| Literature DB >> 31286074 |
Caetano Haberli Junior1, Tiago Oliveira1, Mitsuru Yanaze2, Eduardo Eugênio Spers3.
Abstract
This study discusses the perceptions of the routinisation effects on the post-implementation and post-adoption of the enterprise resource planning (ERP) in farms. A theoretical model and nine hypotheses were proposed using factors according to the literature of resource-based view (RBV) approach and on the ERP impact on farm performance perceptions. This study contributes to the literature by testing empirically the moderation effect of routinisation on the RBV. A qualitative interview was applied to larger farmers where ERP was already in use and for the quantitative approach a sample of 448 answers was collected composed of 74% grain farmers, 14% cattle raising and milk producers, and 13% sugar cane and fruits farmers. The results reveal that the model explains 63% of the variation in the impact on farm performance. Our results show that routinisation moderates only the relationship between the impact on internal operations with impact on farm performance. The conclusions confirm the necessity to expand the RBV approach to the farmer perceptions, exploring other factors like the benefits and the impact of natural resources in the routinisation process. Finally, we propose a discussion of the development of Agriculture 4.0 in a resource-based view for the development of competitive advantage in the context of farms.Entities:
Keywords: Agriculture
Year: 2019 PMID: 31286074 PMCID: PMC6587053 DOI: 10.1016/j.heliyon.2019.e01784
Source DB: PubMed Journal: Heliyon ISSN: 2405-8440
Fig. 2Model for Understanding agribusiness challenges.
Instrument of data collection.
| Impact on cost (IC)/F | IC1 | Increase employee productivity | (1–7) | ( |
| IC2 | Facilitate communication among employees | |||
| IC3 | Increase the compression of business processes | |||
| IC4 | Improve organizational flexibility | |||
| IC5 | Ensure that the corporate systems and information are accessible from any location | |||
| IC6 | Reduce the number of employees | |||
| IC7 | To improve the decision-making process during higher business risks times | |||
| IC8 | Reduce the farm administration workload | |||
| IC9 | Improve the efficiency of staff | |||
| IC10 | Improve employee learning | |||
| IC11 | Have better quality information | |||
| IC12 | Improve coordination with suppliers | |||
| IC13 | Reduce supply purchase costs | |||
| Impact on internal operations (IIO)/F | IIO1 | Make internal operations more efficiently (examples: speed up processing in the planting timeframe, reduce bottlenecks in harvesting timeframes, reduce errors using pesticides and fertilizers, notification of isolated health problems, emergency situations of pest control, disease and herbs, climate,...) | (1–7) | ( |
| IIO2 | Increase control of the whole operation | |||
| IIO3 | Increase motivation of all employees | |||
| IIO4 | Increase the analysis capacity of business risks | |||
| IIO5 | Increase control of internal farm logistics | |||
| Impact on sales (IS)/F | IS1 | Increase the farm profitability | (1–7) | ( |
| IS2 | Reduce inventory costs | |||
| IS3 | Facilitate sales management with buyers | |||
| IS4 | Increase the ability to have a clearer business future view | |||
| IS5 | Increase the value of: my farm, my partners and my contracts. | |||
| Impact on natural resources (INR)/F | INR1 | Natural resource guarantee for the future | (1–7) | ( |
| INR2 | Has the land as an investment | |||
| INR3 | Long-term care for future generations | |||
| INR4 | Environmental preservation. | |||
| Impact on farm performance (IFP)/R | IFP1 | In terms of impact in your farm business the ERP system can be a success | (1–7) | ( |
| IFP2 | The ERP will improve the overall performance of my farm | |||
| IFP3 | ERP should have a significant positive effect on my farm | |||
| Routinisation (Ro)/R | Ro1 | We have integrated with back-end ERP chain systems/legacy/chain of existing supplies. | (1–7) | ( |
| Ro2 | Real time distribution of information is collected through the integration of delivery systems with ERP | |||
| Ro3 | Real time inventory information is collected by integrating inventory systems with ERP applications | |||
| R04 | ERP is being implemented together with the buyers of our production | |||
| Ro5 | ERP is being implemented together with our raw material suppliers | |||
| Ro6 | ERP is being implemented to meet the requirements of the Forest Code (environmental sustainability) | |||
| Ro7 | ERP is being implemented to meet the requirements of research and agribusiness development. (integrated with the systems of public and private research institutes. | |||
Notes: F – formative construct; R – reflective construct.
