Factors Influencing ERP system usage in manufacturing and service industries: a comparative study using PLS-SEM and fsQCA

Keywords: ERP system, manufacturing sector, service sector, PLS-SEM, fsQCA

Abstract


Enterprise Resource Planning (ERP) systems represent an important technological infrastructure for enhancing operational efficiency and strategic decision making in various industries. This study examines the key determinants influencing the adoption of ERP systems, with a particular focus on organizations operating in the manufacturing and service sectors in the Western Balkans region. In order to empirically evaluate the proposed conceptual framework, Partial Least Squares Structural Equation Modeling (PLS-SEM) and Fuzzy Set Qualitative Comparative Analysis (fsQCA) were employed. In this way, both linear relationships and configuration pathways underlying ERP implementation behavior were captured. The results of the PLS-SEM analysis show that constructs such as work compatibility, perceived usefulness and external factors are statistically significant predictors of users’ attitudes towards using ERP systems. In addition, a significant relationship was found between attitude and actual use of ERP systems, with user experience serving as a moderating variable. Notably, the multi-group analysis revealed no significant differences in intentions, attitudes or preferences between users from the manufacturing and service sectors. The results of the fsQCA study also show that work compatibility and perceived usefulness are the core present conditions necessary for effective ERP adoption. This study contributes to the existing literature by integrating multiple analytical approaches to explore the complexity of ERP usage. Additionally, it provides practical insights for enterprise managers, ERP vendors and policymakers.

Author Biographies

Sanela Arsić, University of Belgrade, Technical faculty in Bor, Serbia

Engineering management department

Đorđe Nikolić, University of Belgrade, Technical faculty in Bor, Serbia

Engineering management department

Samo Bobek, University of Maribor, Faculty of Economics and Business, Slovenia

Department for e-business

Simona Sternad Zabukovšek, University of Maribor, Faculty of Economics and Business, Slovenia

Department for e-business

References

Abu Afifa, M., Saleh, I., & Vo Van, H. (2023). Accounting information quality in the digital era - a perspective from ERP system adoption? Global Knowledge, Memory and Communication, 74 (5-6), 2022–2046.

Acquah, I.S.K., Quaicoe, J., & Arhin, M. (2023). How to invest in total quality management practices for enhanced operational performance: Findings from PLS-SEM and fsQCA. The TQM Journal, 35 (7), 1830–1859.

Adu, K., Plata, L., Ratilla, M., Novak, P., & Zlamal, L. (2022). Extending the UTAUT model to understand the barriers towards SME digitalization. Serbian Journal of Management, 17 (2), 403–424.

Akrong, G.B., Shao, Y., & Owusu, E. (2022). Evaluation of organizational climate factors on tax administration enterprise resource planning (ERP) system. Heliyon, 8 (6), 09642.

Alhirz, H., & Sajeev, A. S. M. (2015). Do cultural dimensions differentiate ERP acceptance? A study in the context of Saudi Arabia. Information Technology & People, 28 (1), 163–194.

Al-Jabri, I. M., & Roztocki, N. (2015). Adoption of ERP systems: Does information transparency matter? Telematics and Informatics, 32 (2), 300-310.

Althunibat, A., Zahrawi, A.A., Tamimi, A.A., & Altarawneh, F.H. (2019). Measuring the Acceptance of Using Enterprise Resource Planning (ERP) System in Private Jordanian Universities Using TAM Model. International Journal of Information and Education Technology, 9 (7), 502–505.

Arsić, S. (2025). E-commerce in the digital age: empirical evidence from Serbia. In XXI International May Conference on Strategic Management–IMCSM25 Proceedings, 12-29.

Baker, E.W., Al-Gahtani, S.S., & Hubona, G.S. (2010). Cultural Impacts on Acceptance and Adoption of Information Technology in a Developing Country: Journal of Global Information Management, 18 (3), 35–58.

Bawa, S.S. (2024). Enhancing Usability and User Experience in Enterprise Resource Planning Implementations. International Journal of Innovative Science and Research Technology, 9 (2), 166-172.

Bonett, D.G., & Wright, T.A. (2015). Cronbach’s alpha reliability: Interval estimation, hypothesis testing, and sample size planning. Journal of Organizational Behavior, 36 (1), 3–15.

Botta-Genoulaz, V., & Millet, P.-A. (2005). A classification for better use of ERP systems. Computers in Industry, 56 (6), 573–587.

Brandon-Jones, A., & Kauppi, K. (2018). Examining the antecedents of the technology acceptance model within e-procurement. International Journal of Operations & Production Management, 38 (1), 22-42.

Buonanno, G., Faverio, P., Pigni, F., Ravarini, A., Sciuto, D., & Tagliavini, M. (2005). Factors affecting ERP system adoption: A comparative analysis between SMEs and large companies. Journal of Enterprise Information Management, 18 (4), 384–426.

Calisir, F., Altin Gumussoy, C., & Bayram, A. (2009). Predicting the behavioral intention to use enterprise resource planning systems: An exploratory extension of the technology acceptance model. Management Research News, 32 (7), 597–613.

