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PII: S0747-5632(17)30454-5
DOI: 10.1016/j.chb.2017.07.032
Please cite this article as: Azadeh Rezvani, Pouria Khosravi, Linying Dong, Motivating users toward
continued usage of information system: self-determination theory perspective, Computers in
Human Behavior (2017), doi: 10.1016/j.chb.2017.07.032
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Abstract
Continued usage of new Enterprise Resource Planning (ERP) systems has plagued organizations
that intend to maximize long-term benefits from their ERP investments. Leadership behavior is
widely regarded as one of the key influences for motivating ERP users toward using the system.
This study investigates how direct supervisors’ leadership styles influence ERP users’ motivation
to continuously engage with the ERP system. We employed self-determination theory (SDT) and
the post-acceptance model of information systems to propose a conceptual model theorizing how
transformational and transactional leadership styles affect users’ intrinsic and extrinsic motivation,
which in turn impacts ERP continuance intentions through user satisfaction and perceived
usefulness. Our research model was empirically examined using data collected from 299 ERP
users. Our findings have revealed that transformational leadership motivates ERP users differently
than transactional leadership, and that user satisfaction and perceived usefulness are salient
predictors of ERP continuance intentions. In addition, our research demonstrates a critical role of
direct managers’ leadership styles in the ERP post-implementation phase. Important theoretical
contributions and significant implications for practice are discussed.
1. Introduction
Continuous use of new Enterprise Resource Planning (ERP) systems has plagued
organizations that intend to maximize long-term benefits from their ERP investments (Hsieh, Rai,
& Xu, 2011; Liu, Feng, Hu, & Huang, 2011; Zhu, Li, Wang, & Chen, 2010). As a result, long-term
benefits from the use of ERP systems have been questioned, as it is not uncommon for demotivated
users to discontinue using the system entirely and switch back to the shadow system (Boudreau &
Robey, 2005; Kerr & Houghton, 2014). Empirical studies have demonstrated that many ERP
systems do not achieve their anticipated outcomes because of non-supportive system users in the
post-acceptance phase (Limayem, Hirt, & Cheung, 2007; Kerr & Houghton, 2014).
It has been found that nearly 50% of ERP-using organizations are unsatisfied with ERP
usage outcomes (Grabski, Leech, & Lu, 2003; Krigsman, 2010). Those that have managed to
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successfully achieve ERP implementation, in many instances have proved unsuccessful in the post
implementation (Barker & Frolick, 2003). Kerr and Houghton (2014), for instance, found that due
to mistrust and confusion that an ERP system brought to the organization, system users worked
around the system and developed unauthorized software to fit previous work processes. As ERP
systems require effective and continued use in order to attain the expected benefits from these large
investments (Bhattacherjee & Lin, 2015; Recker, 2016; Liu, Feng, Hu, & Huang, 2011) it is
Leadership is widely regarded as one of the key influences for motivating employees (Kark
& Van Dijk, 2007; Rezvani et al., 2016). Over the past couple of decades there has been an increase
in research examining leadership styles and behaviors in the Information Systems (IS) context
(Cho, Park, & Michel, 2011; Dong, Sun, & Fang, 2007; Ke & Wei, 2008; Neufeld, Dong, &
Higgins, 2007; Rezvani, Khosravi, Subasinghage, & Perera, 2012; Wang, Chou, & Jiang, 2005).
have been linked with managerial effectiveness, and have been used to explain the link between
leadership behavior and IS success (Shao, Feng & Liu, 2012; Ke & Wei, 2008). Dong et al. (2007),
for example, revealed that transformational leaders were able to influence users’ perceived
usefulness of the system. In the same vein, Neufeld et al. (2007) found that charismatic leaders had
a positive effect on performance expectancy, effort expectancy, social influence and facilitating
by establishing a direct link between leadership behaviors and users’ perceptions of success (e.g.
intention to use the system or perceived usefulness of the system). However, little attention has
been given to examining how different types of leadership styles motivate continued usage of ERP
systems. Furthermore, previous studies in the IS literature seem to overlook users’ psychological
needs and motivations, which have been known to directly influence user behavior. The lack of
motivation may result in resistance to use the system and, consequently, system workaround or
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discontinued use of the system (Ferneley & Sobreperez, 2006). Even when users are mandated to
continue to use the ERP systems disruption behavior may arise, which could be detrimental to
operational efficiency (Recker, 2016). Consequently, the existing research has not clearly explained
Moreover, little attention has been paid to the influence of direct line managers in the post-
implementation of IS (Shao, Feng & Hu, 2016; Rezvani, Dong and Khosravi, 2017). Managing the
individuals’ needs and motivate users to use the system over an extended period of time in order to
ensure expected benefits from the IS investment (Shao et al., 2016). Yet, “there is still a dearth of
adaptation of IS” (Aanestad & Jensen, 2016, p., 13). Taking into account these gaps in the existing
body of knowledge, and the call to address the absence of research regarding direct managers (Shao
et al., 2016), our study examines the role of direct managers’ leadership behavior in the post-
The purpose of this research is to address the following question: “How do supervisors’
transformational versus transactional leadership styles motivate users to continue ERP usage?” To
answer this research question we draw on two theories: self-determination theory (SDT), one of
the most detailed and best-validated frameworks (Greguras & Diefendorff, 2009; Olafsen, Halvari,
Forest & Deci, 2015) explaining the link between intrinsic and extrinsic motivation, and increased
performance (Deci & Ryan, 1985, 2012), and the post-acceptance model of IS that explains the
(Bhattacherjee & Lin, 2015).We argue that SDT provides a framework to comprehend the
behavior in the IS context, because in the work context managers have the power to influence the
psychological needs of their subordinates (Graves, Sarkis & Zhu, 2013). Based on these two
theories we propose a model conceptualizing how the two leadership styles – transformational and
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transactional – exert their influence on intrinsic and extrinsic motivation, which in turn affect users’
This study focuses on the post-adoption behaviors of ERP system users, which are the
behaviors exhibited after the initial acceptance of the system, embracing continuance, routinization
and assimilation. As the continuance or post-adoption stage is often the longest phase of the ERP
lifecycle and the phase during which benefits from the investment begin to be realized (Jasperson,
Carter, & Zmud, 2005; Chou & Chen, 2009; Hsu, Yen, & Chung, 2015), we aim to investigate this
2001).
