An Enterprise Resource Planning (ERP) Adoption in the Thai Agricultural Sector

  • Chalett Vichinrojjarul National Institute of Development Administration, Thailand
Keywords: Enterprise Resource Planning (ERP), Technology Acceptance Model (TAM), Business Process Reengineering (BPR), Training (TRA), Perceive Ease of Use (PEOU), Perceive Usefulness (PU), Use Intention (UI), rice mill, Structure Equation Model (SEM) and path analysis.

Abstract

Throughout, the 21th century, the Thai economy has been reforming in every aspect to comply with a technological disruption. In accordance with this disruption, the Thai government has actively delivered several modern technological policies and structural changes in public administration. In the business sector, all business organizations are required to transform their ordinary enterprise management so as to exploit a benefit of the technology stream and maintain their resilience. Our study examines an actual reaction, specifically a use intention of an agricultural business, toward enterprise resource planning (ERP) technology that is the potential transformation to enhance their ordinary management basis. The technology acceptance model (TAM) is the main theory, along with three critical factors of ERP study: government support (GOV), business process-reengineering (BPR) and training (TRA). These are deployed as key indicators to predict intention characteristics of the agricultural enterprise. The questionnaire survey is used to capture quantitative study of the rice mill industry, which is a representative of the agricultural industry. In addition, those survey results are evaluated with the path analysis under the structural equation modeling technique. The study reveals that three critical factors and two factors from the TAM have both positive direct and indirect relationships to the possibility of the agricultural organization to deploy ERP into use. In terms of managerial implication and policy recommendation, the BPR is determined as the key parameter to fulfill the intention of ERP adoption.

Published
2019-06-14