Enterprise Resource Planning Adoption: Structural Equation Modeling Analysis of Antecdants

Determinants of ERP Adoption, User Satisfaction, and User Engagement

Based on the theory of reasoned action (TRA) and the diffusion of innovation framework, this study examines the key determinants and outcomes of enterprise resource planning (ERP) adoption. The study specifically investigated the impact of system quality and user training on ERP adoption intention. Further, the impacts of ERP adoption intention and personal innovativeness on ERP adoption were also studied. User satisfaction with ERP and user engagement were considered as the two outcomes of ERP adoption. To achieve these objectives, an online survey was conducted and data was collected from 180 ERP users across multiple industries in India to understand their perception of such matters. Structural equation modeling using the partial least square approach was used to test the proposed hypotheses. The results of SEM analysis supported all the hypotheses under investigation. These results provide relevant evidence that may encourage organizations to understand the key determinants of successful ERP adoption and its significant impacts on user satisfaction with ERP and user engagement.

Research on the impact of COVID-19 on Chinese small and medium-sized enterprises: Evidence from Beijing

COVID-19 leads small and medium-sized enterprises (SMEs) to survive very hard. The development difficulties of SMEs lead to weak employment and GDP growth in various countries. In the process of COVID-19's continuous spread, what is the major reason for the difficulties of SMEs? This paper hopes to answer this question by studying SMEs in Beijing. On this basis, this paper uses structural equation model (SEM) to study the relatively fast recovery of SMEs in Beijing, China, to explore the factors affecting SMEs in the pandemic. After detailed desk research and interviews with relevant entrepreneurs, this paper collects 234 valid questionnaires from SMEs in various industries in Beijing with the help of Federation of Industry and Commerce and Chamber of Commerce in Beijing. Then the data is analyzed with the SEM, which shows the relationship between cash flow from financing activities, markets, employees, costs, government policies and the impact of the pandemic. Finally, an impact model of the pandemic on SMEs is established. The result of the model indicates that the direct effect of the pandemic on the market is the most prominent, and government policies can significantly reduce the negative impact of the pandemic on SMEs indirectly. Based on this, this paper puts forward some policy suggestions, such as the targeted issuance of consumption vouchers and the reduction of administrative barriers. This will enable megacities in various countries to improve policy support for SMEs and promote the recovery and development of SMEs.

Effects of General and ERP Self-Efficacy Beliefs on the Acceptance of ERP Systems

The impact of computer self-efficacy (CSE) on acceptance and utilisation of enterprise resource planning (ERP) systems is widely recognised in the literature. However, past ERP adoption research has mostly used CSE as a universal and general computer cognitive variable across the computing domain. While CSE is a multifaceted concept which can be conceptualised and assessed at the general computer or application-specific level, past studies did not differentiate between the general and application self-efficacy belief in examining the acceptance of ERP systems. This study aims to address this issue and make a clear distinction between general computer and application (ERP) self-efficacy beliefs and examines the effects of both types of efficacy beliefs on known determinants of acceptance and use of ERP systems. The results provide strong support for the effects of self-efficacy beliefs at the ERP level. The results show that the effects of CSE beliefs at the ERP level are stronger than those of general CSE beliefs on ERP acceptance behaviour.

Knowledge sharing through enterprise social network (ESN) systems: motivational drivers and their impact on employees’ productivity

Purpose

This study aims to predict the impact of utilitarian and hedonic motivations on using enterprise social network (ESN) systems for sharing internal and external knowledge, as well as their effects on employee productivity.

Design/methodology/approach

Responses of 115 ESN system users from a wide spectrum of firms have been validated and analysed by means of structural equation modelling using partial least squires (PLS-SEM) method.

Findings

The results indicate that using ESN to share internal and external knowledge has a positive significant impact on employee productivity. Surprisingly, empirical analysis reveals that using ESN tends to be significantly influenced by hedonic rather than utilitarian motivations.

Originality/value

The study is an early empirical attempt that examines using ESN for knowledge sharing, emphasizing its upstream motivational influence and downstream business impact. It also offers managers and ESN vendors a frame of reference to maximize the use of ESN in the workplace to boost employees’ productivity within various contexts.

Isomorphic factors in the adoption of ERP by Indian medium-sized firms

Purpose

The purpose of this paper is to adopt an institutional theory perspective to investigate the adoption of enterprise resource planning (ERP) systems by medium-sized firms in India. The rationale for this study is to provide a more complete understanding of ERP adoption, moving beyond the traditional technical and economic perspectives to include social, cultural and structural influences. These later influences are more implicit, insidious and pervasive and hence require elucidatory studies such as this, but offer a greater understanding of the adoption of information systems (IS).

Design/methodology/approach

The study is undertaken by means of nine case studies of medium-sized firms in India that have adopted ERP systems. Qualitative interviews were undertaken with a range of staff in each firm and are supplemented by data from other sources such as site visit notes.

Findings

Institutionally based studies have tended to focus on three high-level isomorphic pressures: coercive, normative and mimetic. The study identifies number of more detailed factors that contribute to each of these three pressures. These more detailed factors are then used to consider how factors can interact and how they can explain aspects of the Indian context of the study.

Originality/value

The conceptual contribution of this study is to move beyond the technical and economic rationales frequently identified for the adoption of IS by identifying influences that are social, cultural and structural in nature. The study shows that the three high-level isomorphic pressures, mimetic, coercive and normative are comprised of more detailed factors. The empirical contribution of the paper is to identify these detailed factors, and to explore their influence, in the case of ERP adoption by Indian medium-sized firms. The study is of value to practitioners, since it is at the detailed level of factors that managers can recognize the forces they are subject to and can take action. It is also valuable to researchers since the detailed factors help address two limitations of institutional theory; a lack of agency perspective and a degree of conceptual ambiguity.

Finding the tipping point for a CEO to say yes to an ERP: a case study

Purpose

– Most small- and medium-sized enterprises use some business management software to manage day-to-day operations. Eventually they consider transitioning to an enterprise resources planning (ERP) system. The purpose of this paper is to find what motivates the top management to consider a transition from an existing system to an ERP especially as such a transition can be painful, expensive, and involve considerable business risk. The research posits a decision model that top management may use to aid their decision.

Design/methodology/approach

– The research question is about examining the organizational phenomenon of transition to an ERP system and so a case study research methodology is followed to understand the phenomenon.

Findings

– The research concludes it is usually a change in scale of operations that drives the transition. The motivators are abstracted as: scalability – increased hierarchical controls and systems scalability driven by increasing number of employees; complexity – more business functions need systems support to address increased operational complexity; and integration – systems and process integration for seamless operations.

Research limitations/implications

– There is a need to check if the same fundamental issue of change in scale of operations is true across industries and across geographies. Also it creates a need for a statistical validation of the motivators and their importance across organizations and industries.

Practical implications

– ERP considerations are of strategic importance because of the high risk and the high expense. The research presents a decision model to aid top management to find if ERP systems make sense for their organization.

Originality/value

– The research provides new directions for academicians as there are few empirical studies on the true motivators that drive ERP adoption.