P.T. Kale, S.S. Banwait and S.C. Laroiya
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…
Abstract
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.
Details
Keywords
Jessy Nair, Aarthy Chellasamy and B.N. Balaji Singh
Extant literature regarding factors essential for successful information technologies (IT) implementation in small and medium enterprises (SMEs) does not significantly address…
Abstract
Purpose
Extant literature regarding factors essential for successful information technologies (IT) implementation in small and medium enterprises (SMEs) does not significantly address readiness factors for IT implementation in an Indian context. This exploratory research develops and tests a framework to analyse the antecedents to organisational preparedness for adoption of IT infrastructure in SMEs.
Design/methodology/approach
This exploratory research adopts a mixed-method approach to test the technology, organization and environment (TOE) framework. In-depth interviews with SME owners are conducted to develop the case study, and the measures obtained are tested through a survey at a small and medium business industrial cluster in Southern India in SMEs.
Findings
The case study indicates SME owners’ drive to initiate technology preparedness for organisational sustainability is a key factor, a measure not seen during the literature review. An empirical study tests the measures. Pressure from customers, owner’s age, sales of SME, owner’s attitude towards IT and owner’s knowledge of IT was confirmed, which indicates organisational factors have more impact compared to technological and environmental factors.
Research limitations/implications
The academic scope of this research paper can be extended to contexts such as readiness in IT infrastructure for digital transformation.
Practical implications
The validated research framework can be used by organisation stakeholders and SME IT practitioners for successful IT adoption.
Social implications
SMEs contribute significantly to gross domestic product (GDP) and provide employment opportunities. Hence, this research provides a tested model that SMEs owners/managers can adopt as a framework to augment competitiveness to implement IT.
Originality/value
The study adopts a mixed-method research design and is, perhaps, a first in the Indian context to explore variables through case study and validate identified measures through an empirical study. The model can be used by SME owners and practitioners to ascertain factors for organisational preparedness for IT adoption.
Details
Keywords
The purpose of this paper is to present the factors associated with the employee barriers while implementing lean manufacturing within the small- and medium-scale enterprises…
Abstract
Purpose
The purpose of this paper is to present the factors associated with the employee barriers while implementing lean manufacturing within the small- and medium-scale enterprises (SMEs).
Design/methodology/approach
The structural equation modelling approach is employed to develop the initial model drawing a sample survey of 133 small and medium enterprises. The result of the study shows that the lack of well-trained and experienced staff, lack of knowledge about existing specialist, cultural resistance to change are acting as the employee barriers while implementing lean manufacturing in SMEs. Then, a further study has been conducted to develop the employee barrier model with these three factors and its contributing variables using specification search representing the sample of 117 small and medium enterprises using the following fit function criteria: Chi-square (C), Chi-square-df (C-df), Akaike information criteria, Browne-Cudeck criterion, Bayes information criterion, Chi-square divided by the degrees of freedom (C/df) and significance level (p).
Findings
The lack of well-trained and experienced staff, lack of knowledge about existing specialist, and cultural resistance to change with 19 associated elements were considered in the questionnaire. Specification search was carried out to build up the model on the collected data from 117 SMEs. The results of the specification search identified that these three factors with 15 key variables are significant to employee barrier while implementing lean manufacturing in SMEs.
Research limitations/implications
The limitation of the study was that the sample size of the study was relatively small for further research, large sample size more than 117 are to be expected.
Practical implications
The present study has explored an unfocused area of lean implementation in small and medium enterprises. The results obtained from the study are expected to help researchers, academics, and professionals for the further studies in the domain of lean manufacturing.
Social implications
To implement and understand the lean manufacturing system, government of the many countries around the world are helping and encouraging by providing financial assistance for training professionals and establishing professional associations. However, many industries are not successful in lean implementation. This research work provides to develop a strategy to tackle employee barriers for successful lean implementation.
Originality/value
Very little research has been carried out exploring employee barriers while implementing lean manufacturing in SMEs. This paper will provide value to academics, researchers and practitioners of lean by way of providing insight into significant employee barriers for lean implementation, especially in Indian industries.
