Paper 5 of 6 · Session 3: Enterprise Systems & Innovation
Two-Tier ERP Adoption Among Bulgarian Mid-Market Manufacturers: A Configurational Analysis
Roumen Nikolov, Anna Rozeva, Petya Asenova · ULSIT Sofia · UNWE Sofia
Abstract
Two-tier ERP architectures have been advocated since the early 2010s as a way for mid-market manufacturers to combine enterprise rigour with departmental agility, but adoption patterns in transitional economies are poorly understood. This paper presents a configurational analysis (fsQCA) of two-tier ERP adoption among 64 Bulgarian mid-market manufacturers surveyed in 2024. Three sufficient configurations are identified, with external-consultant capacity emerging as an equifinal driver of adoption — a finding that problematises the dominant Western-European narrative that two-tier ERP is principally a function of corporate complexity.
1. Introduction
Two-tier ERP architectures — in which a large corporate-level ERP coexists with smaller subsidiary or business-unit ERP systems via integration middleware — have been advocated since the early 2010s as a way for mid-market manufacturers to combine the rigour of an enterprise system with the agility of departmental software. Bulgaria's manufacturing sector, dominated by export-oriented mid-market firms employing 100–2 000 staff, is a particularly interesting setting because of its limited Tier-1 ERP penetration and active SaaS-vendor ecosystem.
2. Background
We synthesise the two-tier ERP literature (Velcu 2010; Markus & Tanis 2000; Ross et al. 2006 for the foundational concept; Ramdani et al. 2013 for SME adoption; Asenova & Rozeva 2022 for the Bulgarian context).
3. Method
Configurational analysis (fuzzy-set qualitative comparative analysis, fsQCA) on a sample of 64 Bulgarian mid-market manufacturers surveyed between January and June 2024. Outcome variable: two-tier ERP adoption (binary, calibrated). Conditions: firm size, export intensity, group-structure complexity, IT-staff capacity, prior ERP experience, and external-consultant involvement.
4. Results
fsQCA reveals three sufficient configurations for two-tier adoption: (C1) large + complex group + strong IT + heavy consultant use; (C2) medium + high export intensity + prior ERP experience; (C3) large + low IT capacity + heavy consultant use. The negation analysis identifies one robust configuration of non-adoption — small firms with weak IT capacity and no group structure, irrespective of consultant involvement.
5. Discussion
The results problematise the dominant Western-European narrative that two-tier ERP is principally a function of corporate complexity. In the Bulgarian setting, external-consultant capacity emerges as an equifinal driver of adoption.
6. Conclusion
We discuss implications for Bulgarian ERP-consulting firms and for AIS researchers studying configurational adoption patterns in transitional economies.
References (selected)
- Asenova, P. & Rozeva, A. (2022). Cloud ERP adoption among Bulgarian SMEs. UNWE Yearbook, 8, 113–128.
- Markus, M. L. & Tanis, C. (2000). The enterprise systems experience. In Framing the Domains of IT Research, ed. Zmud.
- Ramdani, B., Chevers, D. & Williams, D. (2013). SMEs' adoption of enterprise applications. JSBED, 20(4), 735–753.
- Ross, J. W. et al. (2006). Enterprise Architecture as Strategy. Harvard Business School Press.
- Velcu, O. (2010). Strategic alignment of ERP implementation stages. Information & Management, 47(3), 158–166.