This study contributes to academic research and practice in various ways. First, it deepens
the understanding of users’ continuance intention by providing an insight into various motivations
and motivational triggers. Second, it demonstrates the role of two leadership styles,
transformational and transactional, in the post-adoption stage of the ERP system. Third, it shows
the effect of various motivations on user satisfaction and perceived usefulness of the ERP system,
which are key determinants of users’ continued engagement with the system.
The remainder of the paper is organized as follows. We first introduce and synthesize the
theory, and then describe our research model and hypotheses. This is followed by the research
methods used to test the model. The paper concludes with a summary of the key findings and
2. Theoretical background
The post-acceptance IS continuance model (Bhattacherjee & Lin, 2015) serves as a useful
framework to explain user intention to continue their engagement with the ERP system. Our review
of research on continued IS use has revealed that the research at the individual user level is largely
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usage. In this model, two antecedents of satisfaction and perceived usefulness are found to predict
continuance intentions. ERP satisfaction is described as “an end-user’s overall affective and
cognitive evaluation of their fulfilment” when using an ERP system (Bhattacherjee, 2001). Users
have a tendency to rely more on their satisfaction than on relatively unknown future expectations
(Bhattacherjee & Lin, 2015). Indeed, satisfied ERP users are more likely to continue using the ERP
system, while dissatisfied users are more likely to discontinue ERP usage or switch to shadow
systems. Perceived usefulness is referred to as the “extent to which individuals believe that using
a particular IT will enhance their job performance” (Bhattacherjee & Lin, 2015). The expectation
is that ERP users are more likely to have positive intentions regarding IS usage when systems are
perceived as being useful. Users have fewer tendencies to continue ERP use unless the system
benefits them in their prospective routines (Bhattacherjee & Lin, 2015; Venkatesh, Morris, Davis,
& Davis, 2003). In addition, perceived usefulness and satisfaction have proven to be salient
predictors of continued IS usage and success (Yeh & Teng, 2012). In our study, we adapted the
post-acceptance model of IS continuance (Bhattacherjee & Lin, 2015) to investigate the link
between leadership style, motivation and ERP continuance intention. Our review of research on
continued IS use has revealed that the research at the individual user level is largely informed by
IT usage. In addition, the IS continuance model has been validated in different contexts, such as
mobile payment (Zhou, 2013), electronic medical records (Ayanso, Herath, & O'Brien, 2015),
knowledge sharing in virtual environments (Zheng, Zhao, & Stylianou, 2013) and continuous use
The two leadership styles, transformational and transactional, are commonly used in the IS
literature to explain the role of leaders in influencing employees’ behavior (i.e. Shao et al., 2016;
Ke & Wei, 2008). Transformational leaders are characterized by individuals who have the power
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to influence the attitudes and behavior of their subordinates through inspirational motivation,
intellectual stimulation and individual consideration. Transactional leaders, on the other hand, are
intent on controlling and monitoring subordinates through contingent rewards and management by
exception (Bass, 1985). The key differences between transformational and transactional leadership
are grounded in the approach through which leaders motivate their followers (Bass, Avolio, Jung,
& Berson, 2003). Transformational leaders attain a higher level of performance and creativity by
elevating the level of intrinsic motivation of their subordinates beyond exchange values (Zhu &
Akhtar, 2014). Burns (1978) defined the transformational leader as a leader who “seeks to satisfy
higher needs and engages the full potential of the follower” (p. 4). In the same way, Bass (1985)
turn motivate followers to performance better. Transactional leadership focuses more on extrinsic
motivation for the performance of job tasks. Transactional leadership is based on an exchange
relationship, whereby subordinates’ compliance is exchanged for expected rewards and which may
promote a productive workplace (Olafsen et al., 2015). In the context of IT system use,
transactional leaders actively regulate users’ activities by implementing transparent and clear rules
and objectives to impose adequate system usage (Rezvani et al., 2012). If managers fail to motivate
end users to adopt ERP systems into their work routines and processes the organization may suffer
from ERP system failure, despite their implementation being declared a success (Ke, Tan, Sia, &
In the IS literature various leadership behaviors have been found to influence technology
adoption (Dong, 2006; Neufeld et al., 2007; Ke & Wei, 2008), user satisfaction (Cho et al., 2011)
and employee innovation (Pieterse, Knippenberg, Schippers & Stam, 2010). Leadership theories
provide a lens through which different phases of ES implementation can be studied. Table 1
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leadership behavior in IS. Several conclusions can be drawn and research gaps identified from the
extant literature. First, the existing literature mainly focuses on the role of top managers/project
champions, suggesting that leadership behavior can shape users’ technology beliefs and is
necessary for successful IS implementation. While senior or top managers affect IS implementation
(Shao et al., 2012) it is the direct supervisors who play an ongoing and immediate supporting role
in the system assimilation (Liu et al., 2011). Serving as agents of the organization (DeConinck,
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2010), direct supervisors are psychologically more proximal than upper level managers (Sikora &
Ferris, 2014) and hence are more likely to affect employees’ behavior (Rouleau & Balogun, 2011).
