Performance evaluation of ERP implementation in Indian SMEs

Purpose - The purpose of this paper is to find out whether and how Indian small to medium-sized enterprises (SMEs) are benefiting because of enterprise resource planning (ERP) implementation, through survey-based research. This will help other SMEs take appropriate decisions about ERP implementation. Design/methodology/approach - The research is exploratory in nature, a survey methodology is used for study and it is cross-checked with the personal interviews of the key personnel in the SMEs and the ERP vendors. A structured questionnaire was developed to get the information. Findings - The survey of 130 SMEs in one of the industrially advanced cities reveals that most of them have implemented ERP to integrate the existing information system and found ERP implementation mainly beneficial in reducing inventory, improving customer services and improving communications. Top management support, and user involvement and participation are found to be the major contributors of ERP success. Research limitations/implications - The research is targeted on SMEs in one part of India and hence it has limitations in terms of scope. However, the results are quite encouraging with very good response from the SMEs, though the industry-institute interactions are not so strong. Other SMEs, planning to implement ERP in the near future, will be highly benefited from the performance evaluation of ERP in Indian SMEs. Originality/value - This paper demonstrates how Indian SMEs have benefited from ERP implementation. The findings will encourage Indian SMEs to implement ERP when facing challenges of the competitive market.