ACCEPTANCE OF ENTERPRISE RESOURCE PLANNING
SYSTEMS BY SMALL MANUFACTURING ENTERPRISES
Rubina Adam
1,3
, Paula Kotzé
2,4
and Alta van der Merwe
2,3
1
SAP Research Pretoria/Meraka Unit of Technology Development, Boardwalk Office Park , Faerie Glen, South Africa
2
Meraka Institute of the CSIR, PO Box 395, 0001, Pretoria, South Africa
3
School of Computing, University of South Africa, Pretoria, South Africa
4
Institute for ICT Advancement, Nelson Mandela Metropolitan University, Port Elizabeth, South Africa
Keywords: Enterprise resource planning systems, Small and medium enterprises, Technology acceptance.
Abstract: ERP systems are widely used by large enterprises for managing functional areas of the enterprise. However,
recently ERP systems have also been introduced to the small enterprise market. ERP systems are now
considered an important small enterprise management aid that may contribute to the sustainability and
growth of the small enterprise. Although there are several acceptance factors that may impact on the
acceptance of ERP systems, limited research has been done to understand the acceptance of ERP systems by
small enterprises. This paper addresses this gap by considering the strategic, business, technical and human
factors that influence the acceptance of ERP systems in small manufacturing enterprises in South Africa.
The consultative list of acceptance factors flowing from this research may guide future initiatives aiming to
ensure the acceptance of ERP systems by small manufacturing enterprises.
1 INTRODUCTION
Traditionally ERP systems were synonymous with
large enterprises. This trend is changing as small and
medium enterprises (SMEs) have started to use ERP
systems in order to become more competitive and
responsive to business demands and to improve
operational performance (Deep et al., 2008).
According to Buonanno et al. (2005), the use of ERP
systems within small enterprises also leverages
enterprise growth. The market for ERP systems for
large enterprises has become saturated and ERP
system vendors are increasingly competing in
developing and marketing ERP systems that cater to
the needs of small and medium enterprises (Equey
and Fragnière, 2008).
Although a substantial body of research has been
carried out on ERP system acceptance and adoption
in larger enterprises research reports related to the
acceptance of ERP systems within small enterprises
are scarce. This lack of research can be attributed to
the fact that ERP systems were rarely used by small
enterprises in the past, mainly due to knowledge and
resource constraints (Malhotra and Temponi, 2010).
Laforet and Tann (2006) also emphasize that there
is a lack of industry specific literature on ERP
system acceptance.
For ERP developers, it is important to understand
what the factors are that influence adoption of ERP
systems. There is no consultative list of ERP system
acceptance factors for small enterprises. An
understanding of the factors that influence the
acceptance of ERP systems in small enterprises
could assist researchers and industry to develop and
distribute appropriate ERP systems that are
acceptable to the small enterprise market.
We used the small manufacturing industry in
South Africa as a case study to investigate the
factors that influence the acceptance of ERP systems
in small enterprises. The outcome of this
investigation is a list of strategic, business, technical
and human factors that influence the acceptance of
ERP systems in small manufacturing enterprises in
South Africa. This list is the first step in compiling a
more generic list for other industry domains.
In section 2 we provide an overview of
applicable key concepts related to our investigation,
namely acceptance and adoption, ERP systems,
small manufacturing enterprises, and the
manufacturing industry. In section 3 the research
design is presented. In section 4 we focus on the data
collection from the literature study, survey of small
229
Adam R., Kotzé P. and van der Merwe A..
ACCEPTANCE OF ENTERPRISE RESOURCE PLANNING SYSTEMS BY SMALL MANUFACTURING ENTERPRISES.
DOI: 10.5220/0003500302290238
In Proceedings of the 13th International Conference on Enterprise Information Systems (ICEIS-2011), pages 229-238
ISBN: 978-989-8425-53-9
Copyright
c
2011 SCITEPRESS (Science and Technology Publications, Lda.)
manufacturing enterprises (both currently using and
not using ERP systems) and interviews with ERP
consultants. Section 5 presents key findings from the
research. Section 6 reflects on the research
conducted and presents recommendations for future
research.
