FACTORS INFLUENCING ERP DIFFUSION IN SMES IN SAUDI ARABIA: AN EMPIRICAL STUDY
Saad Alzughaibi
School of Management, University Science Malaysia, Minden, 11800 Penang, Malaysia
Email: tvsaad50@gmail.com
DR. Nor Hasliza Saad
Senior Lecturer, Operations Management Section School of Management, University Science
Malaysia, Minden, 11800 Penang, Malaysia
Email: norhasliza@usm.my
DR. Imran Mahmud
Department of Information Technology and Management, Daffodil international University
Email: imranmahmud@daffodilvarsity.edu.bd
Abstract
Enterprise Resource Planning (ERP) is a system that supports companies to amalgamate their operational areas like accounting, human resources, finance etc. It develops communications, productivity and transparency in companies. It also support in improvement of flow of information among various departments. Originally ERP was developed with best activities of big companies whereas SMEs has also started implementation of ERP to be in competition. Only developed countries are not implementing ERP system in their organizations, developing countries are adopting it like African, Asian or Gulf countries like Saudi Arabia. This study was conducted with the aim to explore the factors influencing ERP Diffusion in SMEs in Saudi Arabia. A sample of 297 respondents was surveyed and factor analysis and multiple regression was applied to get the results. The study concludes that the factors namely Competitive Environment Compatibility and Organizational culture Relative Advantages Support from Top Management Organization Intention had significant level of influence for ERP diffusion in SMEs in Saudi Arabia. Finding of the study reveals that diffusion of ERP in “Saudi Arabia” face many challenges due to the factors like culture, environment, government regulations, and resistance to change, no proper training provided to employees, lack of IR skills and knowledge etc.
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Keywords:
ERP System, implementation, Small and Medium Enterprises, multiple regression, Saudi ArabiaВ
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