Enterprise Resource Planning System Acceptance Research Articles

Workhorse or White Elephant? End User Acceptance of ERP System in a Shared Service Center

Businesses globally heavily invest in Enterprise Resource Planning (ERP) implementation to meet high customer demands and maintain competitiveness. Despite significant investments, underutilization hampers reaping the system's full benefits, leading to stagnant or adverse performance. Hence, this study aims to uncover reasons for the lack of end-user adoption of ERP systems. It focuses on the correlation between performance expectancy, effort expectancy, social influence, and organizational support in determining ERP system acceptance by end users. This study utilized a quantitative methodology. Data were collected from 392 respondents within a Malaysian shared service center. Multiple regression analysis was conducted employing the UTAUT model and perceived organizational support theory to evaluate and interpret the collected data. The study’s key findings include the significant positive association between performance expectancy and ERP system adoption, reinforcing the influence of effort expectancy on technology adoption. Despite its positive effects, social influence had little effect on end-user adoption. Additionally, it was observed that ERP system adoption was consistently facilitated by organizational support. This study confirms the essential factors that drive the adoption of ERP systems by end-users. It emphasizes the crucial role of leadership in prioritizing these elements for organizations to enhance user acceptance and ensure the successful implementation of ERP systems. Doi: 10.28991/HIJ-2023-04-04-013 Full Text: PDF

The CSFs from the Perspective of Users in Achieving ERP System Implementation and Post-Implementation Success: A Case of Saudi Arabian Food Industry

Enterprise resource planning (ERP) systems have a major impact on the functioning of organizations and the development of business strategy. However, one of the main reasons that cause failure in ERP implementations to achieve the expected benefits is that the system is not fully accepted by end users. User rejection of the system is the second reason after time and budget overrun, while the fourth barrier to ERP post-implementation. Most studies have focused on ERP adoption and installation while neglecting post-implementation evaluation, which omits insights into the priority of ERP systems and CSFs from the stance of ERP users. Therefore, this study identified factors that led to user acceptance of the use of ERP systems at both implementation and post-implementation stages (after installation). In addition, this study assessed the interrelationship between the factors and the most influential factors toward user acceptance. A survey was conducted among pioneers of the food industry in Saudi Arabia, which included 144 ERP system users from assembly and manufacturing, accounts, human resources, warehouse, and sales departments. The descriptive-analytical approach was deployed in this study. As a result, project management, top management support, and user training had significant impacts on the efficacy of ERP system implementation. On the contrary, support for technological changes in new software and hardware, managing changes in systems, procedures, and work steps already in place within the organization, as well as user interfaces and custom code, displayed a direct impact on user acceptance of ERP systems post-implementation. This study is the first research that provides a rating of CSFs from the perspective of its users in Saudi Arabia. It also enables decision makers of food industries to better assess the project risks, implement risk-mitigation methods, create appropriate intervention techniques to discover the strengths and limitations of the ERP users, and value the “best of fit” solutions over “best practice” solutions when determining the most appropriate option for food industries.

User Acceptance of Enterprise Resource Planning (ERP) Systems in Higher Education Institutions

Nowadays, many higher education institutions (HEIs) replace existing computer systems with new ones to cope with the changing demands. At the top of these systems is enterprise resource planning (ERP) systems that integrate HEIs' business processes, functions, and data to improve their overall productivity and effectiveness. However, many studies on ERP adoption have shown that organizations frequently face several barriers, and the failure rate is high. This research aims to explore the factors that affect the behavioral adoption and acceptance of an ERP system in HEIs. Based on literature and authors' observations of the PeopleSoft system (ERP) implementation at Yanbu University College in Saudi Arabia (SA), a conceptual model of users' acceptance of ERP systems has been proposed. The framework is based on the unified theory of acceptance and use of technology (UTAUT) model. The study offers a theoretical contribution by extending the UTAUT model, and according to the authors' knowledge, this is the first paper to address ERP users' adoption perspective in HEIs in SA.

