Adopting an enterprise resource planning system in village government

Published: Mar 26, 2024

Abstract:

Purpose: The obligation of the Village Government to realize accountability and transparency of rural funds "forced" the village to use the ERP system. This study investigates the characteristics of technologies, individuals, and organizations that influence user decisions to adopt systems that will impact their performance.

Research methodology: The technology acceptance model (TAM) was used to understand the factors that influence the adoption of the system and its impact on user performance. Data obtained from 72 users spread in Lampung Province.

Results: The results showed that the compatibility of the system significantly influence the perceived usefulness. Facilitating conditions has a significant effect on perceived ease of use. Perceived usefulness and perceived ease of use has positive effect on symbolic adoption. Symbolic adoption significantly affects the user’s performance positively.

Implementation: The implementation of this study involves a mixed-methods approach, including a survey and interviews with users and stakeholders, as well as a case study analysis of successful ERP implementations in village governments.

Contribution: The contribution of this research is the identification of factors that contribute to successful ERP implementation in village governments, which can inform future adoption decisions and improve user performance.

Keywords:
1. Enterprise resource planning (ERP)
2. Technology acceptance model (TAM)
3. Individual performance
4. rural fund
Authors:
1 . Arnold Restu
2 . Rindu Rika Gamayuni
3 . Yuliansyah Yuliansyah
How to Cite
Restu, A., Gamayuni, R. R., & Yuliansyah, Y. (2024). Adopting an enterprise resource planning system in village government. Journal of Governance and Accountability Studies, 4(1), 1–17. https://doi.org/10.35912/jgas.v4i1.1906

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References

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    Aiman-Smith, L., & Green, S. G. (2002). Implementing new manufacturing technology: The related effects of technology characteristics and user learning activities. Academy of management journal, 45(2), 421-430.

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    Amoako-Gyampah, K., & Salam, A. F. (2004). An extension of the technology acceptance model in an ERP implementation environment. Information & management, 41(6), 731-745.

    Anandarajan, M., Igbaria, M., & Anakwe, U. P. (2002). IT acceptance in a less-developed country: a motivational factor perspective. International Journal of Information Management, 22(1), 47-65.

    Basoglu, N., Daim, T., & Kerimoglu, O. (2007). Organizational adoption of enterprise resource planning systems: A conceptual framework. The Journal of High Technology Management Research, 18(1), 73-97.

    Bingi, P., Sharma, M. K., & Godla, J. K. (1999). Critical issues affecting an ERP implementation. Inf. Syst. Manag., 16(3), 7-14.

    Bradley, J. (2008). Management based critical success factors in the implementation of Enterprise Resource Planning systems. International Journal of Accounting Information Systems, 9(3), 175-200.

    Brown, S. A., Massey, A. P., Montoya-Weiss, M. M., & Burkman, J. R. (2002). Do I really have to? User acceptance of mandated technology. European journal of information systems, 11(4), 283-295.

    Chang, M.-K., Cheung, W., Cheng, C.-H., & Yeung, J. H. (2008). Understanding ERP system adoption from the user's perspective. International Journal of Production Economics, 113(2), 928-942.

    Chen, H.-H., Chen, S.-C., & Tsai, L.-H. (2009). A study of successful ERP–from the organization fit perspective. Journal of Systemics, Cybernetics and Informatics, 7(4), 8-16.

    Chomchalao, S., & Naenna, T. (2013). Influence of system traits and personal traits on the acceptance of e-government service.

    Claire Erensal, Y., & Esra Albayrak, Y. (2008). Transferring appropriate manufacturing technologies for developing countries. Journal of Manufacturing Technology Management, 19(2), 158-171.

    Cooper, R. B., & Zmud, R. W. (1990). Information technology implementation research: a technological diffusion approach. Management science, 36(2), 123-139.

    Costa, C. J., Ferreira, E., Bento, F., & Aparicio, M. (2016). Enterprise resource planning adoption and satisfaction determinants. Computers in Human Behavior, 63, 659-671.

    Dalcher, I., & Shine, J. (2003). Extending the new technology acceptance model to measure the end user information systems satisfaction in a mandatory environment: A bank's treasury. Technology analysis & strategic management, 15(4), 441-455.

    Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340.

    Diamantopoulos, A., & Siguaw, J. A. (2006). Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration. British journal of management, 17(4), 263-282.

    Escobar-Rodríguez, T., & Carvajal-Trujillo, E. (2013). Online drivers of consumer purchase of website airline tickets. Journal of Air Transport Management, 32, 58-64.

    Farrar, D. E., & Glauber, R. R. (1967). Multicollinearity in regression analysis: the problem revisited. The Review of Economic and Statistics, 92-107.

    Fishbein, M., & Ajen, I. (1975). Belief, Attitude, Intention, and Behaviors: An Introduction to Theory and Research. Boston, MA: Adison: Wesley Publishing Co, Inc.

