Adoption Of Enterprise Resource Planning Systems Research Articles

Economic Crisis and its Effects on ERP Adoption in Sri Lanka

ERP (Enterprise Resource Planning) systems are comprehensive software platforms that are specifically designed to manage a wide range of a business's essential processes, including finance, accounting, human resources, procurement, inventory management and project management. In the event of a country facing forthcoming economic collapse, organizations often find it challenging to determine the technological innovation activities they should engage in. The proliferation of the IT industry and its associated value proposition has led to the adoption of ERP systems becoming a popular strategic decision for businesses in the contemporary world. However, organizations' perception affects their inclination to adopt new technologies during economic crises. Hence, identifying factors influencing ERP adoption and assessing crises' impact on such systems is crucial. This research endeavor aims to examine the factors that are likely to exert a significant influence on the adoption of ERP systems within the context of Sri Lanka. The study adopts the Technological - Organizational – Environmental (TOE) framework to provide a comprehensive understanding of the factors that affect the adoption of ERP systems in organizations in Sri Lanka. This study seeks to investigate how the factors identified impact the adoption of ERP systems and how the turbulent economic condition in Sri Lanka has affected it. Existing scholarly literature on ERP adoption during an economic crisis is relatively scarce, and thus, this study will fill a critical gap in the body of knowledge. Furthermore, this study will offer invaluable insights into the importance of the identified factors, ICT Infrastructure, Human Capital, Competitive Pressure, Demand for Products or Services and Trading Partners’ Readiness for business communities in Sri Lanka. Also, this will provide insights into how a country's finance affects ERP adoption, helping organizations make informed technology adoption decisions. Keywords: Economic crisis, Enterprise Resource Planning systems, ERP adoption, Innovation and Technology, Technology adoption and PLS-SEM.

A model for enterprise resource planning implementation in the Saudi public sector organizations

Studies dedicated to user's adoption, acceptance, and use of IT have been rampant since the advent of computers and IT. Therefore, it becomes essential to assess the value of IT to organizations and to understand the determinants of such value in terms of acceptance, integration, and technology use. In this regard, Enterprise Resource Planning (ERP) adoption remains challenging for professionals and practitioners alike. Previous research neglected many vital factors, such as user involvement (participation, engagement, and resilience) and environmental factors (change management, competitiveness, and pandemic pressure). Therefore, this study aims to identify the most significant factors that influence the successful adoption of ERP and propose a conceptual model. The Technology Acceptance Model with DeLone and McLean Information Success Models were the base for the study. The findings of this study reveal a conceptual model that facilitates the successful adoption of ERP systems. Through the identification of critical factors, one factor emerged as a permanent component in the adoption process. This conceptual model provides valuable insights for organizations seeking to implement and adopt ERP systems effectively. The study's findings offer valuable insights for firms pursuing long-term economic success through ERP adoption. Understanding the influencing factors enables efficient and effective deployment. Implications are relevant to organizations, ERP vendors, and decision-makers, guiding informed decision-making and prioritizing success factors.

User Requirements in Enterprise Resource Planning Systems Adoption: A Case of Botswana’s Higher Institutions

ERP systems are the largest software applications adopted by universities, along with quite significant investments in their implementation. However, unlike other applications, limited research has been conducted regarding the application of this system in higher education in Botswana. This study aims to identify user requirements in the adoption of enterprise resource planning (ERP) systems in Botswana’s higher education institutions. This study was conducted in three higher education institutions in Botswana. This study adopted the quantitative methodology of using surveys to understand ERP adoption in higher education and proposed a model that could be used to guide business information systems requirements to appropriate ERP systems in a higher educational environment. Based on the findings, the study proposed a conceptual model of ERP system adoption in higher education institutions using six success dimensions. The six success dimensions are user requirements, user satisfaction, information quality, service quality, institutional impact, system quality, and faculty/management impact. Only information quality was rejected from the model. The six success dimensions are the basis through which a higher education institution can understand user requirements in implementing an effective ERP.