Employees strongly rely on their immediate supervisors’ directions and role expectations (Sikora
& Ferris, 2014). A number of studies have shown that direct supervisors are better equipped to help
employees with challenging tasks and building skills essential for those tasks (e.g., Tepper &
Taylor, 2003; Liu et al., 2011). For instance, Liu et al. (2011) explored key influence factors
assimilation. Their study indicates that it was direct supervisors who had the most influence on
individual system assimilation. In contrast, top managers barely had “any significant influence” on
Second, most of the studies have explored the direct relationship between leadership and
the desired outcomes, but overlooked the mechanisms between these relationships. For instance,
Dong et al. (2007) and Cho et al. (2011) have found that transformational leaders motivate and
convince users of the usefulness of a new information system through persuading users the benefits
of a new system and articulating a clear vision. However, no clear understanding can be drawn
from the literature as to through which mechanisms leadership behavior affect users’ continuous
use. Previous studies seem to have neglected users’ psychological needs, which are a central tenet
of leadership theories such as transformational theory. We seek to address the above limitations
and extend the prior IS literature by identifying the critical roles of transformational and
extrinsic (Deci & Ryan, 2008). Intrinsic motivation rests on the assumption that individuals possess
an innate desire for autonomy, competence and relatedness (Deci & Ryan, 2000). Perceived
autonomy refers to an individual’s desire to self-organize one’s own behavior, whilst perceived
competence implies that individuals tend to be effective and expand their own capabilities.
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Perceived relatedness refers to a feeling of association and involves a sense of being significant to
others. On the other hand, extrinsic motivation involves a drive to take action in order to attain
rewards, career prestige, a positive assessment from others, or to avoid punishment. The primary
form of extrinsic motivation is external regulation, which implies that the individual engages in the
desired behavior in order to receive external rewards or to avoid punishment (Deci & Ryan, 2012;
Liang, Xue, & Wu, 2013). Transactional leadership in the form of contingent reward behavior
promotes extrinsic motivation in system users (Dong et al., 2007). A fear of managerial sanctions
related to the use or misuse of the system is extrinsically motivated and based on feelings of
coercion.
Motivation theories are broadly used to study IS acceptance and use (Gerow, Ayyagari,
Thatcher, & Roth, 2013; Chung, Koo & Kim, 2014; Venkatesh, 1999). Prior research has examined
intrinsic and extrinsic motivation from many perspectives. In the IS literature one of the most
common predictors of users’ motivation is perceived enjoyment (e.g. Venkatesh, 2000; Cyr, Head,
& Ivanov, 2006; Wu & Lu, 2013). Scholars have also examined the role of playfulness, described
as a pleasant feeling that motivates a user to interact with mobile learning (Wang, Wu & Wang,
2009), online learning (Saadé, He & Kira, 2007), virtual stores (Oh et al., 2009), social networking
(Sledgianowski & Kulviwat, 2009) and online games (Tao, Cheng & Sun, 2009). However,
theorizing motivation as playfulness and enjoyment seems to have limited application in the
workplace, particularly using utilitarian IS. We therefore apply SDT for a more suitable
conceptualization of motivation in the workplace context for four reasons. First, SDT is one of the
most detailed and best-validated frameworks (Olafsen, Halvari, Forest & Deci, 2015) explaining
the link between intrinsic / extrinsic motivation, and positive outcomes (Deci & Ryan, 1985, 2012).
Second, SDT has focused on interpersonal settings in organizations that are need-supportive,
because need-support has been shown to facilitate motivation and performance (Deci &
Ryan, 2012). The notion of managerial need support refers to the supervisor recognizing
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interpersonal climate in the work environment is shaped by supervisors (Zohar & Luria, 2004). In
other word, SDT provides a framework to comprehend the fundamental processes behind the
in the work context managers have the power to influence the psychological needs of their
subordinates (Graves, Sarkis & Zhu, 2013). Third, SDT enables researchers to study the mechanism
through which leadership behaviors, enhance or diminish motivation of ERP users to use the newly
implemented system. In addition, SDT helps managers identify better strategies to support ERP
users. Finally, intrinsic and extrinsic motivating factors have typically been investigated in isolation
from each other in various studies. We argue that different motivational factors are likely to
believe that examining the consequences of diverse motivations in a unique model will offer more
The theoretical model supporting this study is presented in Fig. 1. This model demonstrates
how the two different leadership styles (transformational and transactional) impact the intrinsic and
regulation) of ERP users, which in turn affects satisfaction and the perceived usefulness of ERP
continuance. In accordance with the post-acceptance IS continuance model, we have included two
direct determinants of continuance intention, perceived usefulness and satisfaction with IS use, in
our model. Here we extend the theorizing to consider factors that influence the magnitude of those
two effects based on the notion that various motivations and direct managers’ leadership behaviors
exert a powerful contextual influence on employees’ interpretations of their job characteristics and
work experiences (Zhang et al., 2014). The following sections explain the proposed relationships
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– refers to users’ perceptions of the extent to which they are instructed to use certain system
features, or given freedom to experiment with system features (Ahuja & Thatcher, 2005). Users
need the perception of autonomy to deliberate on innovative system features (Ahuja & Thatcher,
2005). Transformational leaders foster this perception by providing an environment for learning
through trial and error, where users can freely explore the capacity of the product and express their
own opinions (Bass, 1985). A need for autonomy among system users is related to the willingness
to self-regulate their commitment to exploit ERP functionalities and constitutes the origin of the
usage patterns. Li, Tan and Teo (2012) revealed that transformational leadership behavior is closely
linked to employees’ perceptions of autonomy, in which a user’s perceived autonomy and freedom
is expressed in the way they fulfil and perform their work. Transformational leadership encourages
ERP users to participate through self-initiation, instead of pressuring and instructing them on when
Transformational leaders were found to improve the capabilities and knowledge of system
users through providing substantial training (Cho et al., 2011). Transformational leaders have also
