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User satisfaction in ERP system: some empirical evidence.


ABSTRACT

Enterprise Resource Planning See ERP.

(application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses.
 (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) systems are defined as "configurable information systems packages that integrate information and information-based processes Processes that collect, analyze, and disseminate information using any medium or form. These processes may be stand-alone processes or sub-processes that, taken together, comprise a larger system or systems of processes. See also information system.  within and across functional areas in an organization". They promise the seamless integration An addition of a new application, routine or device that works smoothly with the existing system. It implies that the new feature or program can be installed and used without problems. Contrast with "transparent," which implies that there is no discernible change after installation.  of all the information flowing through an organization--financial and accounting information, supply chain management, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees.  information, customer information and the like. For managers who have struggled with incompatible incompatible adj. 1) inconsistent. 2) unmatching. 3) unable to live together as husband and wife due to irreconcilable differences. In no-fault divorce states, if one of the spouses desires to end the marriage, that fact proves incompatibility, and a divorce  information systems and inconsistent operating practices, these organization-wide systems hold the promise of integrating all aspects of information and processes within and around the organization. The strategic value of ERP systems and the resources organizations invest in them make evaluating and monitoring their success important to both practitioners and researchers. This is particularly true in light of the many reported cases of failures in implementing such systems. The study aims to gain a better understanding of ERP success through examining the levels of user satisfaction, the most commonly used surrogate surrogate n. 1) a person acting on behalf of another or a substitute, including a woman who gives birth to a baby of a mother who is unable to carry the child. 2) a judge in some states (notably New York) responsible only for probates, estates, and adoptions.  for measuring the success of information systems in general, and comparing them to those obtained in traditional systems. It also tests a set of hypotheses regarding possible relationships between user satisfaction and organizational and user characteristics. The empirical results are based on a survey of some 200 users of an SAP ERP The SAP ERP application is an integrated enterprise resource planning (ERP) software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors. It is the successor product to SAP R/3.  system in a Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma.  organization. The results indicate a high level of user satisfaction--both in nominal values Nominal Value

The stated value of an issued security that remains fixed, as opposed to its market value, which fluctuates.

Notes:
When referring to fixed-income securities, the nominal value is also the face value.
 and in comparison to other IT environments. On the other hand, no supporting evidence was found for relationships between user satisfaction and organizational and user characteristics.

1. INTRODUCTION

The role of information technology (IT) in industry and commerce has increased over recent decades to the point where it now represents about half of all capital investment on a global basis while much of the workforce in the developed world relies on telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications.  and computer-based information systems (Martinsons and Chong, 1999). Automation and IT-enabled redesign re·de·sign  
tr.v. re·de·signed, re·de·sign·ing, re·de·signs
To make a revision in the appearance or function of.



re
 of operational processes have reduced both costs and cycle times while improving output quality. In addition, management information systems are helping decision-makers resolve complex problems while responding to crises and seizing opportunities in a timely manner. Growing numbers of strategic information systems that shape or critically support organizational applications of IT are also being reported (Martinsons and Chong, 1999).

Since the early days of organizational computing computing - computer , integration has been considered one of the most important issues of management information systems. Blumenthal (1969) proposed an integrated architecture for organizational information systems. However, for several reasons, these concepts were not implemented until the late 1990s. Among the objective reasons are the high levels of organizational and technical complexity involved in the implementation of IT. Some implementation attempts failed because of a lack of the long-term Long-term

Three or more years. In the context of accounting, more than 1 year.


long-term

1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term.
 development and resource continuity needed for such systems, and only a handful of successful implementations have been reported, usually as a result of gradual inside-out Adj. 1. inside-out - with the inside surface on the outside
wrong-side-out

turned - moved around an axis or center
 evolution (Davenport Davenport, city (1990 pop. 95,333), seat of Scott co., E central Iowa, on the Mississippi River; inc. 1836. Bridges connect it with the Illinois cities of Rock Island and Moline; the three communities and neighboring Bettendorf, Iowa, are known as the Quad Cities. , 1998).

Enterprise Resource Planning (ERP) systems are defined as "configurable information systems packages that integrate information and information-based processes within and across functional areas in an organization" (Kumar Kumar (from Sanskrit meaning prince or an (unmarried) youth) is an Indian title, given name or family name. As a title it can mean son of a Rājā, prince, or heir apparent and enters in princely compound titles.  and Hillegersberg Hillegersberg is a former municipality of Zuid-Holland in The Netherlands. It was founded as a village in the middle ages, and remained a separate municipality until 1941, when it was amalgamated into Rotterdam as part of the new sub-municipality of Hillegersberg-Schiebroek. , 2000). These systems promise the seamless integration of all the information flowing through an organization--financial and accounting information, supply chain management, human resources information, customer information and the like. For managers who have struggled with incompatible information systems and inconsistent operating practices, these organization-wide systems hold the promise of integrating all aspects of information and processes within and around the organization.

The strategic value of ERP systems and the resources organizations invest in them make evaluating and monitoring their success important to both practitioners and researchers. This is particularly true in light of the many reported cases of failures in implementing such systems. In principle, traditional investment analysis techniques and criteria, such as return on investment (ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). ), net present value (NPV NPV

See: Net present value
), or payback period Payback Period

The length of time required to recover the cost of an investment.

Calculated as:
 could be used. However, these techniques seldom suffice suf·fice  
v. suf·ficed, suf·fic·ing, suf·fic·es

v.intr.
1. To meet present needs or requirements; be sufficient: These rations will suffice until next week.
 in practice due to the unique nature of information systems investment (Saarinen 1996).

