An Empirical Study of ERP System Adoption Among Chinese Corporate Managers
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Abstract
Purpose: This study investigates the factors influencing the decision of corporate managers in China to adopt Enterprise Resource Planning (ERP) systems, with a focus on company size, market area, security, technology, and economic and technical rationales. Research Design, Data, and Methodology: Data from 550 key ERP managers across China was collected. A stratified random sampling method was utilized, segmenting the population based on industry type and enterprise size. The validation of the questionnaire's content was meticulously conducted using Item-Objective Congruence (IOC) and evaluated for internal consistency reliability via Cronbach's Alph of pilot test (n=50). The research integrates the methodology of Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) to analyze the data and test hypotheses. Results: The findings reveal that company size, market area, security, and technology significantly affect ERP adoption. Economic and technical rationales have a significant effect on decision to adopt ERP. Additionally, decision to adopt ERP has a significant effect on ERP adoption. Conclusions: The findings suggest a multifaceted decision-making process for ERP adoption in China, underscored by strategic planning, security assurance, and technological compatibility. The study highlights the need for tailored ERP solutions that address the specific requirements of Chinese enterprises.
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