A profile of ERP adoption in manufacturing SMEs

Developing SME performance management practices: interventions for improving productivity

Purpose

The paper is a proof of concept (PoC) intervention study aimed for developing performance management (PM) practices in manufacturing small and medium-sized enterprises (SMEs) with the longer-term aim enabling the SMEs to improve their productivity. The intervention was designed and deployed by a collaborative quartet of academics, management consultants, accountancy firm and a commercial bank manager.

Design/methodology/approach

The paper firstly musters a set of initialising PM practices aligned to productivity improvement. These are utilised to design a knowledge transfer intervention for deployment with a set of manufacturing SMEs incorporating some associated productivity tools. The evaluation of the intervention utilised a case study approach founded on a logic model of the intervention to assess the development of the PM practices.

Findings

The intervention contributed to a partial development of the mustered practices and the productivity diagnostic based on the multi-factor productivity (MFP) abstraction and a data extraction protocol had the strongest impact. The study revealed the importance of the three interlaced factors: Depth of engagement, feedback opportunities and the intervention gradient (the increase of independent action from the participating SME's and the diminishment of the external intervention effort).

Research limitations/implications

The case study is based on a limited number of individual SME's, and within just the manufacturing sector.

Practical implications

SME businesses will require a more sustained programme of interventions than this pilot to develop PM capability, and depth of engagement within the SME is critical. Professional stakeholders can be utilised in recruitment of firms for intervention programmes. Business can start developing PM capability prior to PMS implementation using the tools from this programme.

Originality/value

The productivity diagnostic tool, based on a synthesis of MFP and the performance pyramid, an array of potential initialising practices for PM capability and discovery of potential mechanisms for PM practice development.

Operationalization of Critical Success Factors to Manage the Industry 4.0 Transformation of Manufacturing SMEs

As an increasing number of manufacturing small and medium enterprises (SMEs) tackle their digital transformation toward Industry 4.0, the need for a methodology to manage this transformation, tailored to their particular context, becomes apparent. Since recent studies have identified critical success factors (CSFs) for the Industry 4.0 transformation of manufacturing SMEs, this paper aims to operationalize these CSFs and propose an Industry 4.0 transformation management methodology. This research is based on an extensive literature review on CSFs for Industry 4.0 transformation, followed by a Delphi–Régnier survey with a panel of Industry 4.0 experts. For each CSF, specific actions to perform at different stages of the Industry 4.0 transformation were defined and validated by experts. Based on a proposed Industry 4.0 transformation process, not all CSFs have to be managed at every phase and step of the transformation process. Each CSF must be supported by different actions positioned within each Industry 4.0 transformation process step. The results of this research are particularly relevant for manufacturing SME managers and consultants managing Industry 4.0 transformation. By performing these actions, they can ensure the achievement of multiple CSFs during their digital transformation projects and, thus, ensure their success. This research combines the academic and professional domains by proposing a way for theoretical findings to be translated into clear actions. The proposed model allows all the actors involved in manufacturing SMEs’ digital transformation projects to understand the actions needed to achieve a successful transformation.

Disentangling the link between ICT and Industry 4.0: impacts on knowledge-related performance

Purpose

Industry 4.0 technologies are promising to increase manufacturing companies' performance through the new knowledge that such digital technologies allow to create and manage within the firm boundaries and through customer interactions. Despite the great attention on the Industry 4.0 adoption paths, little is known about the relationships with previous waves of digital technologies, namely, information and communication technologies (ICTs), and how different groups of both types of technologies link to knowledge and its related performances.

Design/methodology/approach

The study employed a quantitative research design using a survey method. Submitting the questionnaire to entrepreneurs, chief operation officers or managers in charge of the operational and technological processes of Italian manufacturing firms, 206 respondents stated that their firm has adopted at least one of the seven Industry 4.0 technologies investigated.

