Shu-Te University College of Management Graduate School of Business Administration

Master

Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation Inspectorate

Tran Xuan Hieu

Dr. Chen Hsieh-Sheng Hoang Van Hoa

March, 2013

Shu-Te University Graduate School of Business Administration Thesis

Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation Inspectorate

Tran Xuan Hieu

May, 2013

Adviser:

Student:

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Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation Inspectorate

Student: Tran Xuan Hieu Advisor: Dr. Chen Hsieh-Sheng Co-advisor: Dr. Hoang Van Hoa

A Thesis Submitted to the Graduate School of Business Administration College of Management Shu-TeUniversity In Partial Fulfillment of the Requirements For the Degree of Master of Business Administration

May, 2013 iii


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This thesis authorized hereby is the Master thesis accomplished by the grantor at Graduate School of Business Administration, Shu-Te University, in summer, 2013. Thesis Topic Adviser Co-Adviser This is to grant the full text thesis (with abstract) stated above, will be authorized nonexclusively and free of charge to National Central Library and Shu-Te University Library to preserve, and copy in form of microfiche, compact disc or other digital forms, without the limit of region or time. It is also authorized to upload the digitized form of thesis stated above to readers for online indexing, browsing or downloading and print base on personal non-profit purposes of usage. Readers shall follow the Copyright Law for non-profit reference. Dr. Hoang Van Hoa Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation Dr. Chen Hsieh-Sheng

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 Grantors Name Student ID s98733408 Tran Xuan Hieu

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 National Central Library Copyright Authorization Form for Electronic version of Thesis
2013 This thesis authorized hereby is the Master thesis accomplished by the grantor at Graduate School of Business Administration, Shu-Te University, in summer, 2013. Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Thesis Topic
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Shu-Te University Authorization Document of Thesis

This thesis authorized hereby is the thesis accomplished by the graduated student Tran Xuan Hieu, the department of Graduate School of Business Administration, Shu-Te University in May, 2013. Thesis title: Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation Inspectorate Adviser: Dr. Chen Hsieh-Sheng Authorization Items: A. The graduate student and the advisers are called the grantors in the follows. B. The accessed times and authorized ways of the electronic file a. Inside campus: The grantors authorize the following option to Shu-Te University free of charge (please chose one of following options, if none, the full text of thesis will be made public or upload immediately): Immediately b. Outside campus: 1. Please chose one of the following option (if none, the full text of thesis will be made public or upload immediately) Immediately be made free of charge) Charge University) C. If the grantors agree to disclose the electronic full text of thesis, Shu-Te University will preserve the right to reprocess the thesis by miniature, digitization, or other ways. The full text of thesis is allowed to be searched, browed, downloaded, transmitted, printed, etc. through PC, Internet, wireless network, or other transmission devices. Shu-Te University has the right to authorize the third person to reprocess the above described items. D. All the authorizations described above are authorized none exclusively, the
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 Authorization for Thesis

2013 This thesis authorized hereby is the Master thesis accomplished by the grantor at Graduate School of Business Management, Shu-Te University, in summer, 2013. Thesis Topic

Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation
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 Graduate Student of Shu-Te University Recommendation Letter from Thesis Adviser

This Student, Tran Xuan Hieu , whose thesis entitled:

Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation

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advisory and agree to submit for examination. Adviser Co-Adviser : Dr. Chen Hsieh-Sheng (Signature) : Dr. Hoang Van Hoa

2013Year05MonthDay
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 Graduate Student of Shu-Te University Qualification Form of Master Degree Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation Student Name: Tran Xuan Hieu Thesis Title: Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation This is to certify that the thesis submitted by the student named above in summer, 2013. It is qualified and approved by the Thesis Examination Committee. Dr.Chin Yuan Chang Chair, Thesis Committee Dr Shu Cheng Lee Committee Member Dr Jau Shyong Wang Committee Member Dr Nguyen Ngoc Dien Committee Member Dr. Chen Hsieh-Sheng Adviser Dr. Hoang Van Hoa Co-Adviser 2013Year11MonthDay

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Graduate School of Management Business Administrator, Shu-Te University

Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation Student: Tran Xuan Hieu Advisor: Chen Hsieh-Sheng Co-advisor: Dr. Hoang Van Hoa

ABSTRACT
This research attempts to research what factors affect users intention to use human resource management system, which are applying at Vietnam General Department of Taxation. In this research used a lot of farmous modern theories such as TAM model of Davis (1989) and IS success of Delone and Mc Lean (2003). Right after the research model developed based on the TAM and IS success. This thesis going to develope the questionaires in order to get feedback form user who are using human resource management at Vietnam General Department of Taxation. This thesis use four research methods such as: descretive analysis, factors analysis, reliability analysis and regression analysis conduct to analysis the collected data. Throughout this research, the author recognised that the above hypotheses are quite matched with investigation statistic at the General Department of Taxation Inspectorate. Almost these hypothesis group presents Cronbach alpha coefficient

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smaller than total Cronbach alpha coefficient. The author of this study strongly expects that research results will be widely used in the Vietnamese government agencies in the near future. Key words: TAM, IS success, Perceived usefulness, Perceived ease of use, Behavior intention, User satisfaction, System quality, Information quality, human resource management, General Department of Taxation Inspectorate.

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ACKNOWLEDGEMENT
First, I would like to express my deeply and sincerely gratitude to my advisor, Dr. Chen Hsieh-Sheng, Graduate School of Business Administration, Shu-Te

University and Dr. Hoang Van Hoa. His wide knowledge and his logical way of thinking have been great value for me. His understanding, encourage and personal guidance have provide a good basic for the present thesis. Next, during this work I have received many helps from my friends. And many thanks to a numbers of respondents who helped me to filled in the research surveys that bring to me the result of this study. Finally, I owed my loving thanks to all members of my family who help me, encourage me during my studying time. They always support me; make me feel full of energy to do best for my study.

Table of Contents
ABSTRACT..............................................................................................xiv ACKNOWLEDGEMENT.............................................................................i Table of Contents.........................................................................................ii List of Tables................................................................................................v Chapter I: Introduction.................................................................................8 1.1 Background............................................................................................8 1.2 Research Motivation...............................................................................9 1.3 Research purpose..................................................................................10 1.4. Research limitations............................................................................11 1.5 Research Procedure..............................................................................11 Chapter 2: Literature Review.....................................................................13 2.1. Human Resource Management Overview...........................................13 2.1.1. Human Resource Management Definitions.....................................13 2.1.2 The importance of human resource management..............................15 2.2 TAM model of Davis, 1989..................................................................16 2.3 IS Success Model of DeLone and McClean.........................................17

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2.4 Factors effect human resource management system adoption.............20 2.4.1 Intention to Use.................................................................................20 2.4.2 Information Quality...........................................................................21 2.4.3 System Quality..................................................................................22 2.4.4 Perceived Usefulness ........................................................................22 2.4.5 Perceived ease of use.........................................................................23 2.4.6 User Satisfaction................................................................................23 Chapter 3: Research Methodology.............................................................26 3.1 Research Model....................................................................................26 3.2 Hypothesizes........................................................................................27 3.3 Measurement activities.........................................................................30 3.3.1 Information quality............................................................................30 3.3.2 System quality...................................................................................31 3.3.3 Perceived Usefulness.........................................................................32 3.3.5 Perceived ease of use: .......................................................................33 3.3.6 Intention to use...............................................................................33 3.3.7 Satisfaction.....................................................................................34 3.4 Sampling Method.................................................................................35

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3.5 Research Method..................................................................................35 3.5.1 Descriptive Statistics .....................................................................35 3.5.2 Factors Analysis.............................................................................36 3.5.3 Reliability analysis.........................................................................37 3.5.4. Regression Analysis......................................................................37 Chapter 4: Data Analysis and Result..........................................................39 4.1 Descriptive analysis..............................................................................39 4.2 Factor Analysis.....................................................................................40 4.3 Reliability Analysis..............................................................................43 4.4 Regression Analysis.............................................................................44 4.4.1 Linear Regression Analysis for User intention to use Human Resource Management System...............................................................44 4.4.2 Linear Regression Analysis for User Satisfaction .........................45 Chapter 5 Conclusion.................................................................................47 5.1 Research Result....................................................................................47 5.2 Significance and contribution...............................................................49 5.4 Limitation.............................................................................................51 5.5 Research on future................................................................................52 References .................................................................................................53 Appendix 1.................................................................................................56

