research-article

The role of absorptive capacity, communication and trust in ERP adoption

Authors:

Alok MishraAuthors Info & Claims

Journal of Systems and Software, Volume 119, Issue C

Pages 58 - 69

https://doi.org/10.1016/j.jss.2016.05.025

Published: 01 September 2016 Publication History

Abstract

Using Technology Acceptance Model to examine intention to use ERP systems.Advances current state of knowledge on absorptive capacity, communication, trust among ERP users.External variables are important factors to predict users' behavior in ERP implementation.Trust, perceived ease of use and usefulness have significant relationship with intention to use ERP systems. The use of Enterprise Resource Planning (ERP) systems is proven to be valuable in several ways and it is considered a necessity in today's business. However, despite the high cost and efforts required in implementing ERPs, the success rate is reported unsatisfactory in Iranian organizations. It is argued that the success of ERP implementation is significantly related to the users' adoption behavior. As one of the most important predictors of adoption behavior, this study investigates factors affecting the intention to use ERP systems. In particular, using Technology Acceptance Model (TAM), we examined the effects of absorptive capacity, communication and trust on the intention to use ERP systems. A questionnaire was sent to ERP users in 7 organizations in Iran, and 184 responses were used for the analysis. The findings suggest that trust, together with perceived ease of use and perceived usefulness, have a positive significant relationship with intention to use ERP. Furthermore, absorptive capacity and communication have a direct effect on the perceived ease of use which, in turn, impacts the intention to use ERP. As such, this study advances the current knowledge of adoption behavior by investigating the role of trust, communication and absorptive capacity on the intention to use.

References

[1]

A.M. Aladwani, Change management strategies for successful ERP implementation, Bus. Process Manage. J., 7 (2001) 266-275.

[2]

I.M. Al-Jabri, N. Roztocki, Adoption of ERP systems: does information transparency matter?, Telemat. Informat., 32 (2014) 300-310.

Digital Library

[3]

M. Al'Mashari, Process orientation through enterprise resource planning (ERP): a review of critical issues, Knowl. Process Manage., 8 (2001) 175-185.

[4]

S.A. Al-Somali, R. Gholami, B. Clegg, An investigation into the acceptance of online banking in Saudi Arabia, Technovation, 29 (2009) 130-141.

[5]

K. Amoako-Gyampah, ERP implementation factors: a comparison of managerial and end-user perspectives, Bus. Process Manage. J., 10 (2004) 171-183.

[6]

K. Amoako-Gyampah, Perceived usefulness, user involvement and behavioral intention: an empirical study of ERP implementation, Comput. Hum. Behav., 23 (2007) 1232-1248.

Digital Library

[7]

K. Amoako-Gyampah, A.F. Salam, An extension of the technology acceptance model in an ERP implementation environment, Inf. Manage., 41 (2004) 731-745.

Digital Library

[8]

D. Andrews, B. Nonnecke, J. Preece, Electronic survey methodology: a case study in reaching hard-to-involve Internet users, Int. J. Hum. Comput. Interact., 16 (2003) 185-210.

[9]

N. Bancroft, H. Seip, A. Sprengel, Implementing SAP R/3: How to introduce a large system into a large organization, Manning Publications Co, 1998.

[10]

D. Barclay, C. Higgins, R. Thompson, The partial least squares (PLS) approach to causal modeling: Personal computer adoption and use as an illustration, Technol. Stud., 2 (1995) 285-309.

[11]

F. Bélanger, L. Carter, Trust and risk in e-government adoption, J. Strategic Inf. Syst., 17 (2008) 165-176.

Digital Library

[12]

A. Boonstra, Interpreting an ERP-implementation project from a stakeholder perspective, Int. J. Project Manage., 24 (2006) 38-52.

[13]

S. Bueno, J.L. Salmeron, TAM-based success modeling in ERP, Interact. Comput., 20 (2008) 515-523.

[14]

F. Calisir, C. Altin Gumussoy, A. Bayram, Predicting the behavioral intention to use enterprise resource planning systems: an exploratory extension of the technology acceptance model, Manage. Res. News, 32 (2009) 597-613.

