IDEAS home Printed from https://ideas.repec.org/a/sae/sajbmc/v14y2025i2p145-161.html

ERP Adoption and Strengthening of Management Accounting and Controls at a Pakistani Manufacturing SME: A Case Study Approach

Author

Listed:
  • Shahid Latif
  • Safrul Izani Mohd Salleh
  • Bilal Ahmad
  • Faseeha Saif

Abstract

This study seeks to explore how enterprise resource planning (ERP) adoption in a manufacturing SME strengthens management accounting and controls, and how ERP-driven changes are sustained to ensure sustainable survival. A single holistic case study design was adopted to explore the ERP adoption process under an extended Burns and Scapens framework and dynamic capabilities as theoretical lenses at ABLT (a manufacturing SME in Pakistan). Fourteen semi-structured interviews, observations and documents were analysed using Gioia’s methodology to surface first-order codes, seven second-order themes and four aggregate dimensions. The findings reveal a multi-stage process. ERP adoption was triggered by the convergence of internal manual frustrations and external customer-driven pressure for traceable information. During implementation, managers negotiated financial, production and technical logics and embedded real-time accounting routines while drawing on existing standard operating procedures to reduce resistance. Once stabilized, these routines enabled team learning that built sensing, seizing and transforming capabilities. Dynamic capabilities, in turn, allowed the firm to reconfigure rapidly when COVID-19 disrupted supply lines, thereby protecting cash flow and accelerating post-crisis growth. A conceptual model shows how institutional alignment and capability building interact recursively rather than sequentially. The study contributes by integrating the extended Burns and Scapens framework with dynamic capabilities theory to understand ERP-driven management accounting and controls in the context of SMEs. For practitioners, the study highlights the significance of aligning customer expectations, internal policies and team learning to turn ERP from a technical project into a platform for ongoing resilience and growth.

Suggested Citation

  • Shahid Latif & Safrul Izani Mohd Salleh & Bilal Ahmad & Faseeha Saif, 2025. "ERP Adoption and Strengthening of Management Accounting and Controls at a Pakistani Manufacturing SME: A Case Study Approach," South Asian Journal of Business and Management Cases, , vol. 14(2), pages 145-161, August.
    • Handle: RePEc:sae:sajbmc:v:14:y:2025:i:2:p:145-161
    DOI: 10.1177/22779779251349974
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/22779779251349974
    Download Restriction: no
    File URL: https://libkey.io/10.1177/22779779251349974?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
    ---><---

    References listed on IDEAS

    as
    1. Leonardo Moro Barbieri & Michele Kremer Sott & Jefferson Marlon Monticelli, 2024. "Critical Success Factors for Implementing Cloud ERP in SMEs: A Systematic Review," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-21, April.
    2. David J. Teece, 2023. "The Evolution of the Dynamic Capabilities Framework," FGF Studies in Small Business and Entrepreneurship, in: Richard Adams & Dietmar Grichnik & Asta Pundziene & Christine Volkmann (ed.), Artificiality and Sustainability in Entrepreneurship, pages 113-129, Springer.
    3. Ariela Caglio, 2003. "Enterprise Resource Planning systems and accountants: towards hybridization?," European Accounting Review, Taylor & Francis Journals, vol. 12(1), pages 123-153.
    4. Aveek Basu & Sraboni Dutta & Rohini Jha, 2023. "A comprehensive approach to study the adoption and implementation of cloud-based ERP among SMEs," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 42(3/4), pages 305-330.
    5. João Oliveira & Martin Quinn, 2015. "Interactions of rules and routines: re-thinking rules," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 11(4), pages 503-526, November.
    6. Julie Bertz & Martin Quinn, 2014. "Interpreting management accounting rules: an initial study of public bodies," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(4), pages 319-342, February.
    7. Martin Quinn, 2011. "Routines in management accounting research: further exploration," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 7(4), pages 337-357, November.
    8. Aastha Malhotra & April L. Wright & Lee C. Jarvis, 2025. "Hybridity in Nonprofit Organizations: Organizational Perspectives on Combining Multiple Logics," Journal of Business Ethics, Springer, vol. 196(2), pages 291-307, January.
    9. Ammar, Sameh Farhat, 2025. "Unveiling the rivalry of cloud ERP dialectics, underpinning logics and roles of accounting and information system professionals," International Journal of Accounting Information Systems, Elsevier, vol. 56(C).
    10. Martijn van der Steen, 2011. "The emergence and change of management accounting routines," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 24(4), pages 502-547, May.
    11. Lejla Turulja & Amer Celjo & Mirjana Pejić Bach & Nijaz Bajgoric, 2024. "Integrating ERP Systems and Knowledge Management," Progress in IS, Springer, number 978-3-031-68922-2, December.
    12. repec:eme:aaaj00:09513571111133072 is not listed on IDEAS
    13. Martijn van der Steen, 2011. "The emergence and change of management accounting routines," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 24(4), pages 502-547, May.
    14. Aveek Basu & Rohini Jha, 2024. "ERP adoption prediction using machine learning techniques and ERP selection among SMEs," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 25(2), pages 242-270.
    Full references (including those not matched with items on IDEAS)

