Examining Pre- and Post-ERP Adoption Challenges Confronting SMES: A Study on South Indian Companies

In today’s dynamic and fiercely competitive business world, small and medium-sized enterprises (SMEs) can benefit greatly from using enterprise resource planning (ERP) systems. Because these technologies may revolutionize decision-making, data management, and operational efficiency, they are a compelling choice for SMEs who aspire to thrive in their respective industries. This study provides an in-depth analysis of the impact of Enterprise Resource Planning (ERP) systems on small and medium-sized enterprises (SMEs), focusing on the challenges encountered during the pre and post-adoption phases. The research incorporates quantitative data from 36 SMEs that have undergone ERP implementation. The study aims to unravel the challenges of ERP adoption in SMEs through statistical analysis, including paired and independent samples t-tests, Pearson Chi-square tests, and non-parametric tests such as Wilcoxon Signed Rank and Mann-Whitney tests. The findings reveal a significant reduction in operational challenges post-ERP adoption, highlighting the efficiency gains from ERP systems. The findings advocate for a strategic approach to ERP adoption, emphasizing the importance of vendor selection and the nuanced role of employee training in ensuring the successful integration and utilization of ERP systems within SMEs. It is also important to establish a continuous monitoring and evaluation mechanism to resolve issues when and where occurred.