Shu-Te University. College of Informatics. Graduate School of Information Management. Master. Factors Affecting User s Intention to Use

Transcription

1 Shu-Te University College of Informatics Graduate School of Information Management Master Factors Affecting User s Intention to Use Open Source ERP Student: Adviser: Nguyen Thanh Tung Dr. Kuo-Lun Hsiao Dr. Nguyen Linh Trung February, 2011

2 Factors Affecting User s Intention to Use Open Source ERP Student: Nguyen Thanh Tung Advisor: Dr Kuo-Lun Hsiao Dr. Nguyen Linh Trung A Thesis Submitted to the Graduate School of Information Management College of Informatics Shu-Te University In Partial Fulfillment of the Requirements For the Degree of Master of Science in Information Management February 2011

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6 Department of Information Management, Shu-Te University Factors Affecting User s Intention to Use Open Source ERP Student: Nguyen Thanh Tung Advisor: Dr. Kuo-Lun Hsiao Co-advisor: Dr. Nguyen Linh Trung ABSTRACT In highly competitive environment, businesses need manage their business processes in order to manage their resource better. ERP is seen as a way help businesses improve their business performance, while also helping businesses manage the entire process of their business, maximize profitability. Thereby, to enhance their competitiveness in the fiercely competitive environment. However, the cost of implementing an ERP project is too large. In some cases, the ERP project is one of the largest investment project for the information technology. A new way for small and medium businesses are taking advantage of open source ERP system. There were a number of businesses deploying open source ERP in recent years. However, many people are concerned with open source ERP system this. A study to examine the factors affecting the behavior intention and their attitude to use open source ERP system needs to be studied at this time. The following thesis will focus on reviewing the factors affecting the attitudes and behavior intention to use of users for open source ERP system. Thereby, we can see the picture of the attitude or the user's behavior intention for open source ERP system in Vietnam. This thesis will conduct to survey based on the questionnaire. The questionnaire will be sent to leaders and staffs working in some enterprises. Data collected will be analyzed using the SPSS i

7 Results indicated that attitude, behavior intention of users to be deeply influenced by their perceptions. Quality systems have a positive impact to the user's perception. However, increased quality of the system will make the complexity of the system also increases that will negative influence the perception of the user. The balance between systems quality and the system complexity needs a balance. Keywords: ERP, TAM, System quality, System complexity, TRA, TBP ii

8 ACKNOWLEDGEMENTS First, I would like to express my deep and sincere gratitude to my advisor, Dr. Kuo-Lun Hsiao, Department of Information Management, Institute of Informatics, Shu- Te University and Dr. Nguyen Linh Trung. His wide knowledge and his logical way of thinking have been great value for me. His understanding, encourage and personal guidance have provide a good basic for the present thesis. Next, during this work I have received many helps from my friends. And many thanks to a numbers of respondents who helped me to filled in the research surveys that bring to me the result of this study. Finally, I owed my loving thanks to all members of my family who help me, encourage me during my studying time. They always support me; make me feel full of energy to do best for my study. iii

9 Table of Contents ABSTRACT... i ACKNOWLEDGEMENTS... iii Table of Contents... iv List of Tables... viii List of Figures... ix Chapter 1: Introduction Background Study motivation Research Question Study Limited Study Procedures...5 Chapter 2 Literature Review Concept of ERP Evolution of ERP The structure of the ERP Benefits of ERP Model User s acceptant open source ERP Previous studies TRA Model TAM model...16 iv

10 2.5.2 Factors in TAM model Perceived usefulness Perceived ease of use Attitude Behavior Intention System Quality System Complexity Subjective Norm...20 Chapter 3 Research Methodology Research Framework: Hypothesis Measurement activities Perceived Usefulness Perceived ease of use: System quality System Complexity Attitude Behavior Intention Sampling Method Research Method Descriptive Statistics v

11 3.5.2 Factors Analysis Reliability analysis Regression Analysis Descriptive analysis Reliability Analysis Factors Analysis Regression Analysis Linear Regression Analysis for Behavior intention to use open source ERP Linear Regression Analysis for Attitude using open source ERP Linear Regression Analysis for Perceived usefulness Linear Regression Analysis for Perceived ease of use Linear Regression Analysis for System quality ANOVA Analysis...43 From the results above show that at significant level of 0.05, we can recognize the ERP user experience does not affect users' attitudes use open source ERP. However, user s experience affects to perceived usefulness, perceived ease of use, behavior intention...43 Chapter 5 Research Conclusions Research conclusion Suggestion Limited...48 References...49 vi

12 Appendix A...53 Research Questionnaire in English...53 Best regards,...53 This section covers personal information. Please tick the corresponding squares Appendix B...58 Research Questionnaire in VietNamese...58 Đây là phần thong tin cá nhân, Hãy làm ơn đánh dấu vào ô hình vuông...59 PART II: Sử dụng ERP...59 vii