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been described as shaping a sense of self-confidence among ERP users when it comes to
experimenting with ERP functionalities, by empowering users to suggest new approaches that
allow them to competently accomplish their tasks (intellectual stimulation). In addition, there has
been some positive evidence to demonstrate that management support, expectations and inspiration
are major behavioral predictors regarding the perception of ERP user competence (Mitchell et al.,
2012). Transformational leaders can be seen as successful role models who improve perceived
competency among system users by articulating high expectations (Cho et al., 2011; Olafsen et al.,
2015). According to SDT theory, increasing one’s capabilities is a significant feature for the
perception of competency (Ryan & Deci, 2008). Characteristics of transformational leadership are
suggested to effectively fulfil this perception among ERP users. Therefore, we hypothesize that:
threatening environment and encouraging open communication and teamwork. IS research reveals
that transformational leadership increases the sense of relatedness among system users in various
ways, for example by nourishing relationships between leaders and ERP users or by facilitating
networking and building connections among ERP users of various business units (Ke & Wei, 2008;
Rezvani, Khosravi & Ahmad, 2012). SDT posits that the perception of relatedness is decisively
reliant on a sense of connectedness to others (Deci & Ryan, 2000; Olafsen et al., 2015). As an ERP
system is a very intricate, inter-reliant and multifunctional tool that requires connections between
system knowledge and employees placed in various business units (Xue, Liang, & Wu, 2011), it is
essential that leaders motivate and inspire ERP users to cooperate with each other.
Transformational leadership, known to have the ability to foster connections between various
organizational units and hierarchical levels, meets these criteria (Boehm, Dwertmann, Bruch, &
Shamir, 2015). Acknowledgement and support from leadership demonstrate genuine interest in
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users’ relatedness, which in turn encourages ERP users to engage with the new ERP system.
One primary form of extrinsic motivation is external regulation, which is based on attaining
a reward or avoiding punishment administered by others (Deci & Ryan, 1985). Prior organizational
studies have found that incentives can increase employee motivation, job satisfaction, performance
and other desirable behavioral and attitudinal outcomes (Podsakoff, Bommer, Podsakoff, &
MacKenzie, 2006). SDT posits that the perception of external regulation depends on an exchange
of resources (Deci & Ryan, 2000). In these exchange relationships ERP users are externally
regulated, based on rewards or punishment, adjust their level of effort to engage with the system
(Rezvani, 2013). Thus transactional leaders, employing contingent reward behavior, influence
users’ perceptions of external regulations through the use of rewards as positive reinforcement, or
by utilizing punishment as a coercive force. This implies that punishment and reward are crucial
driving factors, promoting certain behaviors (Ryan & Deci, 2008; Olafsen et al., 2015), such as
influencing ERP usage behavior (Xue et al., 2011; Rezvani et al., 2012). As a result, we hypothesize
that:
Hypothesis 4. There is a positive association between transactional leadership and an ERP user’s
An integral assumption of SDT theory is that all three components of intrinsic motivation
promote employees’ desirable behaviors (Ryan & Deci, 2008). As a result, intrinsically-motivated
ERP users are more likely to develop continuance use, which is in line with SDT. Sørebø, Halvari,
Gulli and Kristiansen (2009) argue that the achievement of perceived autonomy, competency and
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relatedness contribute to user satisfaction. They further argue that each of the three components of
intrinsic motivation has a distinct effect on satisfaction, which in turn leads to e-learning
continuance intention.
The perception of autonomy is crucial in the post-adoption stage for promoting positive
behavior (Sun, 2012), such as ERP continuance intentions. Sun (2012) further argues that the
perceived autonomy of individual system users decreases resistance and increases user satisfaction,
leading to adaptive system features in the continuance stage. A study by Sørebø et al. (2009)
learning usage. In addition, Roca and Gagné (2008) view autonomy as a significant intrinsic
Hypothesis 5. There is a positive association between an ERP user’s level of perceived autonomy
Hypothesis 6. There is a positive association between an ERP user’s level of perceived autonomy
A need for competence among system users reflects their need to be effective in how they
use system functionalities (Khosravi et al., 2016). Such desire has a positive effect on system users’
satisfaction and improved productivity (Roca & Gagné, 2008; Lee et al., 2015). Perceived
competence reflects system users’ effectiveness in their ability to use the system and its features in
the continuance stage (Shih, 2006). Individuals’ past knowledge and skills, along with a personal
mastery, are the key sources of competence. Hence, when individuals do well in applying their
technical skills and knowledge to enhance computer-correlated responsibilities they are likely to
be more satisfied with the adoption of the system (Shih, 2006). In addition, perceived competence
is a significant factor of user performance in computer use (Munro, Huff, Marcolin, & Compeau,
1997; Lindgren, Stenmark, & Ljungberg, 2003). Blili, Raymond and Rivard (1998) empirically
demonstrated that perceived competence positively and extensively affects user satisfaction, while
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Roca and Gagné (2008) report that perceived competence is positively related to perceived
Hypothesis 7. There is a positive association between an ERP user’s level of perceived competence
Hypothesis 8. There is a positive association between an ERP user’s level of perceived competence
collaboration with others. Perceived relatedness is an important factor because ERP systems are
often implemented alongside business process re-engineering (Liang & Xue, 2004), which requires
collaboration between functional units, peers and project leaders to fully understand the application
of ERP features, and the potential use of those features and work systems (Boudrau & Robey, 2005;
Khosravi et al., 2013). Bhattacherjee (2001) argues that interpersonal influence is a significant
predictor of intention to use electronic brokerage services. This is because perceived relatedness
can reduce employees’ fears and increase their openness in sharing their knowledge related to the
system features with others. This need for interaction must be satisfied, because errors could be
diagnosed and resolved when users enter into collaboration with other functional units, and when
management is eager to accept responsibilities for inaccuracies (Ke & Wei, 2008; Lee et al., 2015).
