Moderating effects of localization differences on ERP use: A socio-technical systems perspective

Despite the promised benefits of Enterprise Resource Planning (ERP) systems, more than two thirds of ERP system projects result in failure. In this study, we investigate some plausible reasons for their failure from the user’s perspective. Particularly, we propose the socio-technical factors that affect ERP system use. This study has two research objectives. First, it introduces and tests a theoretical model that views ERP systems as both an organizational change driver and a sophisticated information system to explain the phenomenon of ERP system use. For this purpose, the proposed model includes attitude toward change and computer self-efficacy; this may affect ERP system use behavior through perceived usefulness for the systems. Second, this paper attempts to shed some light on how the localization differences of ERP systems may affect users’ intention to use the ERP systems. The results based on survey data using subjects from two different ERP systems support the proposed research model. It identifies the moderating effect of the localization differences. Theoretical and practical implications of the study are discussed along with its limitations.