Reasons behind ERP package adoption: a diffusion of innovations perspective

Abstract

Enterprise Resource Planning (ERP) packages have been widely adopted and it is becoming clear that \nthis is driven by multiple rationales that may be simultaneously at odds and complimentary. In this \npaper, we aim to develop a greater understanding of these rationales by taking ERP packages to be \ninnovations and analysing their adoption with reference to the theory of diffusion of innovations. In \nparticular, we consider the attributes of ERP packages that may affect their adoption such as relative \nadvantage, compatibility, complexiblity, trialability and observability. We argue that users’ \nperceptions of these attributes are not always accurate and these ’misconceptions’ can further explain \nreasons for ERP adoption or rejection. Although our analysis aims to provide rich insights into the \nadoption of ERP packages, the results of the study are arguably of further interest to the more general \nstudy of packaged software and the more established literature on custom development.

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