IDEAS home Printed from https://ideas.repec.org/a/spr/infosf/v19y2017i1d10.1007_s10796-015-9583-0.html
   My bibliography  Save this article

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

Author

Listed:
  • Wenjuan Xu

    (Northwest A & F University)

  • Peiyu Ou

    (Xi’an Jiaotong University)

  • Weiguo Fan

    (Pamplin College of Business, Virginia Tech)

Abstract

Drawing on the technology-organization-environment (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.

Suggested Citation

  • Wenjuan Xu & Peiyu Ou & Weiguo Fan, 2017. "Antecedents of ERP assimilation and its impact on ERP value: A TOE-based model and empirical test," Information Systems Frontiers, Springer, vol. 19(1), pages 13-30, February.
    • Handle: RePEc:spr:infosf:v:19:y:2017:i:1:d:10.1007_s10796-015-9583-0
    DOI: 10.1007/s10796-015-9583-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10796-015-9583-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10796-015-9583-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hillol Bala & Viswanath Venkatesh, 2007. "Assimilation of Interorganizational Business Process Standards," Information Systems Research, INFORMS, vol. 18(3), pages 340-362, September.
    2. Jeanne W. Ross & Michael R. Vitale, 2000. "The ERP Revolution: Surviving vs. Thriving," Information Systems Frontiers, Springer, vol. 2(2), pages 233-241, August.
    3. Robert G. Fichman & Chris F. Kemerer, 1997. "The Assimilation of Software Process Innovations: An Organizational Learning Perspective," Management Science, INFORMS, vol. 43(10), pages 1345-1363, October.
    4. Sarv Devaraj & Rajiv Kohli, 2003. "Performance Impacts of Information Technology: Is Actual Usage the Missing Link?," Management Science, INFORMS, vol. 49(3), pages 273-289, March.
    5. Mike W. Peng & Justin Tan & Tony W. Tong, 2004. "Ownership Types and Strategic Groups in an Emerging Economy," Journal of Management Studies, Wiley Blackwell, vol. 41(7), pages 1105-1129, November.
    6. Maloni, Michael J. & Benton, W.C., 1997. "Supply chain partnerships: Opportunities for operations research," European Journal of Operational Research, Elsevier, vol. 101(3), pages 419-429, September.
    7. Kevin Zhu & Kenneth L. Kraemer, 2005. "Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry," Information Systems Research, INFORMS, vol. 16(1), pages 61-84, March.
    8. Zhang, Zhe & Lee, Matthew K.O. & Huang, Pei & Zhang, Liang & Huang, Xiaoyuan, 2005. "A framework of ERP systems implementation success in China: An empirical study," International Journal of Production Economics, Elsevier, vol. 98(1), pages 56-80, October.
    9. She-I Chang & David C. Yen & Celeste See-Pui Ng & I-Cheng Chang & Sheng-Yu Yu, 2011. "An ERP system performance assessment model development based on the balanced scorecard approach," Information Systems Frontiers, Springer, vol. 13(3), pages 429-450, July.
    10. William H. DeLone & Ephraim R. McLean, 1992. "Information Systems Success: The Quest for the Dependent Variable," Information Systems Research, INFORMS, vol. 3(1), pages 60-95, March.
    11. Vijay Sethi & William R. King, 1994. "Development of Measures to Assess the Extent to Which an Information Technology Application Provides Competitive Advantage," Management Science, INFORMS, vol. 40(12), pages 1601-1627, December.
    12. Kevin Zhu & Kenneth L. Kraemer & Sean Xu, 2006. "The Process of Innovation Assimilation by Firms in Different Countries: A Technology Diffusion Perspective on E-Business," Management Science, INFORMS, vol. 52(10), pages 1557-1576, October.
    13. Al-Mashari, Majed & Al-Mudimigh, Abdullah & Zairi, Mohamed, 2003. "Enterprise resource planning: A taxonomy of critical factors," European Journal of Operational Research, Elsevier, vol. 146(2), pages 352-364, April.
    14. Russell L. Purvis & V. Sambamurthy & Robert W. Zmud, 2001. "The Assimilation of Knowledge Platforms in Organizations: An Empirical Investigation," Organization Science, INFORMS, vol. 12(2), pages 117-135, April.
    15. Gary C. Moore & Izak Benbasat, 1991. "Development of an Instrument to Measure the Perceptions of Adopting an Information Technology Innovation," Information Systems Research, INFORMS, vol. 2(3), pages 192-222, September.
    16. Mabert, Vincent A. & Soni, Ashok & Venkataramanan, M. A., 2003. "Enterprise resource planning: Managing the implementation process," European Journal of Operational Research, Elsevier, vol. 146(2), pages 302-314, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ebrahim A. A. Ghaleb & P. D. D. Dominic & Suliman Mohamed Fati & Amgad Muneer & Rao Faizan Ali, 2021. "The Assessment of Big Data Adoption Readiness with a Technology–Organization–Environment Framework: A Perspective towards Healthcare Employees," Sustainability, MDPI, vol. 13(15), pages 1-33, July.
    2. Abdalwali Lutfi & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Manaf Al-Okaily & Hamza Alqudah & Mohamed Saad & Nahla Ibrahim & Osama Abdelmaksoud, 2022. "Antecedents and Impacts of Enterprise Resource Planning System Adoption among Jordanian SMEs," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    3. Nada Abdulla Al-Kubaisi, 2023. "The Black Box of Implementing Strategic Decisions," International Journal of Customer Relationship Marketing and Management (IJCRMM), IGI Global, vol. 14(1), pages 1-21, January.
    4. Yang, Yefei & Chen, Jiayi & Lee, Peter K.C. & Cheng, T.C.E., 2023. "How to enhance the effects of the green supply chain management strategy in the organization: A diffusion process perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    5. Ravi Seethamraju & Angela Hecimovic, 2023. "Adoption of artificial intelligence in auditing: An exploratory study," Australian Journal of Management, Australian School of Business, vol. 48(4), pages 780-800, November.
