Framework for systematic adoption of ERP systems in the Sri Lankan construction industry

Purpose Despite the benefits of enterprise resource planning (ERP) systems, construction organisations in Sri Lanka fail to adopt ERP systems successfully due to functional issues. Functional issues arise because of the gap between ERP protocols and construction practices. The purpose of this study is to identify the functional issues in ERP implementation and to propose a framework for the systematic adoption of ERP in the construction industry in Sri Lanka. Design/methodology/approach A comprehensive literature review was carried out to identify the issues when adopting ERP protocols into construction practices. These were classified into ten knowledge modules using PMBOK-Version 6 (Project Management Body of Knowledge). Then a questionnaire was developed and validated through an expert forum with five experts. The validated questionnaire was distributed among ERP users in C1-C5 grade construction enterprises in Sri Lanka. Those enterprises were simultaneously operating in multiple construction sites and already experienced ERP implementation. The estimated population was 210 from which 174 responses were received indicating an 82% response rate. Data was analysed using the Chi-Square test. Findings The analysis established that there is a significant gap level between ERP protocols and construction practices. The highest significant gap with a Chi-square value of 158.766 exists in the area of inventory management. Other areas such as human resource management (HRM) (142.366), asset management (130.264), finance (126.267), site operations (103.793), project management (53.88), purchasing (34.324), petty cash (28.337), estimating and tendering (22.148) and subcontract management (20.492) show a significant gap level respectively. Originality/value The paper establishes comprehensive strategies and a framework developed using the protocols prescribed in webERP (TM) and adopting it to onsite construction practices. webERP (TM) system was developed based on best practices defined in PMBOK (Version 6) and CIDA (Construction Industry Development Authority) specifications for efficient construction practices in Sri Lanka.