Investigation into the change management influences on user adoption of ERP systems

Abstract

As organizations strive to remain competitive despite economic pressures and the rapid pace of technology innovation, Enterprise Resource Planning (ERP) systems provide businesses with the functional best practices and customisable capabilities they need to adapt to these changes. However, the high rate of failure of these Enterprise Resource Planning (ERP) systems remain a challenge for the managers who are usually tasked with ensuring the huge investments achieve its purpose and yield a return on investment. In attempting to explain the reasons behind these Enterprise Resource Planning (ERP) implementation failures, previous research has identified user adoption as one of the main drivers of ERP implementation success. An abundance of technology adoption theories and change management models have been proposed as solutions to user adoption, by measuring different factors they consider are important to the adoption of these systems. However, ERP systems still fail to achieve their intended purpose because these theories have not been able to explicitly explain how these factors impact on adoption. To address this gap, this research takes a comprehensive approach to identifying the change management influences on user adoption by integrating change management and technology adoption constructs. The main contribution of this research is a common-sense perspective of the realities of user resistance. The study provides a causal model derived from Structural equation modelling, which explains the multiple influence relationships between the measured constructs. An adoption tool is also developed for managers to use as a yardstick to benchmark the effectiveness of an implementation strategy. Using a structural equation modelling approach, a theory was developed from a survey of 616 ERP users across 6 organizations. Six constructs were identified as the key influences of user adoption – Trust, Communication and Engagement, System Qualities, Training, Organizational Benefits and Resistance. The theory explains the multiple influence relationships between these constructs and Adoption, and assists in the pinpointing of failure points that need to be addressed by Enterprise Resource Planning project managers. The resulting theory developed indicates the multiple influence relationships between these constructs as determinants of Adoption of ERP systems. In addition, the theory assists in the pinpointing of failure points that need to be addressed by Enterprise Resource Planning (ERP) project managers.