This study investigates the levels of user satisfaction of ERP systems and compares them to traditional systems. It also tests a set of hypotheses regarding possible relationship between user satisfaction and organizational and user characteristics. The empirical results are based on a survey of some 200 users of an SAP ERP system in a Canadian organization. The results indicate a high level of user satisfaction--both in nominal values and in comparison to other IT environments. On the other hand, no significant relationships were found between user satisfaction and the organizational and user characteristics that were investigated.

2. MEASURING USER SATISFACTION

The measurement of information systems success has been on the research agenda for well over thirty years (Powers and Dickson Dickson may refer to several placenames: Australia
  • Dickson, Australian Capital Territory in Canberra
  • Dickson Centre, Australian Capital Territory in Canberra
  • Division of Dickson, Electoral Division, Queensland
Malawi
, 1973; Nolan and Seward Seward, city (1990 pop. 2,699), Kenai Peninsula borough, S Alaska, on Kenai Peninsula, at the head of Resurrection Bay; inc. 1912. It was founded in 1902 as the ocean terminus of the Alaska RR (built 1915–23). , 1974; Knutsen and Nolan, 1974; Swanson, 1974; Mahmood et al., 2000; Zviran and Erlich, 2003), the earliest studies date back to the early 1970s and focus on the search for identifiable and more easily measured surrogate parameters and constructs, including satisfaction and usage.

Powers and Dickson (1973) studied the factors affecting the success of management information systems. They identified user satisfaction as one of the key factors affecting management information systems success. User participation in the development process was found to be crucial for user satisfaction. Studying user satisfaction as a surrogate for information utility and information systems success, Nolan and Seward (1974) developed a questionnaire for the measurement of user satisfaction and administered it to users of various systems in the US Department of Defense (DoD). They also tested the validity of their survey instrument as an evaluation mechanism for information systems. These authors concluded that measurement of user satisfaction as a surrogate for the evaluation of information systems success is feasible and practical.

Knutsen and Nolan (1974) discussed a cost/benefit approach to information systems success. They concluded that a neat quantitative analysis Quantitative Analysis

A security analysis that uses financial information derived from company annual reports and income statements to evaluate an investment decision.

Notes:
 of costs and savings of information systems is impossible to achieve. According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 these authors there are too many qualitative factors affecting information systems success, and any attempt to quantify Quantify - A performance analysis tool from Pure Software.  all of them would involve damaging tradeoffs that would offset the accomplished benefits. Suggesting that computer-based systems Computer-based systems

Complex systems in which computers play a major role. While complex physical systems and sophisticated software systems can help people to lead healthier and more enjoyable lives, reliance on these systems can also result in loss of
 are agents of change, they proposed that what should be measured are the costs and benefits of change, within a framework that includes qualitative factors as well as quantitative factors.

Swanson (1974) defined and investigated the concepts of user appreciation and involvement in management information systems. According to Swanson, appreciation of a management information system is "the manifold manifold

In mathematics, a topological space (see topology) with a family of local coordinate systems related to each other by certain classes of coordinate transformations. Manifolds occur in algebraic geometry, differential equations, and classical dynamics.
 of beliefs about the relative value of the system as a means of inquiry". This definition of appreciation is closely related to success. Swanson suggested that user involvement in the design and implementation phases affects appreciation of the system, which in turn affects user involvement in what he defined as "inquiry involvement", or actual use of the system. Swanson's model, which he concluded should be revised, is depicted de·pict  
tr.v. de·pict·ed, de·pict·ing, de·picts
1. To represent in a picture or sculpture.

2. To represent in words; describe. See Synonyms at represent.
 in Figure 1.

[FIGURE 1 OMITTED]

Ginzberg (1978), investigating the types of benefits resulting from changes in organizational processes and changes in the information produced, made the following suggestions about information systems evaluation:

* A management information system project should be seen as a change process. The ultimate purpose of this process is to help someone (a manager) to do his job better.

* Satisfying this purpose does not necessarily require that the manager use the model developed during the project. Model use is, at best, only a partial measure of effectiveness.

* A behavioral behavioral

pertaining to behavior.


behavioral disorders
see vice.

behavioral seizure
see psychomotor seizure.
 measure of operations research operations research

Application of scientific methods to management and administration of military, government, commercial, and industrial systems. It began during World War II in Britain when teams of scientists worked with the Royal Air Force to improve radar detection of
 / management science effectiveness can be developed if the issue of goals at the start of the project is explicitly addressed.

User satisfaction has been gaining popularity as a measure of information systems success since the early 1980s (Rushineck and Rushineck, 1986) and several instruments have been proposed to measure it.

Bailey and Pearson Pear·son   , Lester Bowles 1897-1972.

Canadian politician who served as prime minister (1963-1968). He won the 1957 Nobel Peace Prize for his role in the negotiation of a solution to the Suez crisis (1956).
 (1983) developed a tool for measuring and analyzing computer user satisfaction. They identified 39 items affecting user satisfaction and defined user satisfaction as a weighted sum of a user's positive or negative reactions to these items. Ives Ives   , Charles Edward 1874-1954.

American composer whose works anticipated those of later 20th-century musicians in their abandonment of conventional tonality. His Third Symphony (1904-1911) won a Pulitzer Prize.

