Abstract
Enterprise resource planning (ERP) systems have originally been developed for large enterprises (LEs). However, market saturation, integration of supply chains and technology improvements have led to small and medium-sized enterprises (SMEs) have started adopting ERP systems. Though there is a focus shift from LEs to SMEs in the ERP market, most academic literature on ERP systems is based on findings from LEs. In addition, while the ERP system adoption life cycle consists of three stages: procurement, implementation and post-implementation, academic discourse has mostly focused on implementation or post-implementation phases, indicating a knowledge gap on ERP system procurement stage, especially regarding procurement of ERP system in SMEs. In this study we explore how ERP system procurement is carried out in SMEs. Based on academic literature a theoretical framework on ERP system procurement in SMEs was built, which then was used as a foundation for the empirical investigation. Based on empirical findings we have identified two contrasting ways for how SMEs carry out ERP system procurement. The main contribution is the identification and the explanation of how SMEs specificities affect an ERP system procurement process in SMEs. One implication from this contribution is that it shows that SMEs are a too broad class of organization to do research on.
Keywords
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Ravarini, A., Tagliavini, M., Pigni, F., Sciuto, D.: A framework for evaluating ERP acquisition within SMEs. In: Proceedings of the AIM International Conference, Montpellier (2000)
Morabito, V., Pace, S., Previtali, P.: ERP marketing and Italian SMEs. Eur. Manag. J. 23(5), 590–598 (2005)
Van Everdingen, Y., Van Hillegersberg, J., Waarts, E.: ERP adoption by Eurpean midsize companies. Commun. ACM 43(4), 27–31 (2000)
Gable, G., Stewart, G.: SAP R/3 implementation issues for small to medium enterprises. In: Proceedings of the 5th Americas Conference on Information Systems (AMCIS), Milwaukee (1999)
European Commission: Annual Report on EU SMEs 2010/2011, in Editor (Ed.)^(Eds.): Book Annual Report on EU SMEs 2010/2011 (2011)
Haddara, M., Zach, O.: ERP systems in SMEs: a literature review. In: Proceeding of the 44th Hawaii International Conference on System Sciences, Kauai, HI, USA, 4-7 May 2011
Loh, T.C., Koh, S.C.L.: Critical elements for a successful enterprise resource planning implementation in small- and medium-sized enterprises. Int. J. Prod. Res. 42(17), 3433–3455 (2004)
Muscatello, J.R., Small, M.H., Chen, I.J.: Implementing enterprise resource planning (ERP) systems in small and midsize manufacturing firms. Int. J. Oper. Prod. Manag. 23(8), 850–871 (2003)
Umble, E.J., Haft, R.R., Umble, M.M.: Enterprise resource planning: implementation procedures and critical success factors. Eur. J. Oper. Res. 146(2), 241–257 (2003)
Andersson, A., Wilson, T.L.: Contracted ERP projects: sequential progress, mutual learning, relationships, control and conflicts. Int. J. Manag. Proj. Bus. 4(3), 458–479 (2011)
Baki, B., Cakar, K.: Determining the ERP package-selecting criteria: the case of Turkish manufacturing companies. Bus. Process Manag. J. 11(1), 75–86 (2005)
Kumar, K., Van Hillegersberg, J.: ERP experiences and evolution. Commun. ACM 43(4), 22–26 (2000)
Teltumbde, A.: A framework for evaluating ERP projects. Int. J. Prod. Res. 38(17), 4507–4520 (2000)
Wei, C.C., Chien, C.F., Wang, M.J.J.: An AHP-based approach to ERP system selection. Int. J. Prod. Econ. 96(1), 47–62 (2005)
Sen, C.G., Baracli, H., Sen, S.: A literature review and classification of enterprise software selection approaches. Int. J. Inf. Technol. Decis. Making 8(2), 217–238 (2009)
Stefanou, C.J.: A framework for the ex-ante evaluation of ERP software. Eur. J. Inf. Syst. 10(4), 204–215 (2001)
Poon, P.L., Yu, Y.T.: Investigating ERP systems procurement practice: Hong Kong and Australian experiences. Inf. Softw. Technol. 52(10), 1011–1022 (2010)
