continuous improvement in SMEs: a case study," International Journal of Networking and Virtual Organisations, Inderscience Enterprises Ltd, vol. 1(2), pages 115-124.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen‐Hsien Tsai & Yu‐Wei Chou & Kuen‐Chang Lee & Wan‐Rung Lin & Elliott T.Y. Hwang, 2013. "Combining Decision Making Trial and Evaluation Laboratory with Analytic Network Process to Perform an Investigation of Information Technology Auditing and Risk Control in an Enterprise Resource Planni," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(2), pages 176-193, March.
    2. Hu, Ya-Ping & Chang, I-Chiu & Hsu, Wei-Yen, 2017. "Mediating effects of business process for international trade industry on the relationship between information capital and company performance," International Journal of Information Management, Elsevier, vol. 37(5), pages 473-483.
    3. Grant, Kevin & Edgar, David & Sukumar, Arun & Meyer, Martin, 2014. "‘Risky business’: Perceptions of e-business risk by UK small and medium sized enterprises (SMEs)," International Journal of Information Management, Elsevier, vol. 34(2), pages 99-122.
    4. Brocke, Jan vom & Zelt, Sarah & Schmiedel, Theresa, 2016. "On the role of context in business process management," International Journal of Information Management, Elsevier, vol. 36(3), pages 486-495.
    5. Park, YoungWon & Fujimoto, Takahiro & Hong, Paul, 2012. "Product architecture, organizational capabilities and IT integration for competitive advantage," International Journal of Information Management, Elsevier, vol. 32(5), pages 479-488.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Ling & Markowski, Carol & Xu, Li & Markowski, Edward, 2008. "TQM--A predecessor of ERP implementation," International Journal of Production Economics, Elsevier, vol. 115(2), pages 569-580, October.
    2. Thong, James Y. L., 2001. "Resource constraints and information systems implementation in Singaporean small businesses," Omega, Elsevier, vol. 29(2), pages 143-156, April.
    3. Christian Arnold & Kai-Ingo Voigt, 2019. "Determinants of Industrial Internet of Things Adoption in German Manufacturing Companies," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(06), pages 1-21, October.
    4. Jonsson, Patrik, 2008. "Exploring problems related to the materials planning user environment," International Journal of Production Economics, Elsevier, vol. 113(1), pages 383-400, May.
    5. Ahrens, Jan-Philipp & Landmann, Andreas & Woywode, Michael, 2015. "Gender preferences in the CEO successions of family firms: Family characteristics and human capital of the successor," Journal of Family Business Strategy, Elsevier, vol. 6(2), pages 86-103.
    6. Botta-Genoulaz, Valerie & Millet, Pierre-Alain, 2006. "An investigation into the use of ERP systems in the service sector," International Journal of Production Economics, Elsevier, vol. 99(1-2), pages 202-221, February.
    7. Akca Yasar & Gokhan Ozer, 2016. "Determination the Factors that Affect the Use of Enterprise Resource Planning Information System through Technology Acceptance Model," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(10), pages 1-91, September.
    8. Bechir FRIDHI & Abdulmohsen Al-ODHAIB & Hassan ASSIRI & Menahi Al-SUBAIE & Sultan Al-OTAIBI, 2020. "Impact of Enterprise Resource Planning System on Realizing of Competitive Advantage and Consumer Satisfaction in Rajhi Steel Industries Co. Ltd," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 8(2), pages 53-72, November.
    9. Ge, Liping & Voß, Stefan, 2009. "ERP application in China: An overview," International Journal of Production Economics, Elsevier, vol. 122(1), pages 501-507, November.
    10. Kim, DaeSoo, 2006. "Process chain: A new paradigm of collaborative commerce and synchronized supply chain," Business Horizons, Elsevier, vol. 49(5), pages 359-367.
    11. S. Valsamidis & A. Mandilas & M. Nikolaidis & P. Polychronidou, 2009. "ERP PACKAGE EVALUATION, THE CASE OF SMEs KAVALA's REGION," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 1-1.
    12. Miguel Pina e Cunha, 2005. "Bricolage in organizations," Nova SBE Working Paper Series wp474, Universidade Nova de Lisboa, Nova School of Business and Economics.
    13. Erlane K Ghani & Siti Aimi Mohamad Yasin & Mazurina Mohd Ali, 2019. "Examining Enterprise Resource Planning Post Implementation and Employees¡¯ Performance in Small and Medium Enterprises Using DeLone and McLean¡¯s Information System Success Model," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 153-169, May.
    14. Jackson André da Silva & Nério Amboni & Anacleto Ângelo Ortigara & Alexandre Marino Costa, 2014. "Business DNA: an Analysis of Micro and Small Companies in the State of Santa Catarina," Brazilian Business Review, Fucape Business School, vol. 11(2), pages 115-134, March.
    15. Man, Thomas W. Y. & Lau, Theresa & Chan, K. F., 2002. "The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies," Journal of Business Venturing, Elsevier, vol. 17(2), pages 123-142, March.
    16. Subramanian, Nachiappan & Gunasekaran, Angappa & Gao, Yanan, 2016. "Innovative service satisfaction and customer promotion behaviour in the Chinese budget hotel: an empirical study," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 201-210.
    17. James J. Chrisman & Alan Bauerschmidt & Charles W. Hofer, 1998. "The Determinants of New Venture Performance: An Extended Model," Entrepreneurship Theory and Practice, , vol. 23(1), pages 5-29, October.
    18. Morgan, Horatio M. & Ngwenyama, Ojelanki, 2015. "Real options, learning cost and timing software upgrades: Towards an integrative model for enterprise software upgrade decision analysis," International Journal of Production Economics, Elsevier, vol. 168(C), pages 211-223.
    19. Robert N. Lussier & Sanja Pfeifer, 2000. "A Comparison of Business Success versus Failure Variables between U.S. and Central Eastern Europe Croatian Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 24(4), pages 59-67, July.
    20. Richard B. Carter & Howard E. Van Auken, 1991. "Personal Equity Investment and Small Business Financial Difficulties," Entrepreneurship Theory and Practice, , vol. 15(2), pages 51-60, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ininma:v:30:y:2010:i:1:p:28-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-information-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.