Factors influencing the attitude towards ERP application leading to adoption in organisations

Hamidur Shibly, Southern Cross University

Document Type Thesis

Abstract

The introduction and implementation of new technology into an organisation is a process of innovation, from the search for better solutions through phases of implementation, adoption and diffusion. Although technology adoption itself has been extensively studied, research on its proponents and its reception in the organisational context remains limited. The objective of this study is to examine factors that shape the adoption and continuous usage of new technology by individuals. This study specifically focuses on organisation employees’ adoption of The Enterprise Resource Planning (ERP) Application, finally providing a comprehensive model of ERP application adoption.

In this research, a mixed methodology approach integrated quantitative (online questionnaire survey and Regression Analysis) and qualitative (Semi-structured interviews and thematic analysis) methodologies with sequential triangulation was used, in order to observe the relationship between employees’ adoption of the ERP application and individual, organisational, social and industrial factors. The final ERP Application Adoption Model in this study revealed the following factors (in four categories) that influence employees’ adoption decisions: individual factors (enjoyment with innovation, prior experience, personal innovativeness, perceived ease of use and perceived usefulness); organisational influences (training, managerial support, incentives and organisational culture); social constructs (peer influence, image and social network); and industrial factors (the embryonic and changing nature of the technology and community size).

This study contributes towards understanding employees’ acceptance and adoption of enterprise-level technological innovation. Given the successful apperception of these factors, organisations will be able to effectively sustain their positive cognitive and behavioural outcomes and individual performances and ultimately will be able to create a work environment conducive to individual implementation of new technology. This study offers a broader theoretical and practical understanding of the phenomenon and proves a resource for organisations (specifically managers and supervisors) intending to boost overall organisational performance through successful technological innovation.