Why ERP systems fail to generate intended benefits in developing-country organisations

ERP adoptions in developing countries such as Sri Lanka have struggled to achieve intended benefits. To identify reasons for this problem, this paper begins by integrating ERP benefit-derivers models in developed countries, and Hayami’s technology-transfer model, which argues that three factors retard adoption of imported technology in a developing country, namely, culture, institutions and resources. The model is tested using four in-depth case studies in Sri Lanka. The results suggest that Hayami’s factors, culture, institutions and resources, are, indeed, key factors that make benefits from ERP systems difficult to achieve in Sri Lanka, and by inference, in other developing countries.