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ERP Implementation in an SME: A Failure Case

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Information Systems for Small and Medium-sized Enterprises

Part of the book series: Progress in IS ((PROIS))

Abstract

This study examines a failed enterprise resource planning (ERP) implementation in a small-and-medium-sized enterprise (SME). The improper handling of critical success factors (CSFs), particularly those relating to support from top management, project management, and the use of consultants, led to severe problems. This placed stress on the organization, caused employees to leave the company, workarounds, and led to serious errors in the systems and a significant cost overrun. This case study contributes to the literature on ERP implementation in SMEs. In particular, it contributes to our understanding of the socio-technical dynamics of ERP implementation projects. Failed ERP cases are little documented in the Information Systems (IS) research literature and can yield insight into the complexity of ERP implementation projects and further our understanding of what may take place if CSFs are not handled properly.

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Author information

Authors and Affiliations

  1. Department of Information Systems, University of Agder, Kristiansand, Norway

    Eli Hustad & Dag H. Olsen

Authors
  1. Eli Hustad
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  2. Dag H. Olsen
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Correspondence to Dag H. Olsen .

Editor information

Editors and Affiliations

  1. ELIT - Lab, Ghent University University College West-Flanders, Kortrijk, Belgium

    Jan Devos

  2. Industrial Management, Ghent University, Gent, Belgium

    Hendrik van Landeghem

  3. Management, Innovation and Entrepreneurship, Ghent University Faculty of Economics and Business Admin., Ghent, Belgium

    Dirk Deschoolmeester

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Hustad, E., Olsen, D.H. (2014). ERP Implementation in an SME: A Failure Case. In: Devos, J., van Landeghem, H., Deschoolmeester, D. (eds) Information Systems for Small and Medium-sized Enterprises. Progress in IS. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38244-4_11

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