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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM67001
Volume:
10 |
8 |
Aug 2026
Pages:
1-24
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

Department of Business Intelligence
B K School of Professional and Management Studies
Department of Business Intelligence
B K School of Professional and Management Studies
In the last ten years, enterprise resource planning (ERP) systems have evolved from transaction-processing systems to smart, data-rich resources. Artificial Intelligence (AI) and Business Intelligence (BI) are also included as a standard part of the core in the top ERP solutions, but SMEs are only 11.9% likely to use AI compared to 40% of large companies (Schwäke et al., 2024). This gap is not only in terms of access, but also in terms of organisational, technological and environmental constraints, which have not been handled systematically in the context of ERP-AI-BI in the literature. This paper is a systematic review of the literature — to the authors' best knowledge, the first paper to explicitly link the ERP, AI, and BI adoption literature together in a single theoretical framework for SMEs — that looked at how AI and BI capabilities, when embedded in ERP systems, mediate the relationship between ERP adoption and organisational outcomes. Based on the findings of 68 peer-reviewed papers and 19 foundational theoretical papers published from 2007 to 2026, the review brings together evidence that is grouped into five themes: ERP adoption and success in SMEs, AI as an ERP capability, BI as an ERP capability, convergence of ERP and AI and BI into a single platform, and ethical and governance issues arising with the convergence of ERP and AI and BI. Four theoretical frameworks are used: the DeLone and McLean (D&M) IS Success Model, Resource Based View (RBV) framework, Technology-Organisation-Environment (TOE) framework and Rogers' (2003) Diffusion of Innovations theory. Five research gaps are identified and clearly stated, with the most impactful gap being the lack of empirical studies using AI and BI as co-mediating variables between ERP adoption and SME performance. The integrated TOE-D&M-RBV framework introduced here offers structural, process and strategic explanations for ERP value creation in SME contexts. The results have managerial implications for SME managers in the investment selection process for ERP; theoretical implications for IS researchers to enhance the mediation model of IS success; and policy implications for ecosystem actors aiming to bridge the SME AI adoption gap.
KEYWORDS
This review aimed to address two questions: what are the findings from the current literature on the part AI and BI play in SME ERP projects, and where does the literature fall short? The present scholarship has isolated the elements of this picture separately — barriers and drivers of ERP adoption in SMEs, the performance impacts of AI in organisational environments, and the theoretical frameworks that can explain IS value creation — but none have combined these elements in a coherent and empirically grounded account of their interactions in SME ERP environments. The second question is answered with five clearly formulated gaps in the existing literature that delineate a well-defined and truly relevant empirical research agenda. The proposed integrated TOE-D&M-RBV framework is a theoretical contribution in its own right. The TOE framework offers the adoption structure and outlines under which technological, organisational, and environmental conditions SMEs are in a position to benefit from the AI and BI capabilities of ERP. The D&M Model offers the performance mechanism, describing the connection between AI-enhanced System Quality, BI-enhanced Information Quality, and ERP adoption to Net Benefits. The RBV provides the strategic account — SMEs who acquire the absorptive capacity to leverage these capabilities are more likely to accumulate VRIN resources that create sustained competitive advantage. The Diffusion of Innovations theory, coupled with TOE, provides an explanation for the temporal dynamics of AI-ERP diffusion across the SME population. Importantly, this review has revealed that ethical AI governance is not an add-on but an integral part of the value creation model. The risks for SMEs without sufficient governance capacity are potentially greater than the performance gains achievable by adopting AI, and future studies should operationalise governance capacity alongside the more familiar technological and organisational dimensions. The proposed empirical study, following a quantitative research approach using primary data collected from SMEs in an emerging-economy setting, is expected to test the integrated framework, fill the co-mediation gap, and produce results with real-world applications for SME managers, IS researchers, ERP vendors, and policy makers working to address the growing SME AI adoption gap.
Alzghoul, A., Khaddam, A. A., Abousweilem, F., Irtaimeh, H. J., & Alshaar, Q. (2024). How business intelligence capability impacts decision-making speed, comprehensiveness, and firm performance. International Journal of Information Management, 68, 102596. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. Barney, J. B. (1997). Gaining and sustaining competitive advantage. Addison-Wesley. Butarbutar, Z. T., Handayani, P. W., Azzahro, F., & Pinem, A. A. (2023). Systematic literature review of critical success factors on enterprise resource planning post implementation. Cogent Business & Management, 10(1), 2264001. Cherry Bekaert. (2024). AI-powered ERP: How artificial intelligence is transforming enterprise resource planning. Cherry Bekaert LLP. [* Grey literature] Chien, S., & Tsaur, S. (2007). Investigating the success of ERP systems: Case studies in three Taiwanese high-tech industries. Computers in Industry, 58(8–9), 783– 793. Christiansen, L., Vang, J., Madsen, J., & Tophoj, A. (2016). Cloud ERP adoption in SMEs: A systematic literature review. Journal of Enterprise Information Management, 29(4), 551– 569. [** DOI to be verified] Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152. DeLone, W. H., & McLean, E. R. (1992). Information systems success: The quest for the dependent variable. Information Systems Research, 3(1), 60–95. DeLone, W. H., & McLean, E. R. (2003). The DeLone and McLean model of information systems success: A ten-year update. Journal of Management Information Systems, 19(4), 9–30.
Publication Date
8/31/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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