The Influence of Organisational Size, Internal IT Capabilities, and Competitive and Vendor Pressures on ERP Adoption in SMEs

This empirical study investigates the influence of organisational size, internal IT capabilities and external factors, such as competitive and vendor pressure, on ERP adoption within SMEs. Existing research on ERP adoption has indentified some of the potential factors affecting SMEs, such as organisation size as one of the most significant ones. Yet none of this previous research has looked at organisational size, internal IT capabilities and external pressures in a unified framework and in context to SMEs. More specifically, this study focuses on the direct and moderating relationships which may affect an SME’s decision to adopt an ERP system. An analysis of a sample of 229 SMEs shows clear direct and moderating relationships amongst the above factors. Concrete recommendations are provided to accelerate the rate and success level of ERP adoption within SMEs.