Diffusion of Enterprise Resource Planning Systems in Taiwan: Influence Sources and the Y2K Effect

Abstract

ERP was one of the important developments in the use of information technology for organizations in the 1990s. Y2K rectification was a key driver in the decision to move to ERP software. Based on diffusion-of-innovation models, in this study, the sources of influence of ERP adoption in Taiwan are investigated and if the dawning Y2K can be viewed as a critical point is explored. The results demonstrate that the main influence source of ERP adoption is a mix of influence sources for all adopters. Before the millennium, the internal model shows the higher power of explanation. And after the millennium, the main influences become external influence sources. With different diffusion patterns between, before, and after the millennium, the analysis results confirm that the millennium is a critical point. Besides contributing to the application of diffusion-of-innovation in Taiwan’s ERP adoption, the results of this study can provide suggestions for ERP suppliers’ marketing strategy.