Details
Keywords
The purpose of this study is to present factors associated with process barriers in implementing lean manufacturing within the small- and medium-sized enterprises (SMEs).
Abstract
Purpose
The purpose of this study is to present factors associated with process barriers in implementing lean manufacturing within the small- and medium-sized enterprises (SMEs).
Design/methodology/approach
This study was conducted to identify the process barriers in implementing lean manufacturing in SMEs. Moreover, by a thorough and detailed analysis, process barriers of high rejection rate, employee absenteeism and frequent breakdown with 29 associated variables were identified as the most critical process barriers and were used to develop the questionnaire. Structural equation modeling was used to build the measurement model by drawing on samples of 128 SMEs in Kerala, a state in India. Later, the model was validated using statistical estimates. Data analysis helps to determine whether to accept or reject the hypothesis on the basis of the measurement model.
Findings
Several process barriers that prevent the successful implementation of lean manufacturing within SMEs are identified. These are lack of a training program, lack of periodical maintenance, low-quality standard materials from suppliers, bad vendor inspection, wear and tear of machines, communication gap between supervisors and workers, non-maintenance of a good employee–employer relationship, boredom on the job, overrunning machines beyond the capability, carelessness in work, not replacing worn damage parts periodically, ignoring warning signals of the machine classified as the most critical process barrier among the high rejection rate, employee absenteeism, frequent breakdown factors.
Research limitations/implications
First, the sample size of the study was relatively small (128). Second, data collection was restricted to one geographical area in India, i.e. Kerala, a state in India, giving rise to operational constraints. Third, the study was cross-sectional; a longitudinal study must be performed to reinforce the findings.
Practical implications
The present study has explored an unfocused area of lean implementation in SMEs. The results are expected to help researchers, academics and professionals in the domain of lean manufacturing.
Social implications
Governments of many countries around the world are helping and encouraging the implementation and understanding of the lean manufacturing system by providing financial assistance for training professionals and establishing professional associations. However, many industries have not been successful in lean implementation. This research aims to develop a strategy to tackle process barriers for successful lean implementation.
Originality/value
Very little research has been carried out in exploring process barriers in implementing lean manufacturing in SMEs. This paper will provide value to academics, researchers and practitioners of lean by providing insight into significant process barriers for lean implementation, especially in Indian industries.
Details
Keywords
Manpreet Kaur and Sanjay Gupta
Small and medium enterprises (SMEs) have been reported as a credit-constrained sector in the earlier literature. Amidst the available external financing options, SMEs are…
Abstract
Purpose
Small and medium enterprises (SMEs) have been reported as a credit-constrained sector in the earlier literature. Amidst the available external financing options, SMEs are dependent upon banks for their financial needs, hence they offer an important profitable segment for banks. Commercial banks need to develop effective targeting strategies for this segment and ranking the priorities of SMEs in selecting commercial banks will be of great help to them. The purpose of this paper is to implement a fuzzy analytic hierarchy process (FAHP) multi-criteria decision model for commercial bank’s selection by SMEs.
Design/methodology/approach
The research process was carried out in two phases. In Phase I, a self-structured scale was developed to measure bank selection criteria of SMEs after an extensive review of the literature of relevant studies on the topic. A sample of 600 SMEs was selected through non-proportionate quota sampling and only 313 valid responses were received. Phase II was conducted to prioritize the extracted factors through FAHP, a multi-criteria decision-making technique. For this purpose, another questionnaire was designed in the form of pair-wise evaluation and the response was taken on the same from those 313 SMEs again.
Findings
The results showed that SMEs bank selection criteria can be categorized under six heads, namely, bank attributes, accommodation of credit needs (AC), bank personnel, financial factors (FF), service quality (SQ) and business knowledge. The research study produced a reliable and valid instrument for studying the bank selection criteria of SMEs. The results further revealed that AC is the most important factor considered by SMEs followed by FF and SQ. Going further, global weights were also calculated through the FAHP which revealed that the most important consideration (variable) viewed upon by SMEs is willingness to accommodate credit needs followed by flexible collateral requirements and absence of hidden charges.
