Information Technology Reference
In-Depth Information
ERP may well count as one of the most sig-
nificant developments in the corporate use of IT
since the 90's (Davenport, 1998). A typical ERP
system may combine inventory data with financial,
sales and human data, allowing organizations to
achieve many work activities like pricing products,
producing financial statements and managing hu-
man, material and financial resources effectively
(Markus et al., 2000). This means that the ERP
system is integrated and enterprise-wide which
automates core corporate activities. It helps orga-
nizations to replace the present IS's which aren't
integrated to an integrated system.
ERP implementations are very complex and
expensive, but once they are implemented suc-
cessfully, significant improvement in business
processes, communication and interaction be-
tween users and customers will eventually occur.
In addition to better production scheduling and
reduction in manufacturing costs. Also manage-
ment can observe reduction of cycle times of
documents and elimination of redundant data and
operations (Zhang et al., 2003).
It was reported that 75% of the ERP projects
are classified as failures and many ERP projects
ended catastrophically (Griffith et al., 1999).
Of course failure rates differ from country to
country based on many factors. For instance, in
Egypt the failure rate of implementation prob-
lems is extremely higher than that in the western
companies because of the challenging Egyptian
culture which is entirely different from where
these systems were developed (Elsawah et al.,
2008; Rasmy et al. 2005).
Accordingly the objective of this chapter is
studying the factors that influence the formation
of users' intention to continue using ERP systems.
Therefore, the research questions are as follows:
This chapter is structured as follows: we will
first introduce the background of similar studies
and then describing the relevant theories which
will help us to build our research model. Then
we will introduce our research model and its
hypotheses. Survey and statistical analysis will
then follow and finally ideas for future research
are presented.
bAckground
During the last two decades the investment in IT
has been increasing to reach almost about half of
all capital investments on a global basis (Mahmood
et al., 2000). In addition, growing numbers of stra-
tegic information systems that shape or critically
support organizational processes have also been
reported (Mahmood et al., 2000). This has led to
the growing body of academic research examining
the determinants of information acceptance and
utilization among users.
Information Systems (IS) are general concepts.
Since IS has different functions, so different
industries and different organizations use differ-
ent information systems (Yeh, 2007). Davenport
(1998; 2000) has defined ERP systems as systems
that aim at providing integrated software to handle
multiple corporate functions e.g. finance, human
resources, manufacturing, materials manage-
ment, and sales and distribution. This means they
incorporate information and information-based
processes in and across organizational functions
areas in the organization. This is important to
point out that ERP systems are different from the
others systems as:
•
The integrated nature of ERP systems
causes dramatic changes in the pro-
cedures and processes of the business
(reengineering);
1. What are the salient factors underlying ERP
users' intention to continue using ERP sys-
tems after its initial acceptance?
2. How do these factors influence continuance
intention?
•
As ERP systems are not built but adopted,
this involves the need to introduce custom-
izations to the users (Wu & Wang, 2006);
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