User Acceptance of Enterprise Resource Planning (ERP) Systems in Higher Education Institutions

It has become common practice for higher education institutions (HEIs) to replace existing computer systems, called legacy administrative information systems, with new ones to cope with the continuously changing demands in the context of education. At the top of these systems is enterprise resource planning (ERP) systems that integrate HEIs' business processes, functions, and data to improve their overall productivity and effectiveness. However, many studies on ERP adoption have shown that organizations frequently face several barriers, and the failure rate is high. In addition, various research projects have concluded that, quite often, HEIs do not obtain the expected advantages from the adoption of the ERP system. This research aims to explore the factors that affect the behavioral adoption and acceptance of an ERP system in the context of HEIs. Based on works from literature and authors' observations of the PeopleSoft system (ERP system) implementation at Yanbu University College (YUC) in Yanbu City, Saudi Arabia (SA), a conceptual model of users' acceptance of ERP systems has been proposed. The framework is based on the unified theory of acceptance and use of technology (UTAUT) model and is extended with additional constructs. The present study offers a theoretical contribution by extending the UTAUT model to provide a richer understanding of users' adoption behavior of ERP systems in the HEI context. In addition, according to the authors' knowledge, this is the first paper that to address ERP users' adoption perspective in HEIs in SA.

Analysis of User Acceptance of ERP System on After Sales Function Using Unified Theory of Acceptance and Use of Technology (UTAUT) Model

Unified Theory of Acceptance and Use of Technology (UTAUT) is a model used to describe user behavior towards the acceptance of information technology. UTAUT is a development of eight previous leading theories. UTAUT has four constructs that can be a significant direct determinant of behavioral intention and use behavioral, ie performance expectancy, effort expectancy, social influence, and facilitating conditions. This model is then used to analyze user acceptance of Enterprise Resource Planning (ERP) at PT Wijaya Toyota Dago. ERP is a system that can help companies to integrate one process with another process, in order to achieve company goals. This research will explain about the relation of factors influencing acceptance and usage of ERP by using UTAUT model. This research is an explanative research with data analysis technique using PLS (Partial Least Square). Data obtained comes from respondents who are employees of After Sales function of PT Wijaya Toyota Dago, data obtained by way of distributing the questionnaire tertuup. The sample size in this study was 37 resondents and analyzed using SPSS and SmartPLS applications. The analysis results are as follows: (1) Variable Performance Expectancy (PE) has a positive and significant influence on Behavioral Intention (BI); (2) Variable Effort Expectancy (EE) has a positive and significant influence on Behavioral Intention (BI);(3) Social Influence Variables (SI) have a positive and significant influence on Behavioral Intention (BI); (4) Variable Facilitating Conditions (FC) has a positive and significant influence on Use Behavior; (5) Social Influence (SI) variable has positive but not significant influence on Behavioral Intention (BI).

The influence of ERP system usage on agile capabilities

PurposeSynthesising theories of enterprise resource planning (ERP), psychological empowerment and agile capabilities, the purpose of this paper is to build and test a novel theoretical model linking ERP system usage with agile capabilities via users’ psychological empowerment in Jordanian commercial banks.Design/methodology/approachA questionnaire was developed to collect the relevant data based on the extant literature. The population of this study consisted of all ERP system users working at Jordanian commercial banks in Amman City. The questionnaire was circulated to a purposive sample of actual users of ERP systems for two reasons. First, it was not possible to obtain a list of actual ERP users in each bank, for security and privacy reasons. Second, actual users of ERP systems are the most relevant source of information.FindingsThe results revealed that ERP system usage has a significant positive impact on both agile capabilities and users’ psychological empowerment. The results also showed that users’ psychological empowerment has a significant positive impact on agile capabilities. In addition, the results provide empirical evidence that users’ psychological empowerment plays a mediating role between ERP system usage and all agile capabilities except responsiveness. Furthermore, by adding users’ psychological empowerment to the original research model, the study demonstrates a good predictive relevance for agile capabilities.Research limitations/implicationsThe study only focuses on Jordanian commercial banks; it is a cross-sectional study; and the study data were subjective, reflecting respondents’ opinion on specific time.Practical implicationsPractitioners struggle to ensure high levels of ERP usage by target users, to achieve implementation success and to achieve expected benefits. More often, practitioners have focused on the ERP system project team, vendors and technical issues, but have ignored the human side of the implementation process. Hence, they have failed to acknowledge the role of psychological empowerment in ERP system acceptance and success. Practitioners are advised to promote the ERP system as a facilitation and empowerment tool for users rather than a means of surveillance and control. Moreover, practitioners can avoid high rates of ERP failure in the adoption and post-adoption stages by changing the aim of the ERP system introduction from increasing efficiency and visibility to enhancing users’ psychological empowerment. Practitioners can leverage agile capabilities to respond to changes in the business environment by ensuring healthy psychological empowerment for all ERP users to use the system to its full capacity and to exchange information between functional units in real time. Practitioners must ensure users’ psychological readiness to use the system before the system goes live.Originality/valueThe study developed and tested a new research model using the SmartPLS approach in a novel context.

