why technology is a major determinant of the success of any organisation explain with examples
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Key Factors Driving the Success of Technology Adoption:
Case Examples of ERP Adoption
Chonyacha Suebsin, Nathasit Gerdsri
College of Management, Mahidol University, Bangkok, Thailand
Abstract--This paper addresses the issues that impact
technology adoption within an organization. Several factors
influencing technology adoption process are identified from the
literature review. Case examples of the adoption of a new
management technology, Enterprise Resource Planning (ERP),
are presented to illustrate the situations of technology adoption
in organizations. From the case examples, the factors
influencing technology adoption in organizations are consistent
with the factors identified from the literatures. The further
discussion also reveals the additional determinants including the
clarification of project scope, individual commitment, and
communication which should be taken into consideration when
an organization adopts a new technology.
I. INTRODUCTION
To survive in dynamic business environment,
organizations have strived to reinforce or even maintain their
competitiveness. Investment in technology is one solution as
the success of technology adoption could enhance a firm’s
capability to gain competitive advantages over its
competitors. Nevertheless, many of technology adoption
projects have been failed or ineffectively executed. This
paper presents a preliminary review of literature on the
process and determinants of technology adoption in an
organization. Case examples of Enterprise Resource Planning
(ERP) adoption in Thai organizations are presented to
provide an insight based on the author’s direct experience
regarding factors influencing the success of technology
adoption in these organizations.
II. LITERATURE REVIEW
A. Technology Adoption/Diffusion
1. Definition
Khasawneh defines the meaning of technology adoption
as “…the first use or acceptance of a new technology or new
product” [1]. Rogers states, “Diffusion is the process by
which an innovation is communicated through certain
channels over time among the members of a social system”
[2]. Generally, diffusion is associated with how to spread new
knowledge to target adopters, while adoption is related to the
decision to accept and use the idea. Many people perceive
both terms as the same. However, scholars recognize these
terms differently. Some researchers identify that the adoption
process starts from selection procedures when a firm is aware
of the need to purchase a technology [2-4] while other
scholars focus more on real usage when the technology is
about to be utilized or implemented [5-7].
2. Adoption Process
Several adoption process models have been developed in
order to identify the process of how technology is adopted.
Beal and Bohlen divide adoption process into five stages:
awareness, interest, evaluation, trial, and adoption [3].
Similarly, Rogers mentions in his publication that people
adopt a technology by first being aware of the existence of a
technology and forming attitudes towards a technology,
following by decision making process whether to adopt or
reject a technology. After the adoption decision is made,
adopters will use a technology and eventually reach the final
stage by confirming the adoption decision if a technology
could function as expected [2]. Therefore, the adoption
process could be generally defined as process starting from
gathering knowledge until the actual implementation of that
technology [8].
To address the issue of technology adoption in an
organization, the process is re-classified into two main stages:
the initiation and the implementation stage. Gopalakrishnan
and Damanpour stated that the decision to adopt a new
technology takes place in between these two stages [9]. For
any firms, adoption can be generally divided into two levels:
organizational level (primary adoption) and individual level
(secondary adoption) [10-11]. Kamal supports this
terminology by developing “a novel taxonomy of IT
innovation adoption process” that consists of two key levels
of adoption, each of which are subdivided into stages relating
to the level [12].
At an organization level, a firm is motivated by its
objectives, challenges, or environment. A firm would try to
gain information and knowledge that would be used to make
decision whether to acquire a technology or not. If an
organization decides to invest in a new technology, it then
takes a further step into secondary level of technology
adoption in which employees will use the purchased
technology. From this rationale, it can be inferred that the
actual adoption is contingent on a prior decision made by an
organization [4]. Without an official decision, employees
would not have an opportunity to utilize that technology. On
the other hand, without the acceptance from individuals
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