A Study on Users' Resistance toward ERP in the Pre-adoption Context

ERP 도입 전 구성원의 저항

  • Published : 2009.12.31

Abstract

Information Systems (IS) is an essential tool for any organizations. The last decade has seen an increasing body of knowledge on IS usage. Yet, IS often fails because of its misuse or non-use. In general, decisions regarding the selection of a system, which involve the evaluation of many IS vendors and an enormous initial investment, are made not through the consensus of employees but through the top-down decision making by top managers. In situations where the selected system does not satisfy the needs of the employees, the forced use of the selected IS will only result in their resistance to it. Many organizations have been either integrating dispersed legacy systems such as archipelago or adopting a new ERP (Enterprise Resource Planning) system to enhance employee efficiency. This study examines user resistance prior to the adoption of the selected IS or ERP system. As such, this study identifies the importance of managing organizational resistance that may appear in the pre-adoption context of an integrated IS or ERP system, explores key factors influencing user resistance, and investigates how prior experience with other integrated IS or ERP systems may change the relationship between the affecting factors and user resistance. This study focuses on organizational members' resistance and the affecting factors in the pre-adoption context of an integrated IS or ERP system rather than in the context of an ERP adoption itself or ERP post-adoption. Based on prior literature, this study proposes a research model that considers six key variables, including perceived benefit, system complexity, fitness with existing tasks, attitude toward change, the psychological reactance trait, and perceived IT competence. They are considered as independent variables affecting user resistance toward an integrated IS or ERP system. This study also introduces the concept of prior experience (i.e., whether a user has prior experience with an integrated IS or ERP system) as a moderating variable to examine the impact of perceived benefit and attitude toward change in user resistance. As such, we propose eight hypotheses with respect to the model. For the empirical validation of the hypotheses, we developed relevant instruments for each research variable based on prior literature and surveyed 95 professional researchers and the administrative staff of the Korea Photonics Technology Institute (KOPTI). We examined the organizational characteristics of KOPTI, the reasons behind their adoption of an ERP system, process changes caused by the introduction of the system, and employees' resistance/attitude toward the system at the time of the introduction. The results of the multiple regression analysis suggest that, among the six variables, perceived benefit, complexity, attitude toward change, and the psychological reactance trait significantly influence user resistance. These results further suggest that top management should manage the psychological states of their employees in order to minimize their resistance to the forced IS, even in the new system pre-adoption context. In addition, the moderating variable-prior experience was found to change the strength of the relationship between attitude toward change and system resistance. That is, the effect of attitude toward change in user resistance was significantly stronger in those with prior experience than those with no prior experience. This result implies that those with prior experience should be identified and provided with some type of attitude training or change management programs to minimize their resistance to the adoption of a system. This study contributes to the IS field by providing practical implications for IS practitioners. This study identifies system resistance stimuli of users, focusing on the pre-adoption context in a forced ERP system environment. We have empirically validated the proposed research model by examining several significant factors affecting user resistance against the adoption of an ERP system. In particular, we find a clear and significant role of the moderating variable, prior ERP usage experience, in the relationship between the affecting factors and user resistance. The results of the study suggest the importance of appropriately managing the factors that affect user resistance in organizations that plan to introduce a new ERP system or integrate legacy systems. Moreover, this study offers to practitioners several specific strategies (in particular, the categorization of users by their prior usage experience) for alleviating the resistant behaviors of users in the process of the ERP adoption before a system becomes available to them. Despite the valuable contributions of this study, there are also some limitations which will be discussed in this paper to make the study more complete and consistent.