Technology acceptance model-based research on differences of enterprise resources planning systems use in India and the European Union

The adoption of Enterprise resource planning (ERP) systems by organizations is crucial in today’s competitive globalized marketplace. The experience with ERP systems in numerous organizations over the last decade indicates that a successful implementation of ERP systems does not necessarily lead to a successful ERP usage. This paper addresses the scientific problem of differences in ERP acceptance and utilization in different cultural environments. The research question was whether and to what extend users’ extensive and explorative use of the ERP system differs in regions with different cultural backgrounds. Namely, organizations benefit from ERP systems only to the extent to which the users accept and utilize them. But the use of ERP systems at an advanced level is closely connected with the employees’ acceptance of these systems. To improve the efficiency and effectiveness of ERP systems in their maturity stage of use, when the employees already accepted ERP system, organizations need to understand the factors that impact user satisfaction and thus influence their extended use of the ERP system. Because of the socio-economic importance of India and the European Union (EU), we conducted a comparative research study into the similarities and differences of their use of ERP systems. From a theoretical point of view, the paper extends the original technology acceptance model (TAM), where two additional factors (work compatibility and extended use) were added. Additional external factors which can influence the users’ acceptance of ERP systems have been included into research, too. The main objective of this study is to find the key determinants that have an impact on user satisfaction and on the extended use in different cultural environments (i.e. the EU and India). We analysed and compared the data of 293 ERP users from 44 organizations in the EU and 577 ERP users from 13 organizations in India. Even though the use of ERP systems in India and the EU is at the same advanced level, there are differences which are connected to organizational cultures, presumed resulting from cultural differences of researched regions. Research data show some differences in the impacts on extended TAM model factors and some differences regarding the impacts of external factors researched.

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.

Acceptance of homegrown enterprise resource planning (ERP) systems in Ethiopia

In the current competitive global market, organizations are implementing information and communication technology (ICT) that could add value to their products, processes, and satisfaction of their users. The adoption, implementation and use of homegrown enterprise resource planning (ERP) systems is one of these mechanisms being globally used for recording, processing, storing, and exchanging organizational information anytime anywhere. Although organizations have been utilizing ERP systems, the acceptance of homegrown ERP systems is given less attention as compared to commercial off-the shelf (COTS) software. Hence, this research studied factors that determine acceptance of homegrown ERP through the extension of unified theory of acceptance and use of technology (UTAUT) model. The finding revealed that performance expectancy, effort expectancy, social influence, competitive advantage, cost effectiveness, and facilitations functions are determinants of homegrown ERP system acceptance in Ethiopia. Moreover, experience and voluntariness are found to be significant moderators of the study.

Dynamics for the acceptance of Enterprise Resource Planning (ERP) Systems and Financial Performance

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 andto develop proposition for future research agendas. 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.

An Emergent Model of End-users' Acceptance of Enterprise Resource Planning Systems

The success of Enterprise Resource Planning (ERP) implementation depends, to a large extent, on end-users' acceptance of ERP systems, which in turn affects the intensity and nature of system use. To understand the phenomenon underlying end-users' acceptance of ERP systems, the authors conducted a grounded theory research in a large institution that implemented an ERP system. Through systematic coding and content analysis, the authors inductively derived a theoretical model to explain end-users' acceptance of ERP systems. Three categories – beliefs about the system, changes in job scope, and social influence – emerged from the data as direct antecedents of user acceptance. The data also suggest that “beliefs about the system” mediates the influence of “training and support” and “personal characteristics” on user acceptance, whereas “personal characteristics” moderate the influence of “changes in job scope” on user acceptance. The theoretical model that emerged from this qualitative study extends existing models of user acceptance by providing a more complete understanding of end-users' acceptance of ERP systems.

