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AN EXTENDED FRAMEWORK FOR IMPLEMENTING OF ENTERPRISE
RESOURCE PLANNING FOR SMALL AND MEDIUM ENTERPRISES
MAJID AARABI
Universiti Teknologi Malaysia
i
AN EXTENDED FRAMEWORK FOR IMPLEMENTING OF ENTERPRISE
RESOURCE PLANNING FOR SMALL AND MEDIUM ENTERPRISES
MAJID AARABI
A thesis submitted in fulfilment of the
requirements for the award of the degree of
Doctor of Philosophy (Mechanical Engineering)
Faculty of Mechanical Engineering
Universiti Teknologi Malaysia
JULY 2013
iii
Dedicated to:
My parents and my wife,
for their hope, support and encouragement.
My daughter, Pardis and my son, Amir Mohammad
for their cheerfulness and soulfulness
iv
ACKNOWLEDGEMENTS
Firstly, I wish to express my heartfelt gratefulness to the Almighty Allah
(S.W.T) for the blessing and strength which He blessed me with during the
completion of this research.
My sincerest gratitude goes to my main supervisor Associate Prof. Dr.
Muhamad Zameri Mat Saman for his continuous support for my PhD study and
research, for his motivation, advice, patience, enthusiasm and immense knowledge
and my co-supervisor Associate Prof. Dr. Wong Kuan Yew for his guidance and
advice and his encouragement from the beginning to the completion of the present
research. Without their continued support and interest, this thesis would not have
been completed. Furthermore, I am very grateful to Prof. Dr. Hooshang M. Beheshti
for his support and motivation. I would also like to thank my earlier supervisor Prof.
Dr. Ashraf Hafiz Amin Radwan.
I am also grateful to my family, especially my wife, for her support and
psychological encouragement and the preparation of a quiet environment for my
studies. Also, I am thankful to my children for their patience. The very genuine
appreciation goes to my parents, who always motivated me.
Lastly, I would like to thank the staff of Mechanical Engineering Faculty,
Universiti Teknologi Malaysia for their help and support.
v
ABSTRACT
Enterprise Resource Planning (ERP) has been used in developed countries to
integrate the information and to support decision making in business improvement
and competition globally. Many frameworks, models and methods were proposed
and applied clearly intended for large companies. Many Small and Medium
Enterprises (SMEs) have difficulties when implementing and adopting the ERP
systems that resulted in failures. The objective of this research is to formulate a new
framework for SMEs implementing the ERP project with a view of highlighting the
enterprise architecture and Critical Success Factors (CSFs) as the foundation for ERP
systems for substantial improvement in success rate of projects. The CSFs of ERP
projects were derived using literature and questionnaire survey and were classified
by Exploratory Factor Analysis (EFA). Furthermore, the relevance of CSFs and life
cycle of implementation were obtained from the expert panel. The requirements of
SMEs' framework were also determined by the expert panel prior to the development
of the ERP implementation framework. The proposed framework was evaluated in
five case studies from SMEs in Iran. Feedback from the case studies was used to
revise the framework which addressed the requirements of the ERP system
implementation. The implementation cycle would consist of four phases, namely,
planning, selection and design, implementation and control, and evaluation and
improvement. The framework consists of relevant elements to guide the managers
and implementers in attaining the success rate of ERP projects in SMEs. The future
work of the current study may be directed towards testing the applicability and
validity of the proposed framework in various sectors, improving the CSFs
instruments, refining the relevance factors, and the stages of the implementation
process.
