Call for Paper - November 2023 Edition
IJCA solicits original research papers for the November 2023 Edition. Last date of manuscript submission is October 20, 2023. Read More

Development of an Instrument for Enterprise Resource Planning (ERP) Implementation in Indian Small and Medium Enterprises (SMEs)

International Journal of Computer Applications
© 2012 by IJCA Journal
Volume 50 - Number 3
Year of Publication: 2012
R. M. Bhawarkar
L. P. Dhamande

R.m.bhawarkar and L.p.dhamande. Article: Development of an Instrument for Enterprise Resource Planning (ERP) Implementation in Indian Small and Medium Enterprises (SMEs). International Journal of Computer Applications 50(3):38-45, July 2012. Full text available. BibTeX

	author = {R.m.bhawarkar and L.p.dhamande},
	title = {Article: Development of an Instrument for Enterprise Resource Planning (ERP) Implementation in Indian Small and Medium Enterprises (SMEs)},
	journal = {International Journal of Computer Applications},
	year = {2012},
	volume = {50},
	number = {3},
	pages = {38-45},
	month = {July},
	note = {Full text available}


In India, majority of companies have had nothing but disaster with ERP implementation projects. Much has been written on implementation of Enterprise Resource Planning (ERP) system in organizations of various sizes. Implementing an ERP system is a difficult and high cost proposition as it places tremendous demands on organization's resources and time. Very few studies have scientifically developed and tested constructs that represents critical success factors for ERP implementation projects. Global competition and economic liberalization are creating opportunities and posing challenges in front of the Indian Industries. In this paper, we discover and classify critical success factors for ERP implementation in Indian Small & Medium size Enterprises (SMEs), presents a pilot study aim at developing an instrument for ERP in Indian small & medium scale Enterprises (SME's). An extensive literature review was carried out for identification of various attributes which grouped in various critical success factors (CSF's). The instrument consisting of 23 variables was identified after literature review. A 24 item questionnaire was developed from the relevant literature and distributed to 863 SME's. Data from 219 SMEs were collected for the measurement of effectiveness of these critical success factors. Through the study, four factors were identified that attempts to explain 84. 203 % of variances that impact ERP Implementation. The factors are found to be reliable and valid. We believe that the comprehension of these factors will deepen the understanding of ERP implementation and will help to avoid implementation mistakes, thereby increasing the rate of success.


