A Study of the Challenges of ERP Implementation in Nigerian Businesses: A Case Study of Firms in Nasarawa State
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Background of the Study
Enterprise Resource Planning (ERP) systems are integrated software solutions that help organizations manage and automate core business processes such as finance, human resources, inventory, and customer relations (Adebola & Tukur, 2024). ERP systems are designed to streamline business operations, improve data accuracy, and facilitate decision-making. However, implementing ERP systems is often a complex process that requires significant planning, resources, and change management (Olumide & Akintoye, 2023).
In Nasarawa State, many businesses, particularly SMEs, have begun adopting ERP systems to improve their efficiency and competitiveness. However, the implementation of ERP systems in Nigerian businesses is often met with several challenges, including high implementation costs, inadequate training, resistance to change, and difficulties in aligning ERP features with business processes (Ogunbayo, 2024). This study aims to investigate the challenges faced by businesses in Nasarawa State during ERP implementation and the strategies employed to overcome them.
Statement of the Problem
While ERP systems promise numerous benefits, such as improved data management and operational efficiency, many Nigerian businesses struggle with the complexities of ERP implementation. There is limited research on the specific challenges faced by businesses in Nasarawa State during this process, particularly in terms of cost, training, and user adoption. This study seeks to identify and analyze these challenges and propose solutions for smoother ERP implementation.
Objectives of the Study
- To identify the challenges Nigerian businesses in Nasarawa State face during ERP implementation.
- To examine the strategies employed by businesses to overcome ERP implementation challenges.
- To recommend best practices for successful ERP implementation in businesses in Nasarawa State.
Research Questions
- What are the key challenges businesses in Nasarawa State face during ERP implementation?
- How do businesses in Nasarawa State overcome the challenges of ERP implementation?
- What best practices can businesses in Nasarawa State adopt to ensure successful ERP implementation?
Research Hypotheses
- There is no significant relationship between the challenges faced during ERP implementation and the success of ERP adoption in businesses in Nasarawa State.
- Strategies employed to overcome ERP implementation challenges do not significantly improve the success rate of ERP systems in Nasarawa State businesses.
- Best practices identified for ERP implementation do not significantly enhance the effectiveness of ERP systems in businesses in Nasarawa State.
Scope and Limitations of the Study
This study focuses on businesses in Nasarawa State and examines ERP implementation challenges from 2023 to 2025. Limitations include the availability of detailed case studies and the generalizability of the findings across different industries and business sizes.
Definitions of Terms
ERP Systems: Integrated software platforms used to manage and automate core business functions such as finance, HR, and inventory.
ERP Implementation: The process of deploying and integrating ERP systems into an organization's operations.
Change Management: The process of guiding employees and stakeholders through changes introduced by new systems or processes.
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