Factors Influencing the Acceptance of Enterprise Resource Planning System (ERP) and Financial Performance of Saudi Arabia Listed Companies: Multivariate Data Analysis Using Structural Equation Modeling (SEM)

Abstract

Purpose - The purpose of this research is to examine the link between the acceptance of enterprise resource planning systems in Saudi Arabia, and the ways in which this can lead to long term acceptance of system. This research examines the issues of ERP acceptance, and the perceived benefits and ease of use, which a user has to deal with. Design/methodology/approach the research suggests the use of quantitative data, through the data analysis using multivariate data analysis. This approach uses structural equation modeling, which can lead to long-term change in the output of the data, and the link between the major hypotheses, which have been suggested. This ensures that the data collection can be undertaken. Findings - A number of findings from this research have been derived. It appears that the acceptance and use of ERP systems is central to the success of information systems today. However, the ease of use needs to be accentuated through training and support of users, which can be facilitated through top-level support for new systems. In order to reduce resistance, organizations need to take a proactive approach in implementing systems, and facilitate user participation, which can ensure that financial performance of systems can be improved.