Extending the Technology Acceptance Model to Investigate the Utilization of ERP Systems

Introduction

The implementation of Enterprise Resource Planning (ERP) systems by organizations has grown rapidly world-wide in recent years in the aim of achieving better business performance and sustaining competitive advantages (Mabert et al., 2000; Van Everdingen et al., 2000; Olhager & Selldin, 2003; Lin et al., 2006). An ERP system is an integrated set of software packages that help organizations integrate their information flow and business processes by using a single database that collects and stores data with a standardized user interface (Gable, 1998; Aladwani, 2001; Abdinnour-Helm et al., 2003; Shih, 2006; Osei-Bryson et al., 2008). ERP systems can benefit organizations in different ways such as enabling faster information transactions, increasing productivity, maintaining tightened supply chain links, reducing inventory costs, improving business processes, and increasing customer responsiveness (Li, 1999; Davenport, 2000; Abdinnour-Helm et al., 2003; Umble et al., 2003; Calisir & Calisir, 2004).

Despite the growth in ERP system implementation, research shows a growing dissatisfaction with ERP systems arguing that they have failed to deliver the anticipated benefits (Holland, et al., 1998; Gable, et al., 1998, Bingi et al., 1999). ERP systems are found to be difficult to learn and use, very costly, and time consuming to implement (Davenport, 1998; Mabert et al, 2000; Bagchi et al., 2003). These findings show that research in the different factors that enable a successful adoption of this type of information systems is very essential.

Researchers have developed different models to study users’ perception of information systems (IS). One of the most frequently employed models is the Technology Acceptance Model (TAM) (Davis, 1989), which is an adaptation of the Theory of Reasoned Action (TRA) (Fishbein & Ajzen, 1975; Ajzen & Fishbein, 1980) but with more focus on user acceptance of information systems (IS). Because a considerable body of work on IS acceptance and adoption has been conducted as a result of TAM, it has become an important model when investigating user acceptance of a new information technology (Adams et al., 1992; Taylor & Todd, 1995; Yi & Hwang, 2003; Bueno & Salmeron, 2008; Hernandez et al., 2008; Hamner & Qazi, 2009).

TAM posits that perceived ease of use of a technology (PEOU) and perceived usefulness (PU) determine a person’s behavior towards the technology. But PEOU and PU are also influenced by exogenous variables, which vary according to the context. Thus, Davis (1989) and later Davis (1993) have suggested adding exogenous variables to TAM as a way of improving the original model. Accordingly, the main objective of this research is to investigate the influence of exogenous variables on TAM and IS acceptance.

In this paper, we are extending TAM to investigate employees’ utilization of ERP systems in the United Arab Emirates (UAE). In our proposed model, computer self-efficacy (CSE) and ERP systems design features affect perceived usefulness and perceived ease of use, which in turn affect ERP system utilization. The goal of this paper is to explore these relationships to determine whether the addition of CSE and ERP systems design features to the TAM increases its predictive or explanatory power.