MMuERP Adoption in OrganizationsThe Factors in Technology AcceptERP Adoption in OrganizationsThe Factors in Technology Acceptance Among Employees

This book examines the factors that shape the adoption and continuous usage of new technology by employees in organizations. While within an organization new technology adoption has evolved from its traditional role to a more strategic one, the appropriate adoption of new technology can only add value to organizations. Identifying the factors that influence this adoption process is crucial for successful adoption of new technology in organizations. The study presented in this book focuses on individual, organizational, social, and industrial factors and uses those to offer a comprehensive model of Enterprise Resource Planning (ERP) application adoption. It contributes towards understanding employees acceptance and adoption of enterprise-level technological innovation, allowing organizations to create a work environment conducive to individual implementation and acceptance of new technology. It appeals to researchers interested in studying the adoption of ERP and other innovative technologies in organizations. Hamidur Rahaman Shibly is a Senior Enterprise Data Architect at the Toronto Transit Commission, Canada. He has 20 years of professional IT experience in the areas of enterprise solutions, database architecture, application development and support. ABM Abdullah is a Lecturer of Project and Operations Management at the University of South Australia (UniSA). Prior to joining at UniSA, Abdullah worked as a teaching fellow at the University of North Texas College of Business for more than two years. Md Wahid Murad, is a Lecturer at the University of South Australia. Prior to that he worked at the University of Adelaide in Australia and University of Malaysia Terengganu and Multimedia University in Malaysia. He published extensively in the high-quality journals, and his research works attracted a high number of citations to date Preface 5 Contents 8 Abbreviations 13 List of Figures 15 List of Tables 17 1 ERP Technology Adoption: An Introduction 19 1.1 Introduction 19 1.2 Motivation 21 1.3 Problem, Questions and Objectives 23 1.3.1 Research Problem 23 1.3.2 Research Questions 23 1.3.3 Research Objectives 24 1.4 Methodology 24 1.4.1 Data Collection 25 1.4.2 Data Analysis 25 1.4.3 Ethical Considerations 26 1.5 Limitations 26 1.6 Structure of the Book 27 1.7 Conclusion 29 References 29 2 Enterprise Resource Planning: An Innovative Technology 33 2.1 Introduction 33 2.2 ERP System Features 34 2.3 Advantages of ERP System 38 2.4 ERP Success or Failure Factors 41 2.5 ERP System Selection 43 2.6 Technical and Functional Users in ERP System 45 2.7 ERP Technology Adoption 46 2.8 Conclusion 48 References 49 3 Adoption of Innovative Technology 55 3.1 Introduction 55 3.2 Innovation and Adoption 55 3.2.1 Innovation 56 3.2.2 Adoption 58 3.2.3 Relationship Between Innovation and Adoption 59 3.2.4 Attitude Towards Innovation and Adoption 61 3.2.5 Innovation Adoption Process 62 3.2.6 System Usage and Adoption 65 3.2.7 User Resistance and Adoption 66 3.3 Technology Acceptance Models 67 3.3.1 Theory of Reasoned Action (TRA) 69 3.3.2 Theory of Planned Behaviour (TPB) 71 3.3.3 The Technology Acceptance Model (TAM) and TAM2 73 3.3.4 The Unified Theory of Acceptance and Use of Technology (UTAUT) 77 3.3.5 Summary of the Technology Acceptance Models 79 3.4 Technology Adoption Framework 80 3.5 Conclusion 81 References 82 4 ERP Technology Adoption: The Factors and Framework 90 4.1 Introduction 90 4.2 Individual Factors 90 4.2.1 Perceived Ease of Use 91 4.2.2 Perceived Usefulness 91 4.2.3 Personal Innovativeness 92 4.2.4 Prior Experience 93 4.2.5 Enjoyment with Innovation 93 4.3 Organisational Factors 94 4.3.1 Training 95 4.3.2 Managerial Support 95 4.3.3 Incentives 96 4.3.4 Organisational Culture 97 4.4 Social Factors 98 4.4.1 Peer Influence 99 4.4.2 Image 100 4.4.3 Social Network 101 4.5 Industrial Factors 102 4.5.1 The Embryonic and Changing Nature of the Technology 102 