A Fuzzy Petri-Net Based Conceptual Model for Risk Prediction in Enterprise Resource Planning (ERP) Acquisition Decisions for Small and Medium Enterprises

Abstract

This study identifies and evaluates certain critical pitfalls in the acquisition phase of ERP adoption in Small and Medium Enterprises (SMEs) and develops a model for evaluating the risk of failure. On the acquisition stage a set of risks has been identified based on past research work and each of these risks have been explained through a set of well-defined risk factors or pitfalls. An evaluation model based on the concept of Fuzzy Petri Nets (FPN) is proposed in this study. FPN is used because it is simple and efficient and can quantitatively evaluate the risks inherent in the acquisition stage of ERP adoption by SMEs.

Keywords: ERP Adoption, SMEs, Failure Prediction, Risk, Fuzzy Petri-Nets, Acquisition

JEL Classification: D83, L21, L60, M1, M19, O30, O33