Enterprise Resource Planning (ERP) is an advanced enterprise management philosophy and information technology integration, as an embodiment of advanced management thought of the information system, its successful application to effectively integrate resources, improve enterprise management level, to improve their competitiveness. However, according to incomplete statistics, the application of ERP in enterprises, successful systems integration, only 10% to 20%, no or only a part of the integrated 30% ~ 40%, 50% failed there as much, so far in China successful implementation of ERP business less than one-third, and now choose to implement ERP for SMEs accounted for only 3.8%.
Although the ERP adoption rate is very low, but the internal, the successful implementation of ERP are more focused on the issue after ERP adoption on the adoption of decisions and factors that limited the adoption of the problem before. Small and medium enterprises in China accounted for 97% of the total number of more than 60% of industrial output value, profits and taxes of 40%, is the most dynamic part of the national economy. So for the vast number of SMEs have not yet implemented ERP, the attention to adopt their decision-making is important. Based on innovation diffusion and organizational theory, to establish a comprehensive adoption of SME ERP factor model.
First, innovation diffusion theory
Innovation Diffusion Theory (DiffusionofInnovation) is Rogers in 1983 proposed to describe innovation diffusion in a social system, the basic law and procedures. Which factors affect the acceptance of innovation: innovation characteristics, characteristics of the adoption of policy makers, as well as distribution channels. Innovative technology features that the individual's subjective experience of innovative technologies, including comparative advantage, compatibility, complexity, observability, to try sex. Rogers innovative technology features that other factors are usually more predictable than individual acts of innovation adoption. Innovation diffusion theory first applied to the individual level, but more and more recently applied to the organizational level. Research in the organizational level focused on the organization's adoption and diffusion process, through a variety of models to describe or predict the adoption of decision-making and IT / IS diffusion of the organization, including the adoption and diffusion of IT and related factors. The adoption of the important factors involved in the individual, organizational and technical three areas. Study abroad, most of the factors: income, size, internal resources and competition. Some of them for general IT, some are specialized IT, such as WEB mining, Web, data warehouse technology and other technologies. Huang Guoqing domestic enterprises such as size, degree of decentralized organizational structure, corporate culture change in the degree of uncertainty in its environment and enterprise adoption of ERP was studied.
Second, institutional theory
Systems theory provides another perspective to understand the organizational IT / IS adoption. The theoretical perspectives that organizational changes on the structure and activities sometimes respond to environmental stress. Not just from economic considerations. For example, legal, reputation, or regulation may force firms to adopt IT / IS, the system pressure including the pressure of competition, imitation and normative pressure of the pressure, the system pressure to explain the phenomenon of 7 technology with the state, that is the same industry, companies tend to adopt the same technology. Literature that the system pressure by influencing the participation of senior management's beliefs and indirectly affect the organization of the ERP absorption.
Organizational information technology adoption decision-making is not only a technical process, but also a social process, the end result being a variety of effects due to disordered. Literature as the central decision-makers, through its corporate internal and external environment, perception, analysis of the enterprise IT investment decision-making behavior of factors, including competition, trends, policy, business fundamentals, corporate culture and information systems maturity .
Third, SME ERP adoption model
SME decision-making is more personalized, centralized, so the adoption of information technology in small and medium-level characteristics of both organizations, there are individual-level characteristics, so some features of the senior management of the enterprise usually affect the decision-making results. Innovation diffusion theory of technology diffusion between the organization did not provide a complete explanation, innovative decision-making should consider the adoption of appropriate environmental and innovation are unique, and therefore the system based on innovation diffusion theory. Our previous study, based on increased innovation and CEO of ERP and the compatibility of the two organizations because of Walled around the individual, technical, organizational and external environment in four areas, the establishment of a comprehensive model for SMEs to adopt ERP.
1.CEO innovative
SMEs because of power limitations, more emphasis on short-term interests, attention is visible return, and the implementation of ERP is not only high-risk, and investment can not be immediately obvious, which makes the implementation of ERP depends on the vision of business leaders. CEO is the key decision makers of SMEs, the adoption of ERP will face many uncertainties and risks, CEO of the new things in the preferences, risk tolerance, reflected in the size of individual innovation and ultimately affect the ERP adoption.
2.ERP and histocompatibility
ERP and ERP histocompatibility system and organizations that need with the appropriate level of organizational culture. Innovation diffusion theory considered only the characteristics of the technology itself, but complex information technology adoption, the adoption and diffusion research needs taking into account the characteristics of organizations and tasks, no matter how advanced technology, only with the actual needs of the organization to adapt it be possible to get their recognition. Different ERP system, the focus of its development is different from its function and the application of different industries and enterprises in the implementation of the ERP system, the need to integrate with other systems, different companies have owned the system, not the same. The higher the compatibility means that the uncertainty faced by smaller ERP, enterprise more acceptable.
3. Information Level
The level of enterprise information reflected in two aspects: first, the level of hardware, including networks, computers, and applications systems; second, professionals have the use of IT and management of IT capabilities. The level of information on behalf of the enterprise's business and the degree of integration of information technology, that information orientation. If the enterprise already has some basic information, then the introduction of ERP business experience and talent needed every advantage. Existing IT investments through the accumulated experience of some projects, but also trained a group of professional key, grass-roots level of all computer operations staff to be trained. The early accumulation, can reduce fear and enterprise ERP psychological conflict, thereby enhancing the SMEs to adopt intentions, people are familiar with what confidence.
4. Enterprise scale
Firm size is often considered an important factor in technology adoption, organization larger, means that with more resources and assets can be allocated. Not only attract the best IT professionals, and even fail, businesses are also less affected. Therefore, small businesses, the implementation of ERP are more than barriers, risk tolerance and more poor, and ERP as an IT investment, firm size, the greater the effectiveness of investment is easy to scale.
5. External competition
Organizations often make the greatest efforts to reduce the uncertainty surrounding environment, such as through the introduction of new technology to create competitive advantage. All kinds of pressure for organizations and competitors in the practice and process is very similar to the pressure of competition is one of the competition makes organizations ignore the demise of advanced technology and eliminate inappropriate, leaving the adaptation. All companies are the competitive requirements, IT needs as well. SMEs are often the market follower, when faced with competitive pressures, in order to maintain market position, they are more easily turned to information technology like ERP. And small and medium business simply to make ERP implementation cycle is short, this can quickly make changes to reflect the external environment.
6. Government policy
The results show that the impact of external environment policy in developing countries has become more evident. Large enterprises with powerful than the small and medium enterprises in the financial, human resources, management, technology, and are at a disadvantage. Therefore, the path information for SMEs, government policy support for SMEs is very important. Implementation of information technology in SMEs, the Government can organize expert group found the problem in depth business and information technology and business work together to solve problems in the process of organizing "results show", "forum", through demonstrations, lectures, discussions, etc., point to area, to promote information technology work.
IV Summary
The introduction of information technology as a key organizational step, organizational information technology adoption by the technology itself characteristics, organizational characteristics and their environment and other factors. This integrated system of innovation diffusion theory and research results from the individual, technical, organizational and external environment, four of the six factors, of which the adoption of ERP for SMEs, not only for further empirical investigation in the future, and look forward In an effort to promote small and medium enterprises, government departments and ERP software vendors, to provide some reference value.