The Paradox of Complex ERP Systems Used In Simplified Organisations Such As Small And Medium Enterprises

The Paradox of Complex ERP Systems Used In Simplified Organisations Such As Small And Medium Enterprises

DOI: 10.4018/978-1-60566-968-7.ch002
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Abstract

This chapter further develops and generalises findings from the authors’ July 2008 paper in the International Journal of Enterprise Information Systems (IJEIS) by adding organisational issues such as business process reengineering (BPR). The authors argue that enterprise resource planning (ERP) systems are complex management tools that impose standard business processes from larger manufacturing firms. The authors test whether these systems can be adapted effectively to more simplified organisations such as small and medium enterprises (SMEs). The authors found that SMEs tend to have a high perceived level of satisfaction when using these complex tools, independent of size or sector. However, they cannot clearly establish that SMEs having applied BPR while implementing an ERP system are more satisfied than those that did not.
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Literature Review

The first part of this literature review focuses on academic findings regarding business process reengineering and organizational change due to ERP systems implementation and use. The second part summarises the main subjects developed specifically for SMEs in order to examine BPR and SME satisfaction with ERP implementation. We find that the paradox of using complex ERP systems in simplified organisations has not been addressed sufficiently thus far in the literature. There is a critical need to bridge this research gap.

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