Cheng, Y.M. (2018). What drives cloud ERP continuance? An integrated view. Journal of Enterprise Information Management, 31 (5), 724–750.

Chernovaa, O., Mitrofanovab, I., Pleshakovad, M., & Batmanovac, V. (2023). Use of big data analytics for small and medium sized businesses. Serbian Journal of Management, 18 (1), 93–109.

Chopra, R., Sawant, L., Kodi, D., & Terkar, R. (2022). Utilization of ERP systems in manufacturing industry for productivity improvement. Materials Today: Proceedings, 62, 1238–1245.

Cohen, J. (1988). The effect size. Statistical power analysis for the behavioral sciences, 77-83.

Davis, F.D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13 (3), 319–340.

Deranek, K., McLeod, A., & Schmidt, E. (2019). ERP Simulation Effects on Knowledge and Attitudes of Experienced Users. Journal of Computer Information Systems, 59 (4), 373–383.

Eid, M.I.M., & Abbas, H.I. (2017). User adaptation and ERP benefits: Moderation analysis of user experience with ERP. Kybernetes, 46 (3), 530–549.

Gbongli, K., Xu, Y., & Amedjonekou, K.M. (2019). Extended Technology Acceptance Model to Predict Mobile-Based Money Acceptance and Sustainability: A Multi-Analytical Structural Equation Modeling and Neural Network Approach. Sustainability, 11 (13), 3639.

Gitnux. (2024). ERP industry statistics [Report]. Gitnux. Retrieved from https://gitnux.org/erp-industry-statistics/

Hair Jr J., Sarstedt, M., Hopkins, L., & Kuppelwieser, V.G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26 (2), 106–121.

Hair, J.F., Hult, G.T.M., Ringle, C.M., Sarstedt, M., Danks, N.P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook. Springer International Publishing.

Hair, J.F., Risher, J.J., Sarstedt, M., & Ringle, C.M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31 (1), 2–24.

Hair, J.F., Sarstedt, M., Ringle, C.M., & Gudergan, S.P. (2022). Advanced Issues in Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications

Hancerliogullari Koksalmis, G., & Damar, S. (2022). An Empirical Evaluation of a Modified Technology Acceptance Model for SAP ERP System. Engineering Management Journal, 34 (2), 201–216.

Henseler, J., Ringle, C.M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43 (1), 115-135.

Ilin, V., Ivetić, J., & Simić, D. (2017). Understanding the determinants of e-business adoption in ERP-enabled firms and non-ERP-enabled firms: A case study of the Western Balkan Peninsula. Technological Forecasting and Social Change, 125, 206–223.

Jo, H., & Bang, Y. (2023). Understanding continuance intention of enterprise resource planning (ERP): TOE, TAM, and IS success model. Heliyon, 9 (10), 21019.

Kalema, B.M. (2013). The role of moderating factors in ERP systems usage. Third International Conference on Innovative Computing Technology (INTECH 2013), 166–172.

Kiburu, L., Boso, N., & Njiraini, N. (2023). Exploring how demographic factors influence consumer attitudes and technology usage. Serbian Journal of Management, 18 (2), 353–365.

Kim, H., Park, J., & Lee, J. (2020). The Effect of ERP System on Sustainable Performance: Evidence from Korean Firms. Sustainability, 12 (22), 9689.

Lee, D., Lee, S. M., Olson, D.L., & Hwan Chung, S. (2010). The effect of organizational support on ERP implementation. Industrial Management & Data Systems, 110 (2), 269–283.

Lee, S., & Kim, D. (2016). The Effects of Industry Classification on a Successful ERP Implementation Model. Journal of Information Processing Systems, 12 (1), 169–181.

Lutfi, A., Alshira’h, A.F., Alshirah, M.H., Al-Okaily, M., Alqudah, H., Saad, M., Ibrahim, N., & Abdelmaksoud, O. (2022). Antecedents and Impacts of Enterprise Resource Planning System Adoption among Jordanian SMEs. Sustainability, 14 (6), 3508.

Maas, J., Van Fenema, P.C., & Soeters, J. (2014). ERP system usage: The role of control and empowerment. New Technology, Work and Employment, 29 (1), 88–103.

Mabert, V.A., Soni, A., & Venkataramanan, M.A. (2003). The impact of organization size on enterprise resource planning (ERP) implementations in the US manufacturing sector. Omega, 31 (3), 235–246.

Mann, A. (2023). How ERP is driving digital transformation across US industries. LinkedIn. Retrieved from https://www.linkedin.com/pulse/how-erp-driving-digital-transformation-across-us-industries-mann-ido0c

Meyliana, Widjaja, H.A.E., Larasati, A.P., Respati, R., & Ranaputri, V. (2018). The Evaluation of Enterprise Resource Planning (ERP) Financial Accounting and Control Using Technology Acceptance Model. 2018 International Conference on Computing, Engineering, and Design (ICCED), 69–74.

Page, M.J., McKenzie, J.E., Bossuyt, P.M., Boutron, I., Hoffmann, T.C., Mulrow, C.D., ... & Moher, D. (2021). The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. BMJ, 372.