2 BACKGROUND
In this section, we first introduce background on
some key concepts related to our research, including
acceptance and adoption (section 2.1), ERP systems
(section 2.2), small enterprises (section 2.3), and the
manufacturing industry, as the application domain
for our research (section 2.4). In section 2.5 we
provide a synopsis of the current standing of ERP
systems in small manufacturing enterprises and
emphasize what the gap in the current literature is
with regard to ERP system acceptance in small
manufacturing enterprises.
2.1 Acceptance and Adoption
Numerous studies investigated the concept of
technology acceptance and technology adoption
(Venkatesh and Davis, 2000, Davis, 1989, Malhotra
and Galletta, 1999). The diversity within the
technology acceptance field, specifically in terms of
successful acceptance of information systems,
makes it difficult to define and distinguish the
concept of technology acceptance from technology
adoption.
According to Renaud and Van Biljon (2008:211)
technology acceptance can be seen as ‘an attitude
towards a technology’, influenced by various
factors. Technology acceptance is considered as a
process initiated when a user of technology becomes
aware of the technology and has an intention to use
that technology.
Technology adoption stems from acceptance and
results in the actual use of the technology
(Premkumar and Bhattacherjee, 2008). Through the
process of adoption, the user’s intention to use the
technology may change and affect both the adoption
and acceptance of the technology. Thus, technology
Several technology acceptance and adoption
models have been put forward over time. One of the
most prominent of these models is the Unified
Theory of Technology Acceptance and Use of
Technology (UTAUT) model formulated by
Venkatesh, et al. (2003). UTAUT unified eight
previous models and theories on technology
acceptance and technology adoption, namely theory
of reasoned action (TRA), theory of planned
behaviour (TPB), technology acceptance model
(TAM), combined TPB and TAM, motivational
model, model of personal computer utilisation,
innovation diffusion theory, and social cognitive
theory. The aim of the UTAUT model is to assist
managers to understand factors impacting on an
individual’s acceptance of new technology in an
enterprise. As illustrated in Figure 1, UTAUT
defines four determinants that influence intention of
usage and behaviour (Venkatesh et al., 2003):
Performance expectancy refers to ‘the degree to
which an individual believes that using the
system will help him or her to attain gains in job
performance’ (Venkatesh et al., 2003:447). It is
a direct determinant of intention to use a
technology and ‘the strength of the relationship
varies with gender and age such that it is more
significant for men and younger workers’
(Venkatesh et al., 2003:467).
Effort expectancy refers to ‘the degree of ease
associated with the use of the system’
(Venkatesh et al., 2003:450). It was found that
‘the effect of effort expectancy on intention is
also moderated by gender and age such that it is
more significant for women and older workers,
and those effects decrease with experience’
(Venkatesh et al., 2003:467).
Social influence refers to ‘the degree to which
an individual perceives that important others
believe he or she should use the new
system’(Venkatesh et al., 2003:451). For
example, this can relate to value chain partners
or competitors influencing the use of a
technology. Social influence is moderated by
gender, age, experience and voluntariness
factors that together influence intention to use a
technology.
Facilitating conditions refer to ‘the degree to
which an individual believes that an
organisational and technical infrastructure exist
to support use of the system’ (Venkatesh et al.,
2003:453). It was found that facilitating
conditions are ‘only significant when examined
in conjunction with the moderating effects of
age and experience, i.e. they only matter for
older workers in later stages of experience’
(Venkatesh et al., 2003:467).
The impact of these four key determinants is
influenced by gender, age, experience, and
voluntariness.
ICEIS 2011 - 13th International Conference on Enterprise Information Systems
230
Behavioural
Intention
VoluntarinessExperienceAgeGender
Performance
Expectancy
Effort
Expectancy
Social
Influence
Facilitating
Conditions
Use
Behaviour
Figure 1: UTAUT Model (Venkatesh et al., 2003).
2.2 ERP Systems
During the 1990s, ERP systems emanated from
extended materials resource planning (MRP-II)
systems (Klaus et al., 2000). A new term was
required to differentiate these new systems from
MRPs and Gartner labelled it enterprise resource
planning - commonly referred to as ERP systems
(Wylie, 1990). There are several definitions for ERP
systems. The characteristic integration feature of
ERP systems is evident in all definitions reviewed.