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

Opportunities and Challenges of Enterprise Resource Planning (ERP) in Construction Companies in Indonesia: A Systematic Literature Review

This study delineates a systematic review of literature focusing on the opportunities and challenges associated with implementing Enterprise Resource Planning (ERP) in construction companies in Indonesia. Through the Systematic Literature Review (SLR) approach, this article evaluates and analyzes several related studies published within the last five years (2019-2023). This method allows the identification and synthesis of data from various sources such as academic journals, related publications, and databases, which are then analyzed to identify trends, opportunities, and challenges related to ERP implementation within the context of the construction industry in Indonesia. The findings from this literature review reveal a variety of benefits obtained by construction companies after adopting ERP systems, including improved operational efficiency, better resource management, and enhanced strategic decision-making. However, challenges also emerge, including issues related to adapting to change, integration with existing systems, as well as significant implementation costs and time. This analysis provides deep insights into the ERP implementation in the construction industry in Indonesia, providing a foundation for better understanding and further development in facing challenges and leveraging available opportunities.

Accounting information quality in the digital era – a perspective from ERP system adoption?

Purpose Based on the technology acceptance model theory, this study aims to explore whether perceived usefulness (PU), perceived ease of use (PE) and the availability to embrace technology (AET) influence the intention to accept an enterprise resource planning (ERP) system in Jordanian companies. It also analyses the influence of the intention to accept ERP system on ERP system adoption. More crucially, the current research fills a gap in earlier investigations by exploring the influence of adopting an ERP system on accounting information quality moderated by a company size. Design/methodology/approach This research seeks to provide evidence about the study context from Jordanian companies, as the research population and sample consist of all companies listed on the Amman Stock Exchange in 2022 (totally 170 companies). This signifies that the research method is a complete survey of the study population. The core data were collected using an online survey via Google Forms. It was emailed to the selected companies’ chief financial officers. Because each company received one online survey questionnaire, this unit of analysis is a company. Finally, 141 questionnaires were returned, reflecting an 82.94% response rate. Findings Empirically, the findings reveal that PU, PE and AET influence the intention to accept an ERP system, and that there is a positive relation between the intention to accept an ERP system and ERP system adoption. Furthermore, ERP system adoption positively influences relevance and faithful representation of accounting information moderated by company size. Originality/value This research adds to the accounting information quality literature by investigating the direct influence of ERP system adoption. Furthermore, the findings show the effectiveness of ERP system adoption and its regulatory roles in companies. Finally, this research was conducted to provide empirical knowledge on ERP system adoption in developing countries, notably Jordan.

Exploring ERP systems adoption in challenging times. Insights of SMEs stories

This paper offers a study of real success experiences of SMEs, in relation to the motivations of selection and implementation of Enterprise Resource Planning (ERP) and its benefits that also allow the confrontation with theoretical concepts, based on reviewed literature. We followed a qualitative approach based on in-depth content analysis of SMEs online stories included in the ‘Customer Stories’ directory available on the SAP website using the R language to scrape data and statistical analyses. The findings provide evidence that the use of ERP, for managing SMEs, is constructive to their success and improves the quality of their decision-making processes. Although the technologies implemented by SMEs were characterized by their specialisation and adaptation, SAP Business One is the leading solution, without significant differences by sector compared to Europe. They also reveal that the effectiveness of implementing ERP is intrinsic to the reputation of the software vendors and the high professionalism of the partners. Additionally, the results indicated the short-term approach of SMEs when implementing this type of tool, takes precedence over the strategic and economic benefits. Furthermore, the empirical analysis supports the association of some motivational factors of ERP implementation and selection with characteristics of the organisations, such as activity and size.

Analisis Adopsi Sistem ERP dalam Mengoptimasi Industri Pangan Menggunakan SEM dan Model UTAUT2

In the era of Society 5.0 and the post-COVID-19 recession, entrepreneurs experienced digital disruption and economic instability, especially in the food industry sector. The low awareness of entrepreneurs in adopting technology and information systems, as well as their doubts about the high cost and time that needs to be allocated, are also reasons why the process of adopting technology and information systems is increasingly difficult to realize. To overcome costs and a relatively long development process, one of the efforts that companies can make is to adopt an open-source Enterprise Resource Planning (ERP) system that is useful for supporting resource management and decision-making. The purpose of this research is to prove how the adoption of ERP systems can support business digitalization processes and can produce industrial systems that are agile, effective and efficient. A series of analyzes were carried out using a survey aimed at 292 food industry business actors who had been digitalized by ERP, to prove the influence of behavioural factors on ERP usage using the UTAUT2 model, with the variables tested including performance expectations (PE), effort expectations (EE), price values (PV), facility conditions (FC), habits (HT), and behavioural intention (BI) toward the use behaviour of ERP (UB) in the food industry sector in Central Java, Indonesia.

