Institutional pressures in open-source ERP adoption: Evidence from a family-owned manufacturing firm in Indonesia
DOI:
https://doi.org/10.53088/jmdb.v6i3.2997Keywords:
Institutional Theory, Open-Source ERP, ERP Adoption, Family Business, ManufacturingAbstract
This research examines the impact of institutional pressures on the successful adoption of open-source Enterprise Resource Planning (OS-ERP) systems within family-owned manufacturing companies in Indonesia. Unlike previous research, which usually links ERP adoption to the voluntary acceptance of users, this research seeks to take an institutional approach to understanding the role of organizational structures in shaping implementation processes. A qualitative case study methodology was employed through semi-structured interviews with 14 users across two textile companies. The research reveals that coercive pressures from upper management are the main forces of ERP adoption, whereas normative and mimetic pressures are absent. Thus, the system used is more of an organizational structure as well as a function of job description. Although users are resistant initially, they eventually adapt through continuous usage and learning. This study indicates that the success of ERP implementation more likely comes from institutional pressures rather than from users’ voluntary compliance. This perspective is particularly relevant to explain the adoption of technology in traditional family-owned and hierarchical enterprises.
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Copyright (c) 2026 Muhammad Febrilian Dwi Syahputra, Achmad Fitro, Riska Dhenabayu, Renny Sari Dewi, Anita Safitri, Nanang Hoesen Hidroes Abbrori, Audika Briantari Zaen
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