How Can ERP Improve The Organisation Innovativeness? Factors Derived From Socio-Technical And Contingency Theories

This research adopts the Socio-Technical Theory and Contingency theory to develop and test a new framework for the possibility of improving organization innovativeness. The framework consists of three main drivers: ERP Innovation attitude, organization flexibility, and ERP skills. This research surveyed 210 ERP managers in different countries. After analysing the data using Structure Equation Modelling, that organization flexibility and the employees’ user skills enhance employees’ attitude towards ERP as an innovation enabler (ERP attitude) attaining ERP Innovating Benefits. Consequently, the study found that there is an indirect impact of ERP skills and Organisational flexibility on ERP Innovations meditated by the attitude. The main implication of this research is that ERP can be a source of innovation employees’ believe in that. They will believe in that if the organisation is flexible and they have the required skills and knowledge for using it effectively.