Impact of Enterprise Resource Planning Systems Implementation on Organizational Performance of SMEs in Gampaha District of Sri Lanka

Abstract

This study investigates the impact of Enterprise Resource Planning (ERP) system implementation on the organisational performance of Small and Medium Enterprises (SMEs) in the Gampaha District. Although ERP adoption is expanding globally, its effectiveness within SMEs in emerging economies such as Sri Lanka remains underexplored. This research addresses this gap by analysing how critical success factors service quality, user satisfaction, training and education, and vendor support influence SME performance after ERP implementation. A quantitative research approach was adopted using a structured questionnaire distributed to 147 SMEs across different sectors in Gampaha. Data were analysed using descriptive statistics, correlation, and multiple regression analysis through SPSS. The results revealed statistically significant relationships between all four independent variables and organisational performance. Vendor support ensures system reliability and effective problem-solving, training and education enhance user competence, user satisfaction increases engagement and system utilisation, and service quality supports smooth operational processes. Collectively, these factors serve as key drivers for improving efficiency, productivity, and strategic decision-making. The findings highlight the importance for stakeholders to invest in strong vendor partnerships and user-focused training to foster successful digital transformation in SMEs. This study contributes to existing literature by providing region-specific empirical evidence from Sri Lanka and offering guidance for policymakers and practitioners aiming to strengthen ERP adoption within the SME sector.