  • Arash shahin, Sahar Sadri & Roya Gazor, 'Evaluating The Application of Learning Requirement Planning Model in the ERP Project of Esfahan Steel Company' International Journal Of Business & Management, Vol. 5, No 2, pp 33- 42, 2010.
  • Bajwa, D. S. , and Garcia, J. E. , 'An Integrative Framework for the Assimilation of Enterprise Resource Planning Systems: Phases, Antecedents, and Outcomes' Journal of Computer Information Systems, Vol. 44, (3), pp 81-90, 2004.
  • Bingi, P. , Sharma, M. K, and Godla, J. K 'Critical Issues Affecting an ERP Implementation. ' Information Systems Management, Vol. 16, Issue 3, pp. 7– 14, 1999.
  • Brent Snider, Giovani J. C. da silveira and Jaydeep Balakrishnan, 'ERP Implementation at SMEs: analysis of five Canadian cases' International Journal of Operations and production Management, Vol. 29, Issue 1, pp. 4 -29, 2009.
  • Brehm, L. , Heinzl, A. and Markus, M. L. 'Tailoring ERP Systems: A Spectrum of Choices and their Implications' Proceedings of the 34th Hawaii International Conference on Information Systems. Outrigger Wailea Resort, Maui. January 3-6, 2001.
  • Capaldo G. , Iandoli L. , Rippa P. , Mercanti S. , troccoli G. , 'An AHP Approach To Evaluate Factors Affecting ERP Implementation Success', Proceedings of the World Congress on Engineering and Computer Science, San Francisco, USA, 2008.
  • Chan–Hsing Lo, Chih–Hung Tsai, and Rong– Kwei Li, 'A Case Study Of ERP Implementation for Opto-Electronics Industry' International Journal of The Computer, Internet and Management, Vol. 13, pp 13 – 30, 2005.
  • Daniel E. O'Leary, ' Enterprise Resource Planning (ERP) Systems: An Empirical Analysis of Benefits' Journal of Emerging Technologies In Accounting, Vol. 1, pp 63 – 72, 2004.
  • Davenport, T. H 'Putting the Enterprise into the Enterprise System. ' Harvard Business Review, Vol. 76, Issue 4, pp. 121 – 131, 1998.
  • DeLone, W. H and McLean, E. R 'Information Systems Success: The quest for the dependent variable' Information Systems Research, Vol. 3, Issue 1, pp. 60- 95, 1992.
  • E. W. T. Ngai, C. C. H. Law, F. K. T. Wat, 'Examining the critical success factors in the adoption of enterprise resource planning', Computers in Industry, pp 1-17, 2008.
  • Esteves, J. , 'A Benefits Realization Road-map framework for ERP Usage In Small & Medium Sized Enterprises', Journal of Enterprise Information Management, pp 22-25, 2009.
  • Gable, G. G. ,, Sedera, D. , Chan T. , 'Enterprise Systems Success: A Measurement Model', International conference on Information systems' Seattle, USA, pp 576-591, 2003.
  • Gable, G. G. ,, Sedera, D. , Taizan, C. , 'Re Conceptualizing Information Systems Success: The Is Impact Measurement Model', Journal of The Association for Information Systems, Vol. 9, pp 1-32, 2008.
  • Gore A. & Kess P. , 'Managing The Impact of ERP Implementation on Organization Structure: A Case Study', The Journal for Practicing Managers, Vol. 31, No 1, pp 1-13, 2007.
  • Hein Ray Chetcuti, 'ERP implementation: A multi-stakeholder analysis of critical success factors' WICT Proceedings, pp 1 – 6, 2008.
  • Holland C. P. and Light B. , 'A Critical success factor model for ERP implementation', IEEE Software, pp. 30-36, 1999.
  • Hong K and Kim Y, 'The Critical success factors for ERP implementation: An organizational fit perspective', Information Management, Vol. 40, No. 1, pp 25-40, 2002.
  • Ifinedo P. ,' Enterprise Systems success Measurement Model: A preliminary Study' Journal of Information Technology Management, Vol. 17, Issue 1, pp 14 – 33, 2006.
  • Ifinedo P. ,' Investigating the Relationship Among ERP Systems Success Dimensions: A Structural Equation Model' Issues In Information Systems, Vol. 8, No 2, pp 399 - 405, 2007.
  • Ike C. Ehie, Mogens madsen, ' Identifying critical issues in enterprise resource planning (ERP) implementation' Computers In Industry, Vol. 56, pp 545 – 557, 2005, Available online at www. sciencedirect. com .
  • Jose Esteves-Sousa, John Pastor-Collado, 'Towards the Unification of Critical Success Factors for ERP Implementations', 10th annual Business Information Technology Conference, Manchester, 2000.
  • Joseph Sarkis, R. P. Sundarraj, 'Managing Large Scale Global Enterprise Resource Planning Systems: A Case Study at Texas Instruments', International Journal Of Information Management, Vol 23, pp 431-442, 2003.
  • Kale P. T. , Banawait S. S, Laroiya S. C. , ' Performance evaluation of ERP Implementation in Indian SME's' Journal of Manufacturing Technology Management, Vol. 21, pp 758-780, 2010.
  • Kyung-Kwon Hong, Young-Gul Kim, 'The critical success factors for ERP implementation: an organizational fit perspective' Information and Management, Vol. 40, pp 25 – 40, 2002.
  • Levy M. , Powell, P. 'Information System Strategy for small and medium sized enterprises: an organizational perspective', Journal of Strategic Information Systems, Vol 9, pp 63-84, 2000.
  • Light, B. 'The maintenance implications of the customization of ERP software'. Journal of Software Maintenance and Evolution: Research and Practice; Vol. 13: pp 415-429, 2001.