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List of Tables
Table 1: Measurement information quality.................................................30 Table 2: Measurement system quality.........................................................31 Table 3: Measurement perceived usefulness...............................................32 Table 4: Measurement perceived ease of use..............................................33 Table 5: Measurement intention to use........................................................34 Table 6: Measurement user's satisfaction....................................................34 Table 7: Descriptive analysis.......................................................................39 Table 8: Factor Analysis..............................................................................41 Table 9: Reliability Analysis.......................................................................43 Table 10: Linear Regression Analysis for User Intention...........................44 Table 11: Linear Regression Analysis for User Satisfaction.......................45 Table 12: Research Result...........................................................................47

List of Figures
Figure 1: Technology of Acceptance Model ..............................................17 Figure 2: The original D&M IS Success Model .........................................18 Figure 3: Updated D&M IS Success Model ...............................................19 Figure 4: Research Model...........................................................................26 Figure 5: Result Model................................................................................48

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Chapter I: Introduction
1.1 Background Since the early 1990's, Vietnamese economy had been in transition from subsidized economy to a market economy with socialist orientation. In the early years of the reform process, Vietnam has successfully achieved the remarkable economic growth such as high economic rate and dramatic export increase. Vietnam joined the World Trade Oorganization (WTO) marked the successful completion of the integration process of the country into the global economy and created a milestone in the long-term transition from centralized economy to the market economy started from the middle decades of the 80th. Successful integration recognized the great efforts of enterprises and contribution of leaders as well as government officials. Thus, buildding staff capacity and qualifications served for the renovation and integration of the country that contain both requirement and duty of the government sector organizations. Some people argue that many organizations have suffered from consequences due to inadequate of experience in building and maintaining a rigorous system of evaluation and development of human resources there where key staff unhappily lelf and subordinates bewildered. Elsewhere, the loss of customers because of reduced quality of services, defective products make the higher costs. It is obvious that

evaluating the ability of staff is really sensitive because this conclusion affected their interests, from the increase of income, rewards to training and retraining plans. When the assessment of an employee is correct, the staff planning would be more accurate, which can develop their capabilities at the highest level. People are appreciating the capacity will be pleased to be recognized. They will be working more engrossed that leads to labor productivity increased and contributing to reduce costs. Besides, on the side of organization, once rated the right people, lot of time and money in training employees will be reduced. In order to develop high quality human resources for organization and protect the right of staff who are at the General Department of Taxation. In 2011 the General Department of Taxation appied human resource management system (HRM). In 2012, human resources management system has been implemented on all of general departments of taxation help to manage human resource. 1.2 Research Motivation The implementation of Human Resource Management on overall General Department of Taxation had contributed to improve the efficiency in human resource management. The applying of HRM systems successful in total Department of Taxation has very important significance. Contribute to ensure the development of human resources and ensure the rights of staff who are working at the General Department of Taxation However, the HRM system is a complex system. Therefore, applying HRM

system is not a simple task. Although, there are many training program helps staff access to HRM system, but accessing to the system has faced difficulties. In reality, the official staffs often use books and office applications as Word or Ecel to manage information. The HRM system applications has led many officials feel they are not readily adaptable Moreover, the level of knowdelge of information technology is not irregular . Therefore accessing to the system has faced difficulties

Although HRM system has great significance and importance, but there are not the study has been conducted in order to study HRM systems in General Department of Taxation. From the situation show that an in-depth study to assess applying of the HRM system is needed to help leaders make better plans to apply HRM system In order to point out the factors that affect adoption of human resource management systems in General Department of Taxation to help leaders make the appropriate strategy to apply the human resource management system successfully. And this is the reason I selected the topic: Assessing Factors Affecting Adoption of Human Resource Management System at Vietnam General Department of Taxation Inspectorate

1.3 Research purpose Research problem leads to the following research questions: What factors impact to user intention to use human resource management at Vietnam general department of taxation?