For the purpose of this paper, we define ERP
systems as integrated, holistic, enterprise-wide
business management systems that provide constant
information across and within different business
functions. An ERP system enables efficient and
effective communication and collaboration between
the enterprise and its suppliers, as well as the
enterprise and its clients.
We limit our investigation of ERP systems to
those applicable to small enterprises. Section 2.3
briefly introduces the concept of small enterprises.
2.3 Small Enterprises
A formal understanding of small enterprises in South
Africa is presented in the National Small Business
Amendment Act, 2004, (SA, 2004:2) The South
African government defines small enterprises as: ‘a
separate and distinct business entity, together with
its branches or subsidiaries, if any, including co-
operative enterprises and non-governmental
organisations, managed by one owner or more
which, including its branches or subsidiaries, if any,
is predominantly carried on in any sector or
subsector of the economy mentioned in column 1 of
the Schedule and which can be classified as a micro,
a very small, a small or a medium enterprise by
satisfying the factors mentioned in columns 3 [the
total full-time equivalent of paid employees], 4 [total
turn-over] and 5 [total gross asset value (Fixed
property excluded)] of the Schedule’.
Table 1 presents an excerpt of the classification
of medium, small, very small and micro
manufacturing enterprises found in this Act, where
C represents Column and [m] represents a million of
South African Rands (currency).
Table 1: Medium, small, very small and micro
manufacturing enterprises (SA, 2003).
‘SCHEDULE’
C1 C2 C3 C4 [m] C5 [m]
Manufacturing
Medium 200 R 51 R 19
Small 50 R 13 R 5
Very
small
20 R 5 R 2
Micro 5 R0,20 R0,10
If one uses Table 1 as a guideline, the small
manufacturing enterprise can be regarded as an
enterprise with a total annual turnover of 13 million
South African Rand and 50 people working in the
enterprise. Since this paper focuses on the small
manufacturing industry in South Africa, the nature
of the South African manufacturing industry is
briefly introduced in section 2.4.
2.4 Manufacturing Industry
According to a report by Statistics South Africa
(2009), the manufacturing industry is considered one
of South Africa’s most prolific industries,
contributing a total income of R1 508 667 million to
national income in 2008. Many governments,
including the South African government, encourage
the development of a diverse and resilient
manufacturing industry, which can compete within
the global community. In one of the few academic
works that explore the manufacturing industry in
South Africa, Tregenna (2008) emphasizes that the
manufacturing industry enables sustainability and
ACCEPTANCE OF ENTERPRISE RESOURCE PLANNING SYSTEMS BY SMALL MANUFACTURING
ENTERPRISES
231
contributes to employment creation and the
structuring of both government policy and corporate
strategy.
It is thus due to the nature of the manufacturing
industry in South Africa, and the fact that ERP
systems have emanated from MRP systems within
the manufacturing industry, that this specific
industry was selected as a case study environment in
our research.
Bourque (2007) points out that the
manufacturing industry, which is a secondary
industry, faces numerous challenges. One concern is
that many products are manufactured in
environments where supplies are sourced from
different locations, both within and outside the
borders of the country of operation. An intricate
network of relationships between suppliers,
manufacturers and distributors needs to be managed.
Many small manufacturing enterprises are
confronted with the challenge of tracking
procurement and production costs and the costs
associated to these activities. The ever changing
demands of clients also requires manufacturing
enterprises to be agile in order to meet customer
demands in terms of right quantity, quality, time and
cost (Kettunen, 2009). It is believed that the stated
challenges can be addressed through novel systems,
such as ERP systems (Bourque, 2007). Although
ERP systems are widely used in larger enterprises it
does not necessarily mean that smaller enterprises
will believe that it may benefit their enterprises, and
it is therefore necessary to address the issues related
to the acceptance and adoption of ERP systems in
the smaller enterprise.
Section 2.5 focuses on the acceptance of ERP
systems in small (manufacturing) enterprises.