Fig. 1Structural model based on RBV
Research Sample composition.
| Grain (*) | 74% |
| Cattle Raising | 14% |
| Sugar Cane | 10% |
| Fruits | 2% |
| Midwest (MT, MS, GO) | 54% |
| MAPITOBA (MA, PI, TO, West BA, PA) | 21% |
| South East (SP, MG) | 15% |
| South (RS, PR) | 10% |
| Never considered adoption | 14% |
| Pilot Test | 20% |
| Have researched about but do not consider adoption | 9% |
| Have researched and consider adoption | 34% |
| Already in use | 23% |
Note (*) soybean, corn, cotton, wheat, coffee, beans, and peanuts.
Reflective measurement model.
| Constructs | Composite Reliability (*) | AVE | Cronbach's Alpha |
|---|---|---|---|
| ERP Impact on Farm Performance (IFP) | 0.934 | 0.825 | 0.894 |
| Routinisation (Ro) | 0.943 | 0.703 | 0.932 |
Notes (*) Values above 0.95 are not desirable because they show that all variables are measuring the same phenomenon and therefore unlikely to be a valid measure of the construct.
Loadings and cross-loadings.
| Constructs | IC | IIO | IS | INR | IFP | Ro |
|---|---|---|---|---|---|---|
| Impact on Farm Performance (IFP)/R | ||||||
| IFP1 | 0.66 | 0.66 | 0.71 | 0.51 | 0.10 | |
| IFP2 | 0.65 | 0.68 | 0.69 | 0.48 | 0.12 | |
| IFP3 | 0.60 | 0.61 | 0.62 | 0.45 | 0.16 | |
| Routinisation (Ro)/R | ||||||
| Ro1 | 0.13 | 0.20 | 0.13 | 0.04 | 0.15 | |
| Ro2 | 0.08 | 0.16 | 0.10 | 0.06 | 0.13 | |
| Ro3 | 0.09 | 0.18 | 0.11 | 0.02 | 0.13 | |
| Ro4 | 0.08 | 0.16 | 0.10 | 0.03 | 0.11 | |
| Ro5 | 0.10 | 0.16 | 0.11 | 0.04 | 0.11 | |
| Ro6 | 0.08 | 0.16 | 0.12 | 0.05 | 0.08 | |
| Ro7 | 0.05 | 0.14 | 0.09 | 0.04 | 0.06 | |
Bold means that Alpha Cronbach are higher than 0.708.
Discriminant Validity Model (Fornell – Larcker Criterion) and latent variables correlations.
| Constructs | IC | IIO | IS | INR | IFP | Ro |
|---|---|---|---|---|---|---|
| Impact on costs (IC)/F | F (*) | |||||
| Impact on internal operations (IIO)/F | 0.757 | |||||
| Impact on sales, (IS)/F | 0.752 | 0.815 | ||||
| Impact on natural resources (INR)/F | 0.531 | 0.483 | 0.615 | |||
| Impact on Farm Performance (IFP)/R | 0.704 | 0.720 | 0.741 | 0.532 | ||
| Routinisation (Ro)/R | 0.111 | 0.201 | 0.131 | 0.044 | 0.138 |
Notes (*) F = formative construct; R = reflective construct. The Fornell-Larcker criterion is an option to evaluate discriminant validity. It compares the square root of the AVE values with latent variable correlations. Specifically, the square root of the AVE of each construct must be greater than its greater correlation with any other construct.
Formative measurement model.