[15]

M.K. Chang, W. Cheung, C.H. Cheng, J.H. Yeung, Understanding ERP system adoption from the user's perspective, Int. J. Prod. Econ., 113 (2008) 928-942.

[16]

C.M. Cheung, M.K. Lee, A theoretical model of intentional social action in online social networks, Decis. Support Syst., 49 (2010) 24-30.

Digital Library

[17]

Chih, W.H., Tang, T.-W., ¿¿¿. (2005.) The role of trust in customer online shopping behavior: perspective of technology acceptance model. Available at: http://ir.ndhu.edu.tw/handle/987654321/7533.

[18]

W.W. Chin, A. Gopal, W.D. Salisbury, Advancing the theory of adaptive structuration: the development of a scale to measure faithfulness of appropriation, Inform. Syst. Res., 8 (1997) 342-367.

Digital Library

[19]

W.W Chin, The partial least squares approach to structural equation modeling, in: Modern Methods for Business Research, Lawrence Erlbaum Associates, New York, NY, 1998, pp. 295-336.

[20]

W.M. Cohen, D.A. Levinthal, Absorptive capacity: a new perspective on learning and innovation, Adm. Sci. Q., 35 (1990) 128-152.

[21]

F.D. Davis, Perceived usefulness, perceived ease of use, and user acceptance of information technology, MIS Q., 13 (1989) 319-340.

Digital Library

[22]

F.D. Davis, User acceptance of information technology: system characteristics, user perceptions and behavioral impacts, Int. J. Man Mach. Stud., 38 (1993) 475-487.

Digital Library

[23]

X. Deng, W.J. Doll, M. Cao, Exploring the absorptive capacity to innovation/productivity link for individual engineers engaged in IT enabled work, Inf. Manage., 45 (2008) 75-87.

Digital Library

[24]

E. Erasmus, S. Rothmann, C. van Eeden, A structural model of technology acceptance, SA J. Ind. Psychol., 41 (2015) 1-12.

[25]

T. Escobar-Rodríguez, L. Bartual-Sopena, Impact of cultural factors on attitude toward using ERP systems in public hospitals, Rev. Contabilidad-Spanish Account. Rev. (2014).

[26]

C. Fornell, J. Cha, Partial Least Squares, in: Advanced Methods of Marketing Research, Blackwell Publishers, Cambridge, MA, 1994, pp. 52-78.

[27]

C. Fornell, D.F. Larcker, Evaluating structural equation models with unobservable variables and measurement error, J. Market. Res., 18 (1981) 59-80.

[28]

D. Gefen, E. Karahanna, DW. Straub, Trust and TAM in online shopping: an integrated model, MIS Q., 27 (2003) 51-90.

Digital Library

[29]

D. Gefen, M. Warkentin, P. Pavlou, G. Rose, Egovernment adoption, in: AMCIS 2002 Proceedings, 83, 2002.

[30]

J.R. Gil-Garcia, Using partial least squares in digital government research, Idea Group, Hershey, 2008.

[31]

S. Ha, L. Stoel, Consumer e-shopping acceptance: Antecedents in a technology acceptance model, J. Bus. Res., 62 (2009) 565-571.

[32]

Y.M. Ha, H.J. Ahn, Factors affecting the performance of Enterprise Resource Planning (ERP) systems in the post-implementation stage, Behav. Inf. Technol., 33 (2014) 1065-1081.

Digital Library

[33]

J.F. Hair, W.C. Black, B.J. Babin, R.E. Anderson, R.L. Tatham, Multivariate Data Analysis, Pearson Prentice Hall, New Jersey, 2010.

[34]

H.J. Huh, T.T. Kim, R. Law, A comparison of competing theoretical models for understanding acceptance behavior of information systems in upscale hotels, Int. J. Hosp. Manage., 28 (2009) 121-134.