Hypothesis 9. There is a positive association between an ERP user’s level of perceived relatedness
Hypothesis 10. An ERP user’s level of perceived relatedness has a positive effect on their
There are studies demonstrating that the effect of intrinsic motivation on task
accomplishment can be diminished by presenting an extrinsic reward (Deci, 1971; Ryan, Mims, &
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Koestner, 1983). This negative interaction between extrinsic rewards and intrinsic motivation is
often moderated for behaviors that are not purely intrinsic (Hirst, 1988; Mossholder, 1980), such
as using an ERP system. When users perform ERP functions that they do not find stimulating they
may not be as enthusiastic in performing those activities; however, they may still perform them
given reasonable external incentives (Malhotra, Galletta, & Kirsch, 2008) or to avoid punishment
(Xue et al., 2011; Mitchell et al., 2012). As a result, activities that are not fully self-endorsed and
perceived as not enjoyable are less likely to be performed (Teo, Limb, & Lai, 1999). Under the
influence of external regulation (punishment and incentives) these activities may be perceived as
personally meaningful and useful. Prior studies in IS also reveal that perceived external regulation
predicts perceived usefulness and intention to use the system (Malhotra et al., 2008). Hence, we
argue that perceptions of external regulation are likely to influence users’ thoughts regarding
Hypothesis 11. There is a positive association between an ERP user’s level of perceived external
Hypothesis 12. There is a positive association between an ERP user’s level of perceived external
Users’ intention to continue to use an IS system is determined by their satisfaction and the
system’s perceived usefulness (Bhattacherjee, 2001), which entails a positive association between
the common indicators of IS post-adoption, more specifically continuance and usage. A comparable
rationale can be made in the context of ERP continuance, where satisfaction with an ERP system
would reinforce a user’s intention to continue using the system (Chou & Chen, 2009). Satisfaction
has been found to contribute to a positive judgment of a user’s decision to continue prescribed ERP
functionalities (Chon & Chen, 2009). Based on the post-acceptance IS continuance model
continuance intentions. In addition, the impact of perceived usefulness on satisfaction at the post-
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adoption phase is that the perception of usefulness can be considered as perceived performance,
which is a significant predictor of satisfaction (Venkatesh, Brown, Maruping, & Bala, 2008).
Hypothesis 15. Perceived usefulness is positively associated with ERP continuance intention.
4. Methodology
4.1 Measurement
review, with some minor changes in wording reflecting the technology utilized in the context of
this study (see Appendix 2). Transformational as well as transactional leadership measures were
based on the multi-factor leadership questionnaire (Bass & Avolio, 1997), which is one of the most
specifies to us the importance of having a strong sense of purpose in using the ERP system.” Four
items adopted from Davis (1989) were used to measure perceived usefulness. Items include overall
system improves the quality of my work.” Four items were used to measure users’ satisfaction with
the system (Bhattacherjee, 2001). A sample item is “Using an ERP system makes me feel very
satisfied.” Four items assessing ERP continuance were also adapted from Bhattacherjee (2001). A
sample item is “I plan to continue using ERP to contribute to my work rather than discontinue use.”
The intrinsic motivation elements (perceived relatedness, autonomy and competence) were based
on the basic need of satisfaction at work, using the scale employed by Kasser, Davey and Ryan
(1992) and Baard, Deci and Ryan (2004). A sample item is “I am free to express my ideas and
opinions on using ERP systems in my work.” The extrinsic motivation was based on the academic
motivational scale (Vallerand et al., 1992). To measure these elements we used a seven-point Likert
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scale from “strongly disagree” to “strongly agree”. Naturally, all elements were reflective.
Considering systematic variations based on individual responses, we controlled for gender, age,
education and experience, evaluated by employing standard survey questions (Agarwal & Prasad,
A survey research method was selected because it has the potential to provide generalizable
results (King & He, 2005). Moreover, the nature of the research question investigated through the
SDT lens requires a quantitative approach for theoretical consistency. We obtained the data for
testing the research model by running a survey among primary front-line ERP users from medium
and large organizations in Malaysia that had successfully implemented an enterprise system at least
two years prior to our data collection. Targeted organizations were identified from different
sources, including the Export Directory of Manufacturers and the Malaysian Business Directory.
