Environmental and Organizational Factors Affecting the Adoption of Enterprise Resource Planning Systems in the Jordanian Banking Sector

In this paper, a framework is proposed to determine the major factors affecting the adoption of Enterprise Resource Planning (ERP) system in the banking sector. The proposed framework is developed based on the technology organisation environment (TOE) theory. The study sample, comprising of managers and head of departments, numbering 150, were distributed questionnaire copies in 13 banks using the ERP system. According to the findings, top management support, organisation culture, policies and competitive pressure are the factors that significantly influenced the ERP system adoption among the examined banks. The findings also showed that the adoption of ERP improves the performance of banks. In addition, organisation culture, policies and competitive pressure factors improve the performance of banks through their influence on ERP system adoption. The framework is expected to serve as guidance to banks in the promotion and facilitation of the top factors that need addressing for the ERP system adoption.