2.5 ERP System Acceptance in Small
Enterprises
Often, there is a tendency to group small and
medium enterprises together in a homogenous
group, even though these enterprises have different
characteristics and unique requirements (Iskanius et
al., 2009). However, enterprise size does affect ERP
adoption (Laukkanen et al., 2007, Bernroider and
Koch, 2000) and, by implication, acceptance.
The work by Iskanius et al. (2009), exploring the
experience of ERP system use in small enterprises,
is a recent example of small enterprise ERP system
research. The study on motivation for using ERP
systems within small enterprises resulted in findings
stating small enterprises motivation ‘to improve
planning procedures and customer-specific
flexibility’(Iskanius et al., 2009:9).Additionally, it
was found that ERP systems in small enterprises
(and small manufacturing enterprises) are still
relatively less utilised compared to use of ERP
systems by large enterprises. Iskanius et al. concur
with the findings of Koh and Simpson (2005) that a
lack of knowledge could be attributed to the lack of
ERP system use within this category of enterprise.
No literature was found on applying the UTAUT
model to assess the intention to use and the
acceptance of ERP systems within a small enterprise
environment. Xiaoping and Jing (2008) recommend
further research that focuses on the application of
UTAUT to assess small enterprise acceptance of
technology. Xiaoping and Jing argue that small
businesses are predominantly individualistic with
‘highly centralized ... structures’(Xiaoping and Jing,
2008:326). They affirm that more research is
required to test ‘the individual adoption in the small
business environment’ (Xiaoping and Jing,
2008:326).
The comprehensive literature review determined
the state of research and practice, with regards to
acceptance factors related to ERP systems in the
small manufacturing enterprise domain, to be
limited. The identified limitations included:
The use of the holistic UTAUT model in
assessing the acceptance of a specific
technology, i.e. ERP systems.
The acceptance of ERP systems amongst small
enterprises only, and not small and medium
enterprises combined as a single grouping.
Industry specific research related to acceptance
factors, in our case, the manufacturing industry.
Field study assessment and not only laboratory-
based assessment of the acceptance of ERP
systems.
This paper addresses some of these limitations
and focuses on the identification of acceptance
factors that influence the use and acceptance of ERP
systems in the small manufacturing enterprises,
using the UTAUT model as the primary theory base
in determining these factors in the environment in
which the small manufacturing enterprises operate.
Section 3 addresses the research design adopted.
3 RESEARCH DESIGN
A mixed method qualitative approach using textual,
theme, and descriptive data analysis was followed to
investigate the factors that influence the acceptance
of ERP system in small manufacturing enterprises.
ICEIS 2011 - 13th International Conference on Enterprise Information Systems
232
Figure 2: Process used for identifying ERP system
acceptance factors for small manufacturing enterprises.
The research design, as illustrated in Figure 2,
consisted of four steps below:
1. Questionnaire statements that were used to
estimate the original UTAUT model was
adapted and included in the survey (Part B)
questions. The questions further were
customised for (a) small manufacturing
enterprises that have experience in using ERP
systems, as well as (b) for small manufacturing
enterprises that do not have experience in using
ERP systems.
2. Appropriate ERP system specific acceptance
factors were identified through a textual
analysis of existing research literature.
Questions related to the identified factors were
formulated and included in the survey to
determine whether the factors affect the
acceptance of ERP systems by the small
manufacturing enterprise participants.
3. Using the inputs from Part A, a cross-sectional,
interpretive field survey was conducted among
small manufacturing enterprises to determine
the meaning of multiple research participant
perceptions regarding ERP system acceptance
in small manufacturing enterprises. Deductive
reasoning was used to confirm, refute or
comment on the small manufacturing enterprise
ERP system acceptance factors explored from
literature. The small manufacturing enterprises
were selected by consulting business databases
and other directories of small manufacturing
enterprises in Gauteng, South Africa. This
survey used a non-probability purposive
sampling technique, as it enabled more freedom
in terms of the number of issues that could be
investigated, such as instances that may be
different, extreme, unusual or somehow atypical
(Oates, 2006:98).
4. As a triangulation exercise Part C involved
interviews with two ERP consultants (from
companies selected from ERP system use as
identified through the survey) to obtain their
view and comment on the survey findings.