vi
ABSTRAK
Enterprise Resource Planning (ERP) telah digunakan dalam negara membangun untuk mengintegrasikan maklumat dan menyokong keputusan untuk pembangunan dan persaingan di peringkat global. Banyak kerangka kerja, model dan kaedah telah dicadangkan dan diaplikasikan untuk syarikat besar. Banyak Perusahaan Kecil dan Sederhana (PKS) sering kali menghadapi kesukaran ketika melaksanakan dan mengamalkan sistem ERP sehingga menyebabkan kegagalan. Tujuan kajian ini adalah untuk merumuskan satu kerangka kerja baru bagi PKS dalam pelaksanaan projek ERP dengan mengambil kira pandangan kerangka kerja syarikat dan faktor-faktor kejayaan kritikal untuk bertindak sebagai landasan untuk meningkatkan tahap kejayaan projek. Kadar kepentingan faktor-faktor kejayaan kritikal dari projek ERP ditentukan dengan menggunakan kajian literasi dan borang soal selidik. Selain itu, kaitan faktor-faktor kejayaan kritikal dan kitaran hidup implementasi diperolehi daripada panel pakar. Spesifikasi kerangka ditentukan daripada panel pakar sebelum implementasi pembangunan kerangka kerja ERP. Kerangka yang dicadangkan dinilai dalam lima kajian kes dari PKS di Iran. Maklum balas dari kajian kes digunakan untuk mengembangkan kerangka kerja yang memenuhi semua keperluan implementasi sistem ERP. Kitaran pelaksanaan terdiri daripada empat fasa iaitu perancangan, pemilihan dan reka bentuk, pelaksanaan dan pengendalian, dan penilaian dan pembaikan. Rangka kerja ini terdiri daripada semua unsur-unsur yang berkaitan untuk membimbing pengurus dan pelaksana dalam mencapai kadar kejayaan projek-projek ERP dalam PKS. Kajian masa hadapan bagi kajian ini boleh terarah kepada menguji kesesuaian dan kesahihan rangka kerja yang dicadangkan dalam pelbagai sektor, memperbaiki instrumen faktor-faktor kejayaan yang kritikal dan penapisan faktor-faktor yang berkaitan, dan peringkat-peringkat proses pelaksanaan.
vii
TABLE OF CONTENTS
CHAPTER TITLE PAGE
DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENTS iv
ABSTRACT v
ABSTRAK vi
TABLE OF CONTENTS vii
LIST OF TABLES xiii
LIST OF FIGURES xv
LIST OF ABBREVIATIONS xviii
LIST OF APPENDICES xix
1 INTRODUCTION 1
1.1 Background of the Research 1
1.2 Statement of Problem 3
1.3 Objectives and Scope of the Research 4
1.4 Research Questions 5
1.5 Significance of the Research 6
1.6 Contributions of the Research 6
1.7 Thesis Structure 7
2 LITERATURE REVIEW 10
2.1 Overview 10
2.2 Small and Medium Sized Enterprises (SMEs) 11
viii
2.3 Enterprise Resource Planning (ERP) 13
2.3.1 ERP Systems in SMEs 13
2.3.2 The Role of Enterprise Architecture
Frameworks in ERP Systems 16
2.4 Framework Definitions 16
2.5 Enterprise Architecture Frameworks 17
2.5.1 Zachman Framework 19
2.5.2 Purdue Enterprise Reference Architecture
(PERA) 20
2.5.3 The Open Group Architecture Framework
(TOGAF) 22
2.5.4 Generalized Enterprise Reference
Architecture and Methodology 24
2.5.5 EA3 Framework 26
2.6 Comparison of the current EAFs 27
2.7 Using of EAFs for Information Systems 28
2.8 Using of EAFs in ERPs 30
2.9 SMEs need to ERP 32
2.10 ERP in SMEs 33
2.11 CSFs of ERP in SMEs 34
2.12 Discussion of CSFs 36
2.13 Frameworks of ERP Systems Implementation 42
2.13.1 Saunders and Jones Model 42
2.13.2 Myers et al. Framework 43
2.13.3 Jenson and Johnson Framework 45
2.13.4 Markus and Tanis Framework 46
2.13.5 Somers et al. Framework 46
2.13.6 Parr and Shank Framework 47
2.13.7 Kalakota and Robinson Framework 48
2.13.8 Umble et al. Framework 49
2.13.9 Ehie and Madsen Framework 51
2.13.10 Jing and Qiu Model 53
2.13.11 Kale Model 54
2.13.12 Chan Framework 54
ix
2.13.13 Otieno Model 57
2.13.14 Heydariyeh Model 59
2.14 Discussion on the Findings from Literature
Review 59
2.15 Summary 63
3 RESEARCH METHODOLOGY 64
3.1 Overview 64
3.2 Research Design 64
3.3 Stage 1: Background Theory and Literature
Review 67
3.4 Stage 2: Preliminary Study 67
