Determinants of Enterprise Resource Planning (ERP) System Usage in Sri Lankan Companies

Abstract

Business Process Management software, commonly known as Enterprise Resource Planning (ERP), facilitates organizations in employing integrated applications for business-process management and automation. Despite its potential benefits, many ERP users often lack sufficient understanding of its functionalities. This study aims to investigate the factors impacting the utilization of ERP within a specific company in Sri Lanka. Utilizing the Diffusion of Innovation (DOI) model, the research seeks to assess the impacts of complexity, compatibility, training, best practices, competitive pressure, and efficiency on end-users' adoption and use of ERP. This study adopted a quantitative research approach and Data was collected through a self-administrative questionnaire, utilizing data from 183 web surveys on selected organizations in Sri Lanka. The sample selection technique was stratified random sampling. Multiple regression analysis was employed using the SPSS 23.0 version to analyze determinants and its effect on ERP use. write this as a university student writing for a research report. The analysis found that training has a significant positive impact on ERP use and also indicates that complexity and best practices have a positive but insignificant relationship with ERP use. The efficiency on ERP use has an insignificant positive effect. The overall model is significant. The findings of this study offer valuable insights for organizations aiming to enhance the effective use of ERP systems and other information systems. Specifically, it is crucial to take into account factors like compatibility and competitive pressure when adopting and implementing new ERP systems. Additionally, focusing on user satisfaction by adopting a user-oriented approach is vital. These outcomes not only have practical implications for current ERP system usage but also provide a foundation for future research, addressing the existing knowledge gaps within the Sri Lankan context.