To read the full version of this content please select one of the options below:

SME ERP system sourcing strategies: a case study

Deb Sledgianowski (Department of Information Technology and Quantitative Methods, Frank G. Zarb School of Business, Hofstra University, Hempstead, New York, USA)
Mohammed H.A. Tafti (Department of Information Technology and Quantitative Methods, Frank G. Zarb School of Business, Hofstra University, Hempstead, New York, USA)
Jim Kierstead (Kanebridge Corporation, Oakland, New Jersey, USA)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 25 April 2008

Abstract

Purpose

The purpose of this paper is to identify ERP system sourcing strategies available to SMEs and to provide insights from a case study of the practices applied and decisions made by an SME in using a hybrid of sourcing resources to implement the successful conversion of their legacy ERP system to a new information technology (IT) environment.

Design/methodology/approach

This research is a case study utilizing various data sources including face‐to‐face interviews, informal conversations, and e‐mails with members of the case company. Company software applications and documents were examined and employees were observed in action. The analysis compares characteristics of the client‐vendor relationship of the case company with findings from relevant outsourcing literature.

Findings

This case study identified, among others, the following practices that were critical to the case company in their outsourcing endeavors: attending networking events for SMEs, obtaining formal contract for ownership of intellectual property, utilizing local vendor contact point for communication with offshore contact point, and utilizing vendor's skill‐set for specialized resources.

Practical implications

This case study relates practice with theory, providing a reference for both academia and practitioners.

Originality/value

The decision making and practices described in this paper provide insights that may be useful to organizations considering IT software implementations. ERP systems are increasingly more affordable for SMEs and offshore outsourcing is becoming more accessible; therefore, SMEs considering these options may benefit from Kanebridge's experience.

Keywords

Citation

Sledgianowski, D., Tafti, M.H.A. and Kierstead, J. (2008), "SME ERP system sourcing strategies: a case study", Industrial Management & Data Systems, Vol. 108 No. 4, pp. 421-436. https://doi.org/10.1108/02635570810868317

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited