Impact of Empowering Leadership and Trust on Attitude towards Technology Adoption

Abstract

Organizations are adopting the Enterprise Resource Planning system for better resource management and for availability of centralised information for the purpose of taking strategic decisions. For gaining competitive advantage, it is important that the ERP system is accepted and fully utilised by the users displaying positive attitude and showing least resistance. There are numerous factors framing an individual’s cognitions towards ERP adoption and use, and these factors vary depending upon the phases of technology adoption. This study empirically explores the relationship between three such factors; empowering leadership, trust, and attitude towards ERP adoption and use in the post-adoption phase. About 285 respondents from a manufacturing firm responded to the survey. The data was analyzed using structural equation modelling by Partial Least Squares (PLS) software. The findings revealed that apart from the direct influences of empowering leadership and trust on the attitude, trust also partially mediated the influence of empowering leadership on the postadoptive attitude towards ERP use.

Impact of Empowering Leadership and Trust on Attitude towards Technology Adoption

Why is technology implementation and adoption processes considered as a daunting task in many organizations? Why are large teams involved while implementing technological changes within the organization? Why does technology adoption fail in many organizations? How do the post-adoptive behaviours of users impact the usage of technology? What change management strategies should be applied? Many such questions bother the top management, human resource team, and technology implementation team before the onset of technology implementation. The business environment is volatile, uncertain, complex and ambiguous (VUCA) and to meet these challenges, the top management is always struggling to identify and implement the right information technology solutions that fit into the business processes and provide speed (Lal and Bharadwaj, 2014). Enterprise Resource Planning System is a concept that is widely adopted by many organisations worldwide.

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