Elsevier

Information Systems

Volume 69, September 2017, Pages 164-179
Information Systems

To use or not to use: Modelling end user grumbling as user resistance in pre-implementation stage of enterprise resource planning system

https://doi.org/10.1016/j.is.2017.05.005Get rights and content

Highlights

  • This study extends status-quo bias theory by integrating technostress.

  • Survey was conducted on 221 users in pre-implementation phase of SAP ERP system.

  • Significant impact of status quo bias observed on end user grumbling.

  • Technology induced stressors are strong predictors of end user grumbling.

  • End-user grumbling influences symbolic adoption significantly.

Abstract

The success rate of enterprise resource planning (ERP) implementation is less than 49% around the world owing to its complex nature. The key focus of information system (IS) researchers has been to explore the ways to reduce threats to ERP implementation posed especially by user resistance. Although the reasons for user resistance have already been dealt with in previous studies, our understanding of how users assess a new ERP system in the pre-implementation phase and what prompts their decision to resist it is far from complete. In particular, an explanation for user resistance or end-user grumbling from the perspectives of status quo bias and technostress was found to be missing. In order to fill this gap in research, the model proposed in the present study integrates status quo and technostress, thus throwing light on the end-user grumbling behaviour that precedes the implementation of a new ERP system. Data was collected via a survey questionnaire distributed to 221 respondents from five different manufacturing industries in Bangladesh which are currently in the process of installing the popular SAP ERP system. Results of this tested model indicate a significant impact of the constructs of status quo bias and technostress on end-user grumbling. Additionally, end user grumbling has positive significant impact on symbolic adoption. Moreover, the paper discusses common method bias and the limitations of the study, while providing an outlook for future research.

Introduction

Enterprise resource planning is a functional software tool that supports the areas of logistics, planning, finance, manufacturing, procurement, human resource, project management, distribution, accounting, service maintenance, and transpiration. A recent definition of ERP by Lepistö [46] is aligned with its previous definition. He defined ERP as a module-based software package that incorporates and coordinates the functions of different units of an organization. According to SAP [73], the largest ERP vendors, ERP is defined as holistic enterprise management solutions that are developed to mediate and ensure flexible access to information by all the departments of an organization.

The primary benefit of an ERP system relates to the integration of data and processes, and improved business efficiency [16], [29]. ERP systems have been adopted by most enterprises across the globe because of the potential benefits they offer. According to a recent Gartner Forecast Analysis report (2014), the worldwide ERP software market is predicted to grow from $25.4 billion in 2013 to $35.2 billion in 2018. SAP AG is the leading ERP system vendor. In 2013, the company retained its market leadership by selling $6.1 billion in ERP software, marking a slight increase from $6 billion in 2012 [20]. At No. 2, Oracle had $3.117 billion in sales in 2013, down 0.2% from $3.124 billion a year ago. In the third place was Sage with $1.5 billion in sales in 2013. Fadlalla and Amani [17] reported that the cost of ERP implementation might differ across organizations. For medium-sized organizations, it could be $10 million, and for large international companies the cost might go up to $300–500 million. Another report, by Hwang and Min [31], predicted that the probable spending on ERP could grow from $47.5 billion to around $ 67.7 billion by 2017.

In spite of the potential benefits of ERP systems and their growing market, the failure rate of ERP system projects is high [36]. ERP failure rates are projected not to decline very soon [36]. The 2014 ERP Panorama Report by Kimberling [37] reported that 54% of the projects exceeded projected budgets, and 72% exceeded planning durations, with 66% receiving only 50% of the measurable anticipated benefits. According to Muscatello and Parente [61], the ERP failure rate was nearly 50%. Companies like Mobile Europe, Dell, and FoxMeyer suffered huge losses, and axed ERP projects [10]. The failure of ERP implementation causes huge financial losses. According to Devadoss and Pan [15], the overall failure rate of ERP systems is more than 60%. ERP implementation failures of can ruin an entire business operation [11], and a company may go bankrupt due to huge financial losses involved [22].

Information system (IS) researchers or rejection research ignored the idea of ‘user resistance’ to technology adoption [42]. Laumer and Eckhardt [43] reported that they had found only 43 articles on user resistance to technology implantation in the last 25 years.

Most of the previous researches on user resistance focused on the post-implementation phase of IS [52], [58]. Published papers by user resistance researchers did not work on any clear user resistance theory for the pre-implementation stage, but the ‘status quo bias’ model of Kim and Kankanhalli [35] is a more comprehensive and acceptable theory to measure resistance behaviour [38]. As a result, the status quo bias theory is considered as the core theoretical tool of this research. Again, Tarafder et al. [78] highlighted that technostress could decrease user satisfaction and performance in IT use. Technostress has a negative relation with technology-enabled innovation like the ERP [9], [79]. Furthermore, Centefelli [12] argued for the integration of both positive and negative stimuli in IS research. To observe the phenomenon of user resistance in the pre-implementation phase, Laumer et al. [44] introduced a new variable called ‘employee grumbling’, or resistance through conversation, which we conceptualized as ‘end-user grumbling’, in which end-users are people who are going to use an ERP system. Taken together, this work seeks to provide an inquiry into the impact of technostress and status quo on end-user grumbling in the pre-implementation phase of ERP systems. This study also extended the idea of user resistance towards symbolic adoption (outcome of this study). Symbolic adoption is considered as the motivation behind mentally evaluating a particular technology as useful. ERP is considered a mandated technology, which means a particular company will install the system regardless of whether users like it or not. But symbolic adoption is considered as a success factor of ERP implementation (Al Jabri et al. 2015). Nah, Tan & Teh [62] identified the necessity of symbolic adoption for users’ infusion with new technology. Following these issues discussed above, the final research question asks about relationship between user resistance and symbolic adoption.

