SMEs ERP Readiness Success Factor Framework to Increase Implementation Successful Rate in Developing Countries – a Literature Review

Abstract

ERP is a helpful tool for firms to conduct their daily operations because it can automate business
activities. This tool has become more popular among SMEs because of the important benefits like
reducing operational cost that can save time and money. However, due to its complex and technical
difficulties to deploy, ERP systems might have unexpected implementation difficulties and result in
major failure of ERP implementations. Therefore, the primary objective of this study is to develop a
complete framework designed to identify success and failure factors based on existing literature
research focusing on ERP implementations and its challenges faced by Small and Medium Enterprises
(SMEs) in developing nations. This literature research explores the complexities of ERP deployment
by emphasizing critical failure factors (CFF) happened in developing countries as well as critical
success factor (CSF) resulting in the alignment between each factor by using literature review method
from several publishers ranging from 2019-2024 from several publishers namely IEEE,
ScienceDirect, Emerald Insights, SAGE, and Springer. With this sample size, new framework is
created based on recent studies that aims to improve the implementation success rate in the context of
developing countries by linking the relation from existing literature between critical success factor
and critical failure factor and divide it into complexity and capacity dimension. To further help SMEs
differentiate which dimension can reduce or increase the chance of successful rate of implementation,
researchers create a modified TOPSIS matrix that can be used in SMEs ERP Readiness Assessment
Matrix.