Factors affecting ERP adoption: A study omnichannel SME’s Bangladesh

Abstract

Background - MSMEs in Bangladesh that are specialized in home-made food make a significant contribution to the country's economy by providing employment opportunities, producing money, maintaining food security, conserving cultural heritage, and encouraging sustainable development. According to previous research diffusion of social media by micro, small, and medium enterprises (MSMEs) positively impact many Sustainable Development Goals (SDGs) by fostering economic development, generating job opportunities, and supporting sustainable practices, specifically in the area of decent work and economic growth.

Aim – This study aimed to explore the determining factors that drive the adoption of Facebook adoption in Micro-Small and Medium Enterprises (MSME) in attaining sustainable growth, as assessed by enterprise owners.

Methodology – The study issue pertains to the analysis of the organizational phenomena of Facebook adaptation within the home-made food industry, facilitated by f-commerce technology. The research technique comprises two sequential parts. The first phase included identifying the obstacles associated with the implementation of e-commerce technologies in MSMEs. This was accomplished by conducting a comprehensive analysis of existing literature on the technology acceptance framework within organizational settings. Subsequently, interviews are carried out with proprietors and directors of 42 locally produced food businesses in Bangladesh to investigate their inclination towards using Facebook to effectively support their operations. Diffusion of Innovation Technology theory is applied to guide the development of interview questions and the analysis of interview data.

Findings – The majority of MSME home-made food enterprises use an Omnichannel business strategy to cater to client expectations across several channels, such as in-store, online, and mobile. The primary motivations highlighted as significant motivators for the Facebook adaptation of MSMEs are enhancing operational efficiency, improving customer experience, accessing new markets, achieving cost savings, and enhancing data management. The primary characteristics identified as key contributors to the Facebook adaptation of MSMEs are relative advantage, technology's simplicity of use, compatibility, trialability, technology pricing, management support, previous technology expertise, and help from technology suppliers. However, this research did not uncover sufficient data to support the notion that competitive pressure, government restrictions, and government assistance significantly influenced the digitalization of micro, small, and medium enterprises (MSMEs) in the home-made food industry.

Research limitations & implications – These results are very significant and have immense importance for the scientific community, policy makers, and information and communication technologies (ICT) providers.