    Fusilier, M., & Durlabhji, S. (2005). An exploration of student internet use in India: the technology acceptance model and the theory of planned behaviour. Campus-Wide Information Systems, 22(4), 233-246.

    Gefen, D., Straub, D., & Boudreau, M.-C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information systems, 4(1), 7.

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    Goodhue, D. L., & Thompson, R. L. (1995). Task-technology fit and individual performance. MIS quarterly, 213-236.

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    Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152.

    Handayani, P. W., Hidayanto, A. N., Pinem, A. A., Hapsari, I. C., Sandhyaduhita, P. I., & Budi, I. (2017). Acceptance model of a hospital information system. International journal of medical informatics, 99, 11-28.

    Henseler, J., & Chin, W. W. (2010). A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Structural equation modeling, 17(1), 82-109.

    Kallunki, J.-P., Laitinen, E. K., & Silvola, H. (2011). Impact of enterprise resource planning systems on management control systems and firm performance. International Journal of Accounting Information Systems, 12(1), 20-39.

    Karahanna, E., Agarwal, R., & Angst, C. M. (2006). Reconceptualizing compatibility beliefs in technology acceptance research. MIS quarterly, 781-804.

    Klaus, H., Rosemann, M., dan Gable, G. G. . (2000). What is ERP?” Information Systems Frontier. 2(2), 41-162.

    Klonglan, G. E., & Coward, E. W. (1970). The concept of symbolic adoption: A suggested interpretation. Rural sociology, 35(1), 77.

    Lai, I. K. (2015). Traveler acceptance of an app-based mobile tour guide. Journal of Hospitality & Tourism Research, 39(3), 401-432.

    Lee, D., Lee, S. M., Olson, D. L., & Hwan Chung, S. (2010). The effect of organizational support on ERP implementation. Industrial management & data systems, 110(2), 269-283.

    Legris, P., Ingham, J., & Collerette, P. (2003). Why do people use information technology? A critical review of the technology acceptance model. Information & management, 40(3), 191-204.

    Lewis, W., Agarwal, R., & Sambamurthy, V. (2003). Sources of influence on beliefs about information technology use: An empirical study of knowledge workers. MIS quarterly, 657-678.

    Millman, Z., & Hartwick, J. (1987). The impact of automated office systems on middle managers and their work. MIS quarterly, 479-491.

