Information Technology Reference
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Again attitude is affected by users' self-efficacy
and perceived usefulness. Other issues that can
inflect failure into the implementation process
might be employee education and vendors' sup-
port (Tsai & Hung, 2008). ERP systems integrate
resources to enhance the overall performance and
reduce costs (Lo, Tsai & Li, 2005). In a try to dif-
ferentiate between ERP adopters' performance and
non-adopters' performance, Hunton, Lippincout
and Reck (2003) reported a decline in performance
over time for non-adopters, while adopters enjoyed
a steady performance.
We conclude that it is crucial to benefit from
the capabilities of PIS, ERP and other IS in the
industrial sector to gain competitive advantage in
the market through the reduction of cost and the
smoothing of material and information flow, and
better utilization of resources.
non-adopters: innovators, early adopters, early
majority, late majority, and laggards.
According to Rogers' theory, people start to
adopt innovations slowly, and then the increased
number of adoptions will continue until it reaches
a peak, after that it diminishes leaving few indi-
viduals as non-adopters (laggards). Innovators are
willing to try new ideas and venturesome. Early
adopters are the opinion leaders in their community
and carefully adopt new ideas. Individuals in the
“early majority” category adopt new ideas before
the average person and rarely seen as a leaders. On
the other hand, individuals in the “late majority”
category adopt an innovation only after a major-
ity of people have tried it. At the end come the
laggards who adopt the innovation only when it
is a common and traditional aspect of their life
or work. People in this category are suspicious
of change, and resist such initiatives.
The Innovation Diffusion Theory (IDT) is
a well accepted model in social sciences as it
investigates the environment of adopting new in-
novations (the technology or information systems
in this case) in organizations. The IDT was first
proposed by Rogers (1983) and then modified by
many researchers who modified the model and
proposed different set of variables (Moore & Ben-
basat, 1991). Rogers (1983) proposed his theory
as a model that includes the factors influencing
the usage and adoption of innovation.
Rogers proposes five important factors that
influence the adoption decision: the first is
rela-
tive advantage
: the degree to which the innova-
tion perceived as being better than its precursor/
supersedes. Second,
compatibility
: the degree
to which an innovation is perceived as being
consistent with existing system of values, past
experiences and needs. The third is
complexity
:
the degree to which an innovation perceived as
being difficult to understand and use. Fourth, is
triability
: the degree to which an innovation can
be tried and experimented with a limited basis.
Finally,
observability
: the degree to which the
innovation diffusion theory
Rogers's diffusion of innovation (DOI) model
appeared to be one of the most widely accepted
models by researchers in identifying the “per-
ceived” critical characteristics for innovation in
information systems research and technology
adoption research.
Rogers (1995) defines the “innovation dif-
fusion process” as the spread of new ideas from
its source of invention or creators to its ultimate
users or adopters. Innovation is 'an idea, practice
or object that is perceived as new by an individual
or other unit of adoption (Rogers 1995, p.11).
Diffusion is the 'process by which an innovation
is communicated through certain channels over
time among the members of a social system (Rog-
ers 1995, p. 5).
Rogers classified people into categories ac-
cording to their innovativeness; where individuals
who are relatively earlier in adopting new ideas
than other members of their social system are
considered to be more innovative. The catego-
ries are the following arranged from adopters to
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