Institutional isomorphic pressures on ERP adoption in tirupur SME cluster of indian knitwear garment industry

Abstract

Institutional theory has emerged as a powerful explanation to account for the influence of external institutions on organisational decision making and outcomes The Tirupur Small and Medium Enterprises SME cluster of Indian knitwear garment industry has a matured institutional structure that plays a major role in motivating the Enterprise Resource Planning ERP adoption However the penetration of ERP in the knitwear garment industry is low Shang and Seddon 2004 proposed that Enterprise System ES benefits change increase and decrease in response to internal and external triggers and these changes bring additional benefits and problems Therefore, this study proposes to investigate the institutional isomorphic pressures on ERP adoption and how it is altered by the mediation of perceived benefits challenges of ERP and organizational complexity