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How these factors impact to user intention to use human resource management at Vietnam general department of taxation? This thesis going to study factors affect user satisfaction and their intention to use human resource management at Vietnam general department of taxation in order to answer for two questions about. 1.4. Research limitations This study was conducted in the General Department of Taxation should only be applied to the General Department of Taxation. Due to time and budget constraints, the research was conducted only in the GDT. Therefore, for general studies for all localities across the country should have a broader study. The study focused on an advisory unit of the General Department of Taxation, thus, these instruments can not be applied to business administrative unit that is not in the field of taxation. 1.5 Research Procedure Structure of the thesis consists of 5 chapters. Chapter 1 is a picture of the Vietnam mobile market and development over the years. The research motivation and research purposes also are presented in this section. The concepts, such as user intention to use, perceived ease of use, perceived usefulness and other concepts will be clarified in chapter two. Chapter three will provide the research model and design questionnaire. Questionnaire was designed in Chapter 3 will be used to collect data. After data

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collected and carefully selected will be analyzed based through by four methods: descriptive analysis, factors analysis reliability analysis and regression analysis. Finally, chapter five will summarize the results obtained from the analysis as well as the signification and limitations of this thesis.

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Chapter 2: Literature Review

Before going to study, we are going to looking forward what is the human resource management. Then we review some of theories of research model and concepts. 2.1. Human Resource Management Overview 2.1.1. Human Resource Management Definitions Since the foundation of human society, people know how to form into a group, so that the human management issues began to appear. Each socio-economic pattern is associated with a certain mode of production, the management trend become more complex in accordance with the dramatic development of social economy. In the current market, enterprises have to face various challenges that push them to maximize efficiency to provide its products and services qualities. This requires attention of managers how to care about product and service quality, methods of marketing and good sales as well as effective internal processes. The leading companies often try to create a balance between nature, consistency and creativity. To achieve this goal, they rely on some of his biggest assets is "human resources". The work of HR helps to find, develop and maintain staff and management quality who actively participate in the success of the company. The organization looks forward to the expertise of HR to help them achieve higher productivity despite of the limited labour force.

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One of the requirements of HR is to find the right people, right number at the right time based on satisfaction of both business and new employees. If staff is hired with appropriate skills to work at the right place, both the employee and the company are profitable. Nowadays, there are various numbers of definitions about human, human resource and human resource management. Assistant Professor Pham Duc Thanh (1998) states that human resources are the potential resources of each human being that contains physical and mental capacity, the ability of the senses including the potential of the intellectual and aptitude as well as views, beliefs and personality. According to the OECD, human resources are defined to include knowledge, skills, abilities and the intrinsic character of man which is used to generate economic benefits for individuals and society. Hence, the difference between OECDs definition and Associated Professor Pham Duc Thanh one is that OECD only limited the term human resource in real ability of human and the possibility that can be applied to real life. The other untapped potential abilities are not counted. Correspondingly, the concept of Prof. Pham Duc Thanh (1998) has performed extensive including both internal and external functions compared to the concept provide by the OECD. In this research, the OECD definition of human resources is used as ore concepts. Sum of the human resource of the individual in society or organization is considered as human resources of the society or institution. Human resources of a particular society is a combination of individual talents of the people who live in that

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social community. Human resources of a company or a specific organization is the sum of the individual capacities of employees working for these companies or organizations. Human resources can also be understood as the human resources of an organization includes all individuals involved in any activity, any role in the organization. 2.1.2 The importance of human resource management Manpower is one of the four basic resources to create an organization that includes people, financial resources (money) and material resources (machines, equipment and materials), knowledge (information, time, management system and innovative processes). Human Resource Management plays a fundamental role in making clear the issues of resources and enterprise development as well as solutions for these problems. Human Resource Management is the basic factor of an organization. "Any failure to management issues is the management of people." Strategic management of human resources creates competitive strategies of enterprises. As noted above, human resources is a principal resource of enterprises that should be organized in a strategic human resource management efficiency. It will establish the competitiveness of the organization, thus an organization can create competitive advantage with HR strategy that other organizations can be difficult to imitate. Unlike investments in capital, invention or technology, a system administrator of human resources is a proper operation of tangible assets to create value when it is associated with the activities of the organization. System of remuneration, training