Keywords

References

  1. Applegate, L.M., McKenney, J.L., and Mc-Farlan, F.W., Corporate Information Systems Management: Text and Cases, McGraw-Hill Higher Education, 1999
  2. Bandura, A., 'Self-Efficacy: Toward a Unifying Theory of Behavioral Change,' Psychological Review, Vol. 84, No. 2, 1977, pp. 191-215 https://doi.org/10.1037/0033-295X.84.2.191
  3. Brehm, J.W., A Theory of Psychological Reactance, Academic Press, 1966
  4. Brehm, S.S. and Brehm, J.W., Psychological Reactance: A Theory of Freedom and Control, Academic Press, 1981
  5. Byun, J.S., Innovation through the ERP, LiteBookDotCom, 2003
  6. Chang, D.R. and Cho, S.D., 'Intraorganizational Innovation Resistance in High Tech Products Purchase Situations-Focusing on Enterprise Resource Planning,' Korea Marketing Review, Vol. 15, No. 2, 2000, pp. 75-97
  7. Cho, S.D., 'Study on the Intraorganizational Innovation Resistance and Diffusion of Technology Products,' Yonsei University, 2000
  8. Damanpour, F., 'Organizational Innovation: a Meta-Analysis of Effects of Determinants and Moderators,' Academy of Management Journal, Vol. 34, No. 3, 1991, pp. 555-590 https://doi.org/10.2307/256406
  9. Davis, F.D., 'Perceived Usefulness, Perceived Ease of Use, and Acceptance of Information Technology,' MIS Quarterly, Vol. 13, No. 3, 1989, pp. 319-340 https://doi.org/10.2307/249008
  10. Eisenhardt, K.M., 'Control: Organizational and Economic Approaches,' Management Science, Vol. 31, No. 2, 1985, pp. 134-149 https://doi.org/10.1287/mnsc.31.2.134
  11. Ellen, P.S., Bearden, W.O., and Sharma, S., 'Resistance to Technological Innovations: An Examination of the Role of Self-Efficacy and Performance Satisfaction,' Journal of the Academy of Marketing Science, Vol. 19, No. 4, 1991, pp. 297-307 https://doi.org/10.1007/BF02726504
  12. Ettlie, J.E., 'A Note on the Relationship Between Managerial Change Values, Innovative Intentions, and Innovative Outcomes in Food Sector Firms,' R&D Management, Vol. 13, No. 4, 1983, pp. 231-244 https://doi.org/10.1111/j.1467-9310.1983.tb00022.x
  13. Fitzsimons, G.J. and Lehmann, D.R., 'Reactance to Recommendations: When Unsolicited Advice Yields Contrary Responses,' Marketing Science, Vol. 23, No. 1, 2004, pp. 82-94 https://doi.org/10.1287/mksc.1030.0033
  14. Fornell, C. and Larcker, D.F., 'Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,' Journal of Marketing Research, Vol. 18, No. 1, 1981, pp. 39-50 https://doi.org/10.2307/3151312
  15. Gatignon, H. and Robertson, T.S., 'A Propositional Inventory for New Diffusion Research,' Journal of Consumer Research, Vol. 11, No. 4, 1985, pp. 849-867 https://doi.org/10.1086/209021
  16. Gatignon, H. and Robertson, T.S., 'Technology Diffusion: An Empirical Test of Competitive Effects,' Journal of Marketing, Vol. 53, No. 1, 1989, pp. 35-49 https://doi.org/10.2307/1251523
  17. Govindarajan, V. and Fisher, J., 'Strategy, Control Systems, and Resource Sharing: Effects on Business-Unit Performance,' Academy of Management Journal, Vol. 33, No. 2, 1990, pp. 259-285 https://doi.org/10.2307/256325
  18. Hair, J.F., Anderson, R., Tatham, R. and Black, W., Multivariate Data Analysis with Readings, Prentice Hall, Englewood Cliffs, NJ, 1995
  19. Hong, S.M. and Faedda, S., 'Refinement of the Hong Psychological Reactance Scale,' Educational and Psychological Measurement, Vol. 56, No. 1, 1996, pp. 173-182 https://doi.org/10.1177/0013164496056001014
  20. Hysong, S.J. and Quinones, M.A., 'The Relationship between Self-Efficacy and Performance: A Meta-Analysis,' 12th Annual Conference of the Society for Industrial and Organizational Psychology, StLouis, MO, 1997
  21. Jiang, J.J. and Muhanna, W.A., 'User Resistance and Strategies for Promoting Acceptance across System,' Information and Management, Vol. 37, No. 1, pp. 25-37 https://doi.org/10.1016/S0378-7206(99)00032-4
  22. Karahanna, E., Straub, D.W., and Chervany, N.L., 'Information Technology Adoption Across Time: A Cross-Sectional Comparison of Pre-Adoption and Post-Adoption Beliefs,' MIS Quarterly, Vol. 23, No. 2, 1999, pp. 183-213 https://doi.org/10.2307/249751
  23. Kelly, P. and Kranzberg, M., Technological Innovation: A Critical Review of Current Knowledge, San Francisco Press, 1978
  24. Kim, B.W., Systems of Enterprise Resource Planning, Research Institute of Kim's Information and Strategy, 2004
  25. Kim, S.W., 'A Empirical Study on the User Resistance to Information Systems Innovation,' Daehan Journal of Business, Vol. 20, 1999, pp. 317-342
  26. Kim, H.J. and Lee, Y.H., 'ERP Diffusion Resistance Factors in Organizations,' Proceedings of the KMIS Conference, Summer 2005
