Enterprise Resource Planning System Usage Research Articles

The Effects of Social Capital and Individual Factors on Knowledge Sharing Among ERP System Users

Enterprise Resource Planning (ERP) system is a management technology that advocates an integrated approach to conduct business. Before organizations apply technology to improve the overall performance, they must understand what their employees need to use it. ERP systems are knowledge intensive, which require high level of knowledge absorption and knowledge sharing between organizational members in order to be used successfully. Since the knowledge sharing is a key factor to use the ERP system, therefore this study aims to identify the social capital and individual factors affecting knowledge sharing among ERP users in small and medium-sized enterprises (SMEs). A quantitative method was employed using a self-administered questionnaire technique to collect data from 413 ERP users in Jordanian SMEs and SPSS software to analyse the data. This study found that social networks, trust, shared vision, self-efficacy, absorptive capacity; extrinsic motivation and intrinsic factors have influenced significantly on knowledge sharing among ERP users. Such a finding could provide guidelines for the management to enhance knowledge sharing among ERP users for successful ERP system usage.

Relative demand for highly skilled workers and use of different ICT technologies

ABSTRACTThis study investigates the relationship between several indicators of ICT usage and digitalization and the relative demand for highly skilled workers. The data are based on two-digit industry-level information on seven European countries for the period 2001–2010. For manufacturing industries, static fixed-effects models show that the share of employees with internet broadband access, the diffusion of mobile internet access and the use of enterprise resource planning (ERP) systems and automatic data exchange combined with electronic invoicing are all significantly and positively related to skill intensity in the industries observed. For service industries, only mobile internet usage intensity is significant. Specifically for manufacturing, a 10-point increase in the percentage of firms using ERP systems is associated with an increase in the share of highly skilled workers by 0.4 percentage points. These estimates indicate that the increase in ERP system usage during the period studied accounted for 30% of the increase in the share of workers with a tertiary degree across manufacturing industries and countries. The results are robust with respect to the estimation method and the potential endogeneity of ICT.

Impact of Roles and Affiliations on End-Users’ Acceptance of ERP Implementation in a Large Transportation Agency

AbstractThe authors studied Texas Department of Transportation (TxDOT), which recently completed a 17-month project for implementing an enterprise resource planning (ERP) system. The authors used self-reported data from 3,294 staff members collected over 11 months throughout the project and employed logistic regression to compare responses from three role groups, namely supervisors/managers, crew chiefs/lead workers, and employees as well as from three affiliation groups, namely respondents working at division, district, and office levels. As for roles, employees, the main users of ERP system, were less optimistic about the project. As for affiliations, districts were less optimistic about the project. Investigating TxDOT’s implementation approach suggested that lack of hands-on training, widespread content of work and variations in daily tasks, and proximity to the power structure might explain the findings. Employees and those from districts might have seen more risk to them personally and been less awa...

The role of goal awareness and information technology self-efficacy on job satisfaction of healthcare system users

ABSTRACTThis paper investigates the influence of goal awareness and IT self-efficacy on job satisfaction based on the motivation sequence model, goal-setting theory, and social cognitive theory. Using a large-scale field survey of healthcare enterprise resource planning (ERP) system users (n = 352), this study investigates these relationships and provides important insight to healthcare ERP system researchers and managers. Both goal awareness and IT self-efficacy influence positive job satisfaction of healthcare ERP system users, as expected. Furthermore, the influence of goal awareness is stronger when the role of ERP systems is highly perceived for decision-making of the job. There was no interaction effect between goal awareness and IT self-efficacy in the post hoc analysis. The model is significantly supported by the empirical test with the large number of field data from healthcare ERP system users in the healthcare company. Practical and academic implications are discussed in the paper.

