The enablers and barriers of ERP implementation in developing countries

Abstract

An Enterprise Resource Planning (ERP) System is an advanced technology that manages the overall performance of the organization by managing the organizational activities of the firm. It reduces the cost and increases the overall accuracy of the business and if implemented properly can generate good results for the business. It is readily evident from the implementation of ERP system that the approach adopted by developing, as well as developed countries, hold disparate challenges and opportunities for them. It has been identified that there are various reasons because of which there are different challenges and factors of implementation of ERP system in developing and developed economies. The most important aspect is infrastructure of developed countries, it has been identified that infrastructure of developed countries effectively ease IT diffusions. Along with advanced infrastructure of developed countries have strong economic base which is not in the case of developing economies. In addition to that, advanced skills and greater IT maturity make it easy for developed economies to adopt complex computer technologies. All these factors are not present in developing economies and this leads to different implementation and challenges of ERP system in developed and developing economies. Based on the review of the past studies, regarding the favorable implementation of ERP system, it has been observed that a major proportion of quantitative studies were subjected to western countries, however, not much emphasis has been laid on evaluating the utility of ERP for the Middle Eastern countries as well as in Saudi Arabia. Thus, it is the lack of studies performed in the context of Saudi Arabia that serves as a cogent research gap. The core objective of this study is to quantitatively evaluate the key determinants of a robust ERP implementation, specifically in the context of Saudi Arabia, and this would require transcending the boundaries of Western countries to perform the analysis. Subsequently, it also helps in ascertaining the factors for favorable implementation of ERP between Saudi Arabia and Western Countries.