Operational Risk and Implementation Success in SACCOs: A Structured Review of Developing-country Financial Cooperatives

This study investigates the influence of operational risks on the success of ERP implementations in SACCOs within developing countries. Specifically, it seeks to explore the operational risk environments of SACCOs, identify key operational risks that could potentially affect ERP success, develop an empirical model that links operational risk management with ERP outcomes, and provide evidence-based recommendations for mitigating challenges related to ERP implementation. Data were collected through a qualitative systematic literature review methodology from relevant journal articles and institutional publications accessed via Scopus, Web of Science, ABI/INFORM and Google Scholar. A total of 45 scholarly works published between 2010 and 2024 were analyzed based on Basel II classification of operational risks. Results indicated four major categories of operational risks impacting the success of ERP in SACCOs: process misalignment risk category under system quality; human resistance risk category under project cost-effectiveness; technology vulnerabilities under user acceptance; and governance instability under organizational performance. All these risks are classified as operational risk categories that directly impact system quality, project cost-effectiveness, user acceptance, and organizational performance. This study further revealed that ERP implementations in SACCOs are more strongly influenced by organizational readiness, governance stability, and change management rather than technological capabilities alone. It thus proposes a risk-centered ERP implementation framework to support SACCO leaders, policymakers, and development partners toward improved digital transformation outcomes.