The role of readiness for change in ERP implementation: Theoretical bases and empirical validation

  • Authors:
  • Kee-Young Kwahk;Jae-Nam Lee

  • Affiliations:
  • School of Business IT, Kookmin University, 861-1 Jeongneung-dong, Seongbuk-gu, Seoul 136-702, Republic of Korea;Korea University Business School, Anam-dong 5 ga, Seongbuk-gu, Seoul 136-701, Republic of Korea

  • Venue:
  • Information and Management
  • Year:
  • 2008

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Abstract

Implementation of ERP systems continues to drive change in organizations. However, the effort is often considered a failure, partially because potential users resist the change. Readiness plays an active role in reducing resistance to such efforts. Therefore, we examined the formation of readiness for change and its effect on the perceived technological value of an ERP system leading to its use. We developed a model of readiness for change incorporating TAM and TPB. The model was then empirically tested using data collected from users of ERP systems in Korea. Structural equation analysis using LISREL provided significant support for all proposed relationships. Specifically, we found that readiness for change had an indirect effect on behavioral intention to use an ERP system. At the same time, readiness for change was found to be enhanced by two factors: organizational commitment and perceived personal competence.