These key outcomes in the pre-implementation phase will have a critical impact on the possible success of ERP implementations. Against this backdrop, the current paper has the following research objectives:

  • 1.

    To create a research framework by explaining the impact of status quo and technostress on end-user grumbling; specifically, the role of switching benefit, switching cost, perceived value, work overload, work–home conflict, and role ambiguity of user resistance behaviour which leads to symbolic adoption.

  • 2.

    To empirically test the models in a cross-sectional field study by collecting data from various industries in a pre-implementation phase of ERP systems.

By using the status quo bias theory, technostress and symbolic adoption, this paper intends to answer the following research questions:

  • RQ1. Is end-user grumbling regarding ERP in the pre-implantation phase driven by the status quo bias theory?

  • RQ2. Do techno-induced stressors cause end-user grumbling behaviour?

  • RQ3. Does end user grumbling lead to symbolic adoption of ERP users?

To answer our research questions, the remaining part of this work is organized in the following manner. First, it presents the origins of user resistance behaviour. In this stage, an extensive literature review is presented about various user resistance theories. Second, the theoretical foundation and the proposed research model are presented. Third, the developed model is tested with the data collected by the survey questionnaire from various manufacturing organizations in the pre-implementation stage of SAP ERP. Fourth, the methodology is explained including the sample selection, data collection, and constructs measurement. Fifth, empirical evidence is presented by analysing the data. Sixth, a discussion is done on whether the status quo bias theory and technostress are suitable to measure end-user grumbling. In the end, this paper makes theoretical, practical, and methodological contributions, while also highlighting the limitations and pointing to future directions.

Section snippets

Prior research of user resistance behaviour

User attitudes and behaviour can be different with respect to a particular technology. It is possible that a user may cast off a technology, use it only partially, lack interest in continuing to use the system, or s/he may simply resist the use of it. The term ‘resistance’ is defined in the dictionary as an action of refusal or opposition. In case of IS research, resistance is the opposite of acceptance; it is the complete opposition to the introduction of a new technology [71].

More than three

Research model development

When presented with a new technology, users’ attitude and behaviour could change. The user might discard the technology, use it partially, lack interest in continuing the system, or resist the use of it. An ERP system is a mandatory technology [13]. In a mandated environment, where employees must use a technology as dictated by management, attitude towards using the system is not associated with user behaviour (Brown et al. 2002). If management forces employees to use an ERP system, they will

Study design, participants, and demographics

Bangladesh is a lower middle-income country in South Asia. Manufacturing industries contributed significantly in the past two decades. According to an article by Hossain (2014), the readymade garment (RMG) industries earned $24.49 billion between 2013 and 2014. Global management consultancy firm McKinsey reported that the growth in the export value of the RMG sector would be 7–9% annually and will be double by 2015 and triple by 2020. To compete in the global market, many of the manufacturing

Measurement model

Hair et al. [24] suggested that researchers must test the outer model after the research model was formed. We evaluated the outer model by measuring the average variance extracted (AVE), composite reliability (CR), and discriminate validity.

Average variance extracted and composite reliability

The AVE for each construct should be greater than 0.50, which suggests that the construct explains more than 50% of the variance of its items [7]. This criterion is met by the data (see Table 4).

This explains that the construct and CR must be greater than

Discussion

This study was aimed at developing a set of tangible variables in the context of companies in the manufacturing sector and at measuring the impact these variables have on user resistance to new ERP technologies. Based on the relevant literature, seven hypotheses were developed and data suggested that all were strongly significant.

Theoretical contribution

This paper contributes to the body of work dedicated to helping us better understand end-user resistance in the pre-implementation phase of an ERP system. It complements the primarily macro-level examinations of EUG [35], [44] by building on our understanding of the phenomenon at the individual level. Specifically, this paper examined EUG in organizations investing to help their employees cope with the shock that a new ERP implementation brings, especially in the pre-implementation phase.

This

Limitation and future directions

This work has a few limitations that should be acknowledged so that the results can be interpreted with necessary caution. ERP implementations are complex and take time to complete [54], [82]. However, this study was restricted to the shakedown phase of the implementation, which is widely acknowledged to be the most critical in terms of continuation or abandonment of an ERP system (Morris and Venkatesh 2010). These findings might change over time, with some support structures gaining or losing

Conclusion

This research is part of the limited number of studies on user resistance behaviour or end-user grumbling behaviour in the ERP settings within industries. We attempted to explain the factors that explain end-users’ resistance in the pre-implementation stage. Moving beyond previous research, this study developed a model by combining the status quo bias and technostress perspectives. The highlights of this research spotted switching benefit and switching cost as strong predictors of perceived

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