Automating and informating: roles to examine technology’s impact on performance

ABSTRACTPrevious studies on the impact of technology on performance (usefulness) have looked at the Information System (IS) in its role as supplier of information (informating role) and thus they have studied the influence of information quality and system quality on usefulness. However, an IS also has a role in the automation of tasks (automating role), which these studies do not take into account. Accordingly, this paper proposes a factor model that (1) includes explicitly both roles; (2) considers that informating and automating roles mediate the relation between these technological factors (information quality and system quality) and usefulness and (3) includes a system’s level of intervention (i.e. the degree to which technology participates in carrying out the tasks) as an additional factor that determines usefulness. Using a questionnaire, data were gathered on 229 Enterprise Resource Planning system users from different organisations and functional areas and structural equations model was used for analysis. Results show that information quality explains usefulness through both roles. System’s level of intervention explains usefulness through the automating role and system quality explains usefulness through the informating role. The factors’ differentiated effects through each role may help managers to establish more effective criteria and priorities in the various stages of an IS’s life cycle.

Impact of ERP systems usage on organizational agility

Purpose– Enterprise resource planning (ERP) systems can be considered as cornerstone that allows most organizations to achieve their business goals. The purpose of this paper is to investigate the impact of ERP system usage on agility in organizations.Design/methodology/approach– The data were collected from 90 branches of well-known banks in the Middle East, such as HSBC, Standard Chartered and Arab Bank. Data were analyzed using a path analysis methodology.Findings– A new model has been developed. An empirical investigation was performed on the banking sector in the Middle East to test the new model. Despite the results showing that the impact of ERP system usage on banks’ agility is significant, the variance of banks’ agility that is explained by the use of ERP systems is weak. This indicates that ERP usage may not influence sufficiently the current agility drivers in Middle-Eastern banks and that there may be other significant variables that contribute to agility in the banking sector.Research limitations/implications– The findings of this research were based on a survey conducted among banks in the Middle East. The results are applicable in Middle-Eastern banks, but may not be applicable in other regions.Practical implications– Banking practitioners in the Middle East should be aware that successful implementation of ERP systems may not lead to the achievement of sufficient competency, flexibility, quickness, and responsiveness. Hence, such implementation may not deliver banking agility.Originality/value– This research model investigates the impact of ERP usage on the agility of banks in the Middle East.

User perceptions towards an ERP system

Purpose – The purpose of this paper is to explore how key users’ perceptions (capability, value, timing, and acceptance) toward an Enterprise Resource Planning (ERP) system change from the pre-implementation to the post-implementation phase. The paper also examines how this change differs with varying levels of user involvement in the implementation process and users’ positions in the company. Design/methodology/approach – The authors survey the employees of a major aircraft manufacturing company in the Midwest and analyze the data using repeated measures ANOVA. The authors use time as a within-subject independent variable, and involvement/position at the company as between-subject independent variables. Findings – The results reveal a significant drop in users’ perceptions regarding the capability, value, and implementation timing of the ERP system. However, the perception of acceptance did not change significantly. Furthermore, there were more significant interactions of users’ perceptions with employee position than employee involvement in the implementation process. Research limitations/implications – The study offers a better theoretical understanding of how users’ perceptions regarding an ERP system evolve over time. The use of one company is a limitation of the study, so future research can focus on extending the study in different sectors. Practical implications – Management can design interventions to minimize users’ negative perceptions about the ERP system and increase usage in the post-implementation phase. For example, management can design training customized toward users’ positions in the company. Originality/value – Post-implementation research in the ERP field is rare. Conducting a survey of users’ perceptions allows the authors to take an in-depth look at attitudes toward an ERP system.