Pappas, I.O., & Woodside, A.G. (2021). Fuzzy-set Qualitative Comparative Analysis (fsQCA): Guidelines for research practice in Information Systems and marketing. International Journal of Information Management, 58, 102310.

Pappas, I.O., Papavlasopoulou, S., Mikalef, P., & Giannakos, M.N. (2020). Identifying the combinations of motivations and emotions for creating satisfied users in SNSs: An fsQCA approach. International Journal of Information Management, 53, 102128.

Pech, M., & Vaněček, D. (2022). Barriers of new technology introduction and disadvantages of industry 4.0 for industrial enterprises. Serbian Journal of Management, 17 (1), 197–206.

Polas, M.R.H. (2025). Common Method Bias in Social and Behavioral Research: Strategic Solutions for Quantitative Research in the Doctoral Research. Journal of Comprehensive Business Administration Research, in press.

Putri, A.D., Lubis, M., & Azizah, A.H. (2020). Analysis of Critical Success Factors (CSF) in Enterprise Resource Planning (ERP) Implementation using Extended Technology Acceptance Model (TAM) at Trading and Distribution Company. 2020 4rd International Conference on Electrical, Telecommunication and Computer Engineering (ELTICOM), 129–135.

Ragin, C.C. (2006). Set Relations in Social Research: Evaluating Their Consistency and Coverage. Political Analysis, 14 (3), 291–310.

Ragin, C.C., & Davey, S. (2016). fs/QCA [Computer Programme], version 3.0. Irvine, CA: University of California. https://sites.socsci.uci.edu/~cragin/fsQCA/software.shtml

Rajan, C.A., & Baral, R. (2015). Adoption of ERP system: An empirical study of factors influencing the usage of ERP and its impact on end user. IIMB Management Review, 27 (2), 105–117.

Ranjan, S., Jha, V. K., & Pal, P. (2016). Literature review on ERP implementation challenges. International Journal of Business Information Systems, 21 (3), 388-402.

Ringle, C.M., Wende, S., & Becker, J.-M. (2024). SmartPLS 4. SmartPLS. https://www.smartpls.com

Ruivo, P., Robrigues, J., Johansson, B., Oliveira, T., & Rebelo, J. (2017). Differences in ERP Value between Iberian Manufacturing and Services SMEs. Procedia Computer Science, 121, 707–715.

Ruso, J., Milošević, I., Stojanović, A., Glogovac, M., Rakić, A., & Arsić, S. (2024). Regional variations in digital transformation: The impact of industry 5.0 on business quality performance. Total Quality Management & Business Excellence, 35 (15–16), 1879–1899.

Shih, Y.-Y., & Huang, S.-S. (2009). The Actual Usage of ERP Systems: An Extended Technology Acceptance Perspective. Journal of Research and Practice in Information Technology 41 (3), 263–276.

Singh, S., & Chakraborty, A. (2024). Educators’ learning experiences and intention to use online learning Management Systems’ platforms: A perceptual study. Serbian Journal of Management, 19 (2), 319–337.

Spathis, C., & Constantinides, S. (2003). The usefulness of ERP systems for effective management. Industrial Management & Data Systems, 103 (9), 677–685.

Statista. (2025). Enterprise Resource Planning Software—Eastern Europe. Retrieved from: https://www.statista.com/

Sternad Zabukovšek, S., Kalinic, Z., Bobek, S., & Tominc, P. (2019). SEM–ANN based research of factors’ impact on extended use of ERP systems. Central European Journal of Operations Research, 27 (3), 703–735.

Sun, Y., Bhattacherjee, A., & Ma, Q. (2009). Extending technology usage to work settings: The role of perceived work compatibility in ERP implementation. Information & Management, 46 (6), 351–356.

Tarik, Z., Muharem, K., & Tarik, M. (2020). ERP Solution and End-user Efficiency in Bosnia and Herzegovina. TEM Journal, 9 (4) 1562–1570.

Uddin, Md. A., Alam, M.S., Mamun, A.A., Khan, T.-U.-Z., & Akter, A. (2020). A Study of the Adoption and Implementation of Enterprise Resource Planning (ERP): Identification of Moderators and Mediator. Journal of Open Innovation: Technology, Market, and Complexity, 6 (1), 2.

Wang, G., Tan, G.W.-H., Yuan, Y., Ooi, K.-B., & Dwivedi, Y.K. (2022). Revisiting TAM2 in behavioral targeting advertising: A deep learning-based dual-stage SEM-ANN analysis. Technological Forecasting and Social Change, 175, 121345.

Xu, W., Ou, P., & Fan, W. (2017). Antecedents of ERP assimilation and its impact on ERP value: A TOE-based model and empirical test. Information Systems Frontiers, 19 (1), 13–30.

Yasar, A., & Ozer, G. (2016). Determination the Factors that Affect the Use of Enterprise Resource Planning Information System through Technology Acceptance Model. International Journal of Business and Management, 11 (10), 91-108.

Published
2026/06/09
Section
Original Scientific Paper