A study on how ERP systems transform hospital Decision-Making

Abstract

Decision-making in hospitals is very crucial, and for the process to happen effectively, leveraging of information technology is essential. Enterprise resource planning systems is one such application which could be deployed and utilized effectively to aid decision making. While large hospitals have the financial resources to quickly adopt new technologies, the small and medium category of hospitals still struggle to do so. This study aims to understand the factors that influence the adoption of ERP and how the adoption impacts decision-making in small and medium hospitals. Ease of use, top management attitude, employee involvement, data security, and data storage are factors that have been analyzed in this study. Data for the empirical study was collected from 150 hospitals in the southern state of India. Once the convergent and discriminant validity of the questionnaire was ensured, structural equation model was built using Warp PLS software. The results show that ease of use, top management attitude, data security and data storage have a positive relationship with the adoption of ERP. The study also found that the adoption of ERP has a positive relationship with the decision-making process in hospitals. This study contributes to the domain knowledge of ERP implementation in hospitals.