Enterprise resource planning adoption model for well-informed decision in higher learning institutions

Abstract

Enterprise resource planning (ERP) has been found to have a key role in the management of higher learning institutions (HLIs) and schools. However, the literature shows no universal model to support and shed light on the adoption of ERP, which lessens the chances for an effective ERP adoption and usage. Therefore, a new model is needed for successful adoption and the eventual enhanced decision-making, and as such, there is a need to investigate the factors that can bring about ERP system adoption. Models for ERP adoption in literature are few and far between, and what few exist are not applicable as they do not cover all the major factors that can contribute to adoption success. Hence, in this article, an ERP adoption model was brought forward for HLIs for the promotion of their decision-making process. The model was developed through the integration of DeLone and McLean’s information success model and the technology, organisation and environment (TOE) theory. The study distributed 500 survey questionnaire copies online and collected 364 from HLIs respondents, after which they were retrieved, and data were analysed through partial least squares structural equation modeling (PLS-SEM) 3 statistical software. On the basis of the obtained analysis findings, technological, organisational and environmental factors had significant and positive effects on ERP adoption, and ERP adoption had a positive and significant effect on the decision-making of HLIs. The entire factors were found to be significant in their effects, and ERP adoption sufficiently explained variance extracted from decision-making. The study contributes to the literature through the pioneering measurement of factors categorised under technological, organisational and environmental dimensions, with ERP adoption and decision-making encapsulated in a single model.