ERP System Customization In SMEs: A Multiple Case Study

One of the biggest challenges for organizations implementing an Enterprise Resource Planning (ERP) system is to find the right fit between the processes embedded in the system and the existing organizational business processes. “Conventional wisdom” founded on studies from large enterprises holds that ERP systems should be implemented without customization. However, studies of ERP system implementations in small and medium-sized enterprises (SMEs) indicate that in these organizations ERP system customization is more common. The purpose of this study is to contribute to the scarce literature on identifying reasons for ERP system customization in SMEs. Based on a multiple case study of four SMEs, the study investigates reasons for ERP system customization with a focus on distinguishing characteristics of the SME context. The analysis identified eight various reasons for ERP system customization observed in the SMEs. Reasons specific to the SME context here include unique business processes, ownership type, and organizational maturity.