The effects of transformational leadership and ERP system self-efficacy on ERP system usage

Abstract

Purpose – During the past decade, there has been vast investment in Enterprise Resource Planning (ERP) system packages, in addition to a significant increase in the importance of acceptance by users of the ERP system regarding the success or failure of ERP implementation. The purpose of this paper is to identify the external factors which influence ERP system acceptance. The work is motivated by the realization that transformational leadership (TL) and ERP system self-efficacy are critical external factors that can affect ERP system acceptance. Design/methodology/approach – A framework has been developed from a study of literature in the field of TL, ERP system self-efficacy and the technology acceptance model (TAM). A survey utilizing a questionnaire was used to collect data and a total of 151 usable responses were analyzed by using the partial least squares method. Findings – The results of the study indicate that TL can either directly or indirectly influence perceived usefulness via the assimilation of self-efficacy in a positive manner. Also, TL has been found to have a positive influence on perceived ease of use both directly and indirectly via application of self-efficacy measures. Research limitations/implications – The findings were drawn from two Iranian companies, hence the results are not necessarily generalizable to other nations and other cultures. Practical implications – Management should provide TL development programs for their ERP leaders and encourage them to implement transformation in a manner that could increase assimilation and application of self-efficacy when using the ERP system. Originality/value – The study can provide ERP managers with a better understanding of how they can use TL behavior and skills in motivating and enhancing employees’ self-efficacy in order to achieve ERP system usage success.

The Evolution of Digital Transformations: A Literature Review

“…In portraying the following traits, transformational leaders can inspire, encourage, empower, and influence project team members to work toward the common objective of a successful implementation. When leaders encourage creativity through transformational leadership, users are more likely to experiment with the system features, enabling them to learn the system more quickly (Elkhani et al, 2014). Additionally, transformational leadership can create a higher level of psychological empowerment (PE), commitment to the project, and trust (Mittal, 2016).…”

“…Another leadership theory that is compared to transformational leadership is servant leadership. In comparing the two theories, it has been found that transformational leaders focus on organizational objectives while servant leaders focus on people as followers (Elkhani et al, 2014). Introduced by Greenleaf (1970Greenleaf ( , 1977, servant leadership includes ethics, virtues, and morality and has been noted as a model that may assist a leader in dealing with issues that arise within an organization.…”

“…In reflecting on the transformational and servant leadership theories, one possible conclusion is the appropriate approach depends on the project and culture of the organization. To enhance the innovativeness and creativity within ERP implementations, firms can blend transformational and servant leadership (Elkhani et al, 2014). On the topic of challenging conventional leadership, shared leadership and SLX can share the responsibilities of the implementation to harness the experiences and creativity of all members of a project.…”

“…If leaders of SMEs continue to implement these applications without education, unless the differences between SMEs and large enterprises are clearly conceived, ERP implementations may continue to be painful and unfruitful for SMEs (Huin, 2004). (1978), transformational leadership can be characterized as the ability of a leader to inspire employees to perform work beyond their expectations (Elkhani et al, 2014). When leaders of organizations embark on an ERP implementation, they are performing an internal business process reengineering (BPR) initiative.…”

Results of Implementing ERP System in a Multi-plant Enterprise

“…In literature, factors influencing the success of enterprise ERP implementation have been quite widely discussed, as well as the need to improve approaches and implementation methods. [1][2][3][4] Some of the works are also devoted to the specifics of multi-plant enterprise management and the functioning of their ERP systems [5][6][7]. In the article using a case study of the implementation of one of the Polish ERP systems of Macrologic in several multi-plant enterprises, it demonstrates how it improved the functioning and organization of processes in these companies.…”