3.5 Stage 3: Methodology of Research 70
3.6 Stage 4: Data Collection and Factor Analysis 70
3.6.1 Survey Instrument Development 71
3.6.2 Content Validation 72
3.6.3 Pilot Survey 72
3.6.4 Data Analysis 76
3.6.5 Sample Size 77
3.6.6 Adequacy Test of Sample 78
3.6.7 Convergent and Discriminant Validity 78
3.6.8 Reliability Checking 79
3.7 Stage 5: Develop the Specifications of SMEs
Framework 80
3.8 Stage 6: Proposing the Conceptual Framework 80
3.9 Stage 7: Relevance of CSFs and Implementation
Stages 81
3.10 Stage 8: Evaluation of Proposed Framework 82
3.10.1 Case Study Strategy 82
3.10.2 Determining Case Study Designs 84
3.11 Stage 9: Development of the Revised Framework 85
3.12 Stage 10: Validation of the Revised Framework 85
3.13 Summary 86
x
4 DATA COLLECTION AND ANALYSIS 87
4.1 Overview 87
4.2 Data Collection and Analysis 87
4.3 Requirements of SMEs' Framework 94
4.3.1 Generic and not prescriptive 95
4.3.2 Implementable 96
4.3.3 Simplified for Understanding 96
4.3.4 Facilitate the Communication 96
4.3.5 Link the Elements of Framework Clearly 97
4.3.6 Present Key ERP System Implementation
Process 97
4.3.7 Include Stakeholders Interface 97
4.3.8 Simple in Structure and Practical for
Implementation 98
4.3.9 Using Engineering Tools and Techniques 98
4.3.10 Include CSFs of ERP Systems
Implementation 98
4.3.11 Aid to Documentation 99
4.4 Discussion on Outcomes from Data Analysis 99
4.5 Summary 102
5 DEVELOPMENT OF CONCEPTUAL FRAMEWORK FOR ERP IMPLEMENTATION 103
5.1 Overview 103
5.2 Conceptual Framework 103
5.3 Relevance of CSFs and ERP Implementation
Phases 108
5.3.1 Respondent Background 109
5.3.2 Results of the Interviews 111
5.3.3 Discussion of the Interviews 117
5.4 Summary 121
6 CASE ANALYSIS: ERP IMPLEMENTATION FRAMEWORK VALIDATION AND DISCUSSIONS 122
xi
6.1 Overview 122
6.2 Background of the Case Companies 123
6.2.1 Company A 123
6.2.2 Company B 124
6.2.3 Company C 124
6.2.4 Company D 125
6.2.5 Company E 125
6.2.6 Overview of Case Study Companies 126
6.3 Current Information Systems Implementation
Practice at Case Study 127
6.3.1 Company A 127
6.3.2 Company B 128
6.3.3 Company C 129
6.3.4 Company D 130
6.3.5 Company E 131
6.3.6 Cross Case Discussion of Information
Systems Implementation Current
Practices 131
6.4 Evaluation of the Framework 133
6.4.1 Company A 133
6.4.2 Company B 134
6.4.3 Company C 135
6.4.4 Company D 136
6.4.5 Company E 136
6.4.6 Implementation Stage 137
6.4.7 Approaches and Elements of the
Framework 141
6.4.8 Comparative Summary of Case
Companies 144
6.5 Suggestions for Revision and Improvement 145
6.6 Development of Revised Framework 145
6.7 Validation of Revised Framework 151
6.8 Comparison of Proposed Framework with Others 153
6.9 Summary 154
xii
7 CONCLUSION AND FUTURE WORK 156
7.1 Conclusion 156
7.2 Limitation of the Research 158
7.3 Recommendations for Future Work 158
REFERENCES 160
Appendices A - G 176-203
xiii
LIST OF TABLES
TABLE NO. TITLE PAGE
2.1 Definition of SMEs in different countries 11
2.2 The categorized ERP benefits 14
2.3 Zachman framework (Zachman, 1996) 19
2.4 Comparison of the current EAFs 28
2.5 The frequency of CSFs citation in SMEs 37
2.6 The frequency of CSFs citation in Large
Organizations 38
2.7 Comparing the Frequency of Citation of CSFs in
Large Organizations and SMEs 41
2.8 Comparison of implementation frameworks 61
3.1 Stage 1 - background theory and literature review 67
3.2 Stage 2 - preliminary study 68
3.3 Stage 3 - methodology of research 70
3.4 Stage 4 - data collection and factor analysis 71
3.5 Revision of questionnaire 73
3.6 Respondent characteristics 76
3.7 KMO and Bartlett's Test 78
3.8 Stage 5 - develop the specifications of SMEs
framework 80
3.9 Stage 6 - proposing the conceptual framework 81
3.10 Stage 7- relevance of CSFs and implementation
stages 81
3.11 Stage 8 - evaluation of the proposed framework 82