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opportunities, the diversity management program and other programs are planned, implemented and evaluated by management to human resources. It is important and effective for any parts of the organization which knows what they need for the achievement of the organization. Certainly, it is the competitive advantage of organizations. Nowadays, the awareness of the importance of human essence, human resource management in organizations has become important factors in developing the strategic plan. The plan to develop human resources, organization and strategy are closely linked together. The strategic human resource management must clearly reflect the organization's strategy in terms of people, profits and efficiency. Managers have seen as playing an essential role in improving the skills of employees and the profitability of the business. Indeed, human resource management today is considered a "core earnings" and not simply "core costs" Human Resource Management attracts more attention of managers in order to research, analysisse and considers this as the most important administrative management. 2.2 TAM model of Davis, 1989 TAM model of Davis and colleagues introduced in 1989. This model was developed based on the Theory of Reasoned Action model of Fishbein and Ajzen (1975) with the addition two factors includes perceived usefulness and perceived ease of use. TAM model is used airm to explain why users adopt a particular technology (Davis et

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al, 1989). This model has great significance for both of academics as well as in particular. Based on this model leaders, system developers would be make strategies more appropriate to bring information technology to the users. Original TAM model consists of five factors such as. perceived ease of use, perceived usefulness and behavior intention, attitude, actual use.

Figure 1: Technology of Acceptance Model

Source: Davis, 1989 In Davis's TAM model and his college show that there are two most important factors. They are perceived usefulness and perceived ease of use which influence to accepted or rejected a particular technology by user (Davis et al, 1989). So far, many researchers have used the TAM model as the original model in their studies. However, the TAM model did not study the characteristics of the specific information technology systems such as service quality, information quality, system quality. 2.3 IS Success Model of DeLone and McClean The IS Success model of DeLone & McLean firstly studied from 1981-1987

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(DeLone & McLean, 2003) airm to researchs and explains the success of an information system. In the first period, this research model includes six factors that affect the success of an information system such as: system quality, information quality, use, user satisfaction, individual Impact, and Organizational Impact.

Figure 2: The original D&M IS Success Model

Source: DeLone and McLean, 2003 However, unfortunately, the original IS success model was not research an important factor is service quality. During this period, most of the researchers are very few studies the impact of service quality to the success of information systems Pitt et al. (1995). In 2003, DeLone and McLean have noticed the importance of service quality to the success of information technology systems. And they decided to supplementary

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service quality factor in their research model. Finally the model IS model updated with the addition of new service quality factor, as well as the replacement of individual Impact and organizational Impact with a new factor is net Benefits. Since then, had a lot of researchers use the IS model of DeLone and McLean, 2003 as a orginal model for further expansion or applied in order to evaluate the success of an information system (DeLone and McLean,2003). This shows the effectiveness of IS success model of DeLone and McLean (2003).

Figure 3: Updated D&M IS Success Model

source: DeLone and McLean, 2003

The purpose of this study is airm to analysis factors affecting the success of

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human resource management system which is being implemented at the General Department of Taxation. After examining a number of previous research models, I found that IS success model of DeLone and McLean very close to the purpose of this research. However, unfortunately the IS success model of DeLone and McLean (2003) was not evaluate the impact of perceived ease of use and perceived usefulness to the success of information systems. In fact, perceived usefulness and perceived ease of use has a lot of researches point out they are very important factors which affect to the acceptance a new technology (Davis, 1989). After review two famous research model are the TAM model (Davis, 1989) and IS success model of DeLone and McLean (2003). Each model has its own advantages in evaluation of an information system. 2.4 Factors effect human resource management system adoption 2.4.1 Intention to Use Behavioral intention: Ajzen (1991) defined behavioral intention is the intention of an individual who desire to perform a particular behavior. Behavioral intentions directly affect to performance of the behavior (Ajzen, 1991).

