Organizational adaptation to new technology: An analysis of the relationship between organizational adaptation and adoption of new Enterprise Resource Planning (ERP) systems in small-to-medium size firms

A topic that has not been well addressed in the literature is organizational adaptation to technological change in small-to-medium size enterprises. This research approaches the topic through the lens of Enterprise Resource Planning implementation in SMEs, since ERP implementation typically involves enterprise wide effects. A modified version of Davis' (1989) Technological Acceptance Model was used to measure the level of technology acceptance of new Enterprise Resource Planning (ERP) systems among members of the management teams in small-to-medium enterprises in various industries. The research tested for correlations between three common organizational adaptations associated with ERP implementation (business process re-engineering, organizational restructure, and formal training) and levels of technology acceptance and actual usage by members of top-level management, business unit managers, and project managers. The instrument was field tested in a small firm specializing in ERP implementation; pilot testing was conducted in three small firms with the permission of the owners. Data for the general survey was collected through a randomized sampling of a qualified population arranged via SurveyMonkey.com. The result of the data analysis was support for one of the three hypotheses. Multiple regression analysis of the data found a significant positive correlation between formal training and technology acceptance for the sample population as a whole, but did not find significant correlations between either business process re-engineering or organizational restructure and ERP technology acceptance. However, non-parametric testing indicated significant or near-significant positive correlations between business process re-engineering, organizational restructure, and formal training with technology usage and acceptance in the case of top-level managers suggesting this as an area for future study.