Noun 1.
, Olson Olson may refer to:
  • Olson (constructor), a former racing car constructor
  • Olson Software
  • Olson database, also known as zoneinfo database
  • Sigurd Olson Environmental Institute
  • Olson (surname), people with the given name Olson
 and Baroudi (1983) attempted to improve Bailey and Pearson's tool. They reduced the number of items measured by eliminating items that showed undesirable psychometric psy·cho·met·rics  
n. (used with a sing. verb)
The branch of psychology that deals with the design, administration, and interpretation of quantitative tests for the measurement of psychological variables such as intelligence, aptitude, and
 values and introduced a short-form of the Bailey and Pearson instrument.

DeLone and McLean McLean, city (1990 pop. 38,168), Fairfax co., N Va., a suburb of Washington, D.C. Manufacturing includes foods, satellite components, and computer and telecommunications equipment.  (1992) made an important step towards consolidation of prior research. They introduced a model of information systems success based on a study of more than 180 published papers, which addressed the issue of information systems success. DeLone and McLean identified six major dimensions of success, as depicted in Figure 2.

[FIGURE 2 OMITTED]

DeLone and McLean (1992) admit that their model is not definitive: "The success model clearly needs further development and validation See validate.

validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements.
 before it could serve as a basis for the selection of appropriate measures" (DeLone and McLean 1992). This model has been the subject of much debate in the research literature. Many researchers, including Seddon Seddon may refer to: People
  • Chris Seddon
  • George Seddon AM
  • George Seddon (cabinetmaker)
  • James Seddon
  • Jimmy Seddon
  • John Seddon
  • Margaret Seddon
  • Margaret Rhea Seddon
  • Mark Seddon
 (1997), Melone (1990), Torkzadeh and Doll doll, small figure of a human being, usually used as a child's toy. The many types of dolls found among the relics of primitive peoples were cult objects. Egypt, Greece, and Rome have left well-preserved dolls of wood, clay, bone, ivory, and bronze that were used  (1994), Bonner Bonner may refer to:

Places
  • Bonner Springs, Kansas
  • Bonner County, Idaho
  • Bonners Ferry, Idaho
  • Bonner-West Riverside, Montana
  • Bonner, Australian Capital Territory, a suburb of Canberra
 (1995) and Ballentine et al. (1996), have expressed dissatisfaction with different aspects of the DeLone and McLean model (Drury Drury can refer to several things:
  • Drury, a town in New Zealand
  • Drury University, formerly Drury College
  • Drury Hotels operator of Drury Inns
  • Drury Lane, a famous street in the City of London
  • Drury, a bridge convention
People named
 and Farhoomand, 1998).

Doll and Torkzadeh (1988) introduced their twelve-item user satisfaction scale, as a measure of overall satisfaction as well as satisfaction with the extent to which the computer application meets a user's needs for information content, accuracy, output format, ease of use and timeliness. Each item is measured on a five-point Likert-type scale ranging from "1" (almost never) to "5" (almost always). Tests of Doll and Torkzadeh's instrument for its validity and generalizability have demonstrated instrument validity--content validity, construct validity construct validity,
n the degree to which an experimentally-determined definition matches the theoretical definition.
 and reliability (Straub Straub is a Germanic surname that literally means “one with bushy or bristly hair” and “destroy or rob.” [1] It may also refer to people who come from Straube in Germany.  1989) and added evidence to the argument that external validity External validity is a form of experimental validity.[1] An experiment is said to possess external validity if the experiment’s results hold across different experimental settings, procedures and participants.  and generalizability are present (McHaney and Cronan Cronan may refer to: Given (first) names
  • Saint Cronan Mochua
  • Saint Cronan, Abbot
Surnames
  • Thomas Cronan, American athlete
  • Rich Cronin, American musician
Other
  • St. Cronan School for Boys
 1998). Doll and Torkzadeh's instrument was used to measure user satisfaction in this research.

3. RESEARCH MODEL AND HYPOTHESES

This study aims to gain a better understanding of ERP success through examining the levels of satisfaction of ERP users and comparing them to those obtained in traditional systems. It also tests a set of hypotheses regarding possible relationship between user satisfaction and six user characteristics: functional department to which the user belongs, position in organizational hierarchy, formal education level, age, computer experience and gender.

3.1 Department

ERP systems consist of functional modules. Usually, each module applies to one or several departments within an organization (e.g. marketing, sales). Several studies have found significant differences between different user groups in terms of satisfaction with their information systems (Sengupta and Zviran, 1997; Zviran, 1992). Thus, the belief that user satisfaction with ERP systems will follow a similar pattern, the following hypothesis is made:

HI: There are differences in user satisfaction with an ERP system between users belonging to different departments.

3.2 Position in Organizational Hierarchy

Several studies (Igbaria, 1992; Igbaria and Nachman People commonly known as Nachman include:
  • Rav Nachman
  • Nachman of Breslov
, 1990; Joshi
This article is about the family name Joshi. For other uses and people with the name, see Joshi (disambiguation).


Joshi is a family name common in most of India and in many parts of Nepal.
 and Lauer No Info- template with that name exists. (Template:Lauer (disambiguation)) You can create an article with this name. , 1999) have examined organizational level as a variable affecting user satisfaction. The results are contradictory. Some studies show no correlation between organizational level and user satisfaction (Igbaria, 1992; Igbaria and Nachman, 1990). Other studies report satisfied low-level low-lev·el
adj.
1. Relating to or being of low rank or importance: a low-level job.