    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. Rúben Silva Barros & Ana Maria Dias Simões da Costa Ferreira, 2023. "Management control systems and innovation: a case study grounded in institutional theory," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(1), pages 109-133, March.
    2. Martin Quinn & Desmond Gibney, 2018. "Accounting at an Irish maltster – the accounting practices of Bennetts of Ballinacurra in the 1920s and 1930s," Accounting History Review, Taylor & Francis Journals, vol. 28(1-2), pages 61-84, May.
    3. Clerkin, Brendan & Quinn, Martin & Connolly, Ciaran, 2024. "Decoupled accounting in a non-profit context: An explanation for stable management accounting?," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 99(C).
    4. Federica Palazzi & Francesca Sgrò & Massimo Ciambotti & Nick Bontis & Lorenzo Gelsomini, 2023. "The moderating effect of corporate size on the relationship between prospector strategy and management accounting practices," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(2), pages 135-165, June.
    5. Adibah Jamaluddin & Rabiaini Ab Rahman & Nor Hafizah Abdul Rahman, 2023. "The Whence and Whither of Interpretive Management Accounting Research: A Structured Literature Review," Accounting and Finance Research, Sciedu Press, vol. 12(2), pages 1-1, May.
    6. Lindong Ma & Xihui Chen & Jiawen Zhou & Luigi Aldieri, 2022. "Strategic Management Accounting in Small and Medium-Sized Enterprises in Emerging Countries and Markets: A Case Study from China," Economies, MDPI, vol. 10(4), pages 1-23, March.
    7. Giada Baldessarelli & Nathalie Lazaric & Michele Pezzoni, 2022. "Organizational routines: Evolution in the research landscape of two core communities," Journal of Evolutionary Economics, Springer, vol. 32(4), pages 1119-1154, September.
    8. Ewelina Zarzycka, 2012. "Implementation Of An Erp Package And Its Effect On The Management Accounting System – Author’S Own Research Into Enterprises In Poland," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 8(3), pages 85-96, December.
    9. Rikhardsson, Pall & Yigitbasioglu, Ogan, 2018. "Business intelligence & analytics in management accounting research: Status and future focus," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 37-58.
    10. Gianina MIHAI, 2014. "Review of IT Training of the Professional Accountants in Romania from Undergraduate and Graduate Studies and Continuous Vocational Training Perspective," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 37-46.
    11. Muhammad Aslam & Bilal Ahmad & Tuba Rasheed, 2025. "Navigating the Impact of Green Innovation, Technological Linkages, and Knowledge Management on Sustainable Performance of SMEs," Journal of International Entrepreneurship, Springer, vol. 23(3), pages 593-618, September.
    12. Cătălin Albu & Nadia Albu & Robert Faff & Allan Hodgson, 2011. "Accounting Competencies and the Changing Role of Accountants in Emerging Economies: The Case of Romania," Accounting in Europe, Taylor & Francis Journals, vol. 8(2), pages 155-184.
    13. Husseini Sadick Alhaji & Gáti Mirkó, 2025. "The influence of dynamic capabilities on firm performance: Examining the moderating role of government support in Ghanaian SMEs," Management & Marketing, Sciendo, vol. 20(4), pages 156-172.
    14. Hosanoo, Zuberia & Patel, Parth & Prikshat, Verma & Kanungo, Rama Prasad & Gupta, Surkasha, 2024. "Focal firms and interorganisational relationships in small economies: Towards a multi-level theoretical framework for enhancing value co-creation and performance," Journal of International Management, Elsevier, vol. 30(3).
    15. Jack, Lisa & Kholeif, Ahmed, 2008. "Enterprise Resource Planning and a contest to limit the role of management accountants: A strong structuration perspective," Accounting forum, Elsevier, vol. 32(1), pages 30-45.
    16. Jochen Fähndrich, 2023. "A literature review on the impact of digitalisation on management control," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(1), pages 9-65, March.
    17. Anass Mawadia & Philippe Chapellier & Ariel Eggrickx, 2016. "ERP et profil d’activités du contrôleur de gestion : une évolution par paliers ?," Post-Print hal-02012528, HAL.
    18. Maribel Guerrero & Matthias Menter, 2024. "Driving change in higher education: the role of dynamic capabilities in strengthening universities’ third mission," Small Business Economics, Springer, vol. 63(3), pages 1321-1337, October.
    19. How, Shi-Min & Alawattage, Chandana, 2012. "Accounting decoupled: A case study of accounting regime change in a Malaysian company," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(6), pages 403-419.
    20. Francesca Maria Cesaroni & Domenico Consoli, 2015. "ICT e piccole imprese. Il Cubo della Predisposizione Tecnologica Aziendale," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2015(1), pages 73-100.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:sae:sajbmc:v:14:y:2025:i:2:p:145-161. 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: SAGE Publications (email available below). General contact details of provider: .

    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.