4 DATA COLLECTION
This section presents data collected from three
sources, the literature study (section 4.1), the survey
of small manufacturing enterprises (section 4.2) and
interviews conducted with ERP system consultants
(section 4.3).
4.1 Literature Study
The topics investigated included technology
acceptance factors, ERP system selection and
acquisition factors and ERP system implementation
and use in large, medium, and small enterprises.
Following an analysis of the results, the factors
influencing the acceptance of ERP systems were
categorized into four identified categories:
Strategic acceptance factors refers to how an
ERP system should promote and fit into an
enterprise’s long term vision, goals, and
business plans in order to achieve enhanced
decision-making (Poba-Nzaou et al., 2008) and
sustainability of the enterprise. The strategic
acceptance factors identified in the different
resources analyzed ranged from aspects relating
to industry use of ERP systems, the enablement
and management of business growth, and
complexity to long term investment
sustainability.
ERP systems should, ideally, support
operational efficiencies within an enterprise
(Shang and Seddon, 2002). Business acceptance
factors relate to how an ERP system can be used
to manage the day-to-day operations of the
enterprises and how an ERP system can support
business processes. The business acceptance
factors identified in the different resources
analyzed ranged from aspects relating to
advancing business operations, improving
operational efficiencies, following best business
practices, cost savings, and to support
analytically-aided decision making.
Technical acceptance factors refer to how ERP
A. Literature Study:
Understand current ERP system acceptance factors
a. UTAUT
acceptance factors
and questionnaire
b. Categorised
ERP system specific
acceptance factors
B. Survey Questionnaire:
Assess Small manufacturing enterprises‘
Acceptance of ERP systems.
C. Interview questions:
Assess ERP system consultants’ view on
acceptance of ERP systems by small enterprises
ACCEPTANCE OF ENTERPRISE RESOURCE PLANNING SYSTEMS BY SMALL MANUFACTURING
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233
systems are understood to operate in terms of
integration and expected performance. The
technical acceptance factors identified in the
different resources analyzed ranged from
aspects relating to the provision of business
functionality, to integration of business
functionality, access to business functionality
and timely implementation periods.
Human acceptance factors refer to non-
functional aspects of ERP systems that are
important factors that impact on end-user
satisfaction with using ERP systems. User
experience and training are two important
human acceptance factors identified in
literature.
These categories are specific to the use of ERP
systems and we do not claim that these categories
are definitive. Other categories may be applicable in
other domains or other industries.
4.2 Small Manufacturing Enterprises
Survey
The manufacturing sectors surveyed included
various small manufacturers ranging from food
products, textiles, furniture, to basic metals. The
purpose of this study was not to generalise, but to
explore this relatively young research domain. The
sample of sixteen small manufacturing enterprises
included young enterprises (between 1 and 5 years
of operation) and more mature enterprises (over 20
years of operation). Although the sample size may
not yield significant statistical results, it provided
important qualitative insights into ERP system
acceptance by small manufacturing enterprises. The
questionnaires used as part of the survey were filled
in on-site in the work environment of the small
manufacturing enterprises. Owners or managers
were asked to complete the questionnaire on behalf
of the enterprise. Seven of the small manufacturers
had experience in using ERP systems and 9
manufacturers had no experience in using ERP
systems.
The survey results indicated that small
manufacturing enterprises that use ERP systems
accept and make use of an ERP system if it supports
day-to-day business operations and assists with the
strategic development of their enterprise. There is
also an indication these enterprises expect ERP
systems to aid in fulfilling business activities with
minimal effort, in terms of meeting their needs on a
performance and effort expectancy level.
It was found that small manufacturing enterprises
that do not use ERP systems would accept and use
an ERP system if it supported the advancement of
their business operations. There is also an indication
that our sample of small manufacturing enterprises
expects ERP systems to provide a cost-effective
solution to manage business functions, with on-
demand web access, including mobile access. Brand
name is also seen as an important factor to consider
when purchasing of an ERP system is considered.
All these small manufacturing enterprises also
believe they are ready to purchase and use ERP
systems, provided the ERP system supports their
enterprise in terms of performance and effort
expectancy.