An enterprise system was chosen as the focus of this study as it matches the context within which
we have developed our theory. Focusing on one type of IS rules out a potential conflict in findings
arising from the nature of the system examined. Nineteen firms were then contacted by telephone
to explain the nature of the study and to request their participation. Eleven companies (see Table
2) met our criteria and agreed to participate in the study. Following the common ethics protocol we
asked each organization to distribute the questionnaires to system users. To facilitate participation,
surveys were administered during a monthly staff meeting and employees were asked to return the
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Because we carried out our survey in a non-English speaking country we first developed
the questionnaire in English and then translated it into the local language. Using the back-
translation method (Brislin, 1980) we asked a translator, who was not aware of our research context,
to translate from Bahasa Malaysia back into English. After comparing the two English versions we
Prior to data collection a small-scale pre-test of the questionnaire was conducted with 12
volunteer ERP users to examine the ease of understanding and contextual relevance. A total of 500
questionnaires were then distributed among front-line system users and 299 valid responses were
returned, resulting in a response rate of 59%. Our sample comprised 172 males and 127 females,
5. Results
Partial least squares (PLS) was used to validate the model. Indeed, PLS was employed since
it seems to be appropriate for exploratory work and for prediction, as well as for analyzing
complicated relations and models (Ringle, Sarstedt, & Straub, 2012). Also, PLS has a minimal
request on measurement scale and it needs no particular distribution for measured variables (Chin,
1998). The statistical program SmartPLS version 3 was used to analyse the data (Ringle et al.,
2015).
To analyze the data we performed: (I) model and construct validation, (II) discriminant and
criterion validity, and (III) structural model testing. Before trying to test the model it was decided
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to test the validity as well as reliability of the construct measures. Two approaches were employed
to assess reliability: Cronbach alpha scores and composite reliability. Both methods reflected the
inner persistency of the scale elements that measured a particular factor (Fornell & Larcker, 1981).
Both Cronbach alpha scores and composite reliability reported beyond the proposed cut-off value
Convergent validity was evaluated by calculating the average variance that was derived for
all measures. As illustrated in Table 1, the derived average variances achieved the cut-off norm of
loadings (see Appendix 1 Table A.1) (Chin, 1998); and B) the square root of the average variance
derived, as suggested by Fornell and Larcker (1981). The results are captured in Table 5 which
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Data were collected at a single point in time using a single survey, which could potentially
create problems with common method bias. Various remedies suggested by Podsakoff, MacKenzie
and Lee (2003) were used, including: proximal as well as methodological separation of
respondents that there were no right and wrong answers and no incentive or disincentive. To
used Harman's single factor test to statistically test common method bias. Harman's test indicated
that there was more than one factor that accounted for the majority of co-variance. In addition, the
PLS marker variable analysis was performed following the approach suggested by Rönkkö and
Ylitalo (2011). First, we identified marker variables in our data set which were not included in the
research model. We used polychronic attitude index (Bluedorn, Kaufman, & Lane, 1992) as marker
variables. Marker variables showed low correlations to the study constructs and do not have an
explicit theoretical influence on other constructs. Second, the marker variable was added as a
predictor to all endogenous latent variables in the PLS model. Finally, we compared the model with
and without the marker variable and found that the significant paths in the baseline model remain
significant in the method factor model (see Appendix 1 Table A.2). Furthermore, we found three
insignificant relationships in our model, suggesting that common method bias is not an issue in this
study.
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The hypotheses testing used bootstrapping, including 500 subsamples, to investigate the
statistical importance of every path coefficient, employing t-tests as suggested by Chin (1998).
and perceived autonomy (β=.53, t= 10.15), perceived competence (β=.47, t= 5.34) and perceived
relatedness (β=.51, t= 13.08), were supported. Hypothesis 4, which proposed a positive effect of
transactional leadership and ERP users’ perceived level of external regulation (β=.20, t= 3.91), was
also supported. Hypotheses 5 and 6 examined the relationship between ERP users’ perceived
autonomy and their perceived satisfaction with, and usefulness, of the ERP system. The relationship
between perceived autonomy and perceived usefulness (Hypothesis 6) was supported (β=.21, t=
3.13); however, the relationship between perceived autonomy and satisfaction (Hypothesis 5) was
not supported (β=.03, t= .47). Hypotheses 7 and 8, which tested the relationships between ERP
users’ perceived competence and their perceived satisfaction (β=.20, t= 2.63) and usefulness
(β=.18, t= 2.32), were both supported. Hypotheses 9, which measured the relationship between
ERP users’ perceived relatedness and satisfaction (β=-.11, t= 1.6), was not supported, while the
relationship between ERP users’ perceived relatedness and perceived usefulness (β=.40, t= 6.27),
was supported (Hypothesis 10). Hypotheses 11 and 12 tested perceived external regulation,
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satisfaction and usefulness respectively. The results shown in the model indicate that only the
relationship between ERP users’ perceived external regulation and satisfaction (β=.13, t= 2.38) was
supported, while relationships between perceived external regulation and usefulness were
insignificant (β=.02, t= .63). For other relationships, Hypothesis 13 through to Hypothesis 15, the
relationships between perceived usefulness, satisfaction and ERP continuance intentions were
supported. Hypothesis 13, which tested the relationship between perceived usefulness and
satisfaction (β=.22, t= 3.34), was supported. Similarly, Hypotheses 14 and 15, which proposed a
positive effect between the two variables of satisfaction (β=.16, t= 2.56) and perceived usefulness
(β=.56, t= 8.64) on ERP continuance intentions, were both supported. Additionally, we tested for
age, gender, experience and education as control variables; however, we did not find any significant
differences.
6. Discussion
This study extends the prior literature on the continuing use of IS by proposing and testing
a model where the transformational and transactional leadership behaviors of supervisors influence
the continuing use of IS through different types of motivation. In response to the call for more
research on the role of direct managers in the post-implementation stage (Aanestad & Jensen, 2016;
Shao et al., 2016) this study integrated transformational leadership theory (Bass, 1985), motivation
theory (Deci & Ryan, 2000) and the post-acceptance IS continuance model (Bhattarchajee, 2001)
in an ERP continuous use context. Our findings unpack the impact mechanism of transformational
and transactional leadership on the continuous use of ERP systems. Below, we discuss the
implications of the findings for research and practice, the limitations of the study and directions for
future research.