13 List of Tables Table 1. Measurement perceived usefulness Table 2. Measurement perceived ease of use Table 3. Measurement perceived ease of use Table 4. Measurement perceived ease of use Table 5. Measurement perceived ease of use Table 6. Measurement perceived ease of use Table 7. Characteristics of Sample Demographics Table 8. Reliability Test Table 9. VARIMAX Rotated Component Analysis (Factor-Loading Matrix) Table 10. Linear Regression Analysis for Testing H1, H2, H Table 11. Linear Regression Analysis for Testing H3 and H Table 12. Linear Regression Analysis for Testing H5, H6, H8 and H Table 13. Linear Regression Analysis for Testing H7, H9 and H Table 14. Linear Regression Analysis for Testing H Table 15. ANOVA Test Table 16. Conclusion for hypotheses viii

14 List of Figures Figure 1. Describing the evolution of modern ERP systems today... 8 Figure 2. Theory of Reasoned Action Figure 3. Theory of Planned Behavior model Figure 4. Technology of Acceptance Model Figure 5. Research Framework Figure 6. Final Model ix

15 Chapter 1 Introduction In this chapter attempt to provide a review of implementation of enterprise resource planning (ERP) on the world and in Viet Nam, and also benefits had from this ERP system, and answer for question why author selected this subject to study. 1.1 Background From late 1940s and early 1950 many companies have tried to apply information and communication technology in their automation business management process, and also manage information flow parallel with cargo flow, from material to finished products. But long ago 1990s, Enterprise resource planning (ERP) system had been introduced. ERP is software packages that integrated every functions of business and coordinated different business process in a company into a computer system. ERP attempt to integrate all of information into a central database and allow information can be retrieved from many different positions of company according with authorized level.(davenport, 2000). ERP systems have promised improving business process and cut down cost of products. Moreover, ERP is a bridge between e-commerce and supply chain management. The system can be linked vendors, distributors and customers enabled for cargoes and information flow. Through that, this information system provides leaders a picture about status of enterprise exactly and enough help for making decisions just in time. 1

16 In 2006, Viet Nam officially attend to the WTO, this is an important step in the integration process with the world economy. This is a huge opportunity for Vietnam enterprises also have many challenges for Vietnam enterprises. Pressure from large corporations from countries with developed economies, Vietnam enterprises are required to change to improve competitiveness. And the application of IT is one strategy to help Vietnam enterprises improve business competitiveness. Moreover, many international delegates at WITFOR 2009 assess the development of Vietnam's IT is "amazing" and a development model that they need to learn. Mr. Houlin Zhao, Deputy Secretary General of the International Telecommunication Union (ITU) in a speech opening the World IT Forum (WITFOR 2009) assessed the ICT Vietnam as "an amazing development ". With in developing of information technology and communication, the term enterprise resource planning (ERP) also appeared at Viet Nam on Until now, there are a lot of Viet Nam enterprises implemented ERP system to manage their business processes (Viet Nam PC World, 2003) and becomes company's solutions are more appropriate investment due to the huge benefits that it brings (ERP magazine, 2006). 1.2 Study motivation In Vietnam, applying information technology to improve business management has growth rate is very high demand annually including ERP. This is also a general picture of the developing countries to demand reform of economic management technology continuously. However, for many reason both objective and subjective, the 2

17 implementation ERP in Vietnam have not been popular. If according to the Vietnam Chamber of Commerce and Industry (VCCI, 6 / 2006) there are only 1.1% Vietnam Enterprises applied ERP solution. By the year 2009 also reports of Viet Nam Chamber of Commerce and Industry (VCCI), the rate of companies applying ERP have gained 9%. Therefore, amount of Viet Nam enterprises implemented ERP system is limited. While the numbers of Viet Nam small and medium enterprises about enterprises in overall. Along with the development of IT, the term enterprise Resource Planning (ERP ) has appeared and became popular in So far, there are many Vietnam enterprises have implemented ERP systems to manage their business processes (Viet Nam PC World 2003) and has quickly become the company's solutions are more appropriate investment due to the huge benefits that it offers. ERP really play a crucial help to companies can take advantage of resources, cost... they are not all benefits of ERP, for Vietnam enterprises, the successful implementation of ERP systems also means they will inherit the business process using business management has been standardized by the leading corporation in the world. (Viet Nam ERP Magazine, No. 10, 2007). But in actually, an implementation ERP system was really difficult and very expensive. In many case, ERP was the most investment in several collaborative projects. The system is so expensive but the cost of consultant is more expensive. Following Meta Group found that the implementation ERP system took about 23 weeks and the cost for this implementation up to 12 million USD, normally (G. Stewart 2000). 3

18 Especially, Vietnam enterprises they have financial resources are very limited. In recent years, Open source software has developed strongly due to the great advantages of the open source software, which don t need to buy license compared with commercial software. Open source ERP is a new way that Vietnam enterprises should accessed The deploying open source ERP system requires human resources having good information technology skills. The studying how users can believe and accept the application of open source ERP model has enormous significance with Vietnam enterprises. 1.3 Research Question From the reality of the implementing ERP for Viet Nam enterprises. This thesis will try to find out the issues aim to answer for these questions: 1. What are factors affecting to user s acceptance open source ERP? 2. How are factors affecting to user s acceptance open source ERP? 1.4 Study Limited As we know, there are many obstacles from within the enterprise, from the managers themselves of businesses, from business environment, state policies, suppliers and consultants ERP affect to user s acceptant open source ERP. However, for many different reasons, within the scope of this article cannot describe all of factors affecting to user s acceptant open source ERP. 4

