Challenges Affecting the Adaptation and Implementation of ERP Systems in the Ethiopian Construction Industry”
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Date
2026-11-12
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Addis ababa university
Abstract
Enterprise Resource Planning (ERP) systems have become essential tools for improving organizational integration, operational efficiency, and decision-making processes across various industries. However, the adaptation and implementation of ERP systems remain challenging, particularly in developing countries and project-based industries such as construction. In Ethiopia, construction organizations face various technological, organizational, and human-related challenges that hinder effective ERP adaptation and implementation. Despite the growing adoption of digital technologies, empirical evidence on the factors affecting ERP adaptation and implementation in the Ethiopian construction industry remains limited. Therefore, this study aimed to examine the technological, organizational, and human-related factors affecting ERP adaptation and implementation in the Ethiopian construction industry. The study was guided by an adapted Technology-Organization-ienvironment (TOE) framework, focusing on technological, organizational, and human-related factors. A convergent parallel mixed-methods research design was employed to collect and analyze quantitative and qualitative data simultaneously. Quantitative data were collected using structured questionnaires administered to 44 respondents comprising managers, ERP users, and IT personnel from construction organizations. Qualitative data were obtained through semi-structured interviews with participants involved in ERP implementation. Quantitative data were analyzed using descriptive statistics, reliability analysis, correlation analysis, and multiple regression analysis with Jamovi software, while qualitative data were analyzed using thematic analysis. The findings from both datasets were integrated through triangulation. The findings revealed that technological, organizational, and human-related factors jointly explained 81.4% of the variation in ERP adaptation and implementation. Regression analysis showed that organizational factors had a statistically significant positive influence on ERP adaptation and implementation, while human-related factors had a statistically significant negative influence. Technological factors showed a negative but statistically insignificant effect. The qualitative findings complemented the quantitative results by identifying inadequate ICT infrastructure, limited organizational readiness, insufficient top management commitment, 4 employee resistance to change, inadequate ERP training, and limited digital skills as major challenges affecting ERP implementation. The study concludes that successful ERP adaptation and implementation in the Ethiopian construction industry requires strong organizational commitment, effective change management, adequate technological infrastructure, and continuous employee training and capacity development. The findings provide practical implications for construction organizations, ERP vendors, policymakers, and researchers seeking to improve ERP implementation practices and support digital transformation within the Ethiopian construction industry.
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Keywords
Enterprise Resource Planning (ERP), ERP Adaptation and Implementation, Construction Industry, Technology-Organization-Environment Framework, Mixed-Methods Research, Ethiopia.