DefinePK

Abstract

Along with the development of information technology, lots of companies implement Enterprise Resource Planning (ERP) systems because ERP systems promise a lot of benefits. Although many companies have successfully implemented ERP systems, not all companies get the benefits of ERP system since ERP systems have not been able to diffuse in the routine of organization. This study examined the influence of organisational factor on enterprise resource planning (ERP) benefits realisation through ERP assimilation process. A conceptual model was developed based on the diffusion of innovation (DOI) theory. The developed model was tested using empirical data gathered from a questionnaire survey. Data processing was done using structural equation modeling (SEM) with the support of Lisrell 8.7 statistical software. The result of hypotheses testing shows that ERP assimilation significantly influences overall ERP benefit. Further, this study found that outcome orientation and communication process influence ERP assimilation process significantly.