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  1. Agarwal, R., & Prasad, J. (1998). A conceptual and operational definition of personal innovativeness in the domain of information technology. Information systems research, 9(2), 204-215.
  2. Aiman-Smith, L., & Green, S. G. (2002). Implementing new manufacturing technology: The related effects of technology characteristics and user learning activities. Academy of management journal, 45(2), 421-430.
  3. Amaranti, R. (2006). Faktor Kritis Dalam Proyek Implementasi ERP dan Pengaruhnya terhadap Perubahan dalam Organisasi.
  4. Amoako-Gyampah, K., & Salam, A. F. (2004). An extension of the technology acceptance model in an ERP implementation environment. Information & management, 41(6), 731-745.
  5. Anandarajan, M., Igbaria, M., & Anakwe, U. P. (2002). IT acceptance in a less-developed country: a motivational factor perspective. International Journal of Information Management, 22(1), 47-65.
  6. Basoglu, N., Daim, T., & Kerimoglu, O. (2007). Organizational adoption of enterprise resource planning systems: A conceptual framework. The Journal of High Technology Management Research, 18(1), 73-97.
  7. Bingi, P., Sharma, M. K., & Godla, J. K. (1999). Critical issues affecting an ERP implementation. Inf. Syst. Manag., 16(3), 7-14.
  8. Bradley, J. (2008). Management based critical success factors in the implementation of Enterprise Resource Planning systems. International Journal of Accounting Information Systems, 9(3), 175-200.
  9. Brown, S. A., Massey, A. P., Montoya-Weiss, M. M., & Burkman, J. R. (2002). Do I really have to? User acceptance of mandated technology. European journal of information systems, 11(4), 283-295.
  10. Chang, M.-K., Cheung, W., Cheng, C.-H., & Yeung, J. H. (2008). Understanding ERP system adoption from the user's perspective. International Journal of Production Economics, 113(2), 928-942.
  11. Chen, H.-H., Chen, S.-C., & Tsai, L.-H. (2009). A study of successful ERP–from the organization fit perspective. Journal of Systemics, Cybernetics and Informatics, 7(4), 8-16.
  12. Chomchalao, S., & Naenna, T. (2013). Influence of system traits and personal traits on the acceptance of e-government service.
  13. Claire Erensal, Y., & Esra Albayrak, Y. (2008). Transferring appropriate manufacturing technologies for developing countries. Journal of Manufacturing Technology Management, 19(2), 158-171.
  14. Cooper, R. B., & Zmud, R. W. (1990). Information technology implementation research: a technological diffusion approach. Management science, 36(2), 123-139.
  15. Costa, C. J., Ferreira, E., Bento, F., & Aparicio, M. (2016). Enterprise resource planning adoption and satisfaction determinants. Computers in Human Behavior, 63, 659-671.
  16. Dalcher, I., & Shine, J. (2003). Extending the new technology acceptance model to measure the end user information systems satisfaction in a mandatory environment: A bank's treasury. Technology analysis & strategic management, 15(4), 441-455.
  17. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340.
  18. Diamantopoulos, A., & Siguaw, J. A. (2006). Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration. British journal of management, 17(4), 263-282.
  19. Escobar-Rodríguez, T., & Carvajal-Trujillo, E. (2013). Online drivers of consumer purchase of website airline tickets. Journal of Air Transport Management, 32, 58-64.
  20. Farrar, D. E., & Glauber, R. R. (1967). Multicollinearity in regression analysis: the problem revisited. The Review of Economic and Statistics, 92-107.
  21. Fishbein, M., & Ajen, I. (1975). Belief, Attitude, Intention, and Behaviors: An Introduction to Theory and Research. Boston, MA: Adison: Wesley Publishing Co, Inc.
  22. Fusilier, M., & Durlabhji, S. (2005). An exploration of student internet use in India: the technology acceptance model and the theory of planned behaviour. Campus-Wide Information Systems, 22(4), 233-246.
  23. Gefen, D., Straub, D., & Boudreau, M.-C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information systems, 4(1), 7.
  24. George, D. dan Mallery, P.(2003). SPSS For Windows Step By Step: A Simple Guide And Application, 11.0 Update.
  25. Gist, M. E. (1987). Self-efficacy: Implications for organizational behavior and human resource management. Academy of management review, 12(3), 472-485.
  26. Goodhue, D. L., & Thompson, R. L. (1995). Task-technology fit and individual performance. MIS quarterly, 213-236.
  27. Govindaraju, R., Indriany, N., & de Bruijn, E.-J. (2007). Studi Mengenai Penerimaan istem ERP: Enhancement Terhadap Model Penerimaan Sistem ERP Berbasis Technology Acceptance Model. Paper presented at the 4th National Industrial Engineering Conference, NIEC 2007.
  28. Gujarati, D., & Porter, D. C. (2009). Basic Econometrics. 5th Edtion. Edited by AE Hilbert.
  29. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis 6th Edition: Pearson Prentice Hall. New Jersey. humans: Critique and reformulation ….
  30. Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152.
  31. Handayani, P. W., Hidayanto, A. N., Pinem, A. A., Hapsari, I. C., Sandhyaduhita, P. I., & Budi, I. (2017). Acceptance model of a hospital information system. International journal of medical informatics, 99, 11-28.
  32. Henseler, J., & Chin, W. W. (2010). A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Structural equation modeling, 17(1), 82-109.
  33. Kallunki, J.-P., Laitinen, E. K., & Silvola, H. (2011). Impact of enterprise resource planning systems on management control systems and firm performance. International Journal of Accounting Information Systems, 12(1), 20-39.
  34. Karahanna, E., Agarwal, R., & Angst, C. M. (2006). Reconceptualizing compatibility beliefs in technology acceptance research. MIS quarterly, 781-804.
