How Does Contingent Reward Affect Enterprise Resource Planning Continuance Intention? The Role of Contingent Reward Transactional Leadership

Abstract

During the past decade, an increased focus on charismatic and transformational leadership has led to a diminished recognition of the importance of transactional leadership behaviours for successful information systems. We say that this is important because recent studies have shown that transactional leadership, in the form of contingent reward behaviour, can have substantial effects on employee attitudes, perceptions and behaviour. Therefore, in this study we discuss how contingent reward transactional leadership behaviour influences enterprise resource planning (ERP) users’ continuance intention by proposing a research model that explains how contingent reward has a positive effect on ERP users’ satisfaction and perceived usefulness which leads to ERP continuance intention. We further argue that distributive justice mediates this relationship. This study calls for managers to pay attention to the importance of contingent reward leadership behaviour in continuous intention of ERP

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