2. Situated in or occurring at a low level: low-level radiation.

3.
 employees as opposed to very unsatisfied managers (Joshi and Lauer, 1999). No study reporting higher satisfaction among managers than among employees was found. Consequently, the following hypothesis is made:

H2: There is a relationship between user satisfaction with an ERP system and the user's position in the organizational hierarchy.

3.3 Formal Education Level

Several studies have used user education as a variable in the evaluation of computing practices. The obvious hypothesis is that user's with more formal education will tend to use computers more and will have greater IT satisfaction (Palvia and Palvia, 1999). Based on these findings, the following hypothesis is suggested:

H3: There is a relationship between user satisfaction with an ERP system and the user's formal education.

3.4 Age

Older people, who were generally educated and trained without the benefit of computer technology, are more likely to have a fear of technology. By contrast, younger generations, many of whom were often introduced to computer technology in their high school years or even earlier, generally feel more comfortable with it. It is therefore postulated pos·tu·late  
tr.v. pos·tu·lat·ed, pos·tu·lat·ing, pos·tu·lates
1. To make claim for; demand.

2. To assume or assert the truth, reality, or necessity of, especially as a basis of an argument.

3.
 that older users will have less satisfaction with information technology (Palvia and Palvia, 1999):

H4: There is a relationship between user satisfaction with an ERP system and the user's age.

3.5 Computer Experience

Computer skills, often measured by years of computer experience, have been thoroughly examined as a variable in computing studies. It is intuitively evident that higher levels of the computer skills (measured by years of computer experience) will lead to greater use of computers and greater IT satisfaction (Palvia and Palvia, 1999).

H5: There is a relationship between user satisfaction with an ERP system and the user's computer experience.

3.6 Gender

Gender differences in terms of computing attitudes, computer use and computing practices have been widely reported (Palvia and Palvia, 1999; Igbaria, 1993). Based on the findings of such studies it is believed that there should be no difference between men and women with regard to user satisfaction with the ERP system examined.

H6: There are no differences between men and women in terms of user satisfaction with an ERP system.

Figure 4 presents the research model examined in this study. The model consists of a set of individual and organizational characteristics and user satisfaction.

[FIGURE 4 OMITTED]

4. RESEARCH METHOD

4.1 Procedure and Sample

The research is based on an empirical survey conducted in a Canadian organization that had implemented an SAP ERP system about a year before the start of the present research. It was selected as the basis for this research for two reasons. First, the ERP system had been introduced long enough prior to the survey for the users to establish opinions about it and compare it to the information systems they had been using previously. Second, the planned implementation of ERP in other parts of the organization ensured much needed management interest and support of the survey.

Data for Canadian survey were collected by means of a two-part Adj. 1. two-part - involving two parts or elements; "a bipartite document"; "a two-way treaty"
bipartite, two-way

many-sided, multilateral - having many parts or sides
 questionnaire. . Part A of the questionnaire consisted of questions regarding user characteristics, including position, departmental affiliation, age group, level of education, level of computer experience, and gender. A privacy statement was included in order to assure the users that the survey was completely anonymous and that the information provided would be used only for statistical analysis.

The second part of the questionnaire focused on user satisfaction with the system, using Doll and Torkzadeh's (1988) short form instrument.

The sample consisted of 200 users of the ERP system belonging to different departments, at different levels within the organizational hierarchy, and having different levels of education and computer experience. Of the 200 users surveyed, 184 (92%) returned responses. Of these 172 (86%) were valid responses.

4.2 Data Analysis and Instrument Validation

The survey instrument used was the Doll and Torkzadeh (1988) twelve-item EUCS EUCS Edinburgh University Computer Services (Scotland)  construct for measuring user satisfaction. Doll and Torkzadeh reported five factors of user satisfaction measured by their instrument: content, accuracy, format, ease of use, and timeliness. These findings have been revalidated by several studies including Doll, Xia and Torkzadeh (1994) and McHaney and Cronan (1998).

The data gathered in the Canadian survey were first used to revalidate re·val·i·date  
tr.v. re·val·i·dat·ed, re·val·i·dat·ing, re·val·i·dates
To declare valid again.



re·val
 the construct. Exploratory factor analysis was conducted using principal component analysis with varimax rotation and Kaiser normalization In relational database management, a process that breaks down data into record groups for efficient processing. There are six stages. By the third stage (third normal form), data are identified only by the key field in their record. . Table 2 presents the loadings of each of the items and lends further support to the validity of the construct.

5. FINDINGS

5.1 User Satisfaction Levels

The means and standard deviations In statistics, the average amount a number varies from the average number in a series of numbers.

(statistics) standard deviation - (SD) A measure of the range of values in a set of numbers.
 of each of the individual items, as well as the total user satisfaction score are presented in Table 3.

5.1 Hypothesis Testing hypothesis testing

In statistics, a method for testing how accurately a mathematical model based on one set of data predicts the nature of other data sets generated by the same process.


H1: There are differences in user satisfaction with an ERP system between users belonging to different departments.

The users' organizational affiliation was determined by the "department" parameter (1) Any value passed to a program by the user or by another program in order to customize the program for a particular purpose. A parameter may be anything; for example, a file name, a coordinate, a range of values, a money amount or a code of some kind.  in the survey. Respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy.  were classified as belonging to one of the following departments.

Kruskal-Wallis analysis of the results showed a significant difference (p < 0.05) in the satisfaction of users belonging to different departments on only one item (item 3) of the 12 survey items (p = 0.037). One-way one-way
adj.
1. Moving or permitting movement in one direction only: a one-way street.

