An empirical study on factors affecting the user acceptance of erp systems focused on small and medium sized enterprises in vietnam = erp 시스템의 사용자 수용 요인에 관한 연구 베트남 중소기업을 대상으로

Thesis for the Degree of DoctorAn Empirical Study on Factors Affecting the User Acceptance of ERP Systems - Focused on Small and Medium-sized Enterprises in Vietnam - ERP 시스템의 사용자 수용 요

Thesis for the Degree of Doctor

An Empirical Study on Factors Affecting the User Acceptance of ERP Systems

- Focused on Small and Medium-sized Enterprises

in Vietnam -

ERP 시스템의 사용자 수용 요인에

관한 연구

- 베트남 중소기업을 대상으로 -

December 2016

Department of Business Administration

Graduate School of Soongsil University

Le Thi Minh Duc

Thesis for the Degree of Doctor

An Empirical Study on Factors Affecting the User Acceptance of ERP Systems

- Focused on Small and Medium-sized Enterprises

in Vietnam -

ERP 시스템의 사용자 수용 요인에

관한 연구

- 베트남 중소기업을 대상으로 -

December 2016

Department of Business Administration

Graduate School of Soongsil University

Le Thi Minh Duc

An Empirical Study on Factors Affecting the User Acceptance of ERP Systems

A thesis supervisor : Kyeong Seok Han

Thesis submitted in partial fulfillment of the requirements for the Degree of Doctor

December 2016

Department of Business Administration

Graduate School of Soongsil University

Le Thi Minh Duc Thesis for the Degree of Doctor

To approve the submitted thesis for the

Degree of Doctor by Le Thi Minh Duc

Thesis Committee

December 2016

Graduate School of Soongsil University

ACKNOWLEDGEMENT

The journey to a Ph.D is not a smooth path where one success leads to another yet

is rather, a spiral of successes and descents, exhilaration and frustration, unlearning and relearning I have been able to complete this spectacular journey of my life with the support and active cooperation of several individuals and organizations I owe my debt of gratitude and would like to express my appreciation to them

I am ever grateful and wish to express my deepest sense of gratitude to my supervisor, Professor Kyeong Seok Han from School of Business Administration, Soongsil University for his invaluable suggestions, sympathetic encouragement, and generous support given to me during the research and academic period I feel delighted and proud to work under his auspicious supervision

I would especially like to thank my Doctoral Committee Members and other Professors from Graduate School of Soongsil University, especially Professor Gwang Yong Gim and Professor Jeong Il Choi for their help and sincere advice throughout my research program

I also take this opportunity to thank my friends from Vietnam Chamber of Commerce and Industry who assisted me with gathering information on ERP systems and collecting data from ERP users Their willingness to contact and distribute the survey is an essential part of this research I am thankful to all of the participants who graciously volunteered their valuable time and perspectives to my survey and provided sufficient data for the completion of this work

I am thankful for the help given by my colleagues from Professor Kyeong Seok Han’s Office, my friends from Soongsil University and the Korean Immigration

and Integration Program whose contributions were evident in reading and giving feedback on my thesis as well as lifting my spirit when it was needed most Above all, my heartiest thanks go to my beloved family especially, my parents, for their care, love and support in all aspects of my life All my success will not be possible without my parents’ great patience and encouragement To create a person

who I am now, to always be there whenever I need, to raise me beyond what I can

be, and to cherish me with all their love, they taught me how to endeavor to reach

my goals and dreams I am forever grateful for their sacrifice I recognize the extent of my good fortune in being part of such a gracious family I am truly grateful and words cannot express my appreciation

Finally, I would like to offer my sincerest gratitude to the Republic of Korea Government for the sponsorship granting me to achieve my Doctorate Not to forget, many thanks go to my working institution, Vietnam-Korea Friendship Information Technology College, Ministry of Information and Communications of the Socialist Republic of Vietnam for approving my study leave for three years to Soongsil University

With heartfelt gratitude, thank you to all who have touched my life and made this journey a memorable and rewarding one