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Davis (1989) suggested that behavioral intention reflects the decision made by a specific behavior of individuals. Behavioral intentions are related to their attitudes and their feelings for a specific technology In both of TAM model (Davis, 1989) and IS success DeLone and McLean (2003) are includes behavior intention factor. Because of behavioral intention is very close to the performance of the behavior of persons. In this study, going to study user itention to use the human resource management system at the General Department of Taxation. Which will serve as a central factor, in order to assess the acceptance and use of human resources management system at the General Department of Taxation. 2.4.2 Information Quality In any information system in general can not accept bad results, reports incorrect. A complete information system must to create accurate information as users requestes (Chang and King, 2005). Especially in the field of public agent, any information system provide incorrect or inconsistent is hardly acceptable. Therefore, the first factor to consider for any information system deployed in the administrative agencies is quality of information. Kaydos (1998) said that the quality of information is a very important

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factor affect the success of an information system. An information system always give correct results following with user requirements. It will better satisfy users (Lin and Lu, 2000), the quality of information systems strongly impact user acceptance is the research results of Lin and Lu (2000). 2.4.3 System Quality Quality is a term that we use every day. However, measurement or assessment quality is not simple and it is difficult to measure accurately (Anna Wingkvist, 2009). According the definition of Crosby (1979), the quality perceived by the users rated a particular system can satisfy the requirements of users or not. Following DeLone and McLean (2003), system quality is one of the important factors for the success of an information system. For human resource management system, the quality of the system is very important. It represents stability, security and accuracy of the system. It also helps users more confidence as well as easier in their job. 2.4.4 Perceived Usefulness One of the most important factors in the TAM model of Davis (1989) is perceived usefulness. Perceived usefulness is defined as someone who believes in using a particular technology will help improve the efficiency of their work. Or in other words,

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user confidence in usefulness of the technology, and they feel confident in their job (Davis, 1989). More specifically, when user feels the human resource management system can make their work more effective. So that they will be more confident and positive use of the system in their work 2.4.5 Perceived ease of use As well as perceived usefulness, perceived ease of use also is an important factor in the TAM model of Davis (1989). In the TAM model, perceived ease of use has strong impact to users attitude to use the system (Davis, 1989). In fact, a complex system is so difficult for users who desire to apply information technology systems for their work. Davis (1989) defined perceived ease of use is someone believes that using a particular technology is not wasting their time and their effort and they will gain benefits for their time and their efforts (Davis, 1989). For human resource management system is one complex system. Therefore, the simplicity and ease of use of the system will be great help for users. 2.4.6 User Satisfaction Satisfaction is level perceived by people received from comparison the results of their experience products with their expectations for the product (Kotler, 2001).

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User satisfaction achieved when users use products and products meet the user's expectations for the product (Oliver, 1991). Thus, the user's satisfaction with the human resource management system only has when the system meets user's requirements (Ives, Olson and Baroudi, 1983). In contrast, when the system does not meet user's requirements, it will be an offensive and of course user's satisfaction for the system also was reduced. (Bharati, 2003). User satisfaction is an important factor found in many research such as (Ives, Olson and Baroudi, 1983), (Bharati, 2003), Delone and Mclean (1992). In the IS success model shows that satisfaction is an important factor affect the success or failure of an information technology system (Delone and Mclean, 1992)

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Chapter 3: Research Methodology

Chapter two provided the theories TAM and IS success model and concepts. The research model had been developed based on previous theories and also based on the purpose of this thesis.In chapter three, the hypothesis and variables measurement is developed. The final of this chapter presents the methology used to collect data and research methods. 3.1 Research Model