2. Providing for travel in one direction only: a one-way ticket.
 ANOVA anova

see analysis of variance.

ANOVA Analysis of variance, see there
 analysis of the results showed no significant differences (p < 0.05) in user satisfaction among users from different departments.

Based on these results, H1 is rejected. There is no difference in user satisfaction between users belonging to different departments. This is contradictory to the findings of Sengupta and Zviran (1997) and Zviran (1992), who reported significant differences in user satisfaction among the different user groups.

H2: There is a relationship between user satisfaction with an ERP system and the user's position in the organizational hierarchy.

Organizational level was determined by the "position" parameter in the survey. Respondents were classified as belonging to one of the following groups.

Mann-Whitney analysis of the results showed no significant differences (p < 0.05) in user satisfaction among employees from different organizational levels. T-Test t-test,
n an inferential statistic used to test for differences between two means (groups) only. This statistic is used for small samples (e.g.,
N < 30). Also called
t-ratio, stu-dent's t.
 analysis of the results also supported these findings (p < 0.05).

Consequently, H2 is also rejected, suggesting that there is no difference in user satisfaction among different organizational levels. This supports the findings of Igbaria (1992) and Igbaria and Nachman (1990), who found no correlation between user satisfaction and organizational level.

H3: There is a relationship between user satisfaction with an ERP system and the user's formal education.

Table 6 lists the distribution of respondents by level of education.

Due to the small number of responses in the "Graduate degree or higher" category, it was combined with the "Undergraduate degree “First degree” redirects here. For the BBC television series, see First Degree.

An undergraduate degree (sometimes called a first degree or simply a degree
" category. Thus, statistical analysis was performed using only two groups. Mann-Whitney analysis of the results showed significant differences (p < 0.05) in user satisfaction between users of different education levels on 2 out of the 12 survey items: item 5, referring to user friendliness (p = 0.030), and item 8, addressing appropriateness of the output reports (p = 0.035). T-Test analysis of the results yielded similar results with significant differences on item 8 (p = 0.028) and item 5 (p = 0.051).

Based on these results, however, H3 is rejected; suggesting no difference in user satisfaction between users with different levels of formal education. This contradicts prior research by Palvia and Palvia (1999), who suggested that level of education affects user satisfaction.

H4: There is a relationship between user satisfaction with an ERP system and the user's age.

Table 7 lists the distribution of respondents by age group.

Kruskal-Wallis analysis of the results showed no significant differences (p < 0.05) in user satisfaction among users of different age groups. This was further supported by a one-way ANOVA analysis (p < 0.05).

Consequently, H4 is rejected, suggesting no difference in user satisfaction among users of different ages. This, however, contradicts prior research by Palvia and Palvia (1999), who reported significant differences in user satisfaction among different age groups and predicted that older users would be less satisfied with an information system.

H5: There is a relationship between user satisfaction with an ERP system and the user's computer experience.

In reporting their computer experience, respondents had a choice of four levels: "Under one year", "1-3 years", "3-5 years", and "Over five years". The distribution was as depicted in Table 8.

Of the 12 survey items, Mann-Whitney analysis showed significant differences (p < 0.05) in user satisfaction among users of different computer experience only on item 4 "Does the information content meet your needs " (p = 0.007). T-Test analysis of the results showed similar results for item 4 (p = 0.009).

Based on these results, H5 is also rejected, suggesting no difference in user satisfaction among users with different levels of computing experience. This finding contradicts prior research by Palvia and Palvia (1999), who reported that computing experience affects user satisfaction.

H6: There are no differences between men and women in terms of user satisfaction with an ERP system.

Table 9 lists the distribution of respondents by gender.

Mann-Whitney analysis of the results showed no significant differences (p < 0.05) in user satisfaction between men and women. T-Test analysis supported this finding.

Based on these results, H6, suggesting no difference in user satisfaction between men and women, can be accepted. This finding contradicts prior research by Palvia and Palvia (1999), who found gender differences in user satisfaction.

6. DISCUSSION

The user satisfaction levels reported in Table 2 suggest a relative high level of satisfaction in both total satisfaction (3.82 on a 1-5 scale) and in each of the individual items. Since there is no normative nor·ma·tive  
adj.
Of, relating to, or prescribing a norm or standard: normative grammar.



nor
 scale to compare these results, the user satisfaction levels of the current study were compared to the results of other studies using the same measurement instrument (Doll and Torkzadeh, 1988). Significant differences between the current study and the other studies were found in four of the five studies examined, suggesting that user satisfaction with the ERP system was higher than with other types of systems. Table 10 depicts the results of the comparative evaluation. Possible explanations for these findings are as follows.

* Several studies, including Igbaria (1993), Wan and Wah (1990) and Ives et al. (1983), point out the importance of management support to user satisfaction. The fact that, by nature, an ERP system cannot be implemented without strong management support could account for the higher rate of user satisfaction with ERP systems.

* Another possible explanation is that ERP systems claim to incorporate "best business practice" solutions (Kumar and Hillegersberg, 2000). As "best business practices" are chosen among other things by best success rate, and user satisfaction is considered one of the main surrogates of information system success (Ives and Olson, 1984; DeLone and McLean, 1992), incorporating best business practice methods in the implementation stage should result in a higher level of user satisfaction.