[35]

Y. Hwang, Investigating enterprise systems adoption: uncertainty avoidance, intrinsic motivation, and the technology acceptance model, Eur. J. Inform. Syst., 14 (2005) 150-161.

Digital Library

[36]

P. Ifinedo, An empirical study of ERP success evaluations by business and IT managers, Inf. Manage. Comput. Secur., 15 (2007) 270-282.

[37]

W. Ke, K.K. Wei, Organizational culture and leadership in ERP implementation, Decis. Support Syst., 45 (2008) 208-218.

Digital Library

[38]

P. Khosravi, A. Rezvani, M. Subasinghage, M. Perera, Individuals' absorptive capacity in enterprise system assimilation, in: ACIS 2012: Geelong, Victoria, Australia: In the Proceedings of the 23rd Australasian Conference on Information Systems 2012, 2012, pp. 1-7.

[39]

D.G. Ko, L.J. Kirsch, W.R. King, Antecedents of knowledge transfer from consultants to clients in enterprise system implementations, MIS Q., 29 (2005) 59-85.

Digital Library

[40]

Y.F. Kuo, S.N. Yen, Towards an understanding of the behavioral intention to use 3G mobile value-added services, Comput. Hum. Behav., 25 (2009) 103-110.

[41]

K.Y. Kwahk, H. Ahn, Moderating effects of localization differences on ERP use: a socio-technical systems perspective, Comput. Hum. Behav., 26 (2010) 186-198.

Digital Library

[42]

K.Y. Kwahk, J.N. Lee, The role of readiness for change in ERP implementation: Theoretical bases and empirical validation, Inf. Manage., 45 (2008) 474-481.

Digital Library

[43]

Y.H. Kwak, J. Park, B.Y. Chung, S. Ghosh, Understanding end-users' acceptance of enterprise resource planning (ERP) system in project-based sectors, IEEE Trans. Eng. Manage., 59 (2012) 266-277.

[44]

F. Lai, X. Li, V.S. Lai, Transaction'specific investments, relational norms, and ERP customer satisfaction: a mediation analysis, Decis. Sci., 44 (2013) 679-711.

[45]

C. Lambeck, C. Fohrholz, C. Leyh, I. Supulniece, R. Müller, Commonalities and contrasts: an investigation of ERP usability in a comparative user study, in: The Proceedings of the European Conference on Information Systems (ECIS) 2014, Tel Aviv Israel, June 9-11, 2014, 2014.

[46]

D. Lee, S.M. Lee, D.L. Olson, S.H. Chung, The effect of organizational support on ERP implementation, Ind. Manage. Data Syst., 110 (2010) 269-283.

[47]

Y. Li, J. Qi, H. Shu, Review of relationships among variables in TAM, Tsinghua Sci. Technol., 13 (2008) 273-278.

[48]

P. Longinidis, K. Gotzamani, ERP user satisfaction issues: insights from a Greek industrial giant, Ind. Manage. Data Syst., 109 (2009) 628-645.

[49]

J.L. Lu, H.Y. Chou, P.C. Ling, Investigating passengers' intentions to use technology-based self check-in services, Transp. Res. Part E: Logistics Transp. Rev., 45 (2009) 345-356.

[50]

W. Luo, D.M. Strong, A framework for evaluating ERP implementation choices, IEEE Trans. Eng. Manage., 51 (2004) 322-333.

[51]

M. Magni, F. Pennarola, Intra-organizational relationships and technology acceptance, Int. J. Inf. Manage., 28 (2008) 517-523.

Digital Library

[52]

S. Matende, O. Patrick, Enterprise Resource Planning (ERP) system implementation: a case for user participation, Elsevier, 2013.

[53]

A. Mattia, H.R. Weistroffer, Information system development: a categorical analysis of user participation approaches, in: Proceedings of the 41st Hawaii International Conference on System Sciences, IEEE Computer Society, 2008, pp. 452.

