SMEs: ERP or Virtual Collaboration Teams

First Enterprise Resource Planning Conference, 2009

12 Pages Posted: 30 Dec 2010  

Nader Ale Ebrahim

Centre for Research Services, Institute of Management and Research Services (IPPP), University of Malaya (UM); University of Malaya (UM) - Department of Engineering Design and Manufacture

Shamsuddin Ahmed

University of Malaya (UM)

Zahari Taha

University of Malaya (UM)

Date Written: January 28, 2009

Abstract

Small firms are indeed the engines of global economic growth. Small and Medium Enterprises (SMEs) play an important role to promote economic development. SMEs in the beginning of implementing new technologies always face capital shortage and need technological assistance. Available ERP systems do not fulfil the specific requirements of Small firms. SMEs has scarce resources and manpower therefore many SMEs don‟t have the possessions to buy and operate an ERP System. On the other hand competition and competitiveness of SMEs have to be strengthened. This paper briefly reviews the existing perspectives on virtual teams and their effect on SMEs management. It also discusses the main characteristics of virtual teams and clarifies the differences aspects of virtual team application in SMEs. After outlining some of the main advantages and pitfall of such teams, it concentrates on comparing of ERP and virtual collaborative teams in SMEs. Finally, it provides evidence for the need of “Software as a Service (SaaS)” where an application is hosted as a service provided to customers across the web for SMEs as an alternative of ERP. It has been widely argued that ERP disadvantage in SMEs such as administrative expenditure and cost, isolated structure, severe lack of software flexibility, insufficient support of SMEs business and high operating cost, lead SMEs to use virtual collaborative team which is net work base solution.

Keywords: Virtual teams, Small and Medium Enterprises, ERP, Collaboration

JEL Classification: Q32, Q31, M11, L15, L23, O14, O31, O32, O4, Z, M2, N6

Suggested Citation

Ale Ebrahim, Nader and Ahmed, Shamsuddin and Taha, Zahari, SMEs: ERP or Virtual Collaboration Teams (January 28, 2009). First Enterprise Resource Planning Conference, 2009. Available at SSRN: https://ssrn.com/abstract=1732561

Nader Ale Ebrahim (Contact Author)

Centre for Research Services, Institute of Management and Research Services (IPPP), University of Malaya (UM) ( email )

Kuala Lumpur, Wilayah Persekutuan 50603
University of Malaya (UM)
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

HOME PAGE: http://https://umresearch.um.edu.my/

University of Malaya (UM) - Department of Engineering Design and Manufacture ( email )

Kuala Lumpur, 50603
Malaysia

Shamsuddin Ahmed

University of Malaya (UM) ( email )

Kuala Lumpur, Wilayah Persekutuan 50603
University of Malaya (UM)
Kuala Lumpur, 50603
Malaysia

Zahari Taha

University of Malaya (UM) ( email )

Kuala Lumpur, Wilayah Persekutuan 50603
University of Malaya (UM)
Kuala Lumpur, 50603
Malaysia

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