  35. Klaus, H., Rosemann, M., dan Gable, G. G. . (2000). What is ERP?” Information Systems Frontier. 2(2), 41-162.
  36. Klonglan, G. E., & Coward, E. W. (1970). The concept of symbolic adoption: A suggested interpretation. Rural sociology, 35(1), 77.
  37. Lai, I. K. (2015). Traveler acceptance of an app-based mobile tour guide. Journal of Hospitality & Tourism Research, 39(3), 401-432.
  38. Lee, D., Lee, S. M., Olson, D. L., & Hwan Chung, S. (2010). The effect of organizational support on ERP implementation. Industrial management & data systems, 110(2), 269-283.
  39. Legris, P., Ingham, J., & Collerette, P. (2003). Why do people use information technology? A critical review of the technology acceptance model. Information & management, 40(3), 191-204.
  40. Lewis, W., Agarwal, R., & Sambamurthy, V. (2003). Sources of influence on beliefs about information technology use: An empirical study of knowledge workers. MIS quarterly, 657-678.
  41. Millman, Z., & Hartwick, J. (1987). The impact of automated office systems on middle managers and their work. MIS quarterly, 479-491.
  42. Motwani, J., Subramanian, R., & Gopalakrishna, P. (2005). Critical factors for successful ERP implementation: Exploratory findings from four case studies. Computers in industry, 56(6), 529-544.
  43. Nah, F. F.-H., Tan, X., & Teh, S. H. (2004). An empirical investigation on end-users' acceptance of enterprise systems. Information Resources Management Journal (IRMJ), 17(3), 32-53.
  44. Ngai, E. W., Poon, J., & Chan, Y. H. (2007). Empirical examination of the adoption of WebCT using TAM. Computers & education, 48(2), 250-267.
  45. Pedersen, P. E. (2005). Adoption of mobile Internet services: An exploratory study of mobile commerce early adopters. Journal of organizational computing and electronic commerce, 15(3), 203-222.
  46. Petter, S., DeLone, W., & McLean, E. (2008). Measuring information systems success: models, dimensions, measures, and interrelationships. European journal of information systems, 17, 236-263.
  47. Pozzebon, M. (2000). Combining a structuration approach with a behavioral-based model to investigate ERP usage. AMCIS 2000 Proceedings, 124.
  48. Rajan, C. A., & Baral, R. (2015). Adoption of ERP system: An empirical study of factors influencing the usage of ERP and its impact on end user. IIMB Management Review, 27(2), 105-117.
  49. Rawstorne, P., Jayasuriya, R., & Caputi, P. (1998). An integrative model of information systems use in mandatory environments. ICIS 1998 Proceedings, 32.
  50. Robey, D., dan Farrow, D. . (1982). User involvement in information system development: a conflict model and empirical test.” Management Science. 28, No. 1, 28, No. 21, pp. 73-85.
  51. Rogers, E. (1995). Diffusion of innovations–5th edition Free Press. New York.
  52. Ruivo, P., Oliveira, T., & Neto, M. (2014). Examine ERP post-implementation stages of use and value: Empirical evidence from Portuguese SMEs. International Journal of Accounting Information Systems, 15(2), 166-184.
  53. San Martín, H., & Herrero, Á. (2012). Influence of the user’s psychological factors on the online purchase intention in rural tourism: Integrating innovativeness to the UTAUT framework. Tourism management, 33(2), 341-350.
  54. Shen, Y.-C., Chen, P.-S., & Wang, C.-H. (2016). A study of enterprise resource planning (ERP) system performance measurement using the quantitative balanced scorecard approach. Computers in industry, 75, 127-139.
  55. Siahaan, M. (2022). Dampak Pelaksanaan Tanggung Jawab Sosial terhadap Masyarakat, Lingkungan dan Pemerintah. Studi Akuntansi, Keuangan, dan Manajemen, 1(2), 113-125.
  56. Skok, W., & Döringer, H. (2002). Potential impact of cultural differences on enterprise resource planning (ERP) projects. The Electronic Journal of Information Systems in Developing Countries, 7(1), 1-8.
  57. Soh, C., Kien, S. S., & Tay-Yap, J. (2000). Enterprise resource planning: cultural fits and misfits: is ERP a universal solution? Communications of the ACM, 43(4), 47-51.
  58. Sokol, M. B. (1994). Adaptation to difficult designs: Facilitating use of new technology. Journal of Business and Psychology, 8, 277-296.
  59. Somers, T. M., & Nelson, K. (2001). The impact of critical success factors across the stages of enterprise resource planning implementations. Paper presented at the Proceedings of the 34th annual Hawaii international conference on system sciences.
  60. Sternad, S., & Bobek, S. (2013). Impacts of TAM-based external factors on ERP acceptance. Procedia Technology, 9, 33-42.
  61. Suharto, S., Japlani, A., & Ali, K. (2021). Pengukuran Minat Berwirausaha Menggunakan Self Efficacy, Lingkungan Dan Pendidikan Kewirausahaan Pada Mahasiswa Feb Universitas Muhammadiyah Metro. Jurnal Bisnis Darmajaya, 7(1), 52-69.
  62. Sun, H., & Zhang, P. (2006). The role of moderating factors in user technology acceptance. International journal of human-computer studies, 64(2), 53-78.
  63. Supriadi, S., Suharto, S., & Sigalingging, M. (2022). Analisis Pengaruh Lingkungan Kerja Dan Komitmen Organisasi Terhadap Kepuasan Kerja Pegawai Di Kantor Kepala Kampung Negeri Kepayungan Kecamatan Pubian Kabupaten Lampung Tengah. Derivatif: Jurnal Manajemen, 16(1), 110-119.
  64. Tan, X., & Kim, Y. (2015). User acceptance of SaaS-based collaboration tools: a case of Google Docs. Journal of Enterprise Information Management, 28(3), 423-442.
  65. Tarafdar, M., & Vaidya, S. D. (2006). Challenges in the adoption of E-Commerce technologies in India: The role of organizational factors. International Journal of Information Management, 26(6), 428-441.
  66. Taylor, S., & Todd, P. (1995). Assessing IT usage: The role of prior experience. MIS quarterly, 561-570.
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