Adoption of ERP System: An Empirical Study of factors influencing the usage of ERP and its impact on end user
Vol 27, No 2; by Christy Angeline Rajan and Rupashree Baral; June 2015
Enterprise resource planning or ERP integrates the data of all business areas within the organization. It is a complex technology involving different types of end users, and implementing it in developing countries like India involves several challenges. It is therefore important to understand the adoption of such a complex information system (IS) from the perspective of the end user. Based on the literature, the study aimed to identify and assess the influence of some of the external variables on the usage of ERP. Computer self-efficacy, organizational support, training, complexity and compatibility were the external variables considered in thisstudy and were categorized as individual, organizational and technological characteristics. A conceptual research framework was proposed and examined to find the effect of these external variables on the usage of ERP through the Technology Acceptance Model (TAM) variables.
Further, this study also aimed to find out the impact of usage of ERP system on the users’ job attitude and behaviour such as panoptic empowerment and individual performance. Data was collected from 154 end users of ERP across organizations through a survey questionnaire and analysed using Partial Least Squares (PLS) statistical technique. Results of statistical analyses suggested thatcomputer self-efficacy, organizational support, training, and compatibility were positively related to ERP usage. Complexity was negatively related to usage of ERP. The usage of ERP in turn was found to have a significant influence on panoptic empowerment and individual performance. Findings of this study would help the management understand the critical effects of various individual, organizational and technological characteristics on the acceptance and usage of ERP. By providing proper training and support for the end users, the organizations can influence the end users’ ultimate usage of ERP which is the key to its success and effectiveness.