[54]

M. Mayeh, T. Ramayah, S. Popa, The role of absorptive capacity in the usage of a complex information system: the case of the enterprise information system, J. Univ. Comput. Sci., 20 (2014) 826-841.

[55]

M. Migdadi, Knowledge management enablers and outcomes in the small-and-medium sized enterprises, Ind. Manage. Data Syst., 109 (2009) 840-858.

[56]

Y.B. Moon, Enterprise Resource Planning (ERP): a review of the literature, Int. J. Manage. Enterprise Dev., 4 (2007) 235-264.

[57]

F.F.H. Nah, X. Tan, S.H. Teh, An empirical investigation on end-users' acceptance of enterprise systems, Inf. Resour. Manage. J., 17 (2004) 32-53.

Digital Library

[58]

E.W.T. Ngai, C.C.H. Law, F.K.T. Wat, Examining the critical success factors in the adoption of enterprise resource planning, Comput. Ind., 59 (2008) 548-564.

Digital Library

[59]

J.C. Nunnally, I.H. Bernstein, Psychometric Theory, McGraw-Hill, New York, 1994.

[60]

J. Nwankpa, Y. Roumani, Understanding the link between organizational learning capability and ERP system usage: an empirical examination, Comput. Hum. Behav., 33 (2014) 224-234.

[61]

G. Pan, R. Hackney, S.L. Pan, Information Systems implementation failure: insights from prism, Int. J. Inf. Manage., 28 (2008) 259-269.

Digital Library

[62]

J.H. Park, H.J. Suh, H.D. Yang, Perceived absorptive capacity of individual users in performance of Enterprise Resource Planning (ERP) usage: the case for Korean firms, Inf. Manage., 44 (2007) 300-312.

Digital Library

[63]

P.A. Pavlou, Consumer acceptance of electronic commerce: integrating trust and risk with the technology acceptance model, Int. J. Electron. Commerce, 7 (2003) 101-134.

Digital Library

[64]

L. Qiu, D. Li, Applying TAM in B2C e-commerce research: an extended model, Tsinghua Sci. Technol., 13 (2008) 265-272.

[65]

C.A. Rajan, R. Baral, Adoption of ERP system: an empirical study of factors influencing the usage of ERP and its impact on end user, IIMB Manage. Rev., 27 (2015) 105-117.

[66]

T. Ramayah, M.C. Lo, Impact of shared beliefs on "perceived usefulness" and "ease of use" in the implementation of an enterprise resource planning system, Manage. Res. News, 30 (2007) 420-431.

[67]

T. Ramayah, M.H. Roy, S. Arokiasamy, I. Zbib, Z.U. Ahmed, Critical success factors for successful implementation of enterprise resource planning systems in manufacturing organisations, Int. J. Bus. Inf. Syst., 2 (2007) 276-297.

Digital Library

[68]

N. Roberts, P.S. Galluch, M. Dinger, V. Grover, Absorptive capacity and information systems research: review, synthesis, and directions for future research, MIS Q., 36 (2012) 625-648.

Digital Library

[69]

S. Sang, J.D. Lee, J. Lee, E-government adoption in Cambodia: a partial least squares approach, Transform. Gov.: People Process Policy, 4 (2010) 138-157.

[70]

N. Saraf, H. Liang, Y. Xue, Q. Hu, How does organisational absorptive capacity matter in the assimilation of enterprise information systems?, Inf. Syst. J., 23 (2013) 245-267.

[71]

D. Schniederjans, S. Yadav, Successful ERP implementation: an integrative model, Bus. Process Manage. J., 19 (2013) 364-398.

[72]

Y.W. Seo, S.W. Chae, K.C. Lee, The impact of creative self-efficacy, IT support, and knowledge on individual creativity through absorptive capacity, Springer, Berlin, Heidelberg, 2011.

[73]

T. Srivardhana, S.D. Pawlowski, ERP systems as an enabler of sustained business process innovation: a knowledge-based view, J. Strategic Inf. Syst., 16 (2007) 51-69.