  • Luo, W. and Strong, D. M. 'A Framework for Evaluating ERP Implementation Choices', IEEE Transactions on Engineering Management, Vol. 51, No 3. , pp322-333 , 2004.
  • Mabert,V. A. , Soni, A and Venkataramanan, M. A, 'Enterprise resource planning: managing the implementation process'; European journal of operational research, Vol. 146, No 2, pp 302-314, 2003.
  • Mahadeo Jaiswal, 'ERP enabled Best Business Practices for Competitiveness: Case of Auto Components Manufacturing Industry in India'6th Annual ISOnEWorld Conference, Las Vegas, 2007.
  • Markus, M. L. , Axline, S. , Petrie, D. , and Tanis, C 'Learning from the Adapters' Experiences with ERP: problems encountered and success achieved. ' Journal of Information Technology,Vol. 15, Issue 4, pp. 245-265, 2000.
  • McAdam, R, 'Large scale innovations- reengineering methodology in SME's: Positivistic and phenomenological approaches', International Small Business Journal, Vol. 20 No 1, pp 33-50, 2002.
  • Motwani J. Mirchandani D. , Madan M. & Gunasekaran A. 'Successful Implementation of ERP Projects: Evidence From Two Case Studies' International Journal of Production Economics, Vol. 75, pp 83-96, 2002.
  • Nah, F. F. H. , Lau, J. L. S. , and Kuang, J 'Critical Factors for Successful Implementation of Enterprise Systems. 'Business Process Management Journal, Vol. 7 Issue 3, pp. 285 – 296, 2001.
  • Nah, F. F. H and Delgado, S 'Critical Success Factors for Enterprise Resource Planning Implementation and Upgrade'. Journal of Computer Information Systems, Vol. 47, special issue, pp. 99 – 113, 2006.
  • Nah, F. F. , Islam, Z. , and Tan, M. , ' Empirical Assessment of factors Influencing Success of Enterprise Resource Planning Implementations', Journal of Database Management, Vol. 18, No. 4, pp 26-50, 2007.
  • Parijat Upadhyay, Pranab K Dan, ' ERP in Indian SME's: A Post Implementation Study of the Underlying Critical Success Factors' International Journal Of Management Innovation System, Vol. 1, No 2 pp 1-10, 2009.
  • Park, J. , Suh, H. , and Yang, H. , 'Perceived Absorptive Capacity of Individual Users in Performance of ERP Usage: The Case For Korean Firms', Information & Managements, Vo. 44, No. 3, pp 300-312, 2007.
  • Parr, A. and Shanks, G. 'Taxonomy of ERP Implementation Approaches. ' Proceedings of the 33rd Hawaii International Conference on System Sciences 93, 2000.
  • Parr, A and Shanks, G 'A Model of ERP Project Implementation. ' Journal of Information Technology, Vol. 15, Issue 4, pp. 289 – 303, 2000.
  • Poonam Garg, 'Critical Success factors for Enterprise Resource Planning Implementation in Indian Retail industry: An Exploratory study' International Journal of Computer Science and Information Security, Vol. 8, No 2, 2010.
  • Sarph, J. , V. , Benson, P. , G. , Shroeder R. , G. , ' An instrument for measuring the critical factors of quality management', Decision Sciences, Vol. 20, pp 810-829, 1989.
  • Sherry Finney, Martin Corbett, ' ERP Implementation: a compilation and analysis of critical success factors', Business Process Management Journal, Vol. 13, No. 3, pp 329-347, 2007.
  • Somers, T. M and Nelson, K 'A taxonomy of players and activities across the ERP project life cycle. ' Information & Management, Vol. 41, Issue 3, pp. 257-278, 2004.
  • Staehr, L. , 'Assessing Business Benefits From ERP Systems: An Improved ERP Benefits Framework', International Conference on Information Systems, 2007.
  • Sumner M. , 'Risk Factors in Enterprise- wide/ERP Projects,' Journal of Information Technology, pp. 317-327, 2000.
  • Tsai, W. , fan, Y. , Leu. , J. , Chou, L. , and Yang, C. , 'The Relationship Between Implementation Variables and Performance Improvement of ERP Systems', International Journal of Technology Management, Vol. 38, No. 4, pp 350-373, 2007.
  • Umble, E. J. , Haft, R. R. , and Umble, M. M 'Enterprise resource planning: Implementation procedures and critical success factors. ' European journal of operational research, Vol. 146, Issue 2, pp. 241 - 257, 2003.
  • Vineet Kansal, ' Systematic Analysis for Inter- Relation of Identified Critical Success Factors In Enterprise Systems Projects', Contemporary Management Research, Vol. 3, No 4, pp 331 – 346, 2007.
  • Wei, C. C. , Chien C. F. , and Wang M. J. J, ' An AHP-based Approach to ERP System Selection', International Journal Of Production Economics, Vol. 96, No. 1, pp 47-62, 2005.
  • Yusuf, Y. , Gunasekaran, A. , and Wu, C 'Implementation of Enterprise Resource Planning in China. ' Technovation, Vol. 26, Issue 12, pp. 1324 – 1336, 2006.
  • Zach, O. , Olesen, D. H. , 'ERP System Implementation in Make-to-order SMEs: An Exploratory Case Study', 44th Hawaii International Conference on System Sciences, Kauai, Hawaii USA, 2011.
  • Zhang, Z. , Lee, M. K. O. , Zhang, L. , and Huang, X 'A framework of ERP systems implementation success in China: An empirical study. ' International Journal Production Economics, Vol. 98. Issue 1, pp. 56 – 80, 2005.