  27. Klaus, T. and Blanton, J.E., 'Rethinking User Acceptance: An Examination of User Resistance in Mandatory Adoption of Enterprise Systems,' Proceedings of Information Management and Business Conference, Sydney, Australia, February 2006, pp. 14-16
  28. Klaus, T., Wingreen, S., and Blanton, J.E. 'Examining User Resistance and Management Strategies in Enterprise System Implementations,' Proceedings of the 2007 ACM SIGMIS CPR Conference on Computer Personnel Research, St. Louis, Missouri, 2007
  29. Kwon, J.S., 'The Relationships among the Organizational Justice, Resistance to Innovation and Defensive Behavior of Employees,' Korean Personnel Administration Journal, Vol. 25, No. 1, 2001, pp. 425-541
  30. Kwon, T.H. and Zmud, R.W., Unifying the Fragmented models of Information Systems Implementation, JohnWiley and Sons Inc., 1987
  31. Larsen, T.J., 'Middle Managers' Contribution to Implemented Information Technology Innovation,' Journal of Management Information Systems, Vol. 10, No. 2, 1993, pp. 155-176 https://doi.org/10.1080/07421222.1993.11518004
  32. Lapointe, L. and Rivard, S., 'A Multilevel Model of Resistance to Information Technology Implementation,' MIS Quarterly, Vol. 29, No. 3, 2005, pp. 461-491 https://doi.org/10.2307/25148692
  33. Lee, G.D., Lee, W.J., and Kim, J.U., 'Effects of the User's Perceived Threat to Freedom and Personalization on Intention to Use Recommendation Services,' Asia Pacific Journal of Information systems, Vol. 17, No. 1, 2007, pp. 123-145
  34. Lee, S.G., Kang, M.C., Lee, G.W., Kim, S.H., and Kwak, S.H., 'Investigating of Adoption Paths between Pre-adoption and Post-adoption in Ubiquitous Services,' Daehan Journal of Business, Vol. 20, No. 1, 2007, pp. 289-310
  35. Lee, S.R., 'The Effects of Integrated Information Systems on the Organizational Control: A Focus of ERP Implementation,' Asia Pacific Journal of Information Systems, Vol. 12, No. 1, 2002, pp. 67-85
  36. Lee, S.C. and Lee, H.G., 'The Importance of Change Management after ERP Implementation: An Information Capability Perspective,' Asia Pacific Journal of Information Systems, Vol 17. No. 1, 2007, pp. 1-31 https://doi.org/10.1111/j.1365-2575.2006.00241.x
  37. Lee, S.H., 'A Study on the Innovation Resistance of Consumers in the Adoption Process of New Product,' SungKyunKwan University, 1993
  38. Lee, H.J., Organizational Behavior, Segyeong, 1993
  39. Lucas, H.C., 'Empirical Evidence for a Descriptive Model of Implementation,' MIS Quarterly, Vol. 2, No. 2, 1978, pp. 27-41 https://doi.org/10.2307/248939
  40. McHaney, R., Hightower, R., and White, D., 'EUCS Test-Retest Reliability in Representational Model Decision Support Systems,' Information and Management, Vol. 36, No. 2, 1999, pp. 109-119 https://doi.org/10.1016/S0378-7206(99)00010-5
  41. Nunnally, J., Psychometric Theory, McGraw-Hill, 1978
  42. Orlikowski, W.J. and Robey, D., 'Information Technology and the Structuring of Organizations,' Information Systems Research, Vol. 2, No. 2, 1991, pp. 143-169 https://doi.org/10.1287/isre.2.2.143
  43. Ram, S., 'A Model of Innovation Resistance,' Advances in Consumer Research, Vol. 14, No. 1, 1987, pp. 208-212
  44. Ram, S. and Jung, H.S., 'Forced Adoption of Innovations in Organizations: Consequences and Implications,' Journal of Product Innovation Management, Vol. 8, No. 2, 1991, pp. 117-126 https://doi.org/10.1016/0737-6782(91)90005-J
  45. Rogers, E.M., Diffusion of Innovations, Free Press, 1983
  46. Sheth, J.N., 'Psychology of Innovation Resistance: The Less Developed Concept (LDC) in Diffusion Research,' Research in Marketing, Vol. 4, No. 3, 1981, pp. 273-282
  47. Son, D.H., 'A Cross-Sectional Study Towards the IS Theory,' Korean Management Review, Vol. 30, No. 2, 2001, pp. 349-368
  48. Venkatraman, M.P., 'The Impact of Innovativeness and Innovation Type on Adoption,' Journal of Retailing, Vol. 67, No. 1, 1991, pp. 51-67
  49. Yoo, P.H. and Lee, S.H., 'A Study on the Innovation Resistance of Consumers in Adoption Process of New Product: Concentrated on Innovation Resistance Model,' Korean Management Review, Vol. 30, No. 2, 2001, pp. 349-368
  50. Zaltman, G., Duncan, R., and Holbek, J., Innovations and Organizations, JohnWiley and Sons Inc., 1973
  51. Zaltman, G. and Wallendorf, M., Consumer Behavior: Basic Findings and Management, JohnWiley and Sons Inc., 1983
  52. Zmud, R.W., 'Individual Differences and MIS Success: A Review of the Empirical Literature,' Management Science, Vol. 25, No. 10, 1979, pp. 966-979 https://doi.org/10.1287/mnsc.25.10.966