Antecedents of ERP assimilation and its impact on ERP value: A TOE-based model and empirical test

Abstract

Drawing on the technology-organizationenvironment (TOE) framework and prior IT assimilation literature, we develop and test an integrated model of ERP assimilation and value in Chinese firms. We also contrast the strength of the antecedents of ERP assimilation and value across different ownership types. Our empirical results using a survey data showed that relative advantage, complexity, compatibility, top management support, organization fit, financial commitment and competitive pressure are significant predictors for ERP assimilation. We also found that the linkage from ERP assimilation to ERP value is very significant. In addition, the strength of the antecedents of ERP assimilation and value varies dramatically across different firm ownership types. Our study confirms that traditional diffusion of innovation attributes, top management support and competitive pressure are significant during the whole ERP life cycle. Our findings also emphasize and validate the importance of ERP assimilation in improving firm performance, and provide evidence for the continued debate on ERP payoff and information technology productivity paradox. In sum, these findings provide insights into how ERP assimilation and ERP value are influenced by contextual elements, and how the impacts may vary across different ownership types.

Crowd-Sourcing a Way to Sustainable Urban Logistics: What Factors Influence Enterprises’ Willingness to Implement Crowd Logistics?

“…For example, Picoto et al studied the influencing factors of retailers' absorption of mobile commerce based on the TOE theory [37]. Xu et al found that the TOE factors have varying effects on absorption of ERP system [38]. Hwang et al applied the TOE theoretical model to study the factors affecting the adoption of the green supply chain in the semiconductor industry [39].…”

Understanding the Factors Affecting the Adoption of Green Computing in the Gulf Universities

“…The TOE model offers a solid theoretical base to gain indepth insight about the adoption of IT innovations and initiatives, and it has been widely used in different IT areas by many scholars to understand the success factors that affect the adoption of new IT initiatives, such as e-commerce [23], cloud computing [24], [25], e-Learning [26], Enterprise Resource Planning (ERP) systems [27], and E-Medical Record (EMR) systems [28]. However, there is lack of studies that employed the TOE to examine the success factors affecting the adoption of green computing in context of universities.…”

Investigation of Critical Factors for Successful ERP Implementation: An Exploratory Study

“…By the use of ERP, an enterprise can upgrade its core activities to meet the industry standards (Rouhani & Mehri, 2018). ERP implementation benefits can be achieved at numerous levels including management level, operations level, IT hardware level and organizational level (Xu, Ou, & Fan, 2017). ERP is significant software for the progress of a firm (Queiroz, Tallon, Sharma, & Coltman, 2018).…”

“…Many researchers suggested determinants of ERP implementation in multiple industrial sectors and critical factors have been identified in diverse contexts (Ahmed, Shaikh, & Sarim, 2017;Ali, Hussin, Othman, Elzamly, & Doheir, 2018;Baskaran, 2018). Some found the sociological factors and technological aspects (Xu et al, 2017). Few shed light on strategical and procedural facets (Schniederjans & Yadav, 2013).…”

“…Few shed light on strategical and procedural facets (Schniederjans & Yadav, 2013). While others look at the organizational and operational elements in ERP implementation (Xu et al, 2017). Some authors investigated the crucial factors to successfully deploy the ERP system regarding the content of organization volume, functions and suppliers (Heckmann, Steger, & Dowling, 2016).…”