Prior studies have advanced our understanding regarding leadership behaviors and a variety
of positive outcomes in the IS context. However, the literature has some important limitations
which we addressed in this paper. Prior literature in management information system seems to have
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addition, they focused on the roles of top management and do not considered the role of supervisory
leadership. This study addressed the above two limitations by identifying the critical roles of
Our findings contribute to motivation theory, management literature and the IS continuance
model. We have found significant relationships between ERP users’ perceived competence,
perceived usefulness and satisfaction. This is consistent with the finding of the study of Davis,
Bagozzi and Warshaw’s (1992) that intrinsic motivation shapes users’ interactions with IS. In
addition, we have discovered that perceived autonomy is strongly related to perceived usefulness,
but not related to satisfaction. This finding is contrary to that of Sørebø et al. (2009), who tested
this relationship in the context of e-learning usage. It is likely that the voluntary engagement in e-
learning played a role in determining user satisfaction. We could not find any relation between
perceived relatedness and satisfaction in the current study. This result might be attributable to the
contextual setting. Moreover, consistent with the prior literature (Li & Liu, 2014), we have
identified that satisfaction and perceived usefulness are salient predictors of ERP continuance
intentions. This study also extends the IS continuance model to account for the role of intrinsic and
extrinsic motivation.
ERP users differently than transactional leadership in the post-implementation phase. These results
contribute to leadership literature in several ways. First, the results support Bass’ (1985) and Burns’
(1978) findings related to the role of leadership styles in influencing intrinsic and extrinsic
motivation. Second, our findings indicate that transformational and transactional leadership are
related to specific outcomes such as user satisfaction and perceived usefulness, which in turn shapes
users’ intentions to continuously engage with the system. This is consistent with Dong et al. (2007)
and Cho et al. (2011) finding that transformational and transactional leadership have positive effect
on user satisfaction and perceived usefulness. Lastly, the results of our research model suggest that
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different leadership styles can have a distinguished impact on different dimensions of intrinsic and
extrinsic motivation, rather than conceptualizing a solitary association between leadership and
desired outcomes.
Our results also contribute to the IS literature by demonstrating the critical role of direct
managers in the under-researched context of the post-implementation phase of ERP systems. The
extant literature has been mainly focusing on the role of management in the successful adoption of
information systems, and discovered top management as a main salient source of influence for the
successful adoption of enterprise systems (Dong et al., 2007; Neufeld et al., 2007; Shao, Feng &
Hu, 2017). Our research findings enrich our understanding of direct managers’ influence in the
post-adoption stage by revealing the mechanisms through which supervisors take effect.
Specifically we have found that both leadership styles are equally important to motivate ERP users
in the continuance phase. Our findings have revealed that there is a strong relationship linking
This study has some limitations. First, we gathered data from a region in Asia and these
findings might not be generalizable to other countries; future research might test the model in
different sectors and different regions for generalizability. Second, we did not include ERP users’
personality and task characteristics as they might affect the relationship between leadership and
ERP users’ motivation; future studies could test these factors. Third, we have found a positive
relationship between extrinsic motivation and satisfaction. However, we did not differentiate
various types of extrinsic motivation. Previous studies have shown that various types of rewards or
punishments may have different effect on employees’ attitudes and behaviors (Liang et al., 2013);
future studies could test the relationships between various types of reward or punishment and users’
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Findings from this study offer practical implications for ERP managers and practitioners
regarding how transformational and transactional leadership styles can be used to motivate system
is vital to raising revenue. Managers representing both leadership styles can be equally effective in
promoting the ongoing use of ES. Their different leadership styles are likely to promote different
forms of motivation – intrinsic or extrinsic – to influence users to embrace ERP systems. Moreover,
by realizing the underlying process of influencing subordinates to adopt favorable actions and
simultaneously is not achievable. Under these circumstances, they might have to prioritize the
fulfillment of one or two needs. For example, to increase the continuance use of enterprise systems,
and relatedness among their ERP users. In addition, they should provide autonomy-supportive
conditions to encourage system users to show great effort to use the system. Our findings confirm
that organizations should also monitor external regulations in a form of rewards or punishments as
it has direct influence on user satisfaction and consequently on continuance use of enterprise
systems. Findings from this study demonstrate that to reinforce ERP users’ continuance use
managers should place a higher priority on perceived autonomy and competence as intrinsic
In addition, our findings suggest that lack of intrinsic or extrinsic motivation may prevent
users from using the system even after an enterprise system has been put into place and used for
some time. Therefore, it is imperative for organizations to encourage direct managers to pay close
attention to everyday enterprise systems usage, monitor user progress, and identify and address
emerging issues in a timely manner. Prior studies have revealed the usefulness of leadership
training curricula targeted at building awareness and skills related to motivating employees in the
workplace. Devoting training curricula at the leadership level may, therefore, lead to increased IS
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use among employees in the future. For example, orgaizations should train direct managers to use
Direct managers can also increase perceived usefulness by enhancing perceived relatedness
9. Conclusion
This study is one of a few attempts to investigate the role of direct supervisors in the post-
implementation of IS. In response to the call for more research regarding the role of direct
continuance model to explain users’ continuance intentions regarding an ERP system. This study
takes a primary step toward extending the post-acceptance IS continuance model by introducing
leadership and motivational factors affecting perceived usefulness and satisfaction in a work
context. Our findings provide support for the critical role of supervisors in users’ perceptions of
autonomy, competence relatedness and external regulation in their work setting as significant
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Appendix 1.
