Pre-considered Factors Affecting ERP System Adoption in Malaysian SMEs

Acceptance of ERP (Enterprise Resource Planning) system among Malaysian SMEs (Small Medium Enterprises) is still low compared to large organizations. SMEs in general are unable afford the adoption costs related to an ERP system due to high financial costs and technical complexity of the system. This paper aims to identify the defining factors of adopting an ERP system and discuss the main issues involving ICT (Information Communication Technology) usage in the organizations that are affecting the adoption of ERP systems in Malaysian SMEs. Based on literature studies and the review of SME business environments in Malaysia, the suitable solutions in handling the resisting factors of ERP adoption are proposed in this paper. The factors will also be used in a survey that to be conducted in this research. The findings will help outline the main strategies that should be considered in successfully adopting the ERP system by Malaysian SMEs.