Adoption and Implementation of Enterprise Resource Planning (ERP): An Empirical Study

Abstract

The study is an attempt to unearth the current state of Enterprise Resource Planning (ERP) adoption and implementation in both manufacturing and service firms. Drawing on the conceptualization of multiple theories based in technology acceptance and innovation diffusion model, this study examines the above objectives with a particular reference to the Unified Theory of Acceptance and Use of Technology (UTAUT). Following the deductive reasoning approach, we applied a self-administered questionnaire survey and used 235 replies from 255 collected responses, leaving the data affected with missing and un-matched responses. The result is applied using the structural equation modeling via SmartPLS 2, a second generation regression model, for testing hypothesized relationships. Findings reveal that all the hypothesized influences are found significantly linked through the explanatory variables with the endogenous variables at different levels of significance, except the impact of effort efficiency and resistance to change. Policy implications are also proposed for the full adoption and utilization of ERP to achieve sustainable development goals. Furthermore, we recommend future researchers to focus on action research or experimental data for preventing the generalizability of the observed results.