Seoul, December 2016

Author: Le Thi Minh Duc

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TABLE OF CONTENTS

ABSTRACT ix

국문초록 xii

CHAPTER 1 INTRODUCTION 1

1.1 Background and Motivation 1

1.2 Problem Statement 4

1.3 Objectives of the Study 6

1.4 Research Questions 7

1.5 Relevance Significance 8

1.6 Thesis Outline 9

CHAPTER 2 LITERATURE REVIEW 11

2.1 Technology Adoption and Technology Acceptance 11

2.2 An Overview of ERP System 12

2.2.1 Concept of ERP System 12

2.2.2 Historical evolution of ERP System 13

2.2.3 Benefits and challenges of ERP System 15

2.2.3.1 Benefits of ERP System 15

2.2.3.2 Challenges of ERP System 16

2.2.4 User Acceptance of ERP Systems 18

2.3 SMEs and ERP Systems in Vietnam 18

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2.3.1 SMEs in Vietnam 18

2.3.2 Applying Status of ERP Systems in Vietnam 20

2.3.2.1 ERP Market in Vietnam 20

2.3.2.2 Types of ERP packages in Vietnam 22

2.3.2.3 Operational Definition of ERP Systems in SMEs in Vietnam 24

2.3.2.4 Challenges in Implementing ERP in SMEs in Vietnam 25

2.4 Underlying Theories 26

2.4.1 Theory of Reasoned Action (TRA) 26

2.4.2 Theory of Planned Behavior (TPB) 27

2.4.3 Technology Acceptance Model (TAM) 28

2.4.4 Innovation Diffusion Theory (IDT) 29

2.4.5 Decomposed Theory of Planned Behavior (DTPB) 29

2.5 Empirical Studies on User Acceptance of ERP Systems 31

CHAPTER 3 RESEARCH MODEL AND HYPOTHESES 37

3.1 Research Model 37

3.2 Operational Definitions 39

3.2.1 Computer Self-efficacy 39

3.2.2 Personal Innovativeness toward IT 40

3.2.3 Management Support 41

3.2.4 Technical Support 42

3.2.5 Training 42

3.2.6 Technological Complexity 43

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3.2.7 Technological Compatibility 44

3.2.8 Perceived Ease of Use 44

3.2.9 Perceived Usefulness 45

3.2.10 Attitude toward ERP System Use 46

3.2.11 Behavioral Intention to Use an ERP System 46

3.2.12 Moderators 47

3.2.12.1 Individuals’ socioeconomic status variables 48

3.1.12.2 Individuals’ occupation status variables 49

3.3 Hypotheses 50

3.3.1 Determinants of TAM 50

3.3.2 TAM – The Conceptual Model 54

3.3.3 Moderating Variables 56

CHAPTER 4 RESEARCH DESIGN AND METHODOLOGY 57

4.1 Research Design 57

4.1.1 Research Philosophy 57

4.1.2 Research Approach 58

4.1.3 Research Strategy 59

4.1.4 Time Horizons 60

4.1.5 Data Collection Method 61

4.2 Research Instruments 63

4.3 Research Population and Sample 70

4.4 Data-Collection Procedure 71

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4.5 Data Analysis Procedure 72

4.6 Data Analysis Techniques 73

4.6.1 Descriptive Analysis 73

4.6.2 Exploratory Factor Analysis 74

4.6.3 Confirmatory Factor Analysis 75

4.6.4 Structural Equation Modelling 76

CHAPTER 5 RESEARCH RESULTS 78

5.1 Results of Descriptive Statistics 78

5.1.1 Sample Characteristics Statistics 78

5.1.2 Variables’ Central Tendency, Variability, and Distribution of scores 80

5.2 Reliability Analysis 82

5.3 Exploratory Factor Analysis 83

5.4 Confirmatory Factor Analysis 86

5.4.1 Fitness Results of Measurement Model 87

5.4.2 Convergent Validity 88

5.4.3 Discriminant Validity 91

5.5 Structural Model Analysis 92

5.5.1 Fitness Results of Structural Model 93

5.5.2 Hypothesis Test 95

5.5.3 Mediation Test 100

5.5.4 Moderator Test 102

5.5.4.1 Age 103

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5.5.4.2 Monthly Income 105

5.5.4.3 Education Level 111

5.5.4.4 Job Position 115

5.5.4.5 Employees’ Work Nature 119

CHAPTER 6 CONCLUSIONS 121

6.1 Discussion of the Major Findings 121

6.2 Implications for Research 125

6.2.1 Theoretical Level 125

6.2.2 Practical Level 128

6.3 Limitations and Future Research 131

REFERENCES 133

APPENDICES 146

APPENDIX 1 USER SURVEY FORM 147

APPENDIX 2 MẪU KHẢO SÁT NGƯỜI SỬ DỤNG 154

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LIST OF TABLES

[Table 2-1] Benefits of ERP System 16

[Table 2-2] Challenges of ERP System 17

[Table 2-3] SME Definition in Terms of Sector in Vietnam 19

[Table 2-4] Number of Acting Enterprises as of Annual 31th Dec by Labor Size 20 [Table 2-5] Average Cost of Implementing an ERP Project in Vietnam 23

[Table 2-6] Extracted Variables for User Acceptance in the ERP Environment 34

[Table 4-1] Measurement Items in Research Model 64

[Table 5-1] Summary of Sample Characteristics 78

[Table 5-2] Descriptive Analysis Summary 81

[Table 5-3] Cronbach’s Alpha Reliability Test Result 82

[Table 5-4] Exploratory Factor Analysis Result 84

[Table 5-5] Fitness Results of Measurement Model 87

[Table 5-6] Convergent Validity of Measurement Model 89

[Table 5-7] Discriminant Validity Analysis Results 91

[Table 5-8] Fitness Results of Structural Model 94

[Table 5-9] Results of Hypothesis Test 96

[Table 5-10] Analysis of Mediating Effect 100

[Table 5-11] Chi-square Difference Test for Age 104

[Table 5-12] Chi-square Difference Test for Income 106

[Table 5-13] Model Fit Indices of Multi-group Analysis on Income 107

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[Table 5-14] Income-group Hypothesis Comparison 108

