A Principal Component Analysis to Identify the Green IT Factors that Impact ERP Adoption in Indian Small and Medium Enterprises

This paper identifies and explains the impact of certain predetermined Green IT factors in each of the five ERP adoption phases namely Planning, Acquisition, Implementation, Usage & Percolation and Extension for small and Medium Enterprises (SME) during an ERP investment decision. This exploratory study identified thirty four critical factors with relevance to Green IT practices throughout the five decision phases, tested on a sample of forty nine SMEs operating in the Auto-Component Cluster in Pune, India. The responses from SMEs indicate their interest in adopting Green IT practices during ERP adoption. Based on the principal component analysis and interpretation of results from all these five phases, twelve principal components emerged. This componentized set will be a good useful reference for decision-makers of SMEs to identify, anticipate and analyze the relevance of Green IT in ERP adoption for their organizations