Kumar, V., Maheshwari, B., Kumar, U.: Enterprise resource planning systems adoption process: a survey of Canadian organizations. Int. J. Prod. Res. 40(3), 509–523 (2002)
Shehab, E.M., Sharp, M.W., Supramaniam, L., Spedding, T.A.: Enterprise resource planning: an integrative review. Bus. Process Manag. J. 10(4), 359–386 (2004)
Seethamraju, R., Seethamraju, J.: Adoption of ERPs in a medium-sized enterprise - a case study. In: Proceedings of the 19th Australasian Conference on Information Systems (ACIS), Christchurch, 3-5 December 2008
Statistics Sweden: ICT usage in enterprises 2012, in Editor (Ed.)^(Eds.): Book ICT usage in enterprises 2012 (2013)
Buonanno, G., Faverio, P., Pigni, F., Ravarini, A., Sciuto, D., Tagliavini, M.: Factors affecting ERP system adoption: a comparative analysis between SMEs and large companies. J. Enterp. Inf. Manag. 18(4), 384–426 (2005)
Welsh, J.A., White, J.F.: A small business is not a little big business. Harvard Bus. Rev. 59(4), 18–32 (1981)
Raymond, L.: Information Systems and the specificity of small business. J. Small Bus. 2(2), 36–42 (1984)
Boykin, R.F.: Enterprise resource planning software: a solution to the return material authorization problem. Comput. Ind. 45(1), 99–108 (2001)
Karsak, E.E., Özogul, C.O.: An integrated decision making approach for ERP system selection. Expert Syst. Appl. 36(1), 660–667 (2009)
Panorama Consulting Group: ERP Implementation Project Costs and Durations Down, Business Benefits Up. http://Panorama-Consulting.com/resource-center/2011-erp-report/, Accessed 14 March 2012
Jacobs, F.R., Weston, F.C.: Enterprise resource planning (ERP) – a brief history. J. Oper. Manag. 25(2), 357–363 (2007)
Hammer, M.: Reengineering work: don’t automate, obliterate. Harvard Bus. Rev. 68(4), 104–112 (1990)
Verville, J., Bernadas, C., Halingten, A.: So you’re thinking of buying an ERP? ten critical factors for successful acquisitions. J. Enterp. Inf. Manag. 18(6), 665–677 (2005)
Ptak, C.: ERP: Tools, Techniques, and Applications for Integrating the Supply Chain. St Lucie Press, Boca Raton (2000)
Wei, C.C., Wang, M.J.J.: A comprehensive framework for selecting an ERP system. Int. J. Proj. Manag. 22(2), 161–169 (2004)
Kutlu, B., Akpinar, E.: ERP software selection using fuzzy methodology: a case study. J. Appl. Sci. 9(18), 3378–3384 (2009)
Badri, M.A., Davis, D., Davis, D.: A comprehensive 0-1 goal programming model for project selection. Int. J. Proj. Manag. 19(4), 243–252 (2001)
Ziaee, M., Fathian, M., Sadjadi, S.J.: A modular approach to ERP system selection: a case study. Inf. Manag. Comput. Secur. 14(5), 485–495 (2006)
Lee, J.W., Kim, S.H.: Using analytic network process and goal programming for interdependent information system project selection. Comput. Oper. Res. 27(4), 367–382 (2000)
Santhanam, R., Kyparisis, G.J.: A decision model for interdependent information system project selection. Eur. J. Oper. Res. 89(2), 380–399 (1996)
Lall, V., Teyarachakul, S.: Enterprise resource planning (ERP) system selection: a data envelopment analysis (DEA) approach. J. Comput. Inf. Syst. 47(1), 123–127 (2006)
Verville, J., Halingten, A.: A six-stage model of the buying process for ERP software. Ind. Mark. Manag. 32(7), 585–594 (2003)
Yin, R.K.: Case study research: design and methods, 4th edn. Sage, Thousand Oaks (2009)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2015 Springer International Publishing Switzerland
About this paper
Cite this paper
Johansson, B., Laurinavičius, R., Venčkauskaitė, A. (2015). ERP System Procurement in SMEs – Exploring How SMEs Specificities Affect ERP Procurement in SMEs. In: Sedera, D., Gronau, N., Sumner, M. (eds) Enterprise Systems. Strategic, Organizational, and Technological Dimensions. Pre-ICIS Pre-ICIS Pre-ICIS 2011 2012 2010. Lecture Notes in Business Information Processing, vol 198. Springer, Cham. https://doi.org/10.1007/978-3-319-17587-4_8
Download citation
DOI: https://doi.org/10.1007/978-3-319-17587-4_8
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-17586-7
Online ISBN: 978-3-319-17587-4
eBook Packages: Computer ScienceComputer Science (R0)