All small manufacturing enterprises surveyed
believe that, although the enterprise can be
influenced by others to accept and make use of ERP
systems, it is not a seen as a key influence on
acceptance. In terms of facilitating conditions, the
small manufacturing enterprises, in general, also
believe they are knowledge-and-resource ready to
accept ERP systems.
The results indicate that all four of the direct
determinants of the UTAUT model, namely
performance expectancy, effort expectancy, social
influence, and facilitating conditions, affect the
acceptance of ERP systems.
4.3 Interviews with ERP Consultants
The findings from both the literature study and the
survey conducted were then used as a basis for
reflective interviews by two ERP consultants. The
consultants confirmed all the findings.
The consultants were of the opinion that ERP
systems should be used as a harness to support the
strategic and business objectives of small
enterprisers, and thus promote the growth and
general operations of the enterprise. Furthermore,
making use of ERP systems should be an easy to
use, seamless process with minimal effort.
According to the consultants, ERP systems should
leverage technological advancements and make
access to enterprise systems and information easier.
The consultants, however, expressed caution and
advise that small enterprise maturity and change
management processes should be carefully
considered when making a decision to acquire,
implement, use and accept ERP systems.
Some of the comments made by ERP system
consultants are provided in Table 2.
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Table 2: ERP system consultants’ comments.
1. “… small manufacturing enterprises in South Africa
have not reached the maturity of medium and large
manufacturing enterprises to purchase and use
specialised software such as ERP. The smaller
companies can suffice using standard off-the-shelf
accounting and payroll packages.”
2. “If a simpler, cheaper system can perform what is
required, then consider the option and re-evaluate
your need for a more advanced system such as ERP at
a later, more mature stage of your enterprise growth.”
3. “... let us help you to decide if you are ready for a
new switch. We will go through a process to assess
readiness. Why spend when you are not yet ready to
explore the full potential of an ERP system.”
4. “Using systems such as ERP is a mind shift. There
are lots of changes involved ...”
5. “... one must be careful of unscrupulous vendors gift-
wrapping systems that don’t suit the small enterprise.
Small enterprises must be smart and spend wisely.
They must know what they are buying themselves
into.”
5 OVERALL FINDINGS
The acceptance factors identified during the initial
phases were perceived to be important. It was found
that ERP systems should support strategic planning,
and daily operations of the enterprise as key
considerations. ERP system should therefore support
the efficient and effective functioning of the
enterprise. A notable technical factor, as identified
from small manufacturing enterprises that have
expectations of using ERP systems, is to have the
ability to access functionality and information from
any location, including mobile and web access. The
findings also suggest that the small manufacturing
enterprises are in general optimistic about the
capabilities of ERP systems.
Table 3 summarises the significant strategic
acceptance. In the second column, a list of
references to the literature source that lead to the
inclusion of the factor is provided, as well as a
comment on whether the factor was confirmed
during the data collection (survey and interviews) in
column 3. Table 4 summarises the business
acceptance factors, Table 5 the technical acceptance
factors, and Table 6 the human acceptance factors.
Table 3: Strategic acceptance factors.
Factors Literature Field Research
Competition in
industry
(Koh and
Simpson, 2007)
Confirmed
Industry
necessitates the
use of an ERP
system
(Muscatello et
al., 2003)
Partially confirmed
Manage
complexity and
cost efficiently
adapt to changes
(Tagliavini et al.,
2002)
Confirmed
Enable business
growth and
strategic
alignment
(Poba-Nzaou et
al., 2008)
Confirmed, Important to
small enterprises
Better business
planning and
consolidation
(Marnewick and
Labuschagne,
2005)
Confirmed, Important to
small enterprises
Improve
stakeholder
relationship and
trust
(Iskanius et al.,
2009)
Confirmed, Important to
small enterprises
Long term
investment
sustainability
(Davenport,
2000, Häkkinen
and Hilmola,
2008)
Confirmed
Intelligent aware
to alert to market
force changes
(Robert Jacobs
and Ted' Weston,
2007)
Partially confirmed
Table 4: Business acceptance factors.
