ERP Strategic Framework for Vietnam’s Precision Mechanical Engineering: A Hybrid MCDM Approach to Digital Transformation

Abstract

For precision mechanical engineering firms in emerging economies, adopting an Enterprise Resource Planning (ERP) system presents a distinct challenge. Decision-makers frequently struggle to reconcile complex technical operational requirements with strict economic limitations. This research navigates this tension by developing a contextualized, mixed-methods evaluation framework for Vietnamese Small and Medium Enterprises (SMEs). Integrating qualitative expert consultation with a combined Best-Worst Method (BWM) and VIKOR analytical model, the study offers a rigorous, data-driven pathway to selecting the most viable ERP system. Applying BWM, the results indicate that Technical Capability emerges as the dominant evaluation criterion, substantially outweighing both Economic Feasibility and Organizational Readiness. The subsequent VIKOR compromise ranking further confirms Epicor Kinetic as the most suitable solution, as it provides the strongest overall performance (i.e., maximized group utility) while maintaining low individual regret—particularly in relation to complex requirements such as multi-level Bill of Materials (BOM) integration and Make-to-Order (MTO) synchronization. By contrast, alternatives emphasizing high modularity and lower upfront cost were ranked least favorable, primarily because they entail considerable operational risk in engineering-intensive settings. Taken together, these findings challenge conventional cost-led adoption logics and suggest an evidence-based implication for practice: decision-makers should prioritize foundational technical alignment over initial capital savings to enable a more resilient and sustainable digital transformation.