Abstract
AbstractThis chapter evaluates the determinants of enterprise resource planning (ERP) usage among small and medium-sized enterprises (SMEs). We empirically test six determinants (compatibility, complexity, efficiency, best-practices, training and competitive pressure) based on the diffusion of innovation (DOI) model to explain ERP actual usage across four European countries. Through structural equation modelling (SEM) on a dataset of 883 web-surveyed firms, we explore the differences and similarities in usage across Denmark, Portugal, Sweden, and Spain. The cross-country analysis reveals that while for Portuguese and Swedish firms, SMEs system compatibility is an important facilitator for ERP usage; it is an inhibitor for Danish firms. Moreover, whereas system complexity is an important inhibitor for ERP usage in Portuguese and Danish firms, it is a facilitator for Spanish firms. Additionally, while for Portuguese, Danish, and Swedish firms, transactional efficiency is significant, it is not so for Spanish firms. In addition, best-practices and competitive pressure are important determinants of ERP usage for all SMEs across all countries. Training is an important facilitator for Portuguese and Spanish SMEs. The main finding is that Portuguese and Spanish SMEs show different results despite the fact that they seem to be so similar and the same prevails among Danish and Swedish SMEs. The fact that this research is based on a large-scale survey across countries makes it important to understand the actual ERP usage among SMEs, alongside its value in adding an international dimension to the DOI literature.KeywordsERPSMEsUsageDiffusion of innovationEuropean firms
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