Modeling use of enterprise resource planning systems: a path analytic study

  • Authors:

  • Shantanu Bagchi;Shivraj Kanungo;Subhasish Dasgupta

  • Affiliations:

  • Department of Management Studies, Indian Institute of Technology, Delhi, India;Department of Management Science, The George Washington University, District of Columbia;Department of Management Science, The George Washington University, District of Columbia

  • Venue:
  • European Journal of Information Systems
  • Year:
  • 2003

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Abstract

In this research, we evaluated user participation and involvement in the context of enterprise resource planning (ERP) systems. Since ERP systems are enterprisewide in scope, these systems have a high level of complexity, and require a different implementation methodology. While most studies analyze implementation at an organization or industry level, there is a dearth in research in ERP system adoption at the individual or user level. In our study, we examine ERP system acceptance at the individual level. In this research, we expected to find differences in the nature of user participation and involvement in ERP compared to other information systems. Using Barki and Hartwick's extension of the theory of reasoned action, a revised model was developed and tested empirically. While Barki and Hartwick's model explains user behavior vis-à-vis user participation and involvement, a more parsimonious model demonstrates that usage dynamics in ERP implementation are different. We complemented our statistical analysis by three case studies. Based on our results we believe that, given the nature of ERP and its implementation, traditionally formalized links between influencers of users' attitude and involvement may need to be revised. We have discussed why we need to seek alternate forms of influencers. In doing so, we suggest that investments be made in preparatory work practices and employee development prior to ERP decisions. Such investments are complementary to information technology and are widespread throughout the firm. We believe that such investments will play a significant role in influencing the attitude of users toward any system and also their involvement.