Table A.1
Cross loadings.
CON ER PA PC PR PU Sat TFL TSL
CON1 0.828 -0.018 0.463 0.637 0.243 0.518 0.201 0.384 0.002
CON2 0.735 -0.122 0.358 0.590 0.313 0.406 0.155 0.236 0.308
CON3 0.842 -0.025 0.471 0.690 0.294 0.516 0.353 0.288 0.221
ER1 -0.035 0.933 0.015 -0.029 0.101 0.019 0.134 0.297 0.231
ER2 -0.055 0.873 -0.045 -0.013 0.030 0.005 0.100 0.292 0.134
ER3 -0.094 0.784 0.052 -0.070 -0.048 -0.091 0.019 0.189 0.121
PA1 0.420 -0.116 0.641 0.377 0.223 0.318 0.069 0.418 0.184
PA2 0.492 -0.135 0.877 0.518 0.594 0.527 0.169 0.390 0.297
PA3 0.373 0.154 0.734 0.383 0.465 0.498 0.167 0.421 0.303
PA4 0.435 0.085 0.893 0.439 0.595 0.475 0.211 0.476 0.380
PC1 0.617 0.026 0.520 0.829 0.356 0.322 0.156 0.530 0.254
PC2 0.627 -0.076 0.349 0.801 0.403 0.464 0.228 0.325 0.310
PC3 0.726 -0.045 0.470 0.836 0.275 0.401 0.302 0.296 0.281
PR1 0.329 0.039 0.586 0.413 0.938 0.591 0.147 0.409 0.265
PR3 0.330 0.061 0.571 0.385 0.954 0.629 0.116 0.556 0.310
PU1 0.498 0.026 0.502 0.408 0.667 0.891 0.265 0.351 0.126
PU2 0.455 -0.106 0.390 0.379 0.447 0.821 0.130 0.399 0.095
PU3 0.482 0.009 0.544 0.372 0.712 0.890 0.179 0.448 0.160
PU4 0.529 0.023 0.433 0.409 0.179 0.610 0.276 0.294 0.243
SAT1 0.310 0.115 0.219 0.265 0.168 0.284 0.948 0.193 0.054
SAT2 0.287 0.094 0.209 0.248 0.129 0.244 0.929 0.112 0.052
SAT3 0.157 0.075 0.046 0.193 0.024 0.108 0.670 0.080 0.088
TFL1 0.372 0.186 0.507 0.433 0.261 0.290 0.156 0.768 0.296
TFL10 0.393 0.152 0.366 0.465 0.389 0.362 0.113 0.822 0.290
TFL11 0.386 0.088 0.388 0.453 0.482 0.434 0.086 0.798 0.294
TFL12 0.230 0.320 0.277 0.306 0.436 0.268 0.109 0.757 0.332
TFL13 0.214 0.141 0.386 0.216 0.349 0.280 0.003 0.508 0.248
TFL14 0.129 0.376 0.308 0.219 0.341 0.279 0.133 0.799 0.401
TFL15 0.214 0.350 0.390 0.329 0.438 0.342 0.145 0.850 0.399
TFL2 0.253 0.268 0.323 0.277 0.055 0.185 0.084 0.751 0.341
TFL3 0.255 0.324 0.467 0.308 0.291 0.291 0.173 0.850 0.428
TFL4 0.328 0.287 0.591 0.381 0.570 0.506 0.169 0.878 0.438
TFL5 0.387 0.198 0.520 0.503 0.585 0.533 0.152 0.802 0.412
TFL6 0.398 0.193 0.566 0.475 0.606 0.551 0.154 0.846 0.380
TFL7 0.281 0.318 0.457 0.350 0.412 0.369 0.129 0.897 0.430
TFL8 0.249 0.339 0.194 0.310 0.204 0.256 0.040 0.764 0.310
TFL9 0.302 0.311 0.418 0.402 0.338 0.273 0.141 0.872 0.400
TSL1 0.138 0.045 0.299 0.261 0.104 0.002 0.039 0.283 0.795
TSL2 0.336 0.087 0.479 0.410 0.341 0.273 0.198 0.440 0.787
TSL3 0.188 0.209 0.330 0.323 0.277 0.157 0.165 0.440 0.916
TSL4 0.118 0.208 0.264 0.234 0.258 0.161 0.044 0.354 0.876
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Table A.2
Common method bias assessment.
Path coefficients Research model (without marker Research model (with
variable) marker variable)
TFL PA 0.53*** 0.53***
TFLPC 0.47*** 0.47***
TFLPR 0.51*** 0.50***
PAPU 0.21** 0.21**
PASAT 0.03 n.s. 0.02 n.s.
PCPU 0.18* 0.17*
PCSAT 0.20** 0.20**
PR PU 0.40*** 0.41***
PR SAT -0.11 n.s. -0.12 n.s.
TSL ER 0.20*** 0.20***
ER PU 0.02 n.s. 0.02 n.s.
ER SAT 0.13* 0.12*
SAT CON 0.27** 0.26**
PU CON 0.57*** 0.56***
Marker PA 0.04 n.s.
Marker PC 0.00 n.s.
Marker PR 0.01 n.s.
Marker ER 0.00 n.s.
Marker PU -0.01 n.s.
Marker SAT 0.06 n.s.
Marker CON 0.03 n.s.
n.s: non-significant
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Acknowledgment
We acknowledge the helpful and valuable comments of Professor Jan Recker and Dr Anna
Wiewiora on our first draft. We also thank Professor Min Liu and two anonymous reviewers for their