Findings

The findings of the study highlight the positive relationship between ICT and Industry 4.0 technologies in terms of both intensity and groups of technologies (Web-based, Management and Manufacturing ICT; Operation, Customization and Data-processing 4.0), and how technologies affect knowledge-related performances in terms of products and processes, job-learning, product-related services and customer involvement.

Originality/value

This study is one of the first attempts to link groups of ICT to groups of Industry 4.0 technologies and to explore the effects in terms of knowledge-related performances as a measure of technology use. The study shows strong path dependency among ICT, Industry 4.0 and knowledge performance, enriching the literature on technological innovation and knowledge management.

A Systematic Snapshot of Small Packaged Software Vendors' Enterprises

This article describes how small packaged software vendors' enterprises (SPSVEs) have played a massive role in a software environment and contributed dramatically to economies. The purpose of this article is to investigate and categorize the most recent of literature addressing small packaged software vendors' enterprises through a systematic snapshot research in order to identify current research topics and highlight some areas needing more consideration. The pattern of the authors' systematic approach is based on developing a classification scheme which targets a collection of papers published within the period of 2007-2017. The authors analysed one hundred and one papers from peer-reviewed conferences, journals, and workshops to examine the current state of SPSVE's research in order to provide systematic snapshot mapping (SSM) that includes the small packaged software life cycle, research methods used, and country of study. The systematic snapshot of 101 papers reveals that the majority of the literature has focused on the planning and implementation phases of SPSVEs. Figuring out a new model of packaged software life-cycle in SMEs will occur by applying the model of categorizations with regard to the life cycle with its factors and sub factors. Moreover, it will contribute to finding research methods, regions, top ten citation, articles type classifications, and other kinds of classifications. This research is targeted to small packaged software vendors' enterprises (SPSVEs). The authors' finding is intended for software research areas more than economic research areas. This article has presented a high degree of benefits in order to assist researchers in evidence-based decision making in terms of investigating hot research areas in line with the small packaged software vendors' enterprises (SPSVEs).

Revisiting technology-organization-environment (T-O-E) theory for enriched applicability

Purpose

This paper aims to propose and test a ten-factor framework of four contexts from technology-organization-environment (T-O-E) theory and unified theory of acceptance and use of technology (UTAUT) to provide insight(s) that complements and extends extant inquiries on technology adoption.

Design/methodology/approach

Survey data were collected from small service enterprises with strong operations in Port Harcourt, Nigeria, and the mode of sampling was purposive and snow ball, whereas analysis involved structural equation modeling.

Findings

The results show that factors in the technological, organizational and environmental contexts have direct statistically significant relationship with adoption; thus, adoption is more driven by T-O-E factors than by individual factors. For individual context, social factor equally was statistically supported, whereas hedonistic drive was not.

Research limitations/implications

The study is limited by its scope of data collection and phases; therefore, extended data are needed to apply the findings to other sectors/industries/countries and to factor in the implementation and post-adoption phases and business to business (B2B) adoption to forge a more holistic framework.

Practical/implications

Implicit is that the findings encourage vendors and policy makers to recognize the strength of interpersonal and group relationships in addition to T-O-E contexts in developing investment decisions.

Originality/value

The paper contributes to the growing research on innovation adoption by using factors within the T-O-E and UTAUT frameworks to explain SMEs’ adoption of technologies.

Organizational adoption of digital information and technology: a theoretical review

Purpose

This paper aims to review previous studies on how organizations, particularly small and medium enterprises (SMEs), adopt digital information and technology, especially on the drivers and the outcomes of the adoption itself.

Design/methodology/approach

The present study follows a literature review design. Previous studies that examine SMEs’ digital information and technology adoption are taken into account in building the conclusion.

Findings

The review reveals that digital information and technology that is used for marketing-related position allows SMEs to be more competitive. In general, there are three main theories that have been used to understand the adoption process (i.e. diffusion of innovation theory, technology-organization-environment framework and institutional theory). These theories should be used in conjunction with each other to better explain the adoption process. Additionally, there are three characteristics (i.e. innovation, firm and environmental) that are related to the risks and barriers of the adoption process.

