A Study of Issues Affecting The Success of the ERP System in Indonesian Smes

Abstract

In Indonesia many small and medium enterprises (SMEs) implement enterprise resource planning (ERP) systems to integrate organisational processes. Following a successful ERP system implementation, the SMEs are expected to improve their performance. This improvement is important due to the fact that most SMEs in Indonesia have a low level of performance. The performance reflects a SMEs capability to implement the right business strategy, the ability to capitalise on organisational resources, and to utilise information technology effectively with ERP systems implementation. This study investigates the success of implementing ERP systems in Indonesian SMEs. Data collection was based on a survey of 160 Indonesian SMEs. The sample was comprised of SMEs who are users of ERP Systems. The data was analysed empirically with Smart PLS Software. The features identified in this paper constitute hypothesis testing that conveys a relationship between business strategy and organisational resources. With a focus on SMEs performance through the implementation of the ERP systems.