Business Intelligence During Times of Crisis: Adoption and Usage of ERP Systems by SMEs

Abstract Adoption of Enterprise Resource Planning (ERP) systems is considered to be one of the most important technological and organizational innovation in modem enterprises and SMEs, that promote knowledge diffusion, and sound business decision making processes. Notwithstanding the importance of information and knowledge management, especially during periods of crisis, most small and medium-sized enterprises (SMEs) still underestimate the application and the dynamics of Business Intelligence in their decision-making processes when adopting and implementing ERP systems and their marketing oriented subsystems such as Customer Relationship Management (CRM). In this paper ERP systems adoption and implementation by SMEs in the region of Western Macedonia is examined. Special attention is given to the critical factors affecting adoption of ERPs by SMEs and the business intelligence potential of implementing and using ERP during a period of crisis. The factors identified are related with the economic and organizational characteristics of the SMEs surveyed. Our results indicate that although SMEs recognize the advantages and benefits gained by the application of these systems, especially in managing and summarizing heterogenous data, still the business intelligence capabilities of ERP systems are underutilized, as managers do not take advantage of the knowledge and experience gained from using them. The paper concludes with proposals for further research on the implementation of ERP systems and the expansion of business intelligence usage by SMEs.

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.

Implication of Knowledge Transfer on Task Performance in ERP System Usage

The level of success of Information Systems (IS) implemented in various organizations depends on several factors and is better measured through process metrics than project metrics. It is believed that innovative and increased use of the system (deep structure usage) and learning lead to internalization of knowledge. This in turn ensures that IS continuance (post implementation system usage) becomes more dynamic and effective contributing to enhancement in task performance resulting in better business value. A theoretical framework has been proposed based on previous theories and observations from a case study. An approach of mixed method research using multiple case studies and an empirical survey in the Enterprise Resource Planning (ERP) domain has been used to validate a conceptual model. The findings use meta-inference to offer a new dimension in the area of system usage and learning which could be useful to IS practitioners and researchers.

An empirical study of enterprise resource planning integration

Enterprise Resource Planning (ERP) systems are very popular systems for information management in the global business environment. We investigate which of five levels of ERP integration contribute to a global or local ERP implementation strategy. The five levels of ERP integration are: system-specification, system-user, island of technology, organizational, and socio-organizational integration. We conducted an empirical study in the United States that included 102 ERP professionals from two user groups, global ERP system users and local ERP system users. We discovered that system-specification and organizational integration significantly influence the implementation of local ERP systems while system-specification and socio-organizational integration significantly influence global ERP service implementation. The model explains 44 percent and 52 percent respectively of ERP adoptions within the two groups.

ERP system usage: the role of control and empowerment

Organisations have made significant investments in enterprise resource planning (ERP) systems with the strategic expectation that employees will utilise this technology to enhance organisational performance. However, research indicates that ERP systems are underutilised. In order to disentangle the challenge of underutilisation, this paper addresses the impact of organisational control and empowerment on infusion—the deep and comprehensive usage of an information system. Moreover, it also tests whether infusion will lead to higher levels of ERP system success. Data from a sample of 260 matched pairs of ERP system users and their supervisors were collected and analysed. Results indicate that empowerment is positively related with infusion, whereas an inverted u-relationship has been found for organisational control. The critical link between infusion and ERP system success was found as well, meaning that the more users utilise the system to its fullest extent, the more likely the organisation is to attain ERP systems' promised benefits.

Knowledge sharing and ERP system usage in post-implementation stage

Many organizations have adopted enterprise resource planning (ERP) systems in recent years to integrate information and information-based processes within and across functional areas. Because of the under-utilization of ERP systems, most of these organizations are disappointed in reaching the anticipated business goals. It is imperative to explore how to facilitate the usage of ERP systems for organizations. This study aims to develop an understanding of the effect of knowledge sharing on ERP system usage and the factors affecting employees’ knowledge sharing after the initial implementation of an ERP system. Selected social oriented theories were employed to develop our conceptual model. By means of a survey of 804 ERP users from 53 Taiwan companies, we confirmed our research model to some extent and found that social capital, intrinsic motivation, and self-efficacy all have significant impacts on knowledge sharing. However, contrary to common belief, we found a negative, though insignificant, effect of extrinsic motivation on knowledge sharing. The implications for research, practice, and future research directions are discussed herein.

