A PLS-SEM for ERP Adoption Readiness in Government Organizations: A TOEPP Conceptual Model

Enterprise Resource Planning (ERP) is an integrated system widely used by large private companies. Its adoption in the public sector has enormous potential to improve operational efficiency and effectiveness. However, government organizations need to first assess their level of readiness to ensure the success of ERP implementation. Despite its importance, research on ERP readiness is still limited, especially in developing countries. This study develops and empirically tests an ERP adoption readiness model for government organizations in Indonesia using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) approach. To fill the gap in the literature, this study proposes the Technology, Organization, Environment, People, and Process (TOEPP) framework, which is an extension of the classic TOE model by adding the dimensions of People and Process. Based on data from 268 local government employees, the findings show that the five TOEPP constructs have a significant effect on ERP readiness. The theoretical contribution of this study lies in strengthening the TOEPP framework in the context of public sector digital transformation. Practically, this model serves as an evaluative guide for policymakers and IT managers in designing effective ERP adoption strategies in bureaucratic environments. This study emphasizes the importance of a holistic approach to assessing digital transformation readiness in the public sector. The results provide important insights to strengthen ERP initiatives, improve organizational readiness, and increase the chances of successful implementation. In addition, this study fills the research gap related to ERP pre-implementation preparation and offers a comprehensive, evidence-based framework for government agencies.