Theoretical Framework of Human Capital Development of SMEs: The Context of an ERP Project

Abstract

ERP systems are increasingly adopted by SMEs. The ERP system is one of the more complex information systems to implement and its failure rate remains high despite the accumulated experiences. Its implementation indeed requires a large amount of knowledge and technical expertise and skills. Therefore, to facilitate access to the knowledge and expertise that have external partners, SMEs implanting ERP weave social relations (i.e. social conduits) with these external partners. Social conduits allow the transfer knowledge and sharing of expertise. The woven relations represent a social capital for the SMEs and enable them to develop their own technical knowledge, skills and experience (before the withdrawal of external partners). These intangible resources developed represent their human capital. This paper proposes, from the existing literature, a theoretical framework in which are represented the potential factors that can impact on the development of human capital. This paper is a theoretical research which contributes to the literature by showing the existence of an effect (direct and indirect) of social capital on human capital development of SMEs in the implementation ERP project. Regarding practical implications, the framework identified in this research can help the manager of SMEs to increase the likelihood of successful implementation of ERP systems.

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