Digital Library

[74]

S. Sternad, S. Bobek, Impacts of TAM-based external factors on ERP acceptance, Proc. Technol., 9 (2013) 33-42.

[75]

M. Sumner, Risk factors in enterprise-wide/ERP projects, J. Inf. Technol., 15 (2000) 317-327.

[76]

T.S. Teo, J. Liu, Consumer trust in e-commerce in the United States, Singapore and China, Omega, 35 (2007) 22-38.

[77]

P. Upadhyay, P.K. Dan, An explorative study to identify the Critical Success Factors for ERP implementation in Indian small and medium scale enterprises, in: ICIT'08. International Conference on Information Technology, 2008, IEEE, 2008, pp. 295-299.

Digital Library

[78]

V. Venkatesh, Determinants of perceived ease of use: integrating control, intrinsic motivation, and emotion into the technology acceptance model, Inf. Syst. Res., 11 (2000) 342-365.

Digital Library

[79]

V. Venkatesh, M.G. Morris, G.B. Davis, F.D. Davis, User acceptance of information technology: toward a unified view, MIS Q., 7 (2003) 425-478.

[80]

W. Wai-Peng, V. Veneziano, I. Mahmud, Usability of enterprise resource planning software systems an evaluative analysis of the use of SAP in the textile industry in Bangladesh, Inf. Dev. (2015).

[81]

E.T. Wang, J.H. Chen, Effects of internal support and consultant quality on the consulting process and ERP system quality, Decis. Support Syst., 42 (2006) 1029-1041.

Digital Library

[82]

E.T. Wang, C.C.L. Lin, J.J. Jiang, G. Klein, Improving enterprise resource planning (ERP) fit to organizational process through knowledge transfer, Int. J. Inf. Manage., 27 (2007) 200-212.

Digital Library

[83]

E.T. Wang, S.P. Shih, J.J. Jiang, G. Klein, The consistency among facilitating factors and ERP implementation success: a holistic view of fit, J. Syst. Softw., 81 (2008) 1609-1621.

Digital Library

[84]

K.B. Wright, Researching internet¿based populations: advantages and disadvantages of online survey research, online questionnaire authoring software packages, and web survey services, J. Comput. Mediated Commun., 10 (2005).

[85]

L. Wu, J.L. Chen, An extension of trust and TAM model with TPB in the initial adoption of on-line tax: an empirical study, Int. J. Hum. Comput. Stud., 62 (2005) 784-808.

Digital Library

[86]

Q. Xu, Q. Ma, Determinants of ERP implementation knowledge transfer, Inf. Manage., 45 (2008) 528-539.

Digital Library

[87]

I. Yamaguchi, Influences of organizational communication tactics on trust with procedural justice effects: a cross-cultural study between Japanese and American workers, Int. J. Intercult. Relat., 33 (2009) 21-31.

[88]

E. Youngberg, D. Olsen, K. Hauser, Determinants of professionally autonomous end user acceptance in an enterprise resource planning system environment, Int. J. Inf. Manage., 29 (2009) 138-144.

Digital Library

[89]

D. ¿abjek, A. Kovacic, M.I. Štemberger, The influence of business process management and some other CSFs on successful ERP implementation, Bus. Process Manage. J., 15 (2009) 588-608.

[90]

S. Zabukovsek, S. Bobek, TAM-based external factors related to ERP solutions acceptance in organizations, Int. J. Inf. Syst. Project Manage. (2013) 25-28.

[91]

P. Zhang, N. Li, H. Sun, Affective quality and cognitive absorption: extending technology acceptance research, in: The Proceedings of the 39th. Hawaii International Conference on System Sciences, IEEE, Hawaii, United States, 2006.

