Measuring Enterprise Resource Planning (ERP) Systems Effectiveness in Indonesia

Abstract

Refining DeLone and McLean's (D&M) information system model and technology-organisationenvironment (TOE) framework, this research identifies the prominent factors that determine ERP system success. Hypotheses are also drawn based on supporting theories to evaluate the causal relationship between the success determinants. The level of achievement is measured by system quality, information quality, service quality, external quality and top management support, which intermediated by perceived usefulness and user satisfaction towards business benefits. To provide empirical evidence, 86 valid samples out of 156 were collected using a web survey that targeted ERP users in Indonesia. Furthermore, Partial Least Squares-Structural Equation Modelling (PLS-SEM) algorithm were applied to check the proposed hypotheses. The results suggest system quality, information quality and service quality significantly affect user satisfaction, whereas they moderately impact on perceived usefulness. Interestingly, external pressures were reported as being the biggest influence on user satisfaction and positively impacted on perceived usefulness. Despite being fairly predictive to perceived usefulness, top management support along with general perceptual factors ultimately promote system success by elevating business benefits.

Antecedents of Continuance Intention of Social Networking Services (SNS): Utilitarian, Hedonic, and Social Contexts

“…According to the fndings, system quality is signifcantly associated with perceived ease of use, but not with perceived usefulness. Prior studies have verifed that system quality has a signifcant impact on perceived ease of use [11,60] and perceived usefulness [10,12]. Tese results could be elaborated by the fact that the better performance of the SNS system increases the level of perceived ease of use, but not perceived usefulness.…”

“…System quality represents the expected characteristics of an SNS, including adaptability, reliability, availability, and usability [58,59]. Several studies triggered the conclusion that system quality has a signifcant efect on perceived ease of use [11,60,61]. Prior research revealed that system quality is signifcantly associated with perceived usefulness [10,12,62].…”

“…Service quality refers to overall user evaluations and judgments regarding the quality of SNS service delivery [66]. It has been shown in numerous studies conducted earlier that service quality has a signifcant association with perceived ease of use [10,11,16]. Service quality is a major precursor of both perceived ease of use and perceived usefulness [39].…”

“…Information system (IS) success factors have a signifcant efect on perceived ease of use and perceived usefulness. System quality plays a key role in the formation of perceived ease of use [10,11] and perceived usefulness [12]. Information quality has a signifcant association with perceived ease of use [13,14] and perceived usefulness [14,15].…”

Critical Success Factors on the Implementation of ERP Systems: Building a Theoretical Framework

“…In addition to its wide range of practical applications, ERP system is an equally active area of research interest [13]. Researches about ERP concern: the general frame of literature, the software and its optimization, the identification of factors that contribute to the adoption and the selection of those systems, the advantages and disadvantages of ERP implementation and finally, the efficiency estimation of ERP implementation [11,[13][14][15][16][17][18][19]. The identification of factors that are adjudged critical in ERP implementation success [9, 20 etc.…”