19 1.5 Study Procedures In the first chapter is a picture of this study, and provide about ERP system and the advantages that it brings, as well as the problems related with investing ERP system, which Viet Nam enterprises must faced. The next chapter is a chapter 2 will provide the reader with fundamental issues related which mentioned by this article. Chapter 3 refers to the most suitable method to study the subject, and all data will be analyzed using SPSS statistical software to make conclusions in chapter 5. 5

20 Chapter 2 Literature Review In chapter two, provides basic knowledge about what ERP system and a brief of the evolution of ERP systems as well as benefits that ERP systems bring to the enterprises. Right after discussing some of factors in the TAM model which used as a infrastructure for this study, combined with many research of another authors, this paper summarize the model user s intention accept open source ERP. 2.1 Concept of ERP The concept of ERP has many authors given many concepts of ERP as following: ERP is software packages integrated business functions and processes handled by a professional business systems. Information and process information integrated in the same system at one central database, which allows information, may be visible from anywhere in the organization (Davenport, 2000). Following Travis Anderegg (2000), who gave the definition of ERP: ERP is the abbreviation of the phrase Enterprise Resource Planning, it is a comprehensive business solutions. Implementing process integrated and synchronization operations of a company. It includes ERP systems and business processes within and around each module. ERP systems and business processes must be combined to become the ERP solution. Elements integrated in the ERP system to mount the whole system to form a complete ERP solution. ERP system includes many of modules such as financial management - accounting, Human management - salaries, production management, logistics management, service 6

21 management, project management, prediction and planning... Professional activities within each module includes the management, making decision, training, documentation management, communication, human management (Travis Anderegg, 2000) 2.2 Evolution of ERP ERP is the abbreviation of the words Enterprise Resource Planning. ERP system is a truly high revolutionary. The pioneers in this field named for the ERP system by modern merge with the first letter with together. It has caused confusion in the recent past as MRP, MRPII, ERP and recently the ERM. 7

22 Figure 1. Describing the evolution of modern ERP systems today Source: Travis Anderegg,2000 In the 1950s the concepts began appear focused on the basic functions of managing the production process, includes: Economic of quantity Safety Stock Bill of Materials Work Orders In the mid-1960s, the function of the MRP system composed. Based on the 8

23 integration of the basic functions of production management process. In the 1975, the MRP system has been defined and fully understanding and more accurate. Since then start to form MRPII system. By the 1990s, what gave rise to the concept of ERP? It is information technology. Information technology has contributed to the concept of ERP systems based on MRPII. Some experts found that the ERP definition have a small little problem, MRPII or ERP or without including the ability: 4th-generation language or database relations. Information technology is important but it should not take too much to define the ERP system. A definition of the ERP should include the need for professional production and business activities including accounting, manufacturing, distribution, trading, sales, materials, quality... ERP systems are defined more precisely as follows: ERP is the acronym of Enterprise Resource Planning. It is software systems, which help activities of business, operate efficiently and comprehensively, ERP modules include: Manage marketing and sales Design and Product Development Management of materials and finished products Purchase Management Manage distribution Design and development processes Production Management 9

24 Quality Management Human Management Financial Accounting Reporting system ERP systems can be considered the next steps of development of MRPII system 2.3 The structure of the ERP With every business or industrial are architectural or functional modules of an ERP system can be very different. A standard ERP will include the following components: 1. Financial Accounting Ledger Book spare cash, bank ledgers Customer database Orders and other receivables Purchasing and accounts payable Salary Staff Fixed assets 2. Logistics Inventory Management and Inventory Delivery Management Carrier Management 10

25 3. Production Master Production Schedule Material Requirements Planning Distribution Requirements Planning Capability Requirements Planning Bill of Material Product Routings Barcode Management (Bar Coding) Work Order 4. Project Management 5. Services Manage customer service Management of maintenance 6. Predicting and planning 7. Tool reports Thus, ERP is generally a set of functional modules for functional departments in a business such as accounting, sales, supplies and production Benefits of ERP According to a survey designed by (Dr. Scott Hamilton, 2004) made from thousands of companies in the manufacturing sector after ERP applications has brought great benefits and actually been proven by the numbers relative nature. 11