PERSONAL INNOVATIVENESS AND SELF-EFFICACY ON ERP SYSTEMS ADOPTION

ABSTRACT As business organizations realize the benefits of adopting Enterprise Resource Planning (ERP) systems--business process integration and real-time information,--their demand for skilled labor capable of running daily business operations and executing daily transactions effectively on these systems is increasing. The focus of this study is the acceptance of ERP systems by students. We posit that if instructors can affect positively the personal determinants of students' usage intention of ERPs, schools would be meeting the goal of preparing them for a productive career in the many functional areas of business where the use of information technology is paramount. This study was conducted in the fall semester of 2014 in three undergraduate sections of the Management Information System (MIS) course. We conducted a pre- and post-treatment survey to compare students' perception on the value of the SAP ERP software before and after they received training and used the software. Data collection yielded, 130 valid paired cases for analysis. We also calculated correlations and regression analysis to identify additional the determinants of usage intention. Findings indicate that perception of ease of use and usefulness determine usage intention. Also, the findings indicate that personal innovativeness determines self-efficacy and in turn self-efficacy determines ease of use. Participants seemed to have benefited from the instruction they received and indicated that they would be likely to use the ERP systems to perform their jobs. This represents an important finding given the widespread use of ERP systems in the business world and the need of employers to recruit newly graduates with the necessary skills to fulfill current and future needs. Keywords Technology Acceptance; SAP ERP; Personal Innovativeness; Computer Self-Efficacy

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

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

The effects of transformational leadership and ERP system self-efficacy on ERP system usage

Purpose– During the past decade, there has been vast investment in Enterprise Resource Planning (ERP) system packages, in addition to a significant increase in the importance of acceptance by users of the ERP system regarding the success or failure of ERP implementation. The purpose of this paper is to identify the external factors which influence ERP system acceptance. The work is motivated by the realization that transformational leadership (TL) and ERP system self-efficacy are critical external factors that can affect ERP system acceptance.Design/methodology/approach– A framework has been developed from a study of literature in the field of TL, ERP system self-efficacy and the technology acceptance model (TAM). A survey utilizing a questionnaire was used to collect data and a total of 151 usable responses were analyzed by using the partial least squares method.Findings– The results of the study indicate that TL can either directly or indirectly influence perceived usefulness via the assimilation of self-efficacy in a positive manner. Also, TL has been found to have a positive influence on perceived ease of use both directly and indirectly via application of self-efficacy measures.Research limitations/implications– The findings were drawn from two Iranian companies, hence the results are not necessarily generalizable to other nations and other cultures.Practical implications– Management should provide TL development programs for their ERP leaders and encourage them to implement transformation in a manner that could increase assimilation and application of self-efficacy when using the ERP system.Originality/value– The study can provide ERP managers with a better understanding of how they can use TL behavior and skills in motivating and enhancing employees’ self-efficacy in order to achieve ERP system usage success.

Understanding End-Users’ Acceptance of Enterprise Resource Planning (ERP) System in Project-Based Sectors

This study aims at providing an alternative view of users' enterprise resource planning (ERP) acceptance. Despite the large body of literature, there are still empirical inquiries to investigate the ERP system implementation from end-users' perspectives as well as from different organizational contexts. To address these issues, we set a project-based sector as our population of interest and seek to understand how project management practices are interrelated with end-users' cognitive perception, and in the end, with their behavioral intention of using the ERP system. In doing so, this study incorporates the best practices of ERP system implementation projects, internal support, external (consultant) support, and functionality selection, into the extended technology acceptance model (TAM) that includes belief constructs and socioenvironmental construct (subjective norm). The empirical analyses show that managerial practices and socioenvironmental factor are significantly related to the original TAM variables in the context of ERP system. One of the interesting findings is the negative effect of consultant support on perceived usefulness, but positive effect on the perceived ease of use, suggesting a useful reference for future research. This study extends the existing literature by investigating potential managerial and socioenvironmental factors affecting user adoption behavior in a different organizational context. This study would also benefit project-based sectors by offering valuable managerial insights that enable them to appreciate and improve end-users' ERP system acceptance and utilization.

