Exploring factors affecting the implementation of Enterprise Resources Planning Systems for South African Small and Medium Scale Constructions Industry

Abstract : The work that was conducted in this study focused on the Small and Mediun Enterprices Construction Sector in South African. The South African construction industry comprehensively has to alter the way it is contracting business to meet global sustainability requirements. However there are challenges to adopting and implementing requirements of sustainable construction practices and staying in business. This sector has been faced with numerous trials such as customers requirements to award tenders, obtaining finance from the financial institutions, skill level of their employees and ever changing enterprise resources planning (ERP) systems for desirable work output.This study is to analyse the issues affecting the implementation of ERP in South African SME particularly in construction industries, with the view of assisting decision makers in the construction sector to make sound decisions to improve their processes in order to meet their customer’s requirements. The methodology used in this study was quantitative research methodology, using the probability (random) sampling technique for the reason that it provides each element in the population sample an equivalent chance of being comprised in the sample with choosing independent of one or more and gives each sample combination an equivalent likelihood of being selected. Firstly, the researcher critically reviewed and analysed the existing literature that helped in identifying the gaps. The data analysis methods for this research study to obtain the results were descriptive statistics, reliability tests, exploratory factor analysis and normality test. The results obtained in this research revealed that to develop a holistic Enterprise Resources planning approach for South African Small and Medium Constructions Enterprises, these companies should consider a set of factors before adopting the ERP system. It was recommended that the contruction companies consider their clients requirements, investigate and consider the experiences from the different ERP systems users, understand how to maintain or improve the ERP system and what performance it will yield to the clients before they can consider implementing or adopting any system.M.Tech. (Operations Management