Perceived absorptive capacity of individual users in performance of Enterprise Resource Planning (ERP) usage: The case for Korean firms

Authors:
Jong-Hun Park;Hyun-Ju Suh;Hee-Dong Yang
Affiliations:
College of Business Administration, Ewha Womans University, 11-1 Daehyun-dong, Seodaemun-gu, Seoul 120-750, Republic of Korea;Department of Digital Media, Seoul University of Venture and Information, 1603-54 Socho-dong, Socho-gu, Seoul 137-070, Republic of Korea;College of Business Administration, Ewha Womans University, 11-1 Daehyun-dong, Seodaemun-gu, Seoul 120-750, Republic of Korea
Venue:
Information and Management
Year:
2007

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Abstract

We examined the effect of absorptive capacity of users on their use of ERP in a Korean context. The three components considered were understanding, assimilating, and applying ERP knowledge. We found that the capacities of users to assimilate and apply the knowledge had both direct and indirect effects on its value. The users' ability to understand ERP knowledge was found to influence its performance by their assimilating and applying the knowledge. We also found that organizational support moderated the relationship between their absorptive capacity and performance.