26 1. Reduction of inventories: Improving the writing and production planning often leads to reduced inventory by 20% or higher. This is not only a time to reduce the company's assets (inventory and usually constitutes a percentage of assets), but also savings accounts for the continuous inventory including inventory costs yards, material handling, obsolescence, insurance, taxes, losses... With 10% average interest rate for these fees, the reduction of inventory helps businesses can save between 25% -> 30 %. 2. Materials cost reduction: Improved purchase plan to help businesses get the negotiations to get better prices, which often leads to cost reduction of 5 percent or better. With a reasonable schedule, we will help businesses better able to focus for the talks to achieve a good price as well as improving the quality of materials thanks to the tracking of progress and lack of control materials promptly. In addition, ERP systems also provide information to negotiate such demand forecast material goods belong to any group with statistical performance from its suppliers help to give providers meet the needs for future materials. 3. Reduced labor costs: Improving production processes to minimize interruptions in production, reprocessing and less overtime. This success generated by the ERP system will help reduce the nearly 10% of the cost for direct labor and indirect production process. By reducing the production schedule in time for urgent deliveries, shortage of materials and special minimize time expediting materials handling... 12

27 Thereby helping to supervise production may require more work that is extensive and may raise rates to keep up the delivery schedule. In addition, supervision has more time for the management and direction as well as staff training and development of better production methods. 4. Improved customer service and sales: to improve coordination between sales and production leading to better customer service and increase revenue. Improved customer relations, in making reasonable delivery time for customers leads to customer satisfaction and other orders from customers back increased. Such a cycle will start, faster and faster. Sales just concentrate on selling instead of verification as well as apologize to customers for delayed deliveries. Additionally, sales executives can configure different product from the customer's requirements and offer a price agreement quickly instead of waiting for confirmation from the technical department staff. Which will take orders as well as less sales than the actual increase. Usually 10% or higher. 5. Improved management accounting: The production had improved is very significantly to reduce delivery time to customers, thereby increasing significantly the amount of cash for the company. Because ERP systems had improve rapidly and accurately process for creating invoices directly from the sales transactions timely delivered to customers. Can manage the debt limit of time thereby improving customer credit management one closely. These things 13

28 help businesses save up to 18% or higher. Example: With manufacturing companies have sales of $ 10 million, with stock value is 3 million and average debts of 2 million. Then for efficacy by the ERP system to help businesses deliver an account to save nearly $ 1 million per year Reduce inventory: Help businesses save nearly 20% of the value stock ie $ 600,000. Besides improving business capacity (due to better management of raw material costs, labor... with competitive price) for businesses, the cost savings even higher. Customer debts: The shortening debt collection brings benefits for business nearly 18% over $ 300,000 equivalent 2.5 Model User s acceptant open source ERP Previous studies TRA Model The Theory of Reasoned Action model developed by Fishbein and Ajzen (1975). TRA aim to explain individual s behavior intention (Fishbein and ajzen,1975). The core factor in the TRA model is attitude towards behavior, subjective norm and behavior intention 14

29 Figure 2. Theory of Reasoned Action Source: Fishbein and Ajzen, 1975 In the TRA model of Fishbein and Ajzen (1975) adopted in the researches which research people s behavior intention to accept or not accept a particular technology. From the TRA model of Fishbein and Ajzen (1975) there was many models developed base on this model. The TAM model of Davis (1989) as a example and the Theory of Planned Behavior model developed by Mathieson and Ajzen (1991) with addition more factors Figure 3. Theory of Planned Behavior model Source: Mathieson and Ajzen

30 TAM model The Technology Acceptance Model (TAM) developed by Davis based on Theory of Reasoned Action model of Fishbein and Ajzen (1975) with addition two factors includes perceived ease of use and perceived usefulness. TAM designed to examine user s acceptance a particular technology. (Davis et al, 1989). The original TAM model includes five factors: perceived ease of use, perceived usefulness, behavior intention, attitude, actual use. Figure 4. Technology of Acceptance Model Source: Davis, 1989 According to Nguyen and Barrett (2006) there are two most important factors in the TAM model of Davis are perceived usefulness, perceived ease of use, which aim to answer why users accept or reject a particular technology. TAM2 model is an extension of the TAM model, with consideration of social factors, one of social factors is subjective norm, but in the TAM model previously has not been included 16

31 Applying TAM2, Venkatesh and Davis (2000) research and showed that subjective norm have strong influence to behavior intention, perceived usefulness Factors in TAM model Perceived usefulness Preservation as an important role for anyone who want to use a paticular technology. Preservation that helps users feels more comfortable, more confident in job performance. Davis (1989) defined the perceived usefulness is the confidence of someone who believes using a particular system would enhance their job performance. ERP system performance is convenient, accurate and timely help users obtain results accurately and quickly based on using ERP systems, moreover, this system also allows users to manage their work better, help them make decisions (Scott Hamilton, 2004). Preservation advantages of ERP in business processing as well as management strongly influence to attitude and desire of user Perceived ease of use Similarly as perceived usefulness, perceived ease of use plays an important role for the user, which strongly influence to their attitude. Davis (1989) defines perceived ease of use can be understood as someone who believes using a particular technology is worthy with their time and effort spent and the benefits they have from the system. (Davis, 1989). Sometimes, with great effort, time but user again extremely disappointed with a poor system performance and unreliable. In large, complex systems such as ERP 17

