Organizational Readiness to Adopt ERP: An Evaluation Model for Manufacturing SMEs

Abstract

Enterprise resource planning (ERP) systems are now being implemented in small and medium-sized enterprises (SMEs). This chapter presents the results of a study that proposes and validates a framework for evaluating the level of readiness for ERP adoption in manufacturing SMEs. The framework conceptualizes readiness to adopt an ERP as including four dimensions: the organizational context, external forces, perception of ERP, and business processes. A field study of eleven manufacturing SMEs was conducted. The framework led to the classification of these firms in three clusters: “committed adopters” (4 firms), “uncommitted adopters” (5 firms), and “late adopters” (2 firms).