[Table 5-15] Chi-square Difference Test for Education Level 112

[Table 5-16] Model Fit Indices of Multi-group Analysis on Education Level 113

[Table 5-17] Education Level-group Hypothesis Comparison 114

[Table 5-18] Chi-square Difference Test for Job Position 116

[Table 5-19] Model Fit Indices of Multi-group Analysis on Job Position 117

[Table 5-20] Job Position-group Hypothesis Comparison 118

[Table 5-21] Chi-square Difference Test for Work Nature 120

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LIST OF FIGURES

[Figure 2-1] Technology Acceptance and Technology Adoption 12

[Figure 2-2] Evolution of ERP 15

[Figure 2-3] Vietnam’s ERP Market Share 22

[Figure 2-4] Theory of Reasoned Action 26

[Figure 2-5] Theory of Planned Behavior Model 27

[Figure 2-6] The Technology Acceptance Model 28

[Figure 2-7] Decomposed Theory of Planned Behavior 30

[Figure 3-1] Research Model 37

[Figure 4-1] Research Process “Onion” 57

[Figure 5-1] Confirmatory Factor Analysis 86

[Figure 5-2] Structural Equation Modelling 93

[Figure 5-3] Results of Hypothesis Test 99

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ABSTRACT

An Empirical Study on Factors Affecting the User

Acceptance of ERP Systems

- Focused on Small and Medium-sized Enterprises

in Vietnam -

LE THI MINH DUC Department of Business Administration Graduate School of Soongsil University

In this world of technology, Enterprise Resource Planning (ERP) systems are widely used by large enterprises for managing functional and operational areas of the enterprise Yet recently this trend is changing as ERP systems have also been introduced to the medium and small enterprise environment ERP systems are now considered an essential enterprise management aid that may contribute to the sustainability and growth of non-large enterprises Enterprises’ efforts to enhance their competitiveness by implementing ERP mostly pivot upon the willingness of their employees to utilize the benefits of ERP Prior research studies on ERP usage have documented mixed evidence that actual usage of systems chiefly reckons on users’ acceptance of the ERP systems Since ERP is highly constructive for any

augmenting enterprise, identifying which determinants of ERP systems impact on

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the users’ acceptance is critical Although acceptance factors that may affect the

acceptance of ERP systems have widely attracted the attention of both academics and practitioners, a limited empirical study has been done to explore the acceptance

of ERP systems in the context of medium and small enterprises in the literature Addressing this gap, the overall aim of this research was to examine important antecedents that impact on the acceptance of ERP systems as focusing on Small and Medium-sized Enterprises (SMEs) in Vietnam is a good case in point This study reviewed the literature related to ERP acceptance by users, developed hypotheses to explain the acceptance of ERP users and conduct a survey to test the hypotheses The consultative list of acceptance factors flowing from this study may guide future initiatives aiming to ensure the acceptance of ERP users of SMEs The research model is theoretically founded based on Technology Acceptance Model developed by Davis et al (1989) to illustrate the relationships between the research variables Data obtained from an online survey of 63 SMEs in Vietnam is used to test the effect on ERP acceptance of ERP users A total of 416 responses were gathered from subjects who have had experience on ERP system in their regular work Fourteen uncompleted questionnaires were removed, leaving 402 usable questionnaires Three main data analysis techniques composing of two types

of Factor Analysis (Exploratory and Confirmatory), and Structural Equation Modelling were performed to analyze

The results revealed that almost proposed acceptance factors positively influenced the user attitude toward using ERP systems directly and indirectly

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through the two TAM beliefs, except the paths from management support to perceived ease of use and from technical complexity to perceived usefulness, in which personal innovativeness showed the strongest effect, while the perceived usefulness together with user attitude, in turn, enhanced the behavioral intention to use ERP systems Thus, this research provided theoretical and empirical support for the use of managerial interventions to affect the acceptance of technology, since perceived ease of use and usefulness contribute to behavioral intention to use the technology Additionally, income, employees’ position, and work nature were

found to have moderating effects in the conceptual framework The findings culled from this research should be of pertinence to SMEs which have already implemented and which intend to implement ERP systems, to ERP vendors and researchers

Keywords: Enterprise Resource Planning; User Acceptance; Technology

Acceptance Model; Small and Medium-sized Enterprises (SMEs); SEM

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국문초록

ERP 시스템의 사용자 수용 요인에 관한 연구

- 베트남 중소기업을 대상으로 -

리띠민덕 경영학과 숭실대학교 대학원

Enterprise Resource Planning (ERP) 시스템은 대기업에서 기능적 및 운영

적 영역을 관리하기 위해 널리 사용하고 있다 그러나 최근 ERP 시스템

은 중소 기업들에 도입됨에 따라 아래와 같은 추세가 변화하고 있다 이

전의 연구 결과에 따르면 실제 시스템 사용은 주로 사용자가 ERP 시스

템을 수용하는 데에 의존한다 ERP 수용 요소는 학계와 실무자 모두의 주목을 끌어 모았지만 중소 기업의 ERP 시스템에 관한 연구가 거의 없