3.12 Stage 9 - development of the revised framework 85
xiv
3.13 Stage 10 - validation of the revised framework 86
4.1 Eigenvalues and Total Variances 89
4.2 Rotated Component Matrix (Varimax Rotation
Matrix) 89
4.3 Pearson correlation between CSFs and success rate
of ERP implementation 92
4.4 Pearson correlation between success rate and
scientific methodology of ERP implementation 92
4.5 Cronbach's Alpha 93
5.1 The responses of all respondents 112
5.2 Iteration of CSFs importance for implementation in
interviews 117
5.3 Priorities of related CSFs in each stage of
implementation 118
6.1 Overview of company and respondents backgrounds 126
6.2 Cross case comparison of information systems
implementation 132
6.3 Evaluation of the methodology processes 140
6.4 Cross-case evaluation of the approaches and
elements 143
6.5 Summary of suggestions from the case study
companies 145
6.6 Actions of revision as response of suggestions 146
6.7 Validation results of the revised framework 152
xv
LIST OF FIGURES
FIGURE NO. TITLE PAGE
1.1 Contributions of research scheme 7
1.2 Overview of research process and corresponding
chapters 8
2.1 Literature review scheme 10
2.2 The life cycle of PERA (Williams, 1994) 21
2.3 TOGAF architecture development method
(Harrison, 2007; Schekkerman, 2004) 22
2.4 GERAM framework (Bernus et al., 2003) 24
2.5 GERA architecture (Bernus et al., 2003) 25
2.6 EA3 Framework (Bernard, 2005) 26
2.7 IS function performance evaluation (Saunders and
Jones, 1992) 43
2.8 DeLone and McLean IS success model (DeLone
and McLean, 1992) 43
2.9 The framework of IS assessment (Myers et al.,
1997) 44
2.10 Jenson and Johnson framework (Jenson and
Johnson, 1999) 45
2.11 Markus and Tanis ERP implementation life cycle
(Markus and Tanis, 2000) 46
2.12 Somers et al. conceptual model of ERP
implementations (Somers et al., 2000) 47
2.13 Parr and Shank framework for ERP implementation
(Parr and Shanks, 2000b) 48
xvi
2.14 Kalakota and Robinson framework (Kalakota and
Robinson, 2001) 49
2.15 Umble et al. framework (Umble et al., 2003) 50
2.16 Five-stage ERP implementation framework (Ehie
and Madsen, 2005) 52
2.17 Interpretative structural model of ERP
implementation (Jing and Qiu, 2007) 53
2.18 Conceptual model for implementation of ERP in
SMEs (Kale et al., 2007) 54
2.19 Chan's theoretical framework of ERP
implementation (Chan, 2008) 55
2.20 Empirical ERP Implementation Model (EEIM)
(Otieno, 2010) 58
2.21 CSFs of ERP implementation model (Heydariyeh et
al., 2012) 60
3.1 Overview of research design 66
3.2 Case study model (Yin, 2009; 2011) 84
3.3 Basic type of designs for case studies (Yin, 2009;
2011) 85
4.1 Classified CSFs and related items 94
4.2 Cause-Effects Diagram of the Critical Success
Factors and Variances 100
5.1 Conceptual framework for ERP implementation in
SME 104
6.1 General view of reviewing and validation process
using case study 123
6.2 Diagram of ERP system implementation in
Company A 127
6.3 Diagram of ERP system implementation in
Company B 128
6.4 Diagram of ERP system implementation in
Company C 129
6.5 Diagram of ERP system implementation in
Company D 130
xvii
6.6 Diagram of ERP system implementation in
Company E 131
6.7 Revised framework of ERP Implementation for
SMEs 147
6.8 Detailed Phase one - Strategic Planning stage 148
6.9 Detailed Phase one – Business Architecture stage 149
6.10 Detailed Phase two (Design) stages 149
6.11 Detailed Phase three of the implementation 150
6.12 Detailed Phase Four of the implementation 151
xviii
LIST OF ABBREVIATIONS
SMEs - Small and Medium Sized Enterprises
ERP - Enterprise Resource Planning
EA - Enterprise Architecture
EAF - Enterprise Architecture Framework
EFA - Exploratory Factor Analysis
IS - Information System
IT - Information Technology
ICT - Information and Communication Technology
PERA - Purdue University Reference Architecture
TOGAF - The Open Group Architecture Framework
