ERP System Adoption - Does the Size Matter?

Abstract

This paper investigates the relationship of enterprise size to the constraints and objectives of Enterprise Resource Planning (ERP) systems adoption. The survey data based on the responses of 44 companies indicates that significant differences exist between small, medium-sized and large enterprises in ERP system adoption. Specifically, the findings suggest that small companies experience more knowledge constraints than their larger counterparts in ERP adoption. Further, while being the most prevalent objective for ERP adoption in all the company groups, business development through ERP adoption is considered especially important by the medium-sized and large enterprises. Finally, the findings of the study suggest that instead of considering small and medium-sized enterprises as one homogenous group, the differences between these two groups of companies should be acknowledged in the future research.

ERP Systems in SMEs: A Literature Review

“…While other research conducted in Australian SMEs, suggest that cost drivers, functional requirements, flexibility, and scalability of the ERP system [41], and the degree of ERP alignment/fit with the business processes [40] have a great influence on acquisition decisions. Moreover, in [18,19], they compared Finnish small, medium, and large enterprises. They explored the relationship of enterprise size with the ERP selection process.…”

ERP systems success: an empirical analysis of how two organizational stakeholder groups prioritize and evaluate relevant measures

“…We received responses from a wide range of industries, including manufacturing, financial services, IT firms, pharmaceuticals, food processing, retail, and warehouse businesses. Our sample classified by the size of workforce following guidelines provided by EC (2003) and Laukkanen et al (2005) included 15 (24%) small, 25 (40%) medium-sized, and 22 (36%) large firms. We used recommendations suggested by Armstrong and Overton (1977) to assess the non-response bias in our survey by comparing early and late respondents on key organizational characteristics such as size, industry type, year of ERP adoption, and ERP type, among others.…”

“…Nonetheless, our sample size compares favourably with sample sizes used in IS research elsewhere, including ERP studies originating from the region (see e.g. Laukkanen et al 2005). …”

An Effective End-User Knowledge Concern Training Method in Enterprise Resource Planning (ERP) Based on Critical Factors (CFs) in Malaysian SMEs

“…According to different definitions that SMEs have in various regions, the approaches differ from one region to another. One of the definitions, for example, observes SMEs as an enterprise in which fewer than 250 staff members are involved and the annual revenue is less than EUR 40 million or the annual balance-sheet displays a balance less than EUR 27 million (Laukkanen, Sarpola, & Hallikainen, 2005). However, the secretariat of National SME Development Council of Malaysia has given a different definition of SMEs based on two criteria as following:…”

“…This condition has created an invaluable opportunity for ERP vendors to concentrate on them as an unprecedented ERP market. On the other hand, SMEs are also trying to approach the ERP systems because of the necessity of the information systems integration in their business and the expenses of the relative hardware installation (Laukkanen, Sarpola, & Hallikainen, 2005).…”