Research limitations/implications
The results of the present study offer significant insights as to the factors SMEs consider while making a bank selection decision. It is of utmost importance for banks to identify true determinant factors used by SMEs while making bank choice decisions as they offer ample profit and revenue opportunities to banks. The results of the study provide a practical approach to banks that would help them in framing strategies for SMEs customers.
Originality/value
This is the first study of its kind which has not only focused on the hierarchy of factors measuring bank selection criteria of SMEs rather on the hierarchy of single variables also through the calculation of global weights. As banks cannot focus on all the dimensions of the criteria, they can focus on the spirit of that particular criteria.
Details
Keywords
Devesh Kumar, Harsh Vardhan Samalia and Piyush Verma
The purpose of this paper is to evaluate the suitability of cloud computing for small and medium-sized enterprises (SMEs) in India.
Abstract
Purpose
The purpose of this paper is to evaluate the suitability of cloud computing for small and medium-sized enterprises (SMEs) in India.
Design/methodology/approach
Literature review is used to identify benefits, challenges, and factors concerning usage and adoption of cloud computing by SMEs. A conceptual framework was developed based on the existing theoretical models and factors identified from the literature. A survey based on questionnaire method was followed to collect data from 121 manufacturing SMEs in India. The conceptual framework was refined by using factor analysis, and multiple regression analysis was used to test the hypotheses.
Findings
Major benefits of cloud computing for SMEs include cost advantage, easy deployment process, easier access to latest information and communication technologies, automatic updates and upgrades, scalability, flexibility, and improved disaster recovery and back-up capabilities. The concern area includes perceived loss of control, vendor lock-in, security issues, reliability and availability issues, and internet connectivity and speed. The factors that are found significant include perceived benefits, top management support, competitive pressure, and perceived concerns. The model explained 73 percent of cloud computing adoption.
Research limitations/implications
The study is expected to make significant contribution toward body of knowledge pertaining to information technology adoption in SMEs.
Practical implications
The study is expected to provide SMEs an insight into real benefits and challenges associated with adopting cloud computing. The model can help SMEs in evaluating their readiness for adopting cloud computing and can ensure successful outcome of cloud computing adoption in SMEs. Providers are also going to be benefited through their enhanced understanding of SMEs’ requirements.
Originality/value
The proposed framework incorporates all the relevant factors including perceived benefits, perceived concerns, and other organizational and environmental factors to improve model’s predictive power.
Details
Keywords
Tsung-Sheng Chang, Hsin-Pin Fu and Cheng-Yuan Ku
The purpose of this paper is to propose an implementation model for enterprise resource planning (ERP) based on resource-based view, and using the dynamic capability theory as its…
Abstract
Purpose
The purpose of this paper is to propose an implementation model for enterprise resource planning (ERP) based on resource-based view, and using the dynamic capability theory as its theoretical foundation. This model includes: the establishment of the objectives of the implementation, an assessment of the available resources and the scope of the implementation, the redesign/integration and organizational learning during the process, the implementation of the system, and the measurement and evaluation of its performance.
Design/methodology/approach
An integrated circuits design company in Taiwan was used in a case study to examine the validity of the proposed model.
Findings
When the proposed ERP implementation model was applied in this study, the results show that organizational coordination, system-process redesign and integration, and organizational learning are the critical strategies for enterprises, in order to reduce the risks during the implementation of ERP projects.
Practical implications
This model can help enterprises recognize the resources needed when implementing an ERP. In addition, they need to consider the reliability of these resources, as this will increase the efficiency of the implementation, and thus the probability of success.
Originality/value
Studies of past models in the implementation of ERP have been conducted in various industries. There is a need for further studies that evaluate the different concepts in terms of the effectiveness of specific methods, in order to enhance the probability of successfully implementing a dynamic system. This paper is one of the first to explain how an enterprise can implement an ERP that is based on the theory of dynamic capabilities. The case study illustrates the important, critical success factors.
