Skip to main content
Log in

From transactional user to VIP: how organizational and cognitive factors affect ERP assimilation at individual level

  • Original Article
  • Published:
European Journal of Information Systems

Abstract

This study extends the enterprise resource planning (ERP) assimilation research from organizational level to individual level with the argument that it is the individual users who transform ERP systems’ capabilities into organizational performance. We employed a multi-case study method in this exploratory research with the objectives of defining individual level ERP assimilation and identifying key influential factors. Interviews with ERP users at all levels in five organizations revealed four key drivers: influence of supervisors, performance evaluation schemes, intrinsic motivation, and perceived usefulness, as well as two significant moderators: job specifications and individual absorptive capacity. Moreover, evidence suggests a potential relationship between individual level and organizational level ERP assimilations. Our findings highlight the importance of individual level assimilation within a firm in the post-implementation phase and provide managerial insights on how firms could improve ERP assimilation at the individual level that could impact the organizational level assimilation.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Figure 1
Figure 2
Figure 3

Similar content being viewed by others

References

  • Ajzen I (2002) Perceived behavioral control, self-efficacy, locus of control, and the theory of planned behavior. Journal of Applied Social Psychology 32 (4), 665–683.

    Article  Google Scholar 

  • Akkermans H and Van Helden K (2002) Vicious and virtuous cycles in ERP implementation: a case study of interrelations between critical success factors. European Journal of Information Systems 11 (1), 35–46.

    Article  Google Scholar 

  • Al-Mudimigh A, Zairi M and Al-Mashari M (2001) ERP software implementation: an integrative framework. European Journal of Information Systems 10 (4), 216–226.

    Article  Google Scholar 

  • Armstrong C and Sambamurthy V (1999) Information technology assimilation in firms: the influence of senior leadership and IT infrastructures. Information Systems Research 10 (4), 304–327.

    Article  Google Scholar 

  • Bajwa DS, Lewis LF, Pervan G, Lai VS, Munkvold BE and Schwabe G (2008) Factors in the global assimilation of collaborative information technologies: an exploratory investigation in five regions. Journal of Management Information Systems 25 (1), 131–165.

    Article  Google Scholar 

  • Bala H and Venkatesh V (2007) Assimilation of interorganizational business process standards. Information Systems Research 18 (3), 340–362.

    Article  Google Scholar 

  • Bolloju N and Turban E (2007) Organizational assimilation of web services technology: a research framework. Journal of Organizational Computing and Electronic Commerce 17 (1), 29–52.

    Google Scholar 

  • Calisir F and Calisir F (2004) The relation of interface usability characteristics, perceived usefulness, and perceived ease of use to end-user satisfaction with enterprise resource planning (ERP) systems. Computers in Human Behavior 20 (4), 505–515.

    Article  Google Scholar 

  • Chatterjee D, Grewai R and Sambamurthy V (2002) Shaping up for e-commerce: institutional enablers of the organizational assimilation of web technologies. MIS Quarterly 26 (2), 65–89.

    Article  Google Scholar 

  • Cohen WM and Levinthal DA (1990) Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly 35 (1), 128–152.

    Article  Google Scholar 

  • Davis FD (1989) Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly 13 (3), 319–340.

    Article  Google Scholar 

  • Deci EL and Flaste R (1996) Why We Do What We Do: Understanding Self-motivation. Penguin books, New York.

    Google Scholar 

  • Dubé L and Paré G (2003) Rigor in information systems positivist case research: current practices, trends, and recommendations. MIS Quarterly 27 (4), 597–636.

    Google Scholar 

  • Fichman RG and Kemerer CF (1997) The assimilation of software process innovations: an organizational learning perspective. Management Science 43 (10), 1345–1363.

    Article  Google Scholar 

  • Gallivan MJ (2001) Organizational adoption and assimilation of complex technological innovations: development and application of a new framework. The Data Base for Advances in Information Systems 32 (3), 51–85.

    Article  Google Scholar 

  • Gattiker TF and Goodhue DL (2005) What happens after ERP implementation: understanding the impact of interdependence and differentiation on plant-level outcomes. MIS Quarterly 29 (3), 559–585.

    Google Scholar 

  • Hardgrave BC, Armstrong DJ and Riemenschneider CK (2007) RFID assimilation hierarchy. Proceedings of the 40th Hawaii International Conference on System Sciences, 3–6 January, IEEE Computer Society, Hawaii, USA.

  • Jacobson S, Shepherd J, D’Aquila M and Carter K (2007) The ERP market sizing report, 2006–2011. AMR Research [WWW document] http://www.sap.com/solutions/business-suite/erp/pdf/AMR_ERP_Market_Sizing_2006-2011.pdf.