32 will be very difficult for users to use and can learn to use system, perceived ease of use plays more important role Attitude There are many definitions about attitude was studied by many psychology researchers, this article will review the definitions about attitude appropriate with information systems. One of the definitions studied by McGuire: attitude is evaluating response of someone with a specific object. This concept developed by Aizen (1988) from McGuire s definitions by describing the attitude as a reaction like or dislike an object, bend, events or situation. Ajzen's definition emphasizes someone s evaluation. Many authors such as Davis et al (1989), Taylor and Todd (1995a, 1995b) announced that attitudes influence positively or negatively to perceiving of individual when he or she perform a target behavior Behavior Intention Behavior intention is the central factor in the TAM of Davis (1989) model and also in the TRA of Aizen & Fishber. Behavior intention defined by Aizen & Fishbein is a person who will perform a target behavior. (Ajzen & Fishbein, 1980, p. 5). It is an indication of how people effort and spend their time in order to perform the behavior. Influenced by three components: person s attitude toward performing the behavior, the perceived social pressure, called subjective norm and perceived behavioral control in this article we use perceived usefulness 18

33 System Quality Following DeLone and McLean (2003), a factor is one of most importance in the IS success model of DeLone and McLean is system quality. There are many researchers examined the influence of system quality to perceived usefulness such as (Davis, Bagozzi, warshaw, 1989); (Delone and Mclean 2003). System quality is very important for the large system as ERP; a reliability system is helpful for user s feeling confident when using a system to control their job and also helps leaders of enterprises manage their company. Conversely, ERP system instability will make users feel anxious when using system, even leading to the failure of the system. No coincidence that (Davis 1989) has added system quality in his TAM model, and McLean and DeLone (2003) considered the quality system is one important factor leading to the success of a system. System quality refers to the processing characteristics of an IS (Hung-Pin Shih, 2004). The system reliability is very important and a system should ensure a very rare error during operation. Can see that the system quality is one important factor affect to user perceives. Therefore, this article will study factor of system quality to examine and evaluate the impact of open source ERP system quality System Complexity Goodhue and Thompson (1975) and Thomson et al (1991) defined system complexity as the improvement is difficult to understand and use. Klein and Sorra (1996) have found that these improvements will make the level of acceptance dropped. 19

34 Technology development towards friendly more. A system complexity will make users feel difficult to grasp how to use that system. This may be cause the user does not want access to the complex system, and this article will explore how the complexity of open source ERP system affects on Subjective Norm Behavior intention of users outside the affected of perceived usefulness and attitude also influenced by subjective norm. Subjective norm recently was research by many researchers (Venkatesh et al, 2003) Subjective norm as a main factors in social influence.. Davis et al (2000) is defined subjective norm as the perception of a person affected by those people that are important to him / her to tell them who should or should not perform a certain activities. Across all studies have shown that subjective norm have a strong influence to behavior intention and should be studied in this article. 20

35 Chapter 3 Research Methodology In chapter 3, will provide the research framework, pointed out the factors affects to the user s intention to use open source ERP system. Following are the key assumptions and variables measured to demonstrate and assess the importance of the assumptions. Sampling method, data collection and research methods will be discussed in this chapter as the premise for the next chapter to synthesize and analyze data 3.1 Research Framework: System Quality H6 Perceived H13 H7 Usefulness H3 H1 System complexity H8 H9 H5 Attitude H2 Behavior Intention H10 Perceived ease of use H4 Subjective Norm H11 H12 Figure 5. Research Framework 3.2 Hypothesis Davis (1989) studied perceived usefulness in his model and it isa one of the main 21

36 factors, his research aims to examine the impact of the perceived useful affects to behavior intention and attitudes of users to adopt a particular technology. Following Davis, there are many different authors also studied the impact as well as the relation of perceived usefulness to other factors such as (Koufaris, M., and Hampton-Sosa, 2002), Agarwal and Prasad (1999), Chau and Hu (2002), Davis, et al. (1989). Moon and Kim (2001), Venkatesh and Davis (2000) have noticed the great influence of perceived usefulness to the user's intention. This article will develop the following hypothesis based on researches of authors about: H1: Perceived usefulness are positive related to behavior intention to use open source ERP H3: Perceived usefulness are positive related to attitude using open source ERP Davis (1989) studied the relationship between perceived ease of use and attitudes of users as well as the relationship between perceived ease of use to perceived usefulness. Next, Moon and Kim (2001) and many other researchers have studied the influence of perceived ease of use influence to perceived usefulness and attitude of the user. This article will develop the following hypothesis based on previous studies by Davis (1989); Moon and Kim (2001). The hepothesis are developed as follows: H4: Perceived ease of use are positive related to attitude using open source ERP. H5: Perceived ease of use are positive related to perceived usefulness. From previous studies of Davis in 1989, this article will make the hypothesis to 22

