ERP Adoption in Developing Countries in Asia: A Cultural Misfit

The ERP adoption rate in developing countries in Asia is very low. Apart from obvious differences in relative wealth of organizations in Western versus most Asian countries, the literature suggests that national cultures of the Asian countries, which are quite different to the culture of the Western world—the birth place of ERP—may be one reason for such low adoption rates in developing countries in Asia. This paper explores and confirms that view by contrasting dimensions of the cultural practices embedded in ERP software and the national cultures in Asia. The analysis is grounded theoretically on Hofstede’s dimensions of national cultures. The cultural differences identified by Hofstede are explored through six case studies carried out in Sri Lanka, a developing country in Asia. The case studies reveal a clash of cultural forces between the culture embedded in Western ERP products and the culture of Asian ERP adopters.