ERP System for Construction Site

Currently, enterprise resource planning (ERP) has been recognized as a foundation for the merging of organization-wide data systems. ERP systems connect all aspects of an organization's business, including accounting, finance, human resources, production, and distribution. They also connect the company to its consumers and suppliers across the many phases of the product's or process' life cycle. Just a few studies have been done on the use of ERP systems on construction sites, particularly for designers, technicians, and workers. the main focus has thus far been on retail businesses, engineering companies, and design firms. The purpose of this study is to conduct research on the effectiveness of ERP systems at contractor sites and, as a result, their implementation status. A wide range of market research, literature reviews, and modified surveys may be used as the methodology. The majority of contractor sites are reported to be aware of ERP systems, although only a small number of organizations have so far implemented such systems. The main reason is that every ERP system adoption requires a significant time, financial, and resource investment. However, if used to solve the right issues, these ERP systems could be a successful tool for business development

Investigating the determinants of continuance intention on cloud ERP systems adoption

With the rapid developments in cloud technology, the cloud Enterprise Resource Planning (ERP) system is indispensable when investigating the adoption and implementation of manufacturing systems among industries. The cloud ERP system can support manufacturing systems through various cloud services. The study was based on the well-known Information Systems Success Model (ISSM) to explore the predictive power of these theory-based variables. Our research provides an integrated managerial model to predict the continuance intention of adopting the cloud ERP system to enable effective manufacturing. The paper employed Structural Equation Model (SEM) to verify and confirm the hypotheses from an online survey in Taiwan. The empirical results have confirmed that (1) self-efficacy and convenience positively predict perceived ease of use; (2) information quality, system quality, service quality, perceived price, and perceived ease of use positively predict satisfaction; perceived security has no significant effect on satisfaction; (3) perceived ease of use, perceived security and satisfaction positively predict continuance intention. This study’s analysis results thus provide a suitable integrated framework to predict continuance intention. Finally, our research provides practical and managerial recommendations for manufacturing industries of adopting the cloud ERP system.

Digitalization of the Healthcare Supply Chain through the Adoption of Enterprise Resource Planning (ERP) Systems in Hospitals: An Empirical Study on Influencing Factors and Cost Performance

Rising healthcare costs force healthcare organizations worldwide to reconsider their business strategies. Hospital managers are tasked with lowering operating costs while upholding the high quality of care, two goals perceived as contradictory by many healthcare professionals. Attempting to contribute towards reaching these goals, the study explores the digitalization of the healthcare supply chain through the adoption of enterprise resource planning (ERP) systems and its impact on hospital supply chain costs. Established technology adoption theories are synthesized to develop a research model that investigates the adoption of hospital ERP systems and its impact on supply chain cost performance. The framework is validated via structural equation modeling (SEM) with data collected from 107 Greek public hospitals. The results indicate that technological and organizational readiness, hospital size, governmental policies, and perceived benefits have a significant influence on the extent of ERP systems adoption. They also demonstrate a statistically significant association between the use of ERP systems and hospital supply chain costs. The present study highlights the influencing factors of ERP systems adoption in hospitals and provides empirical evidence on the resulting cost benefits., This implies greater urgency for hospitals to digitalize their supply chain by implementing and fully exploiting the ERP systems’ functionality in order to reach their goal of delivering quality care at a lower cost.

Influential Characteristics and Benefits of Cloud ERP Adoption in New Zealand SMEs: A Vendors’ Perspective

Cloud enterprise resource planning (ERP) systems are hosted services offering opportunities for small and medium-sized enterprises (SMEs) that often lack IT resources. Few studies have examined the adoption of cloud ERP systems in SMEs, specifically, from the perspective of cloud ERP vendors who are the domain experts. Drawing on vendors’ perspectives in the New Zealand (NZ) context, this paper evaluates the influential characteristics for adopting cloud ERP systems in SMEs. The paper uses an integrative model combining the technological, organizational, and environmental (TOE) framework with the unified theory of acceptance and use of technology (UTAUT) based on individual dimension for a holistic evaluation. Findings reveal novel characteristics including system reliability and data security that influence adoption of cloud ERP. Further, benefits are identified such as reduced cost and time for deployment, increased scalability, and improved accessibility. The paper presents new insights that can help SME managers successfully adopt cloud ERP in their firms in addition to providing practical guidelines for adoption in NZ. The development of a theoretical model integrating TOE and UTAUT is a novel approach, substantially contributing to the body of knowledge.