An Analysis of Factors Affecting User Acceptance of ERP Systems in the United States

Enterprise Resource Planning (ERP) systems are widely used in most industries today because of the benefits they offer: improved integration of business processes, improved cost control, improved decision making, improved customer service, and improved profitability. Although much IS research has been published concerning acceptance of enterprise systems, adoption issues, or critical success factors in implementing an ERP system, little research has been presented that focuses on the ERP usage behavior. The purpose of this research is to to extend the unified theory of acceptance and use of technology model in order to predict the acceptance of ERP systems among its users in the United States. This study will potentially benefit Information Technology (IT) professionals in a global environment. IT professionals can design acceptance strategies that promote ERP usage ultimately.

A domestic model for successful implementation of enterprise resource planning (ERP) systems in Iranian manufacturing enterprises

Article history: Received July 15, 2011 Received in Revised form September, 12, 2011 Accepted 28 September 2011 Available online 3 October 2011 This research investigates the human-behavioral dimension of technology acceptance in enterprises. It is evident that accepting a technology depends on the underlying circumstances of the environment. We have approached this issue from two different angles of social and technological architecture. The research tries to explore proper enterprise architecture for ERP system acceptance. Social Architecture (SA) is defined as the set of circumstances that makes people behave in a particular way. So behavior of persons (employees of an enterprise) can be a function of SA. Hence acceptance of a system can be dictated by SA and manipulating SA can result in desirable success for a technology system. We have achieved various variables of social architecture and have examined their relevance to system acceptance and success in related enterprises (research domain) beside technological architecture variables . The results have indicated that a special form of social and technological architecture can lead to success for ERP system in the enterprises of the research domain. This gave us a model of architecture. © 2012 Growing Science Ltd. All rights reserved.

EXAMINING A MODEL OF INFORMATION TECHNOLOGY ACCEPTANCE BY USERS OF ENTERPRISE RESOURCE PLANNING

Enterprise resource planning (ERP) system is a complex system that involves various stakeholders as users of ERP system within an organization. This research is the development of Hwang’s research (2005) who applies the implementation and adoption of ERP system in informal controls, such as self-control and cultural control. Perceived enjoyment as self-control and uncertainty avoidance as cultural control are used in the implementation of ERP systems and connected to technology acceptance variables for investigating the relationship between these variables. Field data taken through surveys of ERP system users in Indonesia (n=188) are analyzed by Amos. The results support the hypothesis of this research which shows that perceived enjoyment as self-control and uncertainty avoidance as cultural-control are important determinants of ERP system acceptance.

Factors that impact on the acceptance and performance of ERP system: multiple case studies in Taiwan

With the popularisation of the Enterprise Resource Planning (ERP) solutions, software applications have developed to help managers implement ERP system in business activities such as inventory control, order tracking, customer service, finance and human resources. This study uses multiple case studies as a research method to investigate the influence of enterprise contingency factors on ERP system acceptance and performance based on the Technology Acceptance Model (TAM). This study selects four companies from the semiconductor and steel industries as case studies for interview. The research results demonstrate that contingency factors are positively associated with the introduction and acceptance of ERP system; furthermore contingency factors are positively associated with ERP system performance.

Modeling use of enterprise resource planning systems: a path analytic study

In this research, we evaluated user participation and involvement in the context of enterprise resource planning (ERP) systems. Since ERP systems are enterprise-wide in scope, these systems have a high level of complexity, and require a different implementation methodology. While most studies analyze implementation at an organization or industry level, there is a dearth in research in ERP system adoption at the individual or user level. In our study, we examine ERP system acceptance at the individual level. In this research, we expected to find differences in the nature of user participation and involvement in ERP compared to other information systems. Using Barki and Hartwick's extension of the theory of reasoned action, a revised model was developed and tested empirically. While Barki and Hartwick's model explains user behavior vis-à-vis user participation and involvement, a more parsimonious model demonstrates that usage dynamics in ERP implementation are different. We complemented our statistical analysis by three case studies. Based on our results we believe that, given the nature of ERP and its implementation, traditionally formalized links between influencers of users' attitude and involvement may need to be revised. We have discussed why we need to seek alternate forms of influencers. In doing so, we suggest that investments be made in preparatory work practices and employee development prior to ERP decisions. Such investments are complementary to information technology and are widespread throughout the firm. We believe that such investments will play a significant role in influencing the attitude of users toward any system and also their involvement.