Determinant of ERP Use and Its Impact on Employee Performance

DOI

10.2991/978-94-6463-525-6_62How to use a DOI?

Keywords

ERP System; Employee Performance; Information System; Technology Acceptance Model

Abstract

This study aims to examine the impact of the success of the Enterprise Resource Information System (ERIS) integrated in Enterprise Resource Planning (ERP) on employee performance. To achieve this goal, this study applies a combined approach between the Technology Acceptance Model and the Delone-Mclean Information System by including the variables of self-efficacy, organizational support, complexity, and training compatibility with ERP use as crucial factors in its analysis. This research method uses path analysis, which is analyzed through Structural Equation Modeling Partial Least Squares (SEM PLS 4.0). This research was conducted in two stages of testing, where the first stage involved evaluating all hypothesized paths, and the second stage involved removing one indicator path (outer loading) to test the consistency of the findings. The results showed a significant positive correlation between the variables in the research framework. The self-efficacy variable, which reflects an individual’s belief in his or her ability to use ERIS in ERP, positively impacts ERIS adoption. Organizational support also had a significant favorable influence, signifying that organizational support plays an essential role in facilitating technology adoption. In addition, ERP complexity and training compatibility were also shown to influence ERIS adoption. In addition to the impact on technology adoption, ERIS adoption in ERP significantly influences employee performance. This signifies that employee performance tends to improve when ERIS is implemented successfully. All tested hypotheses proved significant in the SEM PLS 4.0 test at both testing stages, even after removing one indicator path. This study provides important insights into the relationship between ERIS success in ERP and employee performance. The findings provide practical guidelines for organizations in planning and managing ERIS implementation and understanding the key factors influencing adoption and its impact on overall organizational performance. The combined approach of the Technology Acceptance Model and Delone-Mclean Information Systems effectively identifies vital elements in technology adoption and its impact on organizational performance.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Muhamad Al Musadieq
AU  - Riyadi
AU  - Teuku Noerman
AU  - Ulul Albab
AU  - Nurohman
PY  - 2024
DA  - 2024/10/29
TI  - Determinant of ERP Use and Its Impact on Employee Performance
BT  - Proceedings of the 2023 Brawijaya International Conference (BIC 2023)
PB  - Atlantis Press
SP  - 560
EP  - 567
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-525-6_62
DO  - 10.2991/978-94-6463-525-6_62
ID  - AlMusadieq2024
ER  -