A Study of Digital Acceptance of ERP Systems for Improved Financial Performance

A Study of Digital Acceptance of ERP Systems for Improved Financial Performance

Ayman Hassan Bazhair (Taif University, Saudi Arabia) and Kamaljeet Sandhu (University of New England, Australia)
DOI: 10.4018/978-1-7998-5171-4.ch004

Abstract

The main purpose of this study is to investigate the digital impacts of user training and education and perceived usefulness on the ERP systems acceptance and the contribution of the ERP systems towards the improved financial performance of Saudi firms. The survey is conducted on the ERP users, who are working in Saudi-based companies. The ERP users are selected for the survey by having been using the ERP modules for various digital tasks including finance and accounting, material management, human resource management, quality management, and sales and distribution. The research findings show that digital training and perceived usefulness both have a positive relation with the acceptance of the ERP systems.
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Introduction

The organisations ‘process efficiency’ is the advancing force for integrating digital transformation in the workplace. Technologies such as ERP, AI, machine learning, big data, analytics, and IoT (Internet of Things) are integrated to achieve the desired advanced outcome from digital transformation (Slimov, 2019). In this process digital transformation aims to bring higher growth for the company. It helps companies to improve customer services management and streamlining other business processes. The important goals of digital transformation are to transform ‘ineffective processes’ to ‘highly efficient & effective processes’ in which the outcome is beneficial to the organisation, employees, customers, suppliers, and other stakeholders (Mason 2019). Modern ERP can enable companies to offer the benefits of mobile apps and cloud-based solutions to employees and stakeholders. The implementation of the ERP software can improve key business functions like finance management, accounting, and inventory management. Integrating ERP tools into main business applications can link with social media platforms for transforming the user’s social accounts and important digital data that can be analysed in real time online (Al-Amoush and Sandhu, 2020).

There are number of studies which have been conducted in order to identify the appropriate use of the ERP systems for digitalisation and the ways in which the companies accept them (Al-Mashari and Okazawa, 2006). The digital acceptance process is mainly focused on the various needs of the users. However, it is important to identify the return on investments for digitalisation which are made in order to introduce ERP systems within the organisation (Akkermans and Van Helden, 2002). The majority of the studies related to ERP systems are focused on discussing the digital needs of the users. However, the link between the acceptance of the ERP systems and financial performance of the firms is not very well researched (Aiken, 2002). It is a fact that the basic purpose of introducing the ERP systems within the organisation is to improve the overall digital performance of the firm, which also results in improved digital business profitability (Al-Mashari and Zairi, 2003). Therefore, it is important to identify that whether the organisation is successful in gaining financial returns from the implementation of the ERP systems or not (Allen and Havenhand, 2002). This research paper helps to identify the link between the digital issues which are faced by the user with the financial performance of the company during the acceptance and implementation of the ERP systems for digitalisation of business process.

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