4.5.2 Community Size 103 4.6 Theoretical Framework Development 104 4.6.1 Research Gaps 104 4.6.2 Research Questions 105 4.6.3 Research Propositions 106 4.7 Proposed Framework 106 4.8 Conclusion 109 References 110 5 Research Framework for Technology Adoption 119 5.1 Introduction 119 5.2 Research Paradigm 120 5.2.1 Positivism 121 5.2.2 Constructivism 121 5.2.3 Critical Theory 124 5.2.4 Realism/Post-positivism 124 5.2.5 Chosen Research Paradigm 125 5.3 Methodology 125 5.3.1 Quantitative Method 128 5.3.2 Qualitative Method 129 5.3.3 Mixed Method Approach 130 5.3.4 Chosen Research Methodology 131 5.4 Research Design 131 5.4.1 Quantitative Method 134 Survey Instrument 134 Pilot Study 134 Sampling 134 Participating Organisations and Employees 134 Research Protocol 134 5.4.2 Qualitative Method 144 Qualitative Interviewing 144 Participants 144 Interview Guide 144 5.5 Validity and Reliability 147 5.5.1 Data Screening 147 5.5.2 Quantitative Validity and Reliability of the Questionnaire 148 5.5.3 Qualitative Reliability and Validity 149 5.6 Data Analysis 149 5.6.1 Quantitative Data Analysis 149 5.6.2 Qualitative Data Analysis 151 5.6.3 Triangulation 153 5.7 Ethical Considerations 155 5.7.1 Quantitative Ethical Consideration 155 5.7.2 Qualitative Ethical Consideration 157 5.8 Conclusion 157 References 158 6 Quantitative Study on ERP Adoption 165 6.1 Introduction 165 6.2 Quantitative Analysis 166 6.2.1 Data Screening 166 6.3 Demographics 166 6.4 ERP Application Usage 169 6.5 Demographics and Usage Level 169 6.5.1 One-way ANOVA Test for Usage Level by Gender 170 6.5.2 One-way ANOVA Test for Usage Level by Age Group 170 6.5.3 One-way ANOVA Test for Usage Level by Division 171 6.5.4 One-way ANOVA Test for Usage Level by Role 171 6.5.5 One-way ANOVA Test for Usage Level by Employment Status 172 6.5.6 One-way ANOVA Test for Usage Level by Qualifications 172 6.6 Correlations Among Variables 173 6.7 Reliability and Validity 174 6.7.1 Test for Multicollinearity 177 6.7.2 Test for Outliers 178 6.7.3 Common Method Biases 178 6.8 Data Analysis 180 6.8.1 Regression with Attitude as a Dependent Variable 180 Estimation of the Regression Model and Assessment of Overall Model Fit 180 Assessing the Assumption of No Multicollinearity 180 Assessing the Assumption of Normality 180 Checking Assumptions 180 6.8.2 Regression Analysis for Usage with Attitudes as an Independent Variable 193 6.8.3 Regression for Individual, Organisational, Social and Industrial Factors with Usage as a Dependent Variable 193 6.9 Discussion and Conclusion 195 References 200 7 Qualitative Study on ERP Adoption 205 7.1 Introduction 205 7.2 Demographics 205 7.3 ERP Adoption Factors 206 7.3.1 Individual Factors 209 Perceived Ease of Use 209 Perceived Usefulness 209 Prior Experience 209 Personal Innovativeness 209 Enjoyment with Innovation 209 7.3.2 Organisational Factors 215 Training 215 Managerial Support 215 Incentives 215 Organisational Culture 215 7.3.3 Social Factors 222 Peer Influence 222 Image 222 Social Network 222 7.3.4 Industrial Factors 226 The Embryonic and Changing Nature of the Technology 226 Community Size 226 7.4 Discussion 229 7.5 Triangulation 234 7.6 Conclusion 235 References 236 8 ERP Adoption Model and Discussion 239 8.1 Introduction 239 8.2 Research Synopsis 239 8.3 Conclusions on Propositions 241 8.3.1 Conclusions on First Proposition 242 8.3.2 Conclusions on Second Proposition 244 8.3.3 Conclusions on Third Proposition 246 8.3.4 Conclusions on Fourth Proposition 247 8.3.5 Conclusions on the Research Problem 249 8.4 ERP Adoption Model 249 8.5 Implications 253 8.6 Limitations 255 8.7 Future Research 256 8.8 Conclusion 258 References 259 Appendices 264 Appendix A: Qualitative Study (Interview Guide) 264 Section A: General Details (Demographics) 264 Section B: Adoption of ERP Application (Factors) 265 Appendix B: Quantitative Study (Survey Questionnaire) 265 Section A: General Details (Demographics) 265 Section B: Individual Adoption of Application (Usage) 266 Section C: Individual Adoption of ERP Application (Factors) 268 Index 274