Interdependent Enterprise Resource Planning risks in Small and Medium-sized Enterprises in developing countries

Abstract

This study investigated casual and resultant risks associated with the adoption of Enterprise Resource Planning (ERP) systems in Small to Medium-sized Enterprises. Cases from South Africa and Zimbabwe were through semi-structured interviews and analysed by using elements of the grounded theory method. The major resultant risks such as lack of information traceability and visibility and lack of functionality fit in module were identified. These risks were caused by incorrect system setup; insufficient internal expertise; lack of consultant skills; lack of vendor transparency and unclear or misunderstood changing requirements. These causal risks and resultant risks provide evidence for the proposition that a successful ERP implementation is dependent on identifying causal risks and successfully managing them.