Determinants of ERP Adoption, User Satisfaction, and User Engagement

Introduction

Over the last few decades, business organisations around the world have changed dramatically due to the growing phenomenon of globalisation and the revolution in information technology. The effective implementation of new technological software has played a vital role in improving business performance, productivity, and user satisfaction. (Schaffers et al., 2011; Webster, 2014). Enterprise resource planning (ERP) is one such technical tool that helps the organisation manage its day-to-day business operations and ease the decision-making process. (Klaus et al., 2000). The concept of ERP was first introduced in the early1970s by the Gartner Group (Jacobs & Weston, 2007). The term enterprise resource planning (ERP) is conceptualised as a “comprehensive, packaged software solution that seeks to integrate the complete range of a business's processes and functions to present a holistic view of the business from a single information and IT architecture” (Klaus et al., 2000; p. 141). ERP enables the flow of information sharing across multiple business functions (e.g. operations, marketing, and finance) and strategic business units (SBUs) of an enterprise (Aljawarneh & Alomari, 2018; Gupta & Kohli, 2006). According to Biel (2020), the global The ERP market has witnessed a rapid expansion due to digital transformation, data reconciliation, a vast amount of data storage, tracking, and activities undertaken. Approximately, half of the companies in the global market are rapidly procuring, upgrading, or planning to upgrade their existing ERP systems. However, the penetration of the ERP software market in India is still in its nascent stage and is expected to increase at a CAGR of 8% to reach $78.4 billion by 2026. The ERP software market revenue in India was estimated to be approximately $ 6.13 billion in 2020. It is further expected to grow rapidly at a CAGR of 25.5% during the years 2019-2025 (Market Research Engine, 2020).

ERP implementation improves the business processes, allowing the company to be more competitive, profitable, and efficient by capturing real-time consumer information (Banerjee, 2018). ERP streamlines data processing, allowing firms to make better strategic decisions and boost productivity (Jenab et al., 2019). It has been observed that user acquisition is the most important indicator for measuring the success of an ERP (Verville et al., 2005). On the other hand, high user adoption rate during the initial stage of ERP implementation will have no value for the firm if the employees do not continue. Brands are paying a lot of money to get the users trained, but this is just the beginning. The value is in engaging and maintaining users after the acquisition or adoption of them. Understanding how interested and devoted users are to a specific ERP is of cardinal concern for the investors and vendors as well. Therefore, the most crucial goal is to keep users engaged and encourage them to use regularly. Such assessment will provide ample evidence of the effectiveness of such process, like on boarding experience, guiding users at every crucial stage of using, important notifications for the users regarding the current state of their work, promoting two-way communication, the ambiance of the design, and other appealing features that encourage pleasant experience for the users.