37 examine the relationship user s attitude and user's intention. Eagly and Chaiken (1993) stated that the preservation and attitude have a positive relationship user s intention. Fishbein and Ajzen (1980) also started that there are positive relationship behavior intention and attitudes of people. As well as Keen (1981) and Morton (1978) found that there is a close relationship between behavior intention and attitude to use. Goodhue and Thompson (1995) pointed out a technology used for purposes consistent with what users want, in the case that attitudes will have a positive effect to the desired use. From previous studies of the author, this article will offer the following hypothesis: H2: Attitude using open source ERP are positive related to behavior intention to use open source ERP Following DeLone and McLean (2003), a factor is one of most importance in the IS success model of DeLone and McLean is system quality. There are many researchers examined the influence of system quality to perceived usefulness such as (Davis, Bagozzi, warshaw, 1989); (Delone and Mclean 2003). Tony Ahn, Seewon Ryu, that the system quality should depend on customer needs are identified during analysis and system design. Can see that the system quality is one important factor affecting a perceivation awareness of users H6: System quality of open source ERP is positive related to perceived usefulness H7: System quality of open source ERP is positive related to perceived ease of use 23

38 Goodhue and Thompson (1995) and Thomson et al (1991) defined complexity as the improvement was found difficult to understand and use. Klein and Sorra (1996) have found that these improvements will make level of acceptance dropped. Therefore, this article would make the following two hypotheses H8: System complexity of open source ERP is negative related to perceived usefulness H9: System complexity of open source ERP is negative related to perceived ease of use H13: System complexity of open source ERP is negative related to system quality Based on these studies in the TAM2 model of Davis spoke about the influence of subjective norm to perceived usefulness, behavior intention. At the same time, the study of authors (Hsu & Lu, 2004); (Y Lee, 2006); (Taylor & Todd, 1995) the authors have studied the influence of the perceived usefulness of subjective norm as well as behavior intention. However, the authors have not studied the impact of perceived ease of use to subjective norm. Thus the following article will further complement the subjective norm effects to perceived ease of use. Hypothesis are developed as follows: H10: Subjective norm are positive related to perceived usefulness H11: Subjective norm are positive related to perceived ease of use H12: Subjective norm are positive related to behavior intention to use open source ERP 24

39 3.3 Measurement activities Perceived Usefulness Based on the questionnaire developed by Davis (1989) and Davis et al (1989) applied and adjusted in accordance with 5 questions and with 5 point 5 = Strongly agree; 4 = Agree; 3 = Neutral; 2 = Disagree; 1 = Strongly disagree. As follows: Variable Table 1. Measurement perceived usefulness Content of Item Using ERP system will enhance my effectiveness on the job. Using ERP system will make my job easier. Perceived Usefulness Using ERP system will increase my productivity. Using ERP system will enable me to accomplish tasks faster. Using ERP system will improve my performance Perceived ease of use: Based on the questionnaire developed by Davis (1989) and Davis et al (1989) applied and adjusted in accordance with 5 questions and with 5 point 5 = Strongly agree; 4 = Agree; 3 = Neutral; 2 = Disagree; 1 = Strongly disagree. As follows 25

40 Variable Table 2. Measurement perceived ease of use Content of Item It will be easy to get ERP system to do what I want it to do. Perceived ease of use ERP system will be flexible to interact with. Our interaction with ERP system will be clear and understandable. ERP system will be easy to use System quality According to Delone and McLean (2003) as well as Nelson et al. (2005), system reliability, convenience of access, response time, and system flexibility are examples of qualities valued by users. Quality system can be measured through the convenient information access, flexibility of the system, the integrity of the system, response time, updated regularly (Bailey and Pearson). Based on the research purpose and research model, the paper will be based on the studies and modified as the following table: Variable System quality Table 3. Measurement perceived ease of use Content of Item Is your company s open source very rare errors 26

41 Does your company s open source ERP provides up-todate information Does your company s open source requires less maintenance Do you get the information you need in time System Complexity Based on the questionnaires of Thompson et al (1991) had been adopted and modified in to 3 questionnaires item with measure scale 5 point. 5 = Strongly agree; 4 = Agree; 3 = Neutral; 2 = Disagree; 1 = Strongly disagree. The questionnaires developed as following: Variable Table 4. Measurement perceived ease of use Content of Item Working with the open source ERP is too complicated System complexity Using open source ERP takes too much time from normal duties How to use the system to make it worth the effort Attitude Based on the questionnaire developed by Davis et al (1989), Taylor and Todd (1995), and Thompson et al (1991) applied and adjusted in accordance with 5 questions and with 5 point 5 = Strongly agree; 4 = Agree; 3 = Neutral; 2 = Disagree; 1 = Strongly disagree. As follows: 27

42 Variable Table 5. Measurement perceived ease of use Content of Item Using open source ERP system is a good idea Attitude Using ERP would be pleasant Using ERP is a wise idea I like the idea of using ERP Behavior Intention Based on the questionnaire developed by Vankatesh et al (2003) applied and adjusted in accordance with 5 questions and with 5 point 5 = Strongly agree; 4 = Agree; 3 = Neutral; 2 = Disagree; 1 = Strongly disagree. As follows: Variable Table 6. Measurement perceived ease of use Content of Item intend to use my company s open source ERP in performing analytical procedures I intend to use my company s open source ERP in Behavior intention planning and tailoring related program I intend to use ERP system in electronic mode, rarely print out copies of work paper as I proceed through my tasks I intend to use ERP system to review decisions made by other members of the department. 28

