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To ERP or not to ERP? Factors influencing the adoption decision

Author

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  • Liane Elbertsen
  • Rik Van Reekum

Abstract

Enterprise Resource Planning (ERP) systems have mainly been discussed concerning their implementation. A theory-driven, quantitative approach to ERP adoption is rare, especially for Midsized Enterprises (MEs). This paper aims to fill this gap by identifying factors in the areas of technology, organisation and environment, generally known to be part of such managerial decision-making. Nine hypotheses have been derived from literature and tested among Dutch MEs in the electrical, engineering and metal industries. The results of our empirical study show that ERP adoption by MEs is most significantly explained by competitive pressure and the compatibility of the software configuration with the firm's business processes.

Suggested Citation

  • Liane Elbertsen & Rik Van Reekum, 2008. "To ERP or not to ERP? Factors influencing the adoption decision," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 5(3), pages 310-330.
    • Handle: RePEc:ids:ijmede:v:5:y:2008:i:3:p:310-330
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    Citations

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    Cited by:

    1. Harkonen, Janne & Haapasalo, Harri & Hanninen, Kai, 2015. "Productisation: A review and research agenda," International Journal of Production Economics, Elsevier, vol. 164(C), pages 65-82.
    2. Alireza Farnoush & Ashish Gupta & Hamidreza Ahady Dolarsara & David Paradice & Shashank Rao, 2022. "Going beyond intent to adopt Blockchain: an analytics approach to understand board member and financial health characteristics," Annals of Operations Research, Springer, vol. 308(1), pages 93-123, January.
    3. N. Elangovan, 2016. "Mediation of Perceived Innovation Characteristics on ERP Adoption in Industrial Cluster," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 1-19, June.

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