ERP System Adoption Analysis Using TOE Framework in Permata Hijau Group (PHG) Medan

Abstract

In this research, employee adoption intention is important consideration of successful ERP system implementation. The purpose of this research is to identify the important factors in Technology-Organization-Environment framework that affect ERP system adoption's intention. Online survey data were collected from 175 employees with active status from each department who had used ERP in PHG, Indonesia. The research data was collected through simple random sampling method and applying SEM in AMOS 24. The results of this article proves that technology readiness, organization size, and external support significantly influence ERP system adoption intention. Compatibility, relative advantage, complexity, top management support, business operation, and competition pressure have no significant influence on ERP system adoption intention. Thus, it can be concluded that ERP system adoption's intention is important to enhance corporate competitive advantage. Adopted ERP system can be developed continuously by involving employees to achieve information technology and business strategy within company.