Barriers and Success Factors for ERP Implementation in Nepalese SMEs: A Case Study Approach
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This study examines the factors affecting Enterprise Resource Planning (ERP) implementation in Nepalese Small and Medium Enterprises (SMEs) using the Technology-Organization-Environment (TOE) model. This study addresses the limited empirical understanding of implementation challenges, essential success factors and ERP outcomes within retail and textile SMEs. Multiple case study with descriptive outcome scoring was used, with four SMEs (two in retail and two in textiles). Four SMEs with ERP systems or in the process of implementing ERP systems were included in the study. Using a semi-structured interview methodology, primary data was gathered from the managers, ERP users and employees directly involved with ERP implementation. Where available, secondary data, including ERP-related documents and ERP reports, were also analyzed. Thematic analysis was used to analyze the collected data based on the TOE model while the descriptive outcome scoring was used to evaluate the outcomes.
The results indicated that organisational factors such as top management support, employee training, and resistance to change were the most influential factors in ERP implementation results. Technological factors such as the complexity of the system and Information and Communication Technology (ICT) capability affected implementation effectiveness and vendor support was influential in overcoming technological constraints. Firms having more effective organizational readiness and management showed improved operational efficiency, system usage and decision-making results compared to firms experiencing more employee resistance and training limitations.
The study is a novel addition to the literature on ERP implementation study as it offers empirical evidence from the Nepalese SMEs and illustrates the interdependence of the various factors within the technological, organizational and environmental context in the capacity constrained SME context. The findings are also helpful for the SME managers and ERP vendors in understanding the difficulties and key success factors associated with ERP implementation.