Adaptability resistances in ERP implementation among apparel industry: An empirical study

Abstract

Objectives: This paper identifies the limitations of ERP packages being used in Apparel industries and also identifies the crux in ERP in relation to the apparel industries. Methods/Analysis: Out of 117, 27 apparel industries were from Bangalore, 69 from Tirupur and 21 from Chennai have ERP packages. Out of 117, only 82 industries implemented fully of which 15 in Chennai, 46 in Tirupur and 21 are from Bangalore. The data thus received were analyzed using SPSS package. The statistical tools such as percentile, factor analysis, cluster analysis, Reliability test for the variables have been employed in the study. Findings: These apparel industries encounter various issues during implementation within the organization in the form of resistance, conflict, non-cooperation; indulge in activities against the interest of the organization etc., due to various reasons. Many of these issues are caused by internal employees of the organization which could have been averted. These external factors can overcome by the organization. Sometimes there exist functional limitations which can be identified only through utility. The sixteen variables thus used to evaluate the functional limitations of Apparel industry have been evaluated with Reliability test. The Cronbach alpha value for these 16 variables works out to 0.9677 which indicates that the variables taken up for the study is excellent. Majority of the companies indicated three areas that needs pruning in ERP packages. They are: Calculation of Manufacturing cost, Cost Analysis Report and Warehouse Management. These intrinsic issues are highly sensitive, challenging and it may lead to delay the ERP utilization process or sometimes leads to failure.Conclusion: The intrinsic issue raises adaptability resistances in other apparel industries that are planning to implement ERP system. To overcome these resistances, the add-on solutions will enable the apparel industries to implement the ERP packages.