Effects of Adoption and Assimilation of Enterprise Systems on Business Performance: A Senior Executive’s Perspective

ABSTRACT

Drawing from the institutional theory and resource-based view, we investigated the effects of a firm’s activities and levels of enterprise systems adoption and the effectiveness of the enterprise systems in supporting the firm (enterprise systems assimilation) on business performance. Empirical results suggest that institutional forces and IS resources significantly influence the enterprise systems adoption, which indirectly impacts the enterprise systems assimilation. Further, the enterprise systems adoption significantly influences business performance, and the enterprise systems assimilation mediates the effect of the enterprise systems adoption on business performance.

KEYWORDS:

• Enterprise systems
• enterprise systems adoption
• enterprise systems assimilation
• institutional theory
• resource-based view

Acknowledgments

The authors would like to thank the anonymous reviewers for contributing to the substantial improvement of this manuscript.

Funding

Funding for this project was provided by the Ministry of Science and Technology, Taiwan, R.O.C. (Grant number RD950108).

Additional information

Funding

Funding for this project was provided by the Ministry of Science and Technology, Taiwan, R.O.C. (Grant number RD950108).

Notes on contributors

Kuo-Chung Chang

Kuo-Chung Chang is an Associate Professor in the Department of Information Management at Yuan Ze University, Taiwan, R.O.C. He received his PhD from the University of South Carolina, USA. His current research focuses on IS project management, IS outsourcing, and knowledge management. His work has been published in journals such as Information Systems Research, Information and Management, Information and Software Technology, International Journal of Project Management, Information Systems, Journal of Systems and Software, and Information Systems Frontiers.

Yoke May Seow

Yoke May Seow is a PhD candidate in Information Management at Yuan Ze University, Taiwan, R.O.C. She holds an MSc in Information Management from the Asian Institute of Technology, Thailand, and a BSc in Computing from the University of Portsmouth, UK. She had 9 years of work experience in the field of IT and telecommunications, in both for-profit and non-profit organizations around Asia. Her research interests include information security, the Internet of Things, knowledge transfer, virtual communities, and information and communication technology for development.