ADM - Architecture Development Method
GERAM - Generalized Enterprise Reference Architecture and
Methodology
GERA - Generic Enterprise Reference Architecture
EA3 - Enterprise Architecture Cube
ZF - Zachman Framework
xix
LIST OF APPENDICES
APPENDIX TITLE PAGE
A Items for Measuring of Critical Success Factors 176
B Final Revised Questionnaire for CSFs 178
C Measures for Evaluation of Success for
Information Systems 182
D Evaluation of the Framework for ERP
Implementation in SMEs 184
E Validation of the Revised Framework for ERP
Implementation in SMEs 195
F Interviewed Expert Specifications 202
G Relevance of Critical Success Factors (CSFs) and
Implementation Stages 203
1
CHAPTER 1
1 INTRODUCTION
1.1 Background of the Research
Enterprise Resource Planning (ERP) has been widely used in developed
countries to integrate the information and to support decision making to achieve
process improvement and competition in global market. Davenport (2004) predicted
that ERP is an inevitable requirement for performance in the 21st century. There are
some crucial drivers for ERP implementation, such as improving the business
operations, integration of processes, reducing operational costs, making business
decisions and supporting customer responsiveness. The ERP system providers are
now trying to extend their market to companies in developing countries, Small and
Medium-Sized Enterprises (SMEs), and different kinds of industries while preparing
ERP systems. However, ERP systems of SMEs in developing countries are in the
early stages. There are significant barriers facing SMEs in developing countries such
as limitation of financial resources, human resources, poor management base and
lacking of Information Technology (IT) experts.
Therefore, many SMEs often encounter several difficulties when
implementing and adopting ERP systems (Adam and O'Doherty, 2003; Blili and
Raymond, 1993; Buonanno et al., 2005; Čelar et al., 2011; Dixit and Prakash, 2011;
Doom et al., 2010; Esteves, 2009; Ghobakhloo et al., 2011; Haddara and Zach, 2011;
Juell–Skielse, 2006; Poba-Nzaou et al., 2008; Raymond and Uwizeyemungu, 2007;
Snider et al., 2009; Snider, 2004; Upadhyay et al., 2010; Upadhyay et al., 2011a;
2
Upadhyay and Dan, 2008; Upadhyay et al., 2011b; Walsh et al., 2010). Sometimes
these SMEs fail to achieve the full potential efficiency and benefits of these systems
which can improve the productivity and quality of decision making in these firms.
There is much research on ERP systems in developed countries but there is a
scarcity of ERP systems in SMEs of developing countries. ERP implementation in
SMEs is a crucial issue for academic researchers and practitioners who need a
simple, comprehensive and appropriate framework to justify ERP systems thus
ensuring the achievement of full potential efficiency and benefits.
Whereas numerous frameworks, models and methods have been proposed
and applied by practitioners and researchers, most popular ones are based on
software project implementation methods (Ehie and Madsen, 2005; Otieno, 2008;
2010; Zhang et al., 2003; Zhang et al., 2005). However, the current frameworks do
not cover the requirements of ERP implementation lacking the necessary
specifications of SMEs framework. Despite the preponderance of Enterprise
Architecture Frameworks (EAFs) (Minoli, 2008; Saha, 2007; Schekkerman, 2004;
Zachman, 2006; Zachman, 1996) for different purposes, none of them is easily
implementable, comprehensive and suitable to be used as a purposeful framework for
ERP implementation in SMEs. Furthermore, there are a number of studies which
identify and evaluate the Critical Success Factors (CSFs) of ERP systems.
Nevertheless, most of these studies have been conducted in developed countries and
large enterprises. Therefore, the need for investigating SMEs in developing countries
is inevitable.