  • Ko DG, Kirsch LJ and King WR (2005) Antecedents of knowledge transfer from consultants to clients in enterprise system implementations. MIS Quarterly 29 (1), 59–85.

    Google Scholar 

  • Kositanurit B, Ngwenyama O and Osei-Bryson KM (2006) An exploration of factors that impact individual performance in an ERP environment: an analysis using multiple analytical techniques. European Journal of Information Systems 15 (6), 556–568.

    Article  Google Scholar 

  • Lam W (2005) Investigating success factors in enterprise application integration: a case-driven analysis. European Journal of Information Systems 14 (2), 175–187.

    Article  Google Scholar 

  • Latham GP, Wexley KN and Wexley K (1993) Increasing Productivity Through Performance Appraisal. Addison-Wesley, Reading, MA.

    Google Scholar 

  • Liang H, Saraf H, Hu Q and Xue Y (2007) Assimilation of enterprise systems: the effect of institutional pressures and the mediating role of top management. MIS Quarterly 31 (1), 1–29.

    Google Scholar 

  • Lim ETK, Pan SL and Tan CW (2005) Managing user acceptance towards enterprise resource planning (ERP) systems – understanding the dissonance between user expectations and managerial policies. European Journal of Information Systems 14 (2), 135–149.

    Article  Google Scholar 

  • Liu LN, Feng YQ, Hu Q and Huang XJ (2010) Understanding organizational level ERP assimilation: a multi-case study. Proceedings of the 43rd Hawaii International Conference on System Science, 5–8 January, IEEE Computer Society, Hawaii, USA.

  • Nicolaou AI and Bhattacharya S (2006) Organizational performance effects of ERP systems usage: the impact of post-implementation changes. International Journal of Accounting Information Systems 7 (1), 18–35.

    Article  Google Scholar 

  • Paré G (2004) Investigating information systems with positivist case study research. Communications of the AIS 13, 233–264.

    Google Scholar 

  • Park JH, Suh HJ and Yang HD (2007) Perceived absorptive capacity of individual users in performance of enterprise resource planning (ERP) usage: the case for Korean firms. Information & Management 44 (3), 300–312.

    Article  Google Scholar 

  • Petter S, Delone W and McLean E (2008) Measuring information systems success: models, dimensions, measures, and interrelationships. European Journal of Information Systems 17 (3), 236–263.

    Article  Google Scholar 

  • Purvis RL, Sambamurthy V and Zmud RW (2001) The assimilation of knowledge platforms in organizations: an empirical investigation. Organization Science 12 (2), 117–135.

    Article  Google Scholar 

  • Rai A, Tang X, Brown P and Keil M (2006) Assimilation patterns in the use of electronic procurement innovations: a cluster analysis. Information & Management 43 (3), 336–349.

    Article  Google Scholar 

  • Ross JW and Vitale MR (2000) The ERP revolution: surviving vs. thriving. Information Systems Frontiers 2 (2), 233–241.

    Article  Google Scholar 

  • Saraf H, Liang H, Xue Y and Hu Q (2006) Assimilation of information technology in enterprise business processes: the role of absorptive capacity. Proceedings of the 12th Americas Conference on Information Systems, 4–6 August, Association for Information Systems, Acapulco, México.

  • Umble EJ, Haft RR and Umble MM (2003) Enterprise resource planning: implementation procedures and critical success factors. European Journal of Operations Research 146 (2), 241–257.

    Article  Google Scholar 

  • Wang P (2008) Assimilating IT innovation: the longitudinal effects of institutionalization and resource dependence. Proceedings of 29th International Conference on Information Systems, 14–17 December, Association for Information Systems, Paris, France.

  • Yin RK (2003) Case Study Research: Design and Methods. Sage, Thousand Oaks, CA.

    Google Scholar 

Download references

Acknowledgements

This research was partially funded by a grant from the Chinese National Natural Science Foundation (Contract #71028003). The authors would like to express their gratitude to the executives, managers, and users in the case companies for their time and contribution to this study. We are also indebted to the editor, associate editor, and the anonymous review team for their insightful and constructive comments which helped significantly to improve the quality, rigor, and readability of the manuscript.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Luning Liu.

Appendix

Appendix

Sample Interview Questions.789

Table A1 Sample interview questions for top managers
Table A2 Sample interview questions for middle-level managers
Table A3 Sample interview questions for end users

Rights and permissions

Reprints and permissions

About this article

Cite this article

Liu, L., Feng, Y., Hu, Q. et al. From transactional user to VIP: how organizational and cognitive factors affect ERP assimilation at individual level. Eur J Inf Syst 20, 186–200 (2011). https://doi.org/10.1057/ejis.2010.66

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/ejis.2010.66

Keywords

Navigation