43 3.3 Sampling Method The research will conduct by referring to previous studies are summarized on the factors. Questionnaire delivery to the leader and employees in companies by , letter directly In the first part of the questionnaire, respondents will be required to provide some personal information such as gender, age, current job, job position, field of study and experience. The next section of the questionnaire are questions that require respondents choose the level available to answer questions. Each question will have a scale from 1 (completely disagree) to 5 (completely agree). 120 questionnaires will be sent to directors, employees of companies through , 150 questions will be sent directly to the leaders, employees of companies in the Ha Noi, Nam Dinh province, Ninh Binh province. After questions collected, and have been carefully selected, only the questionnaires are completed, no bugs are used to conduct analysis according analysis method 3.5 Research Method Descriptive Statistics Personal data will be descriptive such as gender, age, previous job, current position, area of research, experience... this information will be used for analysis. The data elements will be analyzed as a percentage, the distribution in order to know the 29

44 distribution of selected samples Factors Analysis Factor analysis is not a new method of data analysis, was used from the early 20th century (Spearman, 1904). The branches of social science used this research methods used to examine the relationship within the model, data reduction, scale development, classification and testing hypothesis (Rummel, 1970). When conducting factor analysis a number of issues need to be considered. Ford et al (1986) focuses on four main issues: defining factor model is used, the number of factors, rotation methods, and Interpretation of factors solution First, researchers should choose the model used in factor analysis. According to Ford et al (1986), factor analysis can be divided into two approaches includes: common factors analysis and components analysis. In factor analysis, the number of factors is the result of a rotation process based on different criteria (Ford et al, 1986). One of the criteria, the recent studies often used is criteria Keiser, which based on eighenvalue value must be greater than one (Kim & Mueller, 1978). Unfortunately these different criteria will bring different results. Tucker et al (1969) have found that Keiser criterion often gives incorrect results on the number of factors. One other criterion was given a pre-determined number of factors are suggested by many recent studies (Ford et al, 1986); (Comrey, 1978); (Harris, 1976). Based on the experience of previous researchers, this article will use the methods of analysis and components by predetermined number of factors are eight factors. 30

45 3.5.3 Reliability analysis In measurement reliability, Cronbach's α was used to measure the reliability of the variables. If Cronbach's α greater than 0.7 it means that variable is accepted for its reliability, and Cronbach's α in less than 0,35 means that the reliability of the variables are very low and should be removed. (Robinson, Shaver, and Wrightsman 1973) Regression Analysis Regression analysis is a statistical method used to analyze the relationship between variables. Typically, researchers will need to consider the impact on variable causes and effects of observed variables with other variables in the research model. Hypothesis in this article will be tested and analyzed by Regression analysis on SPSS to find relationships between independent variables and the dependent variable in the hypothesis. According to Daniel Muijs who wrote the book Doing quantitative research in education recommended for the R square value should be: <0.1: poor fit; : modest fit; : moderate fit ; > 0.5: strong fit 31

46 Chapter 4 Data Analysis and Results 4.1 Descriptive analysis The detail description of samples or the respondents personal data, such as their gender, age, Experience in IT, field of study..and so on will be analyzed. Every construct of the data will be analyzed in percentage, frequency distribution in order to know the sample distribution. Table 7. Characteristics of Sample Demographics Percentage Measure Item Frequency (%) Gender Male Female < Age Over Under 1 year Experience in ERP 1-3 year year More than 5 year Other Profession Employer Manager Director Other Undergraduate Engineering Social or related

47 Time working Business or related Under 1 year year year More than 5 year Reliability Analysis Before analyzing the relationship between factors, it is important to ensure the reliability of the factors. In order to test reliability of the factors, and scale to ensure appropriate with the questionnaire. Reliability of a factor can be determined based on the value of AVE or conbach's α values. This thesis will use the cronbach's α value to measure reliability of factors including the behavior intention, attitudes, perceived usefulness and perceived ease of use, systems quality, system complexity, subjective norm. Cronbach's α value greater than 0.7 should be accepted, if cronbach's α values less than 0.5 need be removed: Table 8. Reliability Test Factors Items Cronbach s α Behavior intention to use Attitude Perceived usefulness Perceived ease of use System quality System complexity Subjective norm

48 From the table 8 show that, the cronbach s α of each factors is very high. The value of conbach s α for each factors are greater than 0.5. So, factors have level of reliability is very good. 4.3 Factors Analysis Factor analysis can be used to identify the structure of relationships among respondents (or items) by examining the correlations between the respondents (or items). With the factor analysis, we can identify the separate dimensions of the structure and then determine the extent to which each variable is explained by each dimension. Once these dimensions and the explanation of each variable are determined, we can do summarization and data reduction. First, in order to assess construct validity and identify the unique dimensions of each construct, factor analysis with VARIMAX rotation was employed. Construct validity examines the extent to which a construct measures the variable of interest. In other words, it should demonstrate relatively high correlations between items of the same construct (convergent validity) and low correlations between items of constructs that are expected to differ (discriminate validity). Table 9 shows the results of the VARIMAX rotation on the original 37 items constrained to seven factors. Hair et al. suggested that an item is significant if its factor loading is greater than From the table show items is strongly validity. 34