Regarding the complexity and enterprise-wide nature of ERP projects,
practitioners and researchers suggest the application of frameworks to provide a step
by step guideline to clarify the implementation, evaluation and documentation of
ERP processes (Chan, 2008; Ehie and Madsen, 2005; Heydariyeh et al., 2012; Jing
and Qiu, 2007; Kale et al., 2007; Myers, 2003; Otieno, 2010; Somers and Nelson,
2001; Somers et al., 2000; Zachman, 2010; Zhang et al., 2005).
To prevent the failure and to improve the success rate of the ERP
implementation, a comprehensive framework needs to be established whereby the
3
critical factors for successful implementation of ERP projects are delineated (Chan,
2008; Ehie and Madsen, 2005; Otieno, 2010).
The SMEs specifications, CSFs of ERP implementation and important issues
of Enterprise Architecture Framework (EAF) were not considered in previous
frameworks. Enterprise architecture and CSFs for ERP systems should also be
contemplated while developing the framework in SMEs. The framework developed
for the implementation of ERP systems can contribute to the current knowledge base
through consideration of the EAF approach and critical success issues.
This study proposes a framework for implementing ERP systems in SMEs.
This framework was validated in the case of Iranian SMEs to fulfill the
specifications.
1.2 Statement of Problem
The problem investigated in the present research can be discussed from
several perspectives. Firstly, ERP is one of the most important systems in the market
to help companies to achieve their business objectives and to be strong enough in the
competitive market. However, some difficulties and problems such as the enterprise-
wide nature of the ERP and their discount of some CSFs affect the implementation of
ERP systems. ERP failures can be attributed more to implementation rather than to
software and hardware approaches. Regardless of the size of the firms, implementing
an ERP system is one of the most challenging projects for any company. It should be
mentioned that success in ERP project implementation does not come effortlessly
and its benefits and return on investment are not immediately accessible. Rather,
efficiency and benefits are obtained in the long time (Gargeya and Brady, 2005).
Secondly, most of the known challenges facing ERP systems adaptation and
use are mainly experienced in the developed world. There are a few empirical
research studies on ERP implementation which focus on SMEs in developing
countries (Asemi and Jazi, 2010; Fathian et al., 2008; Ghobakhloo et al., 2011).
4
Thirdly, in comparison with Information Systems (ISs) research and other
academic fields, theories on ERP system implementation have received less attention
and most publications in the field of ERP systems implementation do not fully
provide theoretical support (Zhang et al., 2005).
Fourthly, because of the numerous differences between SMEs and large
enterprises, the models, methods and frameworks developed for large enterprises are
often not applicable to SMEs (Dandridge, 1979; Deros et al., 2006; Radas and Bozic,
2009).
Finally, the Information and Communication Technology (ICT) development
plan which defined the long term ICT operational planning and priorities of Iran
from 2002 emphasized IT deployment in all sectors where one of the main aims is to
support IT development through Iranian SMEs (Fathian et al., 2008). Furthermore,
Iran is one of the pioneering developing countries where the implementation rate of
the ERP systems has recently been increasing (Nikookar et al., 2010). In addition,
because of the sanctions imposed by European countries and United States, the
foreign ERP system providers are not interested in having agents to do business with
Iranian companies. It also seems that the global ERP systems might not be
economically justified in implementing ERP in Iranian SMEs, so the local providers
of the software have tried to design and implement the needed ERP systems
(Nikookar et al., 2010).
The implementation of ERP systems is very expensive and time consuming.
So, a comprehensive operational framework, as a guideline for implementation of
ERP systems in SMEs, is needed to prevent the project failures.
1.3 Objectives and Scope of the Research
Regarding the advantages and needs of ERP systems in SMEs,
implementation of ERP systems is complex and enterprise-wide. Thus, the existence
of a framework for the implementation of ERP systems in SMEs of Iran as a
developing country is seriously needed.
5
The ultimate aim of this research is to develop a framework for
implementation of ERP systems in SMEs in developing countries.
The main objectives of this study are:
i. To identify and classify the critical success factors of ERP systems in
SMEs.
ii. To identify the relevance of the classified CSFs and implementation
methodology stages.
iii. To develop an appropriate framework to implement ERP systems in
SMEs.
The scope of the research is:
i. This study considers only Small and Medium Enterprises.
ii. This study includes both private and public SMEs in different industries (i.e.
manufacturing, service, retail and education).
iii. The validation of the proposed framework by potential users as case studies.
