The influence of factors on ERP usage : a case study of end-users in Maltese corporations

Abstract

With the proliferation of information technology, lower hardware costs, and the need for more accurate and precise business information, many companies have decided to implement Enterprise Resource Planning (ERP) systems. Over the years, these implementations have been characterized by several user issues that lead to system underutilisation. Therefore, the main scope of this research project was to derive factors that can influence end-user system usage and enable organisations implementing this enterprise system to improve system success and attain more benefits through this system. This research project has been carried through the formulation of a conceptual model based on the Technology Acceptance Model (TAM) to analyse, measure, and derive the most influential factors with respect to ERP usage. A multi-item questionnaire with close and open-ended questions was developed to assess factors that can determine usage. The study has been carried out on three companies that implemented the SAP ERP system, with over 140 ERP users participating in the study. Multiple regression analysis was carried out to measure the relationships between the different variables in the model. From the results, information quality was found to influence user beliefs with respect to system usefulness, while training was found to impact beliefs encapsulating the effort required to utilise the system. Usefulness and ease of use beliefs were found to explain a large variance of user attitude towards the ERP system. Interestingly, while user attitude towards the ERP system was not found to influence system usage, usefulness beliefs were found to have a direct impact on the extent an ERP system is utilised by users. User responses indicate that additional factors can influence system utilisation. Implementation factors such as user active involvement and participation, and system usability were found to bear a direct effect on system usage. It was found that the implemented SAP system posits several limitations in terms of usability that give rise to several difficulties in terms of user-system interaction. To conclude, research implications and suggestions to ERP stakeholders are provided to improve ERP system usage. In addition practical and research implications, limitations and future opportunities to extend the research are provided at the end of this research project.