The Influence of Organizational Trust and Organizational Mindfulness on ERP Systems Usage

This paper examines how organizational trust and organizational mindfulness shape enterprise resource planning (ERP) system usage. We focus on five dimensions of trust: competence, openness and honesty, concern for employees, reliability, and identification. Drawing on organizational trust and organizational mindfulness theories, we argue that perception of organizational trust among ERP users might explain ERP system usage. We also predict that organizational mindfulness among ERP users positively influences ERP system usage. Our study draws on a total of 231 questionnaires collected from ERP system users across the United States. The results suggest that organizational trust dimensions (namely, competence, concern for employees, and identification) affect ERP system usage. Consistent with the theory, the results also support the idea that organizational trust (i.e., competence, openness and honesty, concern for employees, and identification) create supportive infrastructure-enabling organizational mindfulness. Finally, the study shows key antecedents of organizational mindfulness and underscores the importance of organizational mindfulness as a way of encouraging ERP system usage.

Risk assessment for enterprise resource planning (ERP) system implementations: a fault tree analysis approach

Enterprise resource planning (ERP) system implementations are often characterised with large capital outlay, long implementation duration, and high risk of failure. In order to avoid ERP implementation failure and realise the benefits of the system, sound risk management is the key. This paper proposes a probabilistic risk assessment approach for ERP system implementation projects based on fault tree analysis, which models the relationship between ERP system components and specific risk factors. Unlike traditional risk management approaches that have been mostly focused on meeting project budget and schedule objectives, the proposed approach intends to address the risks that may cause ERP system usage failure. The approach can be used to identify the root causes of ERP system implementation usage failure and quantify the impact of critical component failures or critical risk events in the implementation process.

ERP Misfit-Reduction Strategies

Misfit between Enterprise Resource Planning (ERP) system and business is widely recognized as the main cause of ERP system failure. Modification of the ERP system and adaptation of business processes have been hyped as the means to reduce misfits between ERP system and business organizations. Nevertheless, to date, very little empirical evidence exists to demonstrate that the potential has indeed been realized. Thus, the purpose of this study is to empirically examine to which extent the two misfit-reduction strategies, namely system modification and organizational adaptation mitigate the negative impacts of ERP misfits on ERP system performance, which is measured by information quality in this study. A total amount of 305 sets of questionnaire that collected from the ERP system users in manufacturing sector in Malaysia were analyzed using Structural Equation Modeling (SEM) approach. The findings of this study have revealed that the effects of the two misfit-reduction strategies vary based on the different characteristic of ERP misfits. Specifically, system modification is found to significantly reduce the negative impacts of deep-structure misfit such as process misfit, whereas organization adaptation is significant in mitigating surface-structure misfit such as data presentation and layout.

A Case Study on the Impact of Customization, Fitness, and Operational Characteristics on Enterprise-Wide System Success, User Satisfaction, and System Use

Enterprise resource planning (ERP) system success is of paramount importance for almost all organizations, as it is a prerequisite for improved and continuous benefit-realization. This study investigates the impact of ERP business dynamics (i.e., system customization required), system fitness (i.e., process fit, data fit, and user interface fit) and functional area operational characteristics on ERP system success, user satisfaction and system use. The author draws on relevant theoretical background information to construct the research model. Surveys are administered to 91 ERP system users within a multinational food company; in-depth interviews are also conducted with some system users. Empirical results indicate that the amount of ERP system customizations and/or modifications does not have any substantial impact on ERP system use or user satisfaction. In terms of ERP system fitness, these systems are found to be more suitable for complex, functional-area operational environments. The results show that only user interface fit positively affects ERP system use, while only process fit positively influences ERP system user satisfaction. In addition, different degrees of information quality, system quality and service quality have diverse effects on some of the relationships investigated. Finally, the perceived net benefit from an ERP system depends on how the ERP system is used, rather than the management level of the users.

