Mediation of Perceived Innovation Characteristics on ERP Adoption in Industrial Cluster

Title

Mediation of Perceived Innovation Characteristics on ERP Adoption in Industrial Cluster

Creator

Elangovan N.

Description

An industrial cluster, due to its close network of institutions, will experience various pressures that force the industry to have a homogeneous structure, norms, and practices. These pressures can also lead to adoption of innovative technologies. Enterprise Resource Planning (ERP) is perceived as a sophisticated technology and diffuses across the cluster by its innovative characteristics. However, firms in the industrial cluster will have different rate of adoption of technologies due to the varying level of knowledge spillover and a heterogeneous absorptive capacity. This study empirically tests how absorptive capacity mediates the institutional forces and the perceived innovation characteristics towards the ERP adoption in an industrial cluster. Mediation effect and the model validity are tested using SEM technique. The results show that absorptive capacity complements the forces of institutional pressure and the perceived innovation characteristics on ERP adoption. The implications of managing the absorptive capacity for better ERP adoption are discussed. 2016 World Scientific Publishing Company.

Source

International Journal of Innovation and Technology Management, Vol-13, No. 3

Date

2016-01-01

Publisher

World Scientific Publishing Co. Pte Ltd

Subject

absorptive capacity; Cluster institutional isomorphic pressures; ERP adoption; industrial cluster; perceived innovation characteristics

Coverage

Elangovan N., Department of Management, Christ University, Benguluru, India

Rights

Restricted Access

Relation

ISSN: 2198770

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1142/S0219877016400034

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84964037952&doi=10.1142%2fS0219877016400034&partnerID=40&md5=9f6b587610e3d55e4434d8fb04525dce