Introduction

Enterprise resource planning (ERP) is defined as a company-wide information system that incorporates major business functions such as accounting, human resources management, production and marketing. Introducing ERP allows companies to enjoy financial and non-financial benefits, including inventory reduction, data integration and cost reduction (Jin et al., 2012; Lee et al., 2003; Holsapple and Sena, 2005; Gefen and Ragowsky, 2005; Aloini et al., 2007; Nah et al., 2007; Sammon and Adam, 2010). Initially used for internal integration, ERP is now applied toward external integration with management executive systems and supply chain management. In fact, ERP is increasingly being recognized as a business strategy tool for improving corporate competitiveness, and more and more small- and medium-sized manufacturers have been adopting ERP systems (Choi et al., 2013). Numerous studies have examined the impact of ERP implementation on business performance (Choi et al., 2011; Pairin et al., 2006; Liang and Xue, 2004; Lin et al., 2006). However, most studies have targeted large enterprises, while ERP performance in small and medium enterprises (SMEs) is rarely taken into consideration. Prior research results showed that SMEs are not merely scaled-down versions of large businesses, and thus, management theories for large companies cannot be applied to SMEs (Deo, 2010; Lee et al., 2014; Park et al., 2012; Schubert et al., 2006; Thong et al., 1996; Yun and Jung, 2013). In the same vein, studies on ERP implementation in large businesses cannot be directly applied to SMEs. According to the results of Korean manufacturing firms surveyed by Pairin et al. (2006), most SME manufacturers apply the market-to-order (MTO) method to produce a wide range of products in small volume and thereby deal successfully with downward pressure on costs in the ever-globalized business environment. Thus, SMEs have developed unique business processes compared to those of large businesses, and these distinct characteristics need to be taken into account for ERP performance measurement. In the case of these SME manufacturers, limited financial resources obstruct decision-making about whether to push for business process reengineering (BPR) and information strategic planning (ISP), which are considered key success factors of ERP implementation (Kohli and Hoadley, 2006; Larsen and Myers, 1999; Muscatelli et al., 2003; Bernroider, 2008; Aloini et al., 2007).