Factors Literature Field Research
Advance business
operations
(Marnewick and
Labuschagne, 2005)
Confirmed,
Important to
small enterprises
Follow industry
best practice
(Somers and Nelson,
2003)
Partially
confirmed
Promote
transparent
governance and
improve
operational
efficiency
(Lim et al., 2005,
Häkkinen and
Hilmola, 2008, Chou
and Tripuramallu,
2005)
Confirmed
Manage cash,
liquidity and
financial risk
better
(Klaus et al., 2000) Confirmed
Manage the
workforce through
rapid change
(Amoako-Gyampah
and Salam, 2004,
Davenport, 1998a)
Partially
confirmed
Low total cost of
ownership –
maintenance,
upgrades,
consultation,
training, etc
(Sledgianowski and
Tafti, 2007, Ngai et
al., 2008)
Confirmed,
Important to
small enterprises
Cost saving
through
optimisation of IT
(information
technology)
(Ziaee et al., 2006) Confirmed
Timely analytical-
supported
decision-making
ability
(Loh and Koh, 2004) Confirmed
ACCEPTANCE OF ENTERPRISE RESOURCE PLANNING SYSTEMS BY SMALL MANUFACTURING
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235
Table 5: Technical acceptance factors.
Factors Literature Field Research
Provision of
functionality on-
demand with the
ability to ‘switch
on and switch
off’ functionality
(Dreiling et al.,
2005)
Confirmed
Integration with
other business
systems
(Bernroider and
Leseure, 2005,
Elbertsen et al.,
2006)
Confirmed
Accessibility:
anytime,
anywhere,
including mobile
and web
accessibility
(Hofmann, 2008,
Equey and
Fragnière, 2008,
Yang et al.,
2007)
Confirmed, Important to
small enterprises
Quick
implementation
time
(Markus and
Tanis, 2000,
Buonanno et al.,
2005, Tagliavini
et al., 2002)
Confirmed
Table 6: Human acceptance factors.
Factors Literature Field Research
User experience
should be satisfying
– using the ERP
system should be
simple, easy to use,
quick and meet
expectation to get
the work done
(Marnewick and
Labuschagne, 2005,
Calisir and Calisir,
2004, Scott and
Walczak, 2009,
Markus and Tanis,
2000)
Confirmed,
Important to small
enterprises
“Start and go” self-
learning – minimal
training costs
(Scott, 2008, Al-
Mashari et al., 2003)
Confirmed
6 CONCLUSIONS
The concept of ERP systems is not new to larger
enterprises. Recently there have also been several
initiatives from ERP vendors to adapt existing ERP
functionality to support the smaller enterprise. Both
researchers and ERP developers are interested in the
factors that influence the small enterprise to accept
ERP systems into the enterprise.
In this paper the focus was on the strategic,
business, technical and human factors that influence
the acceptance of ERP systems in small
manufacturing enterprises in South Africa. A mixed-
method approach was followed where both the
literature and existing small enterprises were
consulted to derive a list of acceptance factors.
Although it was not the focus of the research to
investigate how ERP systems are perceived by small
enterprises, there was evidence that small
manufacturing enterprises have a positive and
optimistic view of ERP system use. From the
research it was also significant that small
manufacturing enterprises that currently use ERP
systems and small manufacturing enterprises that
intend to implement ERP systems both want a
system that can perform and work for them.
Furthermore, a technically sound system does
not necessarily translate to acceptance, a number of
diverse factors should be considered. Although the
various ERP system acceptance factors as identified
from this study may not be exhaustive, absolute or
optimally applicable to all small enterprises across
the various economic industries, this paper
contributes as a foundation for further research.
A number of recommendations can be made for
future work, including refining the proposed
acceptance factors, correlating the proposed
acceptance factors with ERP system adoption
factors, analysing various moderating effects on
acceptance factors and researching the aspect of
‘fun’ in relation to the use of ERP systems.
ACKNOWLEDGEMENTS
The support of SAP Research Pretoria/Meraka Unit
of Technology Development towards this research is
hereby acknowledged. Opinions expressed and
conclusions arrived at are solely those of the authors
and cannot necessarily be attributed to SAP
Research/Meraka UTD.
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