Enterprise Resource Planning Systems: Factors for Acceptance, and Impact on the Financial Performance of Saudi Arabian Listed Companies

Abstract

Enterprise resource planning (ERP) systems are highly comprehensive and complex software packages designed to integrate business processes and functions. Implementation efforts in the past have encountered numerous practical difficulties, resulting in the partial or even complete failure of ERP systems to deliver expected benefits. Ongoing research is aimed at addressing these challenges, as substantial financial and operational losses are incurred when ERP systems fail. Two particular factors contributing to failure have emerged from the existing body of research: insufficient knowledge, expertise and training necessary for ERP systems implementation; and managerial problems relating to change management and the underlying need to address employee resistance to change. Essentially, implementation of an ERP system affects job content, control, power and decision-making processes that may result in employee resistance to such significant changes. Numerous studies have examined the factors shaping user acceptance of ERP systems. The present study critically investigated factors shaping ERP systems acceptance and the resulting improved financial performance in the context of Saudi Arabian listed companies. The study developed and assessed a conceptual framework based on empirical analysis and validation of the developed enterprise resource planning acceptance model. The main goals of the study were to assess the applicability of the technology acceptance model (TAM) in the studied context and to evaluate the relationship between user acceptance of ERP systems and improved financial performance.