ERP System Adoption in the Saudi Government Sector: Insights from The Technology- Organisation- Environment (TOE) Framework.

Abstract

In the Kingdom of Saudi Arabia (KSA), government organisations are considered one of the top areas of importance for the government to align with Vision 2030. However, the adoption of Enterprise Resource Planning (ERP) is confronting many challenges and barriers, including technological, environmental and organisational ones, which must be considered and treated carefully. This paper seeks to investigate the factors affecting ERP adoption in the Saudi government sector via a quantitative methodology targeting different levels of ERP users across different government organisations. This research employs a quantitative methodology and involves data collection from various ERP users and managers in different government organisations. A survey is conducted based on the principles of the Technology, Organisation, and Environment (TOE) framework. Aiming to gather their perspectives on the participants’ usage experiences, we try to determine the factors that affect ERP adoption. A total of 61 responses are chosen for further analysis. Correlation analysis is employed as a statistical tool to investigate the relationships between the dependent variable (ERP adoption) and predictor variables, such as technological complexity, relative advantages, and government support. In addition, linear regression analysis is employed to identify the factors with the greatest impact on the adoption of ERP in government organisations. Our findings show that the compatibility and relative advantages are statistically significant for the ERP adoption process (p < 0.01), while complexity, top management support, training, and government support are not (p > 0.05). Thus, the adoption of ERP in the Saudi Arabian government sector is primarily motivated by technological factors rather than organisational or environmental ones. This research contributes by providing best practices for the successful implementation of ERP systems in the Saudi Arabian government sector, as well as in other Middle East countries with similar contexts.