THE WINNING FROM WITHIN: HARNESSING THE HUMAN FACTOR FOR COMPETITIVE ADVANTAGE THROUGH ERP IMPLEMENTATION IN SMES OF THE APAC REGION: A SYSTEMATIC REVIEW

Abstract

Systems for enterprise resource planning (ERP) are widely used to enhance decisionmaking, integrate business processes, and provide a competitive advantage (CA). However, a lack of focus on human and cultural factors often causes many ERP initiatives to underperform. This study examines the people factor in ERP implementation, focusing on how strategic alignment, process optimisation, project maturity and training affect ERP use and organisational competitiveness. A Systematic Review (SR) conducted in accordance with the PRISMA 2009 and 2020 guidelines served as the foundation for the study. The PROSPERO database has the research registered under the number CRD42021243116. After a transparent screening and eligibility process, 44 studies published after 2000 were chosen from an initial pool of 502 publications. Project management training and knowledge bases, business process reengineering user interfaces, strategic alignment, industry standards and integration management were among the recurrent constructs of the review, which synthesised the evidence on people-centric determinants of ERP success. The conceptual model was developed with the assistance of the SR process, and 11 hypotheses were formulated that linked ERP use to CA. Seventy-two participants from 42 small and medium-sized businesses (SMEs) with ERP systems in the Asia-Pacific (APAC) region participated in an empirical survey to support and validate the review findings. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to analyse the data. SmartPLS4 was employed to evaluate the conceptual model. The findings validated the hypothesised relationships, showing that the use of ERP considerably improves CA (β = 0.097, t = 0.783, p < .001) in a culturally aligned context. This paper offers both theoretical and practical contributions by integrating empirical validation with SR evidence. Theoretically, it illustrates how human factors—which are often overlooked in ERP research—are crucial to achieving CA. SMEs can benefit from its practical advice, which includes investing in change management, ongoing training, and structured project governance, redesigning processes to increase efficiency, and creating project teams that align with company culture. This dual strategy emphasises how companies can win from within by utilising the human element in ERP implementation to gain a long-term competitive edge.