Does the regional environment matter in ERP system adoption? Evidence from Russia

PurposeThis paper explores the effect the regional technological environment has on technology-driven performance, measured by enterprise resource planning (ERP).Design/methodology/approachThis study specifies a productivity-based production function driven by ERP system adoption. Employing a quasi-experimental research design, the author disentangles two effects – the average effect of ERP adoption and the moderation effect of the regional technological environment. The novelty of this study is that it merges publicly available information retrieved via text-mining tools and official financial reports published by companies.FindingsThe total effect of technology adoption on productivity varies from almost 3%–9% in different technological environments. Moreover, this study’s results revealed that the regional technological environment could enhance the effect of adopting different ERP systems.Originality/valueWhile some papers investigate the relationship between ERP adoption and firm performance regarding the environmental context of a firm, the effect of the regional technological environment on the relationship between technology adoption and firm performance is understudied. Thus, this research tries to contribute to a deeper understanding of the regional context's impact on technology-driven performance. The authors used automated content analysis to collect data on technology adoption; by doing so, this study contributes to the growing body of research utilising the text-mining approach to extract data stored in Internet-based information sources.

The Influence of Enterprise Resource Planning System Implementation on Accrual-Based Earnings Management: Empirical Evidence from Jordan

This research provides evidence on whether enterprise resource planning (ERP) implementation affects accrual-based earnings management (AEM) in the service and manufacturing firms listed on the Amman Stock Exchange (ASE). The Huber–White’s sandwich estimator for pooled ordinary least squares (OLS) regression was utilized for this investigation as the primary statistical technique. Using three different AEM models and a sample of 390 firm-year observations for the period spanning from 2015 to 2019, this study reveals a significant and negative nexus between ERP implementation and AEM. The findings show that ERP adopting firms are less likely to engage in AEM practices than ERP non-adopting firms. In terms of contribution, the present research is considered among the first to investigate the impact of ERP system adoption on earnings management (EM) in Jordan.

Adoption Of ERP Systems in Small and Medium Enterprises: A Study of Multiple Cases In Southern Of Minas Gerais

This work analyzes the adoption of Enterprise Resource Planning (ERP) information systems in small and medium enterprises (SMEs). Adoption of ERP in SMEs can provide better control of organizational processes and quality to the information that drives decision-making. However, small and medium-sized enterprises have long remained outside the scope of ERP adoption research. Current scientific literature cover, at first, large firms and when SMEs are the unit of analysis, results are not similar whether compared to the large firms. Thus, this research aims to identify and analyze the factors that influence the adoption of ERP in SMEs. This purpose was achieved through a qualitative approach, inductive logic, interpretive epistemology, and a multiple case study (six firms) in companies located at the southern of Minas Gerais state, Brazil. Data were collected by interviews with the managers (administrative or IT) and analyzed by two techniques: Lexical and Content Analysis. We used Iramuteq software to support Lexical Analysis. We observed that the adoption of ERP in SMEs has higher influence by Technological and Organizational constructs than by Environmental factors. Variables such as commercial partnerships, external support and competitiveness were not observed as a factor that influence ERP adoption in SMEs. Otherwise, added value, compatibility, firm size, and the composition of the steering body were observed as a factor that positively influence ERP adoption in Brazilians SMEs.

Post-implementation challenges of ERP system in pharmaceutical companies

PurposeMany organizations failed to generate profits after investing considerable money and time in Enterprise Resource Planning (ERP) systems. This study, therefore, sought to identify the challenges encountered by pharmaceutical firms during the post-implementation of ERP systems.Design/methodology/approachA case-based study followed by general survey-based research was carried out in pharmaceutical firms to determine the critical post-implementation challenges of ERP systems. DANP (DEMATEL-based ANP) and Wilcoxon Signed Rank test were used to find the causal/critical challenges and rank them.FindingsAfter analyzing a pharmaceutical case company and conducting a general survey among pharmaceutical companies, statistical analysis was performed to identify the most significant challenges, namely, “Inefficient troubleshooting mechanism”, “Lack of training during post-implementation stage” and “Difficulty in identifying invalid data when entered into the ERP system”. Furthermore, organization-wide challenges are considered to be the most important.Practical implicationsThe paper identifies the challenges faced during the post-implementation phase of ERP systems. This work brings out the issues with ERP systems' performance after their implementation, which is related to the quality of the ERP systems. This work will support the risk identification and mitigation during ERP implementation to eradicate the problems after its implementation. This work may trigger the ERP system developers to improve its features and performance for better manufacturing and supply chain management system in pharmaceutical firms.Originality/valueThis study is uniquely conducted in pharmaceutical firms to study the benefits and challenges of adopted ERP systems. A pilot case study served as the foundation for the generalizability of other pharmaceutical firms' findings through a non-parametric test.

