Hewavitharana, S; Perera, A; Perera, S; Perera, P and Nanayakkara, S (2025) Framework for systematic adoption of ERP systems in the Sri Lankan construction industry. Built Environment Project and Asset Management, 15(3), pp. 629-646. ISSN 2044-124X
Abstract
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.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | adoption of digital systems; construction industry; construction practices; developing countries; enterprise resource planning; ERP; ERP protocols |
| Index terms: | construction industry development, purchasing, construction organization, onsite, enterprise resource planning, inventory, project management, implementation, construction industry, Sri Lanka, module, site operation, best practice, asset management, human resource management, construction site, strategy, literature review, specification, subcontract, developing country, estimating, body of knowledge, questionnaire, methodology, population |
| Subjects: | data collection methods, business, data analysis and analytics, financial and cost management, work location, contractual condition, project management theory and practice, management, procurement strategy, industry analysis, computer science, organization, contract type, knowledge management, contractual arrangements, operations management, Geography, inventory management, development economics, architectural elements, research methods, demography, asset management, building construction |
| Topics: | Procurement, Project Management, Geographical Context, Supply Chain Management, Construction Technology, Cost Management, Business Strategy, Information Management, Research Practice, Contract Administration, Site Management, Urban Studies, Design Practice, International Construction, Human Resources |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here