Evaluation of ERP System: A Psychological Impact on End-Users Satisfaction using DeLone and McLean model

Abstract

Organizations make huge investments in adopting and implementing the ERP system within their organizational boundaries. The main objective of organizing large amounts of expenditure for the ERP system is to improve their business transactions, increased employee productivity, increase customer responses and make strategic business decisions. The benefits that are obtained from an ERP system cannot be directly measured in a traditional tangible form such as return on investment, profits, ARR etc., because ERP systems are a facilitator for organisational growth. Benefits obtained from implementing an ERP system in most cases is non-tangible. So non-traditional methods to measure the psychological impact it has on its End-user is chosen. In this study, we evaluate the benefits obtained from implementing ERP systems in an Organisation using the well-acclaimed DeLone and McLean IS success measurement model. Variables used to measure the ERP system success includes 1System quality, followed by 2Information quality, 3Use of the system, 4Service quality, 5User satisfaction, 6Individual impact on the end-users, and 7Overall organizational impact. Findings from the study indicate that that the impact obtained from using and adopting an ERP system is majorly seen at Individual Level and also at the organisational level i.e., approximately 92.1 per-cent and is statistically significant. ERP service quality and ERP information quality using ERP to be around 95 per-cent and therefore statistically significant. Finally, the study concludes that among other variables of the study the service quality that is being delivered to the end-users is having the highest level of psychological impact on the end-users in making them use the ERP systems effectively and there is also an increase in their satisfaction levels of the end-user after using the ERP systems.