How SMEs make their decision for choosing an optimal ERP provider by using AHP method

Abstract: Nowadays, most small- and medium-sized enterprises (SMEs) are seeking information technique(s) or packaged software for improving their market competitiveness. Enterprise Resource Planning (ERP) system could be a good choice regarding it is a powerful system which is integrated software for operating different perspective of a business, all information within organization would be flow between each organization’s modules. There are numerous of ERP providers on the market, previously they were focusing on large organization but now, the attention are moving toward SMEs business by offering cheaper and flexible solutions. To be success in implementation, an appropriated ERP system is required. Nevertheless, an Analytic Hierarchy Process (AHP) method should be able to provide the optimal solution for SMEs suggested by the authors. This study employed a quantitative survey and followed by qualitative interviews which aim to confirm the data and information from the survey. The questionnaires were sent to SMEs’ IS managers and relevant employees in China regards to which criteria they focus on when selecting an ERP provider. The thesis concludes that our respondent give more consideration to the facts of Implementation and Flexibility among other criteria when choosing an ERP provider. Moreover, a systematic method for selecting an ERP system for SMEs is proposed and presented in this research.