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ERP Implementation Challenges in Small and Medium Enterprise: A Framework and Case Study

The Malaysian small to medium enterprises (SMEs) market has big influences in the business world which is becoming more competitive. Therefore, Enterprise Resource Planning (ERP) as a functional unit integrated system is needed to streamline the business processes to achieve greater work efficiency. However, an in depth understanding about ERP system is needed to ensure the successful system implementation. This paper seeks to explore the challenges of ERP system implementation in order to deepen the knowledge on ERP system implementation in SMEs. The research method is based on a single-case design within Malaysian SME to obtain a process model of ERP system implementation adoption by SMEs. The conceptual framework for ERP system implementation, which was validated by a number of SMEs in Malaysia, is proposed in order to attempt the minimize ERP project failure in SMEs.