Originality/value

This theoretical review is among the few that put forward the findings reported in research articles on the digital information and technology adoption process within SMEs. Moreover, this paper summarizes the issues (i.e. drivers, outcomes, risks and barriers) related to the adoption process.

An analysis of the factors affecting the adoption of cloud consumer relationship management in the machinery industry in Taiwan

In recent years, cloud computing services have developed rapidly and are being widely used, but most applications focus on consumers. However, a few successful cases of enterprise application systems have been constructed and adopted by companies. To understand the factors that affect the adoption by a company of cloud Customer Relationship Management (CRM), which is an enterprise application system, this study used a Technology Organization Environment Framework (TOE) as a theoretical framework, reviewed related literature on the relevant factors affecting the adoption of a cloud service, and then constructed a three-level hierarchical table of the factors. A pairwise comparison questionnaire was then designed and issued to top managers of firms in the machinery industry in Taiwan that have adopted cloud CRM. A fuzzy analytical hierarchy process (FAHP) was then used to calculate the weights of the factors, based on the returned questionnaires. The results show that enterprises in the machinery industry gave priority to the factor, ‘support of senior managers’, followed by the factors ‘organizational policies’ and ‘system information security’. Some implications of the findings are discussed, which can serve as a guide for the successful adoption of cloud CRM in machinery industry if firms allocate their resources appropriately to these important factors. These results can also be used by the service providers of cloud CRM to devise effective marketing strategies.

Understanding determinants of cloud computing adoption using an integrated TAM-TOE model

Purpose

– The purpose of this paper is to integrate TAM model and TOE framework for cloud computing adoption at organizational level.

Design/methodology/approach

– A conceptual framework was developed using technological and organizational variables of TOE framework as external variables of TAM model while environmental variables were proposed to have direct impact on cloud computing adoption. A questionnaire was used to collect the data from 280 companies in IT, manufacturing and finance sectors in India. The data were analyzed using exploratory and confirmatory factor analyses. Further, structural equation modeling was used to test the proposed model.

Findings

– The study identified relative advantage, compatibility, complexity, organizational readiness, top management commitment, and training and education as important variables for affecting cloud computing adoption using perceived ease of use (PEOU) and perceived usefulness (PU) as mediating variables. Also, competitive pressure and trading partner support were found directly affecting cloud computing adoption intentions. The model explained 62 percent of cloud computing adoption.

Practical implications

– The model can be used as a guideline to ensure a positive outcome of the cloud computing adoption in organizations. It also provides relevant recommendations to achieve conducive implementation environment for cloud computing adoption.

Originality/value

– This study integrates two of the information technology adoption models to improve predictive power of resulting model.

Can Organizational Structure Influence ERP Success?

Implementing enterprise resource planning systems is a sophisticated, lengthy and costly process which tends to face serious failure. Though many contributing factors have been cited in the literature, the authors argue that the integrated nature of ERP systems, which generally requires an organization to adopt standardized business processes reflected in the software, is one of the key factors contributing to these failures. The integration and standardization imposed by most ERP systems may not be suitable for all types of organizational structures and it seems that some characteristics in organizational structures affect the likelihood of implementation success or failure. Based on the theory of organizational structure, this paper analyzes how the traditional variables which define a firm's organizational structure such as formalization, complexity, and centralization along with two variables of size and CIO position in an organization influence ERP projects success. The paper tests five hypotheses using a sample of 203 Iranian cases. The results show that all of the research variables on organizational structure exert a positive influence on ERP success which confirms all the research hypotheses.

