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

Authors: Liane Elbertsen, Rik Van Reekum

Addresses: Nijmegen School of Management, Radboud University, Nijmegen, The Netherlands; 19, Allee des Poiriers, Luxemburg L-2360, G.D. Luxemburg. ' Centre for Business Studies, Leiden University, P.O. Box 9520, RA Leiden NL-2300, The Netherlands

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.

Keywords: enterprise resource planning; ERP adoption; information technology; innovation; decision making; IT investment; medium-sized enterprises; The Netherlands.

DOI: 10.1504/IJMED.2008.017434

International Journal of Management and Enterprise Development, 2008 Vol.5 No.3, pp.310 - 330

Published online: 07 Mar 2008 *

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