To date there has been little academic research exploring the theoretical reasons that motivate organizations to adopt Enterprise Systems (ES). By employing Transaction Costs Economics (TCE) and Institutional theory, this research project intends to provide a theoretical foundation to better explain the extent of ES adoption within companies. TCE, Institutional Theory, and combined models are developed and examined for explanatory power. We will examine the differences in the power of each theory to explain the extent of ES adoption as well as test the potential superiority of a dual theory approach in understanding the extent of ES adoption. Hypotheses derived from each theoretical perspective are offered. Finally, we will examine the explanatory power of each model at different stages in the diffusion of ES within industries. This research in progress submission includes our intended research methodology and expected contributions.
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