MINIMIZING ENTERPRISE RESOURCE PLANNING (ERP) IMPLEMENTATION FAILURE IN SMALL AND MEDIUM ENTERPRISES IN PAKISTAN: A CRITICAL REVIEW

Abstract

            Enterprise Resource Planning (ERP) systems have become essential for enhancing organizational efficiency and facilitating digital transformation, particularly in Small and Medium Enterprises (SMEs). While ERP adoption has historically been dominated by large corporations, SMEs in Pakistan are increasingly implementing these systems due to reduced costs and advancements in ERP technologies. Despite these benefits, Pakistani SMEs face unique challenges during ERP implementation, including limited financial resources, insufficient technical expertise, and resistance to organizational change. This critical review examines the key factors contributing to ERP implementation failures in SMEs in Pakistan, focusing on technological, process-related, and organizational dimensions of digital transformation. The review further highlights effective strategies to mitigate these challenges, emphasizing strong organizational commitment, comprehensive training programs, and alignment of business processes with ERP functionalities. By addressing these critical factors, SMEs in Pakistan can enhance the likelihood of successful ERP adoption, thereby improving operational efficiency, competitiveness, and their contribution to the country’s digital economy.