Asian Journal of Information Technology

Year: 2018
Volume: 17
Issue: 2
Page No. 153 - 159

ERP Implementation Critical Failure Factors for Malaysia SME

Authors : Ang Moon Thiak

Abstract: Although, Malaysia economic is indicating a growing market for ERP and government is making lots of efforts in creating an enabling environment for such. Also, ERP has been recognized as a useful tool for business transformation however in practice, there are many difficulties in motivating people to implement it effectively in Malaysia SMEs. Thus, this study explored ERP Implementation critical failure factors among Malaysia SMEs. Qualitative research method using face to face in-depth interview is utilized for data collection. This study used of semi-structured questions and the interview session took place on the date approved by the company and the respondents. The gender disparity of 60-40% ratio of male to female respondents was observed. This depicts that most SMEs assigned key personnel positions to males compared with females on ERP administration. In addition, most of the respondents are first degree (BSc) holders making 90% while the other 10% are second degree (Masters) holders. This study identified seven CFFs that are responsible for the unsuccessful implementation of ERP in SMEs which include flexibility problem, nerve-wracking interaction, unfriendly interface, upgrading challenges, delayed approval, expensive and initial challenge and delayed time. These 8 factors are classified as the effect of customization, cost and time factors. This study argues that the biggest threat to successful implementation of ERP in SMEs has to do with issues of the project cost, project time duration and customization complexity.

How to cite this article:

Ang Moon Thiak , 2018. ERP Implementation Critical Failure Factors for Malaysia SME. Asian Journal of Information Technology, 17: 153-159.

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