* Another explanation for the higher satisfaction scores in the ERP environment is anchored in system integration. Most traditional information systems are designed to carry out a specific task or a group of related functional tasks. Integration has always been a complex, expensive and generally sore point in information systems development (Hirt and Swanson, 1999). ERP systems, on the other hand, are designed as integrated systems (Kumar and Hillegersberg 2000). Eliminating integration problems by implementing an ERP system should thus result in a much smoother application and cause a rise in user satisfaction.

* A fourth possible explanation is the "look and feel" quality. ERP systems usually replace many other information systems in the organization, some of which are are old, outdated out·dat·ed  
adj.
Out-of-date; old-fashioned.


outdated
Adjective

old-fashioned or obsolete

Adj. 1.
 legacy systems. Traditionally, these older systems do not have the "look and feel" quality. The shift to an ERP system brings along with it the standardized standardized

pertaining to data that have been submitted to standardization procedures.


standardized morbidity rate
see morbidity rate.

standardized mortality rate
see mortality rate.
 interface that users easily become familiar with. A new, easier to use interface should thus bring the level of satisfaction up, at least for those users who had previously used old, outdated legacy systems. DeSanctis (1986) emphasize the importance of a friendly interface to system success.

H1-H6 tested for differences in user satisfaction with the ERP system according to the users' individual and organizational characteristics. No significant differences were found on any of the hypotheses.

H1 tested for differences in the satisfaction of users belonging to different departments. No significant differences were found. The results contradict con·tra·dict  
v. con·tra·dict·ed, con·tra·dict·ing, con·tra·dicts

v.tr.
1. To assert or express the opposite of (a statement).

2. To deny the statement of. See Synonyms at deny.
 the findings of Sengupta and Zviran (1997) and Zviran (1992), who reported differences in user satisfaction among different user groups. One possible explanation for this result is that an ERP system is a single, standardized system. Most organizations have a variety of information systems, each with its own interface and functionality, and very likely with differences in user satisfaction among users of different systems. An ERP system has the same "look and feel" for all users. A difference in user satisfaction in such an environment is therefore less likely to exist.

H2 suggested differences in user satisfaction between users at different levels in the organization. No significant differences were found. The results support the findings of Igbaria (1992) and Igbaria and Nachman (1990), who found no correlation between user satisfaction and organizational level. On the other hand, however, the results are contradictory to the findings of Joshi and Lauer (1999), where significant differences in user satisfaction between low-level employees and their managers were reported.

A possible explanation for this result may be user involvement. Joshi and Lauer (1999) found that user satisfaction decreases as organizational level increases. Several other studies point out that user involvement is a key factor in determining user satisfaction. Swanson (1974) reported that the more an individual is involved in the development of an information system the more appreciative that individual will be of the system. Doll and Torkzadeh (1991) report a higher rate of user satisfaction among users who developed their own software. Thus, the implied involvement of management in an ERP project can balance out the traditionally negative opinions managers have of information systems. H3 hypothesized the existence of differences in user satisfaction between users with different levels of education. No significant differences were found. The results contradict the findings of several studies such as Palvia and Palvia (1999), Rahman and Abdul-Gader (1993) and Igbaria (1992) that found a positive correlation Noun 1. positive correlation - a correlation in which large values of one variable are associated with large values of the other and small with small; the correlation coefficient is between 0 and +1
direct correlation
 between level of education and user satisfaction.

A possible explanation for this result is the "best business practices" incorporated into ERP systems (Kumar and Hillegersberg 2000). Common information systems are designed to perform specific tasks. While every effort is made to ensure ease of operation, organizations usually run a number of different systems, each with its own interface. H4 tested the relationship between user satisfaction and the user's age. No significant differences were found. The results contradict the findings of several studies, including Palvia and Palvia (1999), Rahman and Abdul-Gader (1993) and Igbaria (1992), who found a negative correlation Noun 1. negative correlation - a correlation in which large values of one variable are associated with small values of the other; the correlation coefficient is between 0 and -1
indirect correlation
 between age and user satisfaction.

A logical explanation for this finding is the standard operation of an ERP system as discussed in the context of H3 above, along with the rising level of computer use by people in the 45-65 age group. An increasing number of people in this age group are using computers at home and are consequently exposed to standard software applications and experienced in their use. Several media sources identify the 45-65 years age group as the fastest growing user group on the Internet Internet

Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the
 today. This, combined with the standard, easy to use interface of ERP systems, could eliminate traditional differences in user satisfaction between younger and older users.

H5 tested for differences in user satisfaction between users with different computer experience. No significant differences were found. The results, which contradict the results of other studies (Palvia and Palvia, 1999), can be explained by two factors:

* 125 out of 172 (78.5%) of the sample population had five or more years of computing experience. 150 (93%) respondents had three or more years of computing experience. Only 12 (7%) had less than three years of computing experience.

* The easy to use ERP system (as discussed in H3 above).

The combination of experienced users with an easy to use system may eliminate the effect of computer experience on user satisfaction.

H6 tested for differences in user satisfaction between men and women. Here, too, no significant differences were found. The results contradict previous research by Palvia and Palvia (1999) and Igbaria (1992), who reported differences in user satisfaction between men and women. These findings, however, were mixed. Igbaria (1992) reported that women used a smaller number of applications than men. Palvia and Palvia (1999) found that women were more satisfied with information systems than were men. Thus, although previous research indicates some differences in user satisfaction between men and women, there is no evidence that gender affects user satisfaction one way or another.