| Constructs | Loadings (Convergent validity) | VIF (*) | Outer Weights | t-value Loadings | t-value Other Weights | Confidence Intervals (**) | |
|---|---|---|---|---|---|---|---|
| Impact on costs (IC) | IC1 | 0.778*** | 2.464 | 0.224** | 18.065 | 2.678 | (0.676, 0.845) |
| IC2 | 0.690*** | 2.354 | 0.048 ns | 10.702 | 0.557 | (0.542, 0.791) | |
| IC3 | 0.668*** | 2.247 | -0.066 ns | 11.958 | 0.741 | (0.545, 0.764) | |
| IC4 | 0.737*** | 2.482 | 0.123 ns | 14.279 | 1.488 | (0.614, 0.817) | |
| IC5 | 0.696*** | 2.041 | 0.204** | 12.973 | 2.929 | (0.571, 0.778) | |
| IC6 | 0.495*** | 1.487 | 0.048 ns | 8.963 | 0.786 | (0.374, 0.590) | |
| IC7 | 0.846*** | 2.160 | 0.374*** | 21.600 | 4.813 | (0.743, 0.896) | |
| IC8 | 0.529*** | 1.924 | -0.141* | 8.840 | 1.749 | (0.396, 0.630) | |
| IC9 | 0.805*** | 2.572 | 0.287*** | 23.052 | 3.395 | (0.720, 0.856) | |
| IC10 | 0.583*** | 1.889 | -0.015 ns | 10.769 | 0.230 | (0.463, 0.677) | |
| IC11 | 0.684*** | 2.134 | 0.057 ns | 12.179 | 0.748 | (0.553, 0.772) | |
| IC12 | 0.612*** | 2.521 | -0.039 ns | 11.016 | 0.471 | (0.485, 0.704) | |
| IC13 | 0.599*** | 2.367 | 0.169** | 11.417 | 2.043 | (0.481, 0.687) | |
| Impact on internal operations (IIO) | IIO1 | 0.795*** | 1.754 | 0.355*** | 20.442 | 4.243 | (0.709, 0.861) |
| IIO2 | 0.777*** | 2.266 | 0.117 ns | 13.075 | 1.172 | (0.636, 0.871) | |
| IIO3 | 0.591*** | 1.454 | 0.099* | 11.150 | 1.711 | (0.479, 0.688) | |
| IIO4 | 0.835*** | 1.892 | 0.377*** | 18.769 | 4.311 | (0.734, 0.907) | |
| IIO5 | 0.819*** | 1.979 | 0.311*** | 18.490 | 4.041 | (0.716, 0.890) | |
| Impact on sales, (IS) | IS1 | 0.867*** | 2.152 | 0.373*** | 31.575 | 5.570 | (0.803, 0.911) |
| IS2 | 0.708*** | 1.757 | 0.155** | 15.820 | 2.409 | (0.614, 0.789) | |
| IS3 | 0.766*** | 2.180 | 0.095 ns | 19.832 | 1.241 | (0.681, 0.836) | |
| IS4 | 0.881*** | 1.995 | 0.439*** | 33.000 | 7.063 | (0.818, 0.923) | |
| IS5 | 0.690*** | 1.651 | 0.156** | 14.115 | 2.661 | (0.583, 0.775) | |
| Impact on natural resources (INR) | INR1 | 0.874*** | 2.479 | 0.365** | 19.756 | 2.384 | (0.766, 0.941) |
| INR2 | 0.872*** | 2.080 | 0.472*** | 22.257 | 3.987 | (0.772, 0.925) | |
| INR3 | 0.792*** | 2.421 | 0.072 ns | 14.066 | 0.504 | (0.655, 0.877) | |
| INR4 | 0.813*** | 2.219 | 0.261 ns | 12.426 | 1.630 | (0.663, 0.915) | |
Notes (*) Collinearity of indicators: Each indicator's tolerance (VIF) value should be higher than 0.20 (lower than 5).
NS = not significant. *p < 0.10. **p < 0.05. ***p < 0.01.
Collinearity assessment.
| Constructs | VIF |
|---|---|
| ERP Impact on Farm Performance (IFP)/R | |
| Impact on costs (IC)/F | 2.958 |
| Impact on internal operations) (IIO)/F | 3.851 |
| Impact on sales (IS)/F | 4.312 |
| Impact on natural resources (INR)/F | 1.670 |
| Routinisation (Ro)/R | 1.092 |
| Ro*IC | 2.773 |
| Ro*IIO | 3.496 |
| Ro*IS | 4.429 |
| Ro*INR | 1.734 |
Notes: The VIF value should be lower than 5.
Fig. 3Research model.
Hypotheses analysis.
| Hypotheses | Results |
|---|---|
| Validated ( | |
| Validated ( | |
| Validated ( | |
| Validated ( | |
| Not Validated ( | |
| Not Validated ( | |
| Validated ( | |
| Not Validated ( | |
| Not Validated ( |
Fig. 4Moderator variable analysis.