Factors for the Acceptance of Enterprise Resource Planning (ERP) Systems and Financial Performance

Abstract

The purpose of this research paper to present the synthesized theoretical and empirical literature to help in the development of propositions and suggestions of a research agenda on the acceptance of ERP systems and their link with financial performance, the paper develops the technology acceptance model (TAM) to synthesize relevant literature and to develop proposition for future research agendas. The proposition and the research agenda will provide an adequate explanation of the acceptance of ERP systems, and their possible association with financial performance of organizations. The literature does provide a canon of acceptance of ERP systems in relation to financial performance. This research provides a positive association between the acceptance of ERP systems and financial performance. Also, the use of TAM theory provides further insight into identifying the acceptance factors of ERP. mistake from managers, as they would not realize that they have missed a crucial benefit of the system. This research uses the technology acceptance model to understand the main components of the acceptance of new technologies such as ERP systems in organizations. However, the implementation of these systems is then balanced against the financial needs of the organizations to operate in a profit making environment. This would mean that the needs of the user are paramount; however the financial needs of the organization cannot be ignored if the adoption of the ERP is to be a success. This research article aims to develop a deeper understanding of the theoretical and empirical literature on ERP adoption, and its link with the financial performance of the organization. The aim of the research is to propose a research agenda which would provide adequate explanations of the adoption of ERP systems in organization, while also explaining and dissecting the financial needs of the organizations within the system development context. This has been identified as a major gap in the research area and this article attempts to bridge this gap. The structure of the paper is as follows. In section two, the theoretical underpinning of the ERP adoption are presented, which explain the link between ERP and the technology acceptance model. Section three of the paper examines the literature on ERP adoption within the context of the user needs and the financial needs of the organization. Section four analyses the literature, and proposes five main propositions to understand the dynamics of the link between financial performance and the ERP adoption in organizations. Section six of the paper presents the finding and conclusions of the research, and proposes that a balance between the financial needs of the organization with the user satisfaction needs to be achieved for the successful ERP adoption. One of the significant conclusions of the research is that the benefits the users receive from the implementation of ERP systems can also lead to financial performance increase, and therefore both the factors are interlocked and dependent on each other. A number of other possible significant propositions of the research suggest that the user training and education are also critical to the understanding of ERP implementation. Other