7. CONCLUSION

Comparison of the results of the current study with those found in similar studies suggests a relatively high level of user satisfaction with ERP systems. Four explanations were suggested for the high level of user satisfaction: top management support, application of "best business practice" solutions, system integration, and user interface. The indication is that the strong management support needed for ERP system implementation, along with the consolidation of all organizational systems Organizational Systems (OS) is a Ph.D. course of study at Saybrook Graduate School and Research Center in San Francisco, CA. OS "is built around the latest knowledge from both organizational behavior and systems science.  and the standardization standardization

In industry, the development and application of standards that make it possible to manufacture a large volume of interchangeable parts. Standardization may focus on engineering standards, such as properties of materials, fits and tolerances, and drafting
 of interfaces explain the higher user satisfaction.

An operational implication also arises from the high level of user satisfaction found for ERP systems. Designers and implementers of all types of information systems can and should use this information by applying the methods used for design and implementation of ERP systems to other types of systems. This could help to achieve higher user satisfaction and success rates for information systems in general.

Future research should focus on the execution of similar studies covering a large number of organizations in different industries and using different kinds of ERP systems. Such studies could provide more general and valid findings regarding user satisfaction with ERP systems and help in creating a "standard" instrument for the measurement of the perceived usefulness of information systems. The development of such an instrument (such as the one used in this study for the measurement of user satisfaction) would allow the comparison of perceived usefulness of different types of systems.
TABLE 2: EXPLORATORY FACTOR ANALYSIS

           Original      Current Factor Analysis--Component Loading
Question   Factor (*)    1        2       3       4       5

1          Content       0.794    0.351   0.164   0.214   0.208
2          Accuracy      0.296    0.710   0.338   0.146   0.240
3          Timeliness    0.211    0.012   0.821   0.140   0.112
4          Content       0.518    0.229   0.399   0.255   0.192
5          Ease of use   0.058    0.172   0.300   0.250   0.813
6          Content       0.584    0.184   0.412   0.392   0.251
7          Format        0.105    0.157   0.026   0.809   0.381
8          Content       0.759    0.173   0.143   0.395   -0.064
9          Timeliness    0.229    0.131   0.830   0.234   0.193
10         Format        -0.083   0.302   0.412   0.560   0.237
11         Ease of use   0.250    0.232   0.135   0.134   0.840
12         Accuracy      0.110    0.777   0.242   0.228   0.179

TABLE 3: USER SATISFACTION--MEANS AND STANDARD DEVIATIONS

Question                                                 Average   STD

1. Does the ERP system provide the precise information     3.99    0.76
   you need?                                                       5
2. Are you satisfied with the accuracy of the ERP          4.13    0.76
   system?                                                         2
3. Does the ERP system provide up-to-date information?     4.37    0.63
                                                                   1
4. Does the information content meet your needs?           3.87    0.84
                                                                   2
5. Is the ERP system user friendly?                        3.62    0.98
                                                                   1
6. Does the ERP system provide sufficient information?     3.83    0.84
                                                                   0
7. Do you think the output is presented in a useful        3.46    1.02
   format?                                                         2
8. Does the ERP system provide reports that seem to be     3.35    1.02
   just about exactly what you need?                               4
9. Do you get the information you need in time?            3.78    0.9
                                                                   2
10. Is the information clear?                              3.88    0.84
                                                                   6
11. Is the ERP system easy to use?                         3.55    0.98
                                                                   1
12. Is the ERP system accurate?                            4.05    0.77
                                                                   4
Total--User Satisfaction                                   3.82    0.91
                                                                   4

TABLE 4: DISTRIBUTION OF RESPONSES BY DEPARTMENTS

Department         No. of users   % of Population

Sales              10             5.8%
Finance            31             18.0%
Logistics          70             40.7%
Production         41             2.38%
R&D                19             11.0%
Other (not used)   1              0.6%

Total              172            100%

TABLE 5: DISTRIBUTION OF RESPONSES BY ORGANIZATIONAL LEVEL

Organizational Level   No. of users   % of Population

Management             43             25.0%
Employees              129            72.7%

Total Used             172            100%

TABLE 6: DISTRIBUTION OF RESPONSES BY LEVEL OF EDUCATION

Level of Education               No. of users   % of Population

Non university degree or lower   124            72.1%
Undergraduate degree             41             23.8%
Graduate degree or higher        6              3.5%
N/A not used                     1              0.6%

Total                            172            100%

TABLE 7: DISTRIBUTION OF RESPONSES BY AGE

Age        No. of users   % of Population

Under 20   0              0
20-30      35             20.3%
30-40      61             35.5%
40-50      54             31.4%
Over 50    22             12.8%

Total      172            100%

TABLE 8: DISTRIBUTION OF RESPONSES BY COMPUTER EXPERIENCE

Computer Experience   No. of users   % of Population

Under one year        0              0.0%
1-3 ears              12             7.0%
3-5 ears              25             14.5%
Over five years       135            78.5%

Total                 172            100%

TABLE 9: DISTRIBUTION OF RESPONSES BY GENDER

Level   No. of users   % of Population

Male    114            66.3%
Female  58             33.7%

Total   172            100%

TABLE 10: COMPARISON OF THE CURRENT STUDY TO OTHER USER SATISFACTION
STUDIES

              Information        Quest.   Current ERP Study
Study         System             #        N     [mu]    STD
              Type

