Diffusion of ERP in the Construction Industry: An ERP Modules Approach: Case Study of Developing Countries

Abstract

The risk–benefit analysis of ERP implementation is worth investigating to optimize the efficiency of ERP deployment in the construction sector. This study investigates the factors affecting the dissipation of ERP through diffusion models in developing countries. Moreover, it suggests a strategy to adopt ERP modules that optimize process integration and project efficiency through the priority factors method. According to the study, the internal model best describes the studied modules, and it suggests that imitative behavior and word of mouth significantly influence ERP adoption in the Africa and Middle East regions. This research concludes with an optimized order for deploying ERP modules based on the importance, urgency, and ease of implementation of each module. It is as follows: work progress (500), budgeting (405), procurement (343), site operations (280), planning and scheduling (270), accounting (252), inventory management (126), document control (90), and tendering (6). Therefore, it can be concluded that this study fills the research gap of ERP module adoption using diffusion models and priority factors within the construction industry, specifically in the specified regions. However, considering dynamic influence factors might provide more precise predictions, while involving a greater number of companies’ owners might highlight a greater importance of external factors.

Keywords

• enterprise resource planning systems
• ERP
• ERP modules
• diffusion
• diffusion models