Antecedents and Impacts of Enterprise Resource Planning System Adoption among Jordanian SMEs

Businesses need accounting information to support their decision-making. In this regard, the extensive use of Information Technology (IT) has enhanced the effectiveness and efficiency of accounting functions that support accounting-related information. Specifically, an enterprise resource planning (ERP) system ensures reporting accuracy, large amounts of transaction processing, and the generation of reports for analysis. Regardless of the numerous benefits that an ERP system provides, small and medium-sized enterprises (SMEs) have yet to catch up with their system usage. Hence, this study draws upon the technology-organisation-environment (TOE) framework to propose an integrated model that includes diffusion of innovation (DOI), institutional factors, and TOE to examine ERP adoption antecedents in the context of SMEs in Jordan. A mixed method is applied in this work, and it uses a self-administered questionnaire survey as the main data collection instrument along with interviews. Quantitative data are obtained from 102 respondents through the questionnaire, after which the research model is validated using SMEs in Jordan. The survey results show that relative advantage, top management support, organisational readiness, training, competitive pressure, government support compatibility, and service provider support significantly influence ERP adoption among the SMEs. The findings are expected to shed light on the way SMEs can enhance their ERP adoption for optimum performance, as well as extend the literature dedicated to the antecedents of information system, IT adoption, and their impact.

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

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.

Enterprise resource planning (ERP) system implementation in a manufacturing firm: Rationales, benefits, challenges and management accounting ramifications

Research Question: What are the accounting benefits perceived by accountants and internal auditors that entail through Enterprise Resource Planning (ERP) systems? Is there an interaction of ERP accounting benefits with the accountants’ and internal auditors’ satisfaction level in using ERP systems? Motivation: Many organizations are implementing ERP systems extensively while sharing a common database and being real-time. Past scholars summon empirical studies on ERP's impact on accounting benefits and user satisfaction. Therefore, this study was conducted from accountants’ and internal auditors’ perspective as recent scholars shed light on the cruciality of these two groups' perceptions as key ERP users. Idea: This study examines the accounting benefits that entail through the adoption of ERP systems by Sri Lankan companies with regard to ERP user satisfaction from the perspective of accountants and internal auditors. Data: The data were collected from 38 accountants and 19 internal auditors across 24 companies that are implementing ERP systems for more than four years. Tools: A quantitative survey methodology is employed to draw empirical evidence. Findings: The findings confirm that organizational, operational (time), and IT accounting benefits derived from ERP systems significantly and positively influence ERP users' satisfaction. In contrast, operational accounting benefits (cost) received the lowest rating and did not significantly influence user satisfaction. Contribution: While these findings are valuable to accountants and internal auditors to better understand the ERP accounting benefits, ERP consultants and system providers also benefit from identifying ERP accounting features to uplift user satisfaction in developing countries.

Do accounting benefits of ERP systems impact the satisfaction of end-users? From the perspective of accountants and internal auditors in Sri Lanka

Research Question: What are the accounting benefits perceived by accountants and internal auditors that entail through Enterprise Resource Planning (ERP) systems? Is there an interaction of ERP accounting benefits with the accountants’ and internal auditors’ satisfaction level in using ERP systems? Motivation: Many organizations are implementing ERP systems extensively while sharing a common database and being real-time. Past scholars summon empirical studies on ERP's impact on accounting benefits and user satisfaction. Therefore, this study was conducted from accountants’ and internal auditors’ perspective as recent scholars shed light on the cruciality of these two groups' perceptions as key ERP users. Idea: This study examines the accounting benefits that entail through the adoption of ERP systems by Sri Lankan companies with regard to ERP user satisfaction from the perspective of accountants and internal auditors. Data: The data were collected from 38 accountants and 19 internal auditors across 24 companies that are implementing ERP systems for more than four years. Tools: A quantitative survey methodology is employed to draw empirical evidence. Findings: The findings confirm that organizational, operational (time), and IT accounting benefits derived from ERP systems significantly and positively influence ERP users' satisfaction. In contrast, operational accounting benefits (cost) received the lowest rating and did not significantly influence user satisfaction. Contribution: While these findings are valuable to accountants and internal auditors to better understand the ERP accounting benefits, ERP consultants and system providers also benefit from identifying ERP accounting features to uplift user satisfaction in developing countries.