The good and the dark side of integration and dependence for IT adoption

Abstract

In the digitally evolving manufacturing sector, IT adoption is critical for operational efficiency and competitive edge. This research explores how systems integration, IT dependence, and inter-plant interdependence influence IT adoption, drawing on Resource Dependence Theory (RDT). It features a survey of 286 UK manufacturing plants and uses Partial Least Squares Structural Equation Modelling (PLS-SEM) and ANOVA for analysis. Results show that while systems integration boosts IT adoption, its impact is moderated by IT dependence. Interdependence with other plants also promotes IT adoption but does not significantly mediate it. Large plants tend to have higher IT adoption rates due to better resources and IT governance, unlike smaller plants which struggle with financial and technical limitations. The study underscores the dual impact of IT dependence and interdependence in manufacturing, suggesting that effective IT governance and tailored support for SMEs are vital for enhancing IT system adoption