Review on IT adoption: insights from recent technologies

Purpose

– The purpose of this paper is to review the literature on information technology adoption in organizations to understand the need of integrated models for technology adoption. It further makes an attempt to identify key parameters to integrate technology acceptance model (TAM) and technology-organization-environment (TOE) framework for firm level technology adoption. This integration is intended to improve predictive power of resulting model.

Design/methodology/approach

– The research papers are accessed from the popular databases from 2000 to 2012. The selected papers have addressed technology adoption in context of recent technologies such as e-commerce, ERP, RFID, EDI and knowledge management, etc. The paper attempts to review the studies based on TAM model and TOE framework to identify relevant set of variables for the adoption of these technologies in organizations.

Findings

– TAM and its extended versions have high capability to explain the technology adoption while the significance of TOE framework is similarly recognized in explaining technology adoption. This review presents a holistic picture of a set of variables which can be used in the adoption of similar technologies in future. Further, the study has advocated the integration of TAM model and TOE framework to improve their explanatory power in technology adoption. The identified set of variables of TAM model and TOE framework can be used to integrate the two. Guidelines for integrating the two are also explained.

Research limitations/implications

– This study provides a platform for studying adoption of similar technologies using integration of TAM and TOE.

Practical implications

– The researchers and managers can use the set of variables identified for adoption of similar technologies in organizations.

Originality/value

– The review presents a set of variables which can be used to study adoption of similar technologies in future.

An integrated decision support system for ERP implementation in small and medium sized enterprises

Purpose

– Implementing enterprise resource planning (ERP) is a challenging task for small- and medium-sized enterprises (SMEs). The purpose of this paper is to develop an integrated decision support system (DSS) for ERP implementation (DSS_ERP) to facilitate resource allocations and risk analysis.

Design/methodology/approach

– Analytical regression models are developed using data collected through a survey conducted on 400 SMEs that have implemented ERP systems, and are validated by a simulation model. The validated analytical regression models are used to construct a nonlinear programming model that generates solutions for resource allocations, such as time and budget.

Findings

– ERP implementation cost increases along the time horizon, while performance level increases up to a point and remains unchanged. To maximise or achieve a certain level of performance within a budget limitation, CSFs are prioritised as: project management (highest), top management, information technology, users and vendor support (lowest). SMEs are recommended to concentrate effort and resources on CSFs that have a greater impact on achieving their desired goals while optimising utilisation of resources.

Research limitations/implications

– DSS_ERP proves to be beneficial to SMEs in identifying required resources and allocating resources, but could be further tested in case studies for its practical use and benefits.

Practical implications

– DSS_ERP serves as a useful tool for SMEs to predict required resources and allocate them prior to ERP implementation, which maximises the probability of achieving predetermined targets. It also enables SMEs to analyse risk caused by changes to resources during ERP implementation, and helps them to be better prepared for the risks.

Originality/value

– The research contributes to the scarce research on ERP implementation using scientific methods. A novel nonlinear programming model is constructed for ERP implementation under time and budget limitations, facilitating resource allocations in an ERP implementation, which has not been reported in any previous research. The research offers a theoretical basis for empirical studies of resource allocations in ERP implementation.

The Influence of Organisational Size, Internal IT Capabilities, and Competitive and Vendor Pressures on ERP Adoption in SMEs

This empirical study investigates the influence of organisational size, internal IT capabilities and external factors, such as competitive and vendor pressure, on ERP adoption within SMEs. Existing research on ERP adoption has indentified some of the potential factors affecting SMEs, such as organisation size as one of the most significant ones. Yet none of this previous research has looked at organisational size, internal IT capabilities and external pressures in a unified framework and in context to SMEs. More specifically, this study focuses on the direct and moderating relationships which may affect an SME’s decision to adopt an ERP system. An analysis of a sample of 229 SMEs shows clear direct and moderating relationships amongst the above factors. Concrete recommendations are provided to accelerate the rate and success level of ERP adoption within SMEs.

An Investigation of Enterprise Resource Planning Implementation in a Small Firm

Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system.