Isomorphic factors in the adoption of ERP by Indian medium-sized firms

Abstract

PurposeThe paper adopts an institutional theory perspective to investigate the adoption of ERP systems by medium sized firms in India. The rationale for this study is to provide a more complete understanding of ERP adoption, moving beyond the traditional technical and economic perspectives to include social, cultural and structural influences. These later influences are more implicit, insidious and pervasive and hence require elucidatory studies such as this, but offer a greater understanding of the adoption of IS. Design/methodology/approachThe study is undertaken by means of nine case studies of medium sized firms in India that have adopted ERP systems. Qualitative interviews were undertaken with a range of staff in each firm and are supplemented by data from other sources such as site visit notes. FindingsInstitutionally based studies have tended to focus on three high-level isomorphic pressures: coercive, normative and mimetic. The study identifies number of more detailed factors that contribute to each of these three pressures. These more detailed factors are then used to consider how factors interact in the Indian context of the study. Originality/ValueThe conceptual contribution of this study is to move beyond the technical and economic rationales frequently identified for the adoption of IS by identifying influences that are social, cultural and structural in nature. The study shows that the three high level isomorphic pressures, mimetic, coercive and normative are comprised of more detailed factors. The empirical contribution of the paper is to identify these detailed factors, and to explore their influence, in the case of ERP adoption by Indian medium-sized firms. The study is of value to practitioners, since it is at the detailed level of factors that managers can recognize the forces they are subject to and can take action. It is also valuable to researchers since the detailed factors help address two limitations of institutional theory; a lack of agency perspective and a degree of conceptual ambiguity.

The Impact of ERP System's Usability on Enterprise Resource Planning Project Implementation Success via the Mediating Role of User Satisfaction

“…Unfortunately, with this huge demand, studies show that 37% of global organizations do consider their experience in adopting ERP projects to be unsuccessful (Sharma et al, 2016). Davenport (2000) even describes the process of implementing ERP as a critical mission.…”

A classification scheme for representing the variation in business and supply chain performance in Indian manufacturing industry

“…Resources (RES): lack of manpower, financial, technological and knowledge related to SCM (Goldar, 2016; Skipworth et al , 2015). External support needed (ESN): use of external consultants or consulting agencies in implementing SCM practices due to unavailability of expertise in the given domain (Sharma and Daniel, 2016). …”

“…External support needed (ESN): use of external consultants or consulting agencies in implementing SCM practices due to unavailability of expertise in the given domain (Sharma and Daniel, 2016).…”

“…In Drucker’s new management paradigms, the concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. The same applies to SCM, which has been extensively researched in developed countries like USA, UK and in regions of Europe but considerable amount of research is still to be done in developing countries like India and China (Sachan and Datta, 2005; Soni and Kodali, 2011b, 2016; Sharma and Daniel, 2016). They pointed out in their review that most of the MNCs are targeting developing and underdeveloped countries either as new market for their products or for sourcing the raw material due to low cost but the amount of research in SCM in these countries is still scanty.…”

Institutional isomorphism and social media adoption – a study within the microenterprise context

“…Coercive pressures describe formal or informal pressures that compel firms to adopt similar practices or structures within the environment (Dubey et al, 2019). These pressures may arise from cultural influences, government policies, competitive necessity/pressure, such as the need to mirror other firms, and from the influences or requirements of major trading partners, competitors or customers (Sharma and Daniel, 2016). The competitive environment, which considers competitive pressures, has been recognized as an effective motivator for technology adoption (Salimon et al, 2021).…”