The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies

PurposeThis research aims to improve supply chain management performance through the successful usage of ERP system. This can be through investigating the relationship between enterprise resource planning (ERP) system and supply chain management (SCM) performance in the context of Malaysian manufacturing companies that use ERP system.Design/methodology/approachThe questionnaire survey was posted to the Malaysian manufacturing companies that are using ERP system in order to investigate the relationship between ERP system and SCM performance. The respondents of this study were the MIS or IT executives. A total of 80 usable responses were received and used in the analysis.FindingsThe findings of this research indicated that there is a positive and significant relationship between ERP system i.e. (integration, material management, production planning, and controlling), and SCM performance. The workflow management, however, does not have a significant relationship with SCM performance. The findings of this study imply that the successful implementation and the effective usage of ERP system can contribute toward enhancing supply chain management performance in many ways such as, integration of internal business processes, enhancement of information flow among different departments inside the company, improvement of the company's relationships and collaboration with outsourcing suppliers, customers, and supply chain partners.Research limitations/implicationsThis research focuses only on post‐implementation of ERP system life cycle, where ERP system passes through three implementation stages of system life cycle and that includes pre‐implantation stage, implementation stage, and finally post‐implementation stage. Two or three stages of ERP system life cycle could be investigated simultaneously.Practical implicationsThere should be many success records in ERP system and this is to prove to companies that ERP systems can contribute toward improving their overall business performance. Therefore, this research encourages companies to adopt ERP systems and then contribute to technology diffusion. The finding of this study supports this justification and records a new success of ERP systems in Malaysian manufacturing companies.Originality/valueThe results of this study will enable companies to achieve optimum usage of ERP system after the implementation stage and help to avoid system failure and achieve better SCM performance. The study contributes toward technology diffusion between companies through reducing the likelihood of ERP systems failure, and therefore introduces ERP systems to other manufacturing companies in Malaysia.

A Comparative Study on Critical Success Factors (CSFs) of ERP Systems Implementation among SMEs and Large Firms in Developing Countries

The main goal of this research is to explore the difference between the critical success factors (CSFs) of enterprise resource planning (ERP) system implementation in large firms with small and medium-sized enterprises (SMEs) in developing countries. Understanding this subject can help the implementers and users of ERP systems to notice the CSFs of their particular enterprises and to improve the success rate of these systems. The number of seventeen resources of studies evaluating the CSFs of ERP in SMEs and equal numbers of resources were used for the large enterprises. Following an evaluation of each category was conducted to elicit similarities and diversities in CSFs of these two groups. This research shows that there are some significant differences among the CSFs of ERP implementation in SMEs and large firm of developing countries. There was lacking of studies that have been focused on large firm and SMEs separately. The study explored the need for more research that is focused on CSFs studies with regard of distinct separated size of enterprises. By recognizing the differences of CSFs for large organization with SMEs, stakeholders can better develop and use suitable and useful implementation models / frameworks to improve the successful of ERP implementations in enterprises with any sizes. This paper appears to be one of the first studies to focus on comparing of CSFs in implementation of ERP in SMEs with large enterprise in developing countries.

Investigating the utilisation of ERP systems in the UAE

Enterprise resource planning (ERP) systems have changed the way organisations process their information, yet limited research has been conducted to investigate employees’ utilisation of ERP systems. This research proposes a model that integrates the technology acceptance model (TAM) with the task-technology fit (TTF) model to investigate ERP systems usage. An empirical study was conducted to analyse the data. The data were analysed using structural equation modelling (SEM) techniques to evaluate the strength of the hypothesised relationships. The results strongly support the extended TAM in predicating employees’ utilisation of ERP systems. This research also finds that the TTF model is a valuable addition to TAM for ERP systems tasks. The results and the implications of the findings are discussed in the study.