Rocheleau     Public sector      1        172   3.988   0.765
(1993)        information        2              4.128   0.762
              systems            3              4.372   0.631
                                 4              3.872   0.842
                                 5              3.622   0.981
                                 6              3.826   0.840
                                 7              3.459   1.022
                                 8              3.355   1.024
                                 9              3.785   0.902
                                 10             3.878   0.846
                                 11             3.547   0.981
                                 12             4.052   0.774
                                 Total          3.824   0.630

Igbaria and     Overall user     1        172   3.988   0.765
Tan (1997)      satisfaction     2              4.128   0.762
                (16  different   3              4.372   0.631
                applications)    4              3.872   0.842
                                 5              3.622   0.981
                                 6              3.826   0.840
                                 7              3.459   1.022
                                 8              3.355   1.024
                                 9              3.785   0.902
                                 10             3.878   0.846
                                 11             3.547   0.981
                                 12             4.052   0.774
                                 Total          3.824   0.630

McHaney       Computer           1        172   3.988   0.765
and           simulation         2              4.128   0.762
Cronan        success            3              4.372   0.631
(1998)                           4              3.872   0.842
                                 5              3.622   0.981
                                 6              3.826   0.840
                                 7              3.459   1.022
                                 8              3.355   1.024
                                 9              3.785   0.902
                                 10             3.878   0.846
                                 11             3.547   0.981
                                 12             4.052   0.774
                                 Total          3.824   0.630

Doll and      Overall user       1        172   3.988   0.765
Torkzadeh     satisfaction       2              4.128   0.762
(1988)        (250               3              4.372   0.631
              different          4              3.872   0.842
              applications)      5              3.622   0.981
                                 6              3.826   0.840
                                 7              3.459   1.022
                                 8              3.355   1.024
                                 9              3.785   0.902
                                 10             3.878   0.846
                                 11             3.547   0.981
                                 12             4.052   0.774
                                 Total          3.824   0.630

              Information        Quest.   Other Study
Study         System             #        N       [mu]    STD     p
              Type                        Other   Other   Other

Rocheleau     Public sector      1        130     3.120   0.758   0.000
(1993)        information        2                3.330   0.741   0.000
              systems            3                3.540   0.673   0.000
                                 4                3.150   0.808   0.000
                                 5                3.170   0.861   0.000
                                 6                N/A     N/A     N/A
                                 7                3.120   0.835   0.002
                                 8                2.980   0.887   0.001
                                 9                3.260   0.832   0.000
                                 10               3.260   0.755   0.000
                                 11               3.230   0.752   0.002
                                 12               3.470   0.626   0.000
                                 Total            N/A     N/A     N/A

Igbaria and     Overall user     1        317     3.700   0.810   0.000
Tan (1997)      satisfaction     2                3.610   0.880   0.000
                (16  different   3                3.410   0.890   0.000
                applications)    4                3.630   0.850   0.003
                                 5                3.570   0.950   0.567
                                 6                3.530   0.810   0.000
                                 7                3.560   0.870   0.252
                                 8                3.330   0.890   0.782
                                 9                3.550   0.840   0.004
                                 10               3.640   0.850   0.003
                                 11               3.610   0.890   0.468
                                 12               3.560   0.870   0.000
                                 Total            N/A     N/A     N/A

McHaney       Computer           1        411     3.650   0.985   0.000
and           simulation         2                3.940   0.990   0.026
Cronan        success            3                3.870   0.970   0.000
(1998)                           4                3.810   0.995   0.473
                                 5                3.334   1.082   0.003
                                 6                3.850   0.975   0.774
                                 7                3.620   0.959   0.071
                                 8                3.500   1.034   0.121
                                 9                3.840   1.005   0.534
                                 10               3.790   0.959   0.297
                                 11               3.530   1.025   0.858
                                 12               3.900   0.964   0.066
                                 Total            3.720   0.731   0.118

Doll and      Overall user       1        618     3.891   0.959   0.220
Torkzadeh     satisfaction       2                4.207   0.868   0.279
(1988)        (250               3                4.247   0.924   0.095
              different          4                3.972   0.907   0.195
              applications)      5                3.964   1.110   0.000
                                 6                4.037   0.894   0.006
                                 7                4.099   0.817   0.000
                                 8                3.862   1.030   0.000
                                 9                4.096   0.975   0.000
                                 10               4.286   0.812   0.000
                                 11               4.080   1.010   0.000
                                 12               4.297   0.854   0.001
                                 Total            4.091   0.692   0.000


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Moshe Zviran, Tel Aviv University Tel Aviv University (TAU, אוניברסיטת תל־אביב, את"א) is Israel's largest on-site university. , Israel

AUTHOR PROFILE

Moshe Zviran is Associate Professor of Information Systems in the Faculty of Management, The Leon Recanati Graduate School of Business Administration, Tel Aviv University, Israel. He received his Ph.D degree in information systems from Tel Aviv University. He held academic positions at the Claremont Graduate University Claremont Graduate University (formerly The Claremont Graduate School) was founded in 1925 in the city of Claremont, California. It is one of two graduate institutions in the prestigious Claremont Colleges consortium, the other being the Keck Graduate Institute. , California, the Naval Postgraduate School The Naval Postgraduate School is a graduate school operated by the United States Navy. Located in Monterey, California, it grants primarily master's degrees plus some doctoral degrees to its students, who are mostly active duty officers from U.S. and foreign military services. , California, and Ben-Gurion University, Israel.
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Title Annotation:enterprise resource planning
Author:Zviran, Moshe
Publication:Journal of Academy of Business and Economics
Geographic Code:1USA
Date:Mar 1, 2003
Words:7094
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