1.4 Research Questions
Regarding the problem stated earlier and in achieving the objectives, the
research work has attempted to answer the following four questions:
i. What are the critical success factors (CSFs) of ERP system
implementation in SMEs?
ii. How are CSFs of ERP systems to be classified in SMEs?
iii. How are the classified CSFs and implementation methodology stages
related?
6
iv. What is an appropriate framework for implementation of ERP systems in
SMEs?
1.5 Significance of the Research
The significance of this research is:
a. For practitioners:
i. The new proposed framework can be used as a guideline for
implementation of ERP systems in SMEs.
ii. It will provide guidelines to specify various activities that are necessary
for the successful implementation of the ERP systems in SMEs. Besides,
it can be considered as a first step for development of various ERP
application modules.
b. For researchers:
The proposed framework can serve as a foundation for research to
improve ERP systems in SMEs of developing countries whereby their success
rate is enhanced.
1.6 Contributions of the Research
This research determines and classifies the CSFs of ERP implementation in
SMEs. It also includes the specifications of the ERP implementation framework for
SMEs. A comprehensive and integrated framework for implementation of ERP
systems in SMEs has been proposed and the relevance of classified CSFs with
implementation stages is clarified. Figure 1.1 shows a summary of the research
contributions.
7
Figure 1.1 Contributions of research scheme
1.7 Thesis Structure
Contents of the thesis are organized into seven chapters. Figure 1.2 shows an
overview of the research process and the corresponding chapters.
Chapter 1 focuses on the research background with regard to SMEs, ERP
systems and enterprise architecture frameworks (EAFs).
Framework of ERP Implementation in SMEs
CSFs of ERP in SMEs of Developing Countries
Interrelationship of CSFs and EAF
CSF
s of E
RP
Impl
emen
tatio
n
Ente
rpris
e A
rchi
tect
ure
Fram
ewor
ks
Specifications of SMEs’ Framework
8
Figure 1.2 Overview of research process and corresponding chapters
The thesis continues with a review of the literature on ERP systems and
critical success factors of these systems in SMEs. Also, some enterprise architecture
Problem Definition - Background of the study - Problem statement - Objectives of the study - Research questions - Significant of the study - Limitations of the study
Chapter 1
Literature Survey - Enterprise Architecture (EA) - Small and Medium Sized
Enterprises (SMEs) - Enterprise resource planning
(ERP) - Critical success factors (CSFs)
Chapter 2
Research Methodology
- Questionnaire design - Research strategy
(Questionnaire survey & Interviewing & Case study)
- Statistical analysis Chapter 3
Data Collection , Analysis and Interpretation
- Data collection (Mail questionnaire & email & interviews)
- Data analysis (Exploratory factor analysis)
Chapter 4
Conclusion - Conclusions - Recommendation and Future
works Chapter 7
Development of the Proposed Framework
- Regarding the EA and interrelation the CSFs and implementation process stages
Chapter 5
Validation of Framework - Case Studies
Chapter 6
9
frameworks relevant to this research and their usage in ERP systems are discussed in
Chapter 2.
Chapter 3, is incorporating the research methodology employed, both
qualitative and quantitative. The validation procedure of the framework is also
outlined in Chapter 3.
Chapter 4 discusses the manner in which data are collected and analyzed and
specifications of SMEs' framework are identified. Chapter 5 takes up the
development of proposed framework and the interrelation of CSFs and
implementation process stages. This is followed by the discussion on validation and
revision of the proposed framework within the case-study companies in Chapter 6.
Finally, Chapter 7 presents some conclusions and recommendations for future
studies.
160
8
9 REFERENCES
Aaldammas, A. and AL-Mudimigh, A. S. (2011). Critical Success and Failure
Factors of ERP Implementations: Two Cases from Kingdom and Saudi
Arabia. Journal of Theoretical and Applied Information Technology, 28, 73-
82.
Adam, F. and O'Doherty, P. (2003). ERP Projects: Good or Bad for SMEs? Second-
wave enterprise resource planning systems: implementing for effectiveness.
Akbulut, A. and Motwani, J. (2005). The Road to ERP Success: Understanding End-
User Perceptions. Journal of International Technology and Information
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