    6. Anupriya Khan & Satish Krishnan & Jithesh Arayankalam, 2022. "The Role of ICT Laws and National Culture in Determining ICT Diffusion and Well-Being: A Cross-Country Examination," Information Systems Frontiers, Springer, vol. 24(2), pages 415-440, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Probir Kumar Banerjee & Louis C. Ma, 2012. "Routinisation of B2B E-commerce by small firms: A process perspective," Information Systems Frontiers, Springer, vol. 14(5), pages 1033-1046, December.
    2. Zhu, Yan & Li, Yan & Wang, Weiquan & Chen, Jian, 2010. "What leads to post-implementation success of ERP? An empirical study of the Chinese retail industry," International Journal of Information Management, Elsevier, vol. 30(3), pages 265-276.
    3. Siew, Eu-Gene & Rosli, Khairina & Yeow, Paul H.P., 2020. "Organizational and environmental influences in the adoption of computer-assisted audit tools and techniques (CAATTs) by audit firms in Malaysia," International Journal of Accounting Information Systems, Elsevier, vol. 36(C).
    4. Abhay Nath Mishra & Prabhudev Konana & Anitesh Barua, 2007. "Antecedents and Consequences of Internet Use in Procurement: An Empirical Investigation of U.S. Manufacturing Firms," Information Systems Research, INFORMS, vol. 18(1), pages 103-120, March.
    5. Abhay Nath Mishra & Ritu Agarwal, 2010. "Technological Frames, Organizational Capabilities, and IT Use: An Empirical Investigation of Electronic Procurement," Information Systems Research, INFORMS, vol. 21(2), pages 249-270, June.
    6. Nam, Dalwoo & Lee, Junyeong & Lee, Heeseok, 2019. "Business analytics use in CRM: A nomological net from IT competence to CRM performance," International Journal of Information Management, Elsevier, vol. 45(C), pages 233-245.
    7. Hou, Chung-Kuang, 2012. "Examining the effect of user satisfaction on system usage and individual performance with business intelligence systems: An empirical study of Taiwan's electronics industry," International Journal of Information Management, Elsevier, vol. 32(6), pages 560-573.
    8. Zhang, Cheng & Dhaliwal, Jasbir, 2009. "An investigation of resource-based and institutional theoretic factors in technology adoption for operations and supply chain management," International Journal of Production Economics, Elsevier, vol. 120(1), pages 252-269, July.
    9. Kevin Zhu & Kenneth L. Kraemer & Sean Xu, 2006. "The Process of Innovation Assimilation by Firms in Different Countries: A Technology Diffusion Perspective on E-Business," Management Science, INFORMS, vol. 52(10), pages 1557-1576, October.
    10. Dehghani, Milad & William Kennedy, Ryan & Mashatan, Atefeh & Rese, Alexandra & Karavidas, Dionysios, 2022. "High interest, low adoption. A mixed-method investigation into the factors influencing organisational adoption of blockchain technology," Journal of Business Research, Elsevier, vol. 149(C), pages 393-411.
    11. Kevin Zhu & Kenneth L. Kraemer, 2005. "Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry," Information Systems Research, INFORMS, vol. 16(1), pages 61-84, March.
    12. Popa, Simona & Soto-Acosta, Pedro & Perez-Gonzalez, Daniel, 2018. "An investigation of the effect of electronic business on financial performance of Spanish manufacturing SMEs," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 355-362.
    13. Sharath Sasidharan & Radhika Santhanam & Daniel J. Brass & Vallabh Sambamurthy, 2012. "The Effects of Social Network Structure on Enterprise Systems Success: A Longitudinal Multilevel Analysis," Information Systems Research, INFORMS, vol. 23(3-part-1), pages 658-678, September.
    14. Elbashir, Mohamed Z. & Collier, Philip A. & Davern, Michael J., 2008. "Measuring the effects of business intelligence systems: The relationship between business process and organizational performance," International Journal of Accounting Information Systems, Elsevier, vol. 9(3), pages 135-153.
    15. Manoj Thomas & Daniela Costa & Tiago Oliveira, 2016. "Assessing the role of IT-enabled process virtualization on green IT adoption," Information Systems Frontiers, Springer, vol. 18(4), pages 693-710, August.
    16. Carol Hsu & Jae-Nam Lee & Detmar W. Straub, 2012. "Institutional Influences on Information Systems Security Innovations," Information Systems Research, INFORMS, vol. 23(3-part-2), pages 918-939, September.
    17. Ilin, Vladimir & Ivetić, Jelena & Simić, Dragan, 2017. "Understanding the determinants of e-business adoption in ERP-enabled firms and non-ERP-enabled firms: A case study of the Western Balkan Peninsula," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 206-223.
    18. Basole, Rahul C. & Nowak, Maciek, 2018. "Assimilation of tracking technology in the supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 350-370.
    19. Salam Al-Mahaseneh & Yousra Harb, 2023. "The Assimilation of ICT Knowledge Management Practices in Organizations: an Empirical Study," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 752-779, June.
    20. Morteza Ghobakhloo & Sai Hong Tang, 2015. "Information system success among manufacturing SMEs: case of developing countries," Information Technology for Development, Taylor & Francis Journals, vol. 21(4), pages 573-600, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:infosf:v:19:y:2017:i:1:d:10.1007_s10796-015-9583-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.