Cited By

Mohanty PSekhar SShahaida P(2022)Determinants of ERP Adoption, User Satisfaction, and User EngagementInternational Journal of Information System Modeling and Design10.4018/IJISMD.29704413:1(1-16)Online publication date: 23-Mar-2022
https://dl.acm.org/doi/10.4018/IJISMD.297044
Owusu EAkrong GShao Y(2022)Overcoming the Challenges of Enterprise Resource Planning (ERP)International Journal of Enterprise Information Systems10.4018/IJEIS.30624218:1(1-41)Online publication date: 29-Jul-2022
https://dl.acm.org/doi/10.4018/IJEIS.306242
Zieglmeier VLehene A(2021)Designing Trustworthy User InterfacesProceedings of the 33rd Australian Conference on Human-Computer Interaction10.1145/3520495.3520525(182-189)Online publication date: 30-Nov-2021
https://dl.acm.org/doi/10.1145/3520495.3520525
Show More Cited By

The role of absorptive capacity, communication and trust in ERP adoption
1. Applied computing
  1. Enterprise computing
2. Human-centered computing

Recommendations

Distrust and trust in B2C e-commerce: do they differ?
ICEC '06: Proceedings of the 8th international conference on Electronic commerce: The new e-commerce: innovations for conquering current barriers, obstacles and limitations to conducting successful business on the internet

Researchers have not studied e-commerce <u>distrust</u> as much as e-commerce <u>trust</u>. This study examines whether trust and distrust are distinct concepts. If trust and distrust are the same, lack of distrust research matters little. But if they ...
Adoption of Mobile Commerce Technology: An Involvement of Trust and Risk Concerns

This research extended the Technology Acceptance Model TAM with perceived trust and perceived risks security and privacy concerns constructs to identify the impact of these factors on Jordanian users' intentions to adopt mobile commerce m-commerce. An ...
Should I scan my face? The influence of perceived value and trust on Chinese users’ intention to use facial recognition payment
Highlights
- We build a usage intention model of facial recognition payment from the perspectives of perceived value and trust.
Abstract
While China has seen the widespread adoption of facial recognition payment, concerns over the potential risks impede the further growth of user acceptance. Drawing on the perspectives of perceived value and trust, we developed a ...

Comments

Please enable JavaScript to view thecomments powered by Disqus.

Information & Contributors

Information

Published In

cover image Journal of Systems and Software

Journal of Systems and Software Volume 119, Issue C

September 2016

184 pages

ISSN:0164-1212

Issue’s Table of Contents

Copyright © Elsevier Inc.

Publisher

Elsevier Science Inc.

United States

Publication History

Published: 01 September 2016

Author Tags

Qualifiers

Research-article

Contributors

Other Metrics

View Article Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

4
Total Citations
View Citations
0
Total Downloads

Downloads (Last 12 months)0
Downloads (Last 6 weeks)0

Reflects downloads up to 24 Nov 2024

Other Metrics

View Author Metrics

Citations

Cited By

Mohanty PSekhar SShahaida P(2022)Determinants of ERP Adoption, User Satisfaction, and User EngagementInternational Journal of Information System Modeling and Design10.4018/IJISMD.29704413:1(1-16)Online publication date: 23-Mar-2022
https://dl.acm.org/doi/10.4018/IJISMD.297044
Owusu EAkrong GShao Y(2022)Overcoming the Challenges of Enterprise Resource Planning (ERP)International Journal of Enterprise Information Systems10.4018/IJEIS.30624218:1(1-41)Online publication date: 29-Jul-2022
https://dl.acm.org/doi/10.4018/IJEIS.306242
Zieglmeier VLehene A(2021)Designing Trustworthy User InterfacesProceedings of the 33rd Australian Conference on Human-Computer Interaction10.1145/3520495.3520525(182-189)Online publication date: 30-Nov-2021
https://dl.acm.org/doi/10.1145/3520495.3520525
Russo DStol K(2021)PLS-SEM for Software Engineering ResearchACM Computing Surveys10.1145/344758054:4(1-38)Online publication date: 3-May-2021
https://dl.acm.org/doi/10.1145/3447580

View Options

View options

Login options

Check if you have access through your login credentials or your institution to get full access on this article.

Full Access

Get this Publication

Media

Figures

Other

Tables

View Issue’s Table of Contents