Improving employee adopting of ERP by reducing employees' perceived risks through training

Abstract

Abstract For at least two decades, ERP implementation has been one of the key topics that have been discussed by management and ICT researchers. Whilst it has led to an abundance of information and knowledge on the subject, there remain some dark corners which still need to be studied in detail. The lack of attention on these ignored topics could be the reason why successful ERP implementation remains a challenge for most organisations worldwide. Countries like Saudi Arabia, which are traditionally non-technology focused, face special challenges in this regard as adoption of new innovative technologies brings a plethora of challenges for the managers and employees. These challenges lead to perceived high level of risks, which in turn influence employees’ willingness to adopt the system. This research investigated whether employees’ perception of likely risks in adopting ERP influences the actual adoption of ERP, and whether training can be used to reduce employees’ perception of likely risks in adopting ERP. This was a mixed methods research. Data was collected using structured questionnaires and semi structured interviews. Causal relationship between variables was established using simple linear regression analysis of the questionnaire data. Qualitative data was thematically analysed to identify ways in which training can be designed to reduce employees’ perception of risks in adoption of ERP and improve employees’ adoption of ERP. This research finds that the key perceived risks that may affect Saudi employees’ willingness to adopt ERP are perceived performance, functional, time-loss and security and privacy risks. In addition, cultural factors were also found to affect Saudi employees’ willingness to adopt ERP. Finally, this research finds that training can be used to reduce employees’ perception of risks in adoption of ERP and improve employees’ adoption of ERP. This research finds that contextualised, job and role focused training rather than generic is more effective in reducing employees' perception of risks. Involvement of managers who understand the culture and nature of job is quite useful in designing training programs. Training, that helps in improving the operational and management skills of the employees, is also found to be an important strategy for preparing employees. Key words: Enterprise Resource Planning, Perceived risks, Training, Saudi Arabia, Large scale organisation