Details
Keywords
Sushanta Tripathy, Satyabrata Aich, Anurup Chakraborty and Gyu M. Lee
The purpose of this paper is to identify the success factors for supply chain in Indian small- and medium-scale enterprises (SMEs) and establish a causal relationship among them…
Abstract
Purpose
The purpose of this paper is to identify the success factors for supply chain in Indian small- and medium-scale enterprises (SMEs) and establish a causal relationship among them. In the present scenario, the SMEs are under huge pressure to achieve the supply chain competitive advantage and to improve operation and logistic effectiveness and, at the same time, remain tractable to the demand uncertainty and volatility in the market. To enhance the performance of supply chain in SMEs, the managers need to identify the internal as well as the external factors that affect the supply chain performance of SMEs in India. They need to understand the causal relationship of these factors.
Design/methodology/approach
There may be a number of factors that are critical for achieving acceptable supply chain performance, and these factors have been identified by principal component analysis (PCA). In all, 29 factors have been identified by using PCA and the dominating 29 factors are categorized into 6 constructs, and finally, the structural equation modelling (SEM) methodology using the AMOS 4.0 program has been adopted as the primary methodology for this paper to assess the causal relationship among six constructs.
Findings
In this paper, the authors analyzed the structural relations among information technology (IT), logistic effectiveness, operational effectiveness, customer relationship, supplier relationship and SCM competitive advantage. Results indicate that IT holds the key to achieve the SCM competitive advantage in SCM practices of SMEs in India.
Research limitations/implications
The proposed models for enabling factors are tested in firms with a limited numbers of factors in highly competitive environment. More factors may be incorporated, which will help for a clear understanding and establishing the causal relationship among the various enabling factors.
Practical implications
Although managers of Indian SMEs are aware of various enabling factors, a systematic approach is required for identifying enabling factors, and as these factors may have complex interrelation between them for analyzing supply chain performance in SMEs, it is essential that such an approach is in place. The paper presented here will help the SMEs managers in identifying the areas in which they need to focus their attention to improve SCM practices. A structural equation modelling is developed to show the complex relationship between the factors that affect the performance. In addition to that, the proposed structural equation model acts as a good guideline to improve the performance of the supply chain in India.
Originality/value
The paper provides a structural equation model to develop a map of the causal relationships and magnitude among identified enabling factors.
Details
Keywords
Farzaneh Amani and Adam Fadlalla
The purpose of this paper is to gain insight into enterprise resource planning (ERP) research by framing ERP intellectual contributions using a knowledge-centric taxonomy that was…
Abstract
Purpose
The purpose of this paper is to gain insight into enterprise resource planning (ERP) research by framing ERP intellectual contributions using a knowledge-centric taxonomy that was originally proposed as an organizing framework for classifying conceptual contributions in marketing. Thus the paper provides a better understanding of existing gaps and future opportunities in ERP research.
Design/methodology/approach
Using MacInnis framework, the authors classified a sample of 300 ERP articles published during the period 2000-2014 into a topology of four generic contributions types and eight sub-types.
Findings
The findings indicate that whereas the explicating type received the most attention by researches, the debating type received the least. It also seems that there is a temporal dimension to the different types of conceptual contributions. Identification of usefulness of the ERP systems to business was not addressed as would have been predicted by the build-evaluate lens of March and Smith framework.
Research limitations/implications
The main limitation of this research is that only used articles from scholarly journals, and did not include conference proceedings, books, and other outlets. Another limitation is that the search criteria was title-based, which may have missed some relevant papers. Research implications include highlighting the importance of a knowledge-centric view of ERP research, and practical implications include the call for robust measurement criteria for ERP benefits and rigorous ERP comparison schemes.
Originality/value
The main contribution is providing an alternative approach to framing the ERP intellectual contributions. The proposed taxonomy revealed major areas of focus and opportunities for future ERP research emphasis. To the best of the authors’ knowledge, this is the first instantiation of MacInnis framework into ERP research.