Identifying reasons for ERP system customization in SMEs: a multiple case study

Abstract

Purpose -The purpose of this article is to investigate possible reasons for ERP system customization in small and medium-sized enterprises (SMEs), with a particular focus on distinguishing influential factors of the SME context. Design/methodology/approach -An exploratory qualitative research approach was employed, as the study aims to identify new insights within the SME context. A multiple case study of four SMEs was conducted. Data were collected through 34 qualitative interviews with multiple informants across the four cases.Findings -The study reports findings from four SMEs where ERP customization has been applied to match organizational needs. First, the level and type of ERP system customization applied by the case organizations were investigated. Then, the reasons for ERP system customization were explored. The analysis identified seven possible reasons leading to ERP system customization, classified according to two phases of the ERP life-cycle (prior to "going-live", after "going-live"). Reasons specific to the SME context include unique business processes, ownership type, and organizational stage of growth.Research limitations/implications -The study is based on four cases only. Further research is needed to investigate the applicability of our findings in different contexts.Practical implications -The study findings are believed to be valuable for organizations about to implement an ERP system as well as for ERP vendors. By identifying the reasons leading to ERP system customization and investigating the effect of the SME context, the study contributes to better understanding of ERP system implementation in SMEs.Originality/value -The article contributes to the scarce literature on reasons for ERP system customization in SMEs. By classifying the reasons into two phases of the ERP life-cycle, the study also contributes by exploring ERP system customization practice in different phases of the ERP lifecycle.

Research in Progress: Understanding the Process of Implantation It Enterprise Applications in Small and Medium Enterprises (Smes)

“…Buonanno et al, 2005;Johansson et al, 2013;Kale, Banwait, & Laroiya, 2010;Leyh, 2014;Serrano et al, 2010;Shahawai & Idrus, 2011;O. Zach & Munkvold, 2011;Ondrej Zach, 2011).…”

“…Seethamraju, 2015;Serrano et al, 2010); Replacement of legacy system (Hallikainen et al, 2002;E. Hustad & Olsen, 2011;Kale et al, 2010;O. Zach & Munkvold, 2011;O.…”

“…Johansson & Sudzina, 2009;Sousa, 2007); Expansion the enterprise or grown (Čelar et al, 2011;Leyh, 2014;Sousa, 2007); Customer demands (B. Johansson & Sudzina, 2009;Sousa, 2007); Improved productivity (B. Johansson & Sudzina, 2009;Leyh, 2014); Need to integrate existing system (Čelar et al, 2011;Kale et al, 2010); and improved communication (Kale et al, 2010;Ondrej Zach, 2011).…”

“…Zach & Munkvold, 2011;O. Zach & Olsen, 2011;Ondrej Zach, 2011); Cost saving (Hallikainen et al, 2002;B. Johansson & Sudzina, 2009;Sousa, 2007); Expansion the enterprise or grown (Čelar et al, 2011;Leyh, 2014;Sousa, 2007); Customer demands (B.…”

Packaged Software Implementation Requirements Engineering by Small Software Enterprises

“…In the European Union, firms with 250 employees or less provided 67 per cent of employment in 2003". While SMEs are an integral part of economies, they face specific challenges when implementing packaged software [2,24,25].…”