49 Table 9. VARIMAX Rotated Component Analysis (Factor-Loading Matrix) Behavior Perceived Perceived System System Subjective Attitude intention Usefulness ease of use quality complexity norm BI BI BI BI ATT ATT ATT ATT PU PU PU PU PU PEOU PEOU PEOU PEOU SQ SQ SQ SQ SC SC SC SN SN

50 4.4. Regression Analysis In this study, linear regression was adopted to examine the relationships between independent variables and dependent variables to test our research hypotheses. To identify whether the higher level of behavior intention to use open source ERP will lead to higher level of actual to use open source ERP (H1) is one of the research purposes tested in this study Linear Regression Analysis for Behavior intention to use open source ERP The results of linear regression analysis for behavior intention to use open source ERP are shown in the Table 10. Table 10. Linear Regression Analysis for Testing H1, H2, H12 St. Constructs t value R 2 Adj-R 2 F value coefficients β Perceived usefulness 0.348** Attitude *** using open 0.158** source ERP 36

51 Subjective norm 0.478*** Dependent variable: behavior intention ***p<0.001, **p<0.01, *p<0.05, 0.05< + p < 0.1 The final model shown in the Table 10 had a good overall fit (F = , p = 0.000). And at significant level 0.05, perceived usefulness, subjective norm, and attitude using open source ERP (H1, H2, and H12) have significant positive relationships with behavior intention to use open source ERP.. Therefore, we conclude that hypotheses H1, H2, and H12 are supported. We also can see in the table that the adjusted R 2 value for there constructs, namely perceived usefulness, attitude using open source ERP and subjective norm is 0.697, meaning that the explanation ability of the independent constructs is good for our dependent variable, behavior intention to use open source ERP Linear Regression Analysis for Attitude using open source ERP The results of linear regression analysis for attitude using open source ERP are shown in the Table 11. Table 11. Linear Regression Analysis for Testing H3 and H4 St. Constructs coefficients β t value R 2 Adj- R 2 F value 37

52 Perceived usefulness Perceived ease of use 0.595*** ** *** Dependent variable: attitude using open source ERP ***p<0.001, **p<0.01, *p<0.05, 0.05< + p < 0.1 The final model shown in the Table 11 had a good overall fit (F = , p = 0.000). And at significant level 0.05, perceived usefulness perceived ease of use (H3 and H4) have significant positive relationships with attitude using open source ERP. Therefore, we conclude that hypotheses H3 and H4 are supported. We also can see in the table that the adjusted R 2 value for two constructs, namely perceived usefulness, perceived ease of use is 0.564, meaning that the explanation ability of the independent constructs is good for our dependent variable, attitude using open source ERP Linear Regression Analysis for Perceived usefulness The results of linear regression analysis for perceived usefulness are shown in the Table 12. Table 12. Linear Regression Analysis for Testing H5, H6, H8 and H10 St. Constructs coefficients β t value R 2 Adj- R 2 F value 38

53 Perceived ease of use System quality 0.317*** *** System complexity * *** Subjective norm 0.138** Dependent variable: perceived usefulness ***p<0.001, **p<0.01, *p<0.05, 0.05< + p < 0.1 The final model shown in the Table 12 had a good overall fit (F = , p = 0.000). And at significant level 0.05, perceived ease of use, system complexity, system quality, subjective norm (H5, H6, H8 and H10) have significant positive relationships with perceived usefulness. Therefore, we conclude that hypotheses H5, H6, H8 and H10 are supported. We also can see in the table that the adjusted R 2 value for four constructs, namely perceived ease of use, system complexity, system quality and subjective norm is 0.683, meaning that the explanation ability of the independent constructs is good for our dependent variable, perceived usefulness. 39

54 Linear Regression Analysis for Perceived ease of use The results of linear regression analysis for perceived ease of use are shown in the Table 13. Table 13. Linear Regression Analysis for Testing H7, H9 and H11 St. Constructs coefficients β t value R 2 Adj- R 2 F value System quality 0.273*** System complexity *** *** Subjective norm Dependent variable: perceived ease of use ***p<0.001, **p<0.01, *p<0.05, 0.05< + p < 0.1 The final model shown in the Table 14 had a good overall fit (F = , p = 0.000). And at significant level 0.05, system complexity, system quality, (H7, H9 and H11) have significant positive relationships with perceived ease of use, but subjective norm shown in the table haven t significant positive relationships with perceived ease of use. Therefore, we conclude that hypotheses H7 and H9 are supported but H11 is not supported, We also can see in the table that the adjusted R 2 value for two constructs, 40