Information Quality H1 H2

User Satisfaction

H7 System Quality H3 H4 H5 H6 Perceived Usefulness H8 Intention to Use

Perceived ease of use

Figure 4: Research Model

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3.2 Hypothesizes An information system is always given timely and accurate information to meet user's requirements will help users feel more confident and they will look forward to apply information systems in their work(DeLone and McLean, 2000; Davis at el, 2000). In other words, information systems provide information quality will better satisfy users (DeLone and McLean, 2000). From research (DeLone and McLean, 2000; Davis at el, 2000), the helothesis is developed as follows: H1 Information quality has positive impact user satisfaction. A recent research by Fadi (2012), which study factors affecting the user's intention to use online services in Jordan proved that the quality of information affects significantly on user intention. Along this view, Andreas (2006) also demonstrated information quality positively affect user itention. The hypothesis is developed as follows: H2: Information quality has positive affect user intention to use human resource management. Nelson and Todd (2005) have demonstrated the quality of the system is closely

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related with the quality of information. So that, system quality affect to using information and output information of user. Hence, system quality positively affect intended use found in many previous studies such as Davis (2000), DeLone and McLean (2003). Recent research of Fadi Taher Qutaishat (2012) also demonstrated system quality is the most factor influential to intention to use online services system of people. From previous studies of Nelson and Todd (2005), Davis (2000) DeLone and McLean (2003) and Fadi Taher Qutaishat (2012). This thesis has been synthesized and developed the hypothesis as follows: H3 system quality has a positive affecting to user satisfaction H4 system quality has a positive affecting to user intention to use e-learning Perceived usefulness has a positive impact on intention to use online purchasing system has been found in the research of Koufaris (2002). Moreover, there are many previous studies also found a close relationship between perceived usefulness to the user's intention to use such as Davis, et al. (1989), Mathieson et al. (2001); Moon and Kim (2001); (Delone and McLean, 2003), and (Venkatesh and Davis, 2000). In addition, another study by Chang and Chuo (2008) when studying the field of mobile

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phones in China also found a relationship between perceived usefulness and user satisfaction The hypothesis developed as below: H5: Perceived usefulness has positive affect users satisfaction H6: Perceived usefulness has positive affect users intention to use human resource management User satisfaction has a positive effects to intention to use is the final hypothesis to be studied in this thesis. This hypothesis is supported from many other studies such as the (Delone and McLean, 2003), (Moon and Kim, 2001) demonstrated that satisfaction strongly influence to intention to use of users. Summary of researches such as (Moon and Kim, 2001), and (Delone and McLean, 2003) this thesis will develop hypothesis following: H7 Users satisfaction has a positive affecting to their intention to use human resource management. Perceived ease of use is one of the most important factors in the TAM model of Davis (1989). In this model, Davis (1989) had show perceived ease of use affect users attitude towards a particular technology. Thereby indirectly affecting the intention to use

29

a particular technology. In a research study conducted by Chang and Choung (2006) had show perceived ease of use directly affect intention to use in the field of mobile phones in China. Synthesis of previous research by Davis (1989), Chang and Choung (2006) this thesis developed the following hypothesis: H8 Perceived ease of use has positive affect users intention to use human resource management system. 3.3 Measurement activities 3.3.1 Information quality Based on the questionnaire was developed by (Delone and McLean, 2003); this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following: Table 1: Measurement information quality Variable Information quality Content of Item 1. The information provided by human resource management system is accessible at any requested time. 2. The information provided by human resource management system

30

is true and accurate. 3. The information provided by human resource management system is updated. 4. The output information provided by human resource management system is ease to read 3.3.2 System quality Based on the questionnaire was developed by (Delone and McLean, 2003); this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following:

Table 2: Measurement system quality Variable System quality Content of Item 1. human resource management system is flexible to change or update in response to new conditions, demands 2. human resource management system is easy to use and utilize its capability

31

3. human resource management system can completely intergrate into my organization 4. The elapsed time between an userinitiated request for service or action and reply to that request by human resource management system is acceptable.

3.3.3 Perceived Usefulness Based on the questionnaire was developed by Davis (1989) and Davis et al (1989); this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following: Table 3: Measurement perceived usefulness Variable Perceived Usefulness Content of Item 1. Using human resource management system will enhance my effectiveness on the job. 2. Using human resource management system will make my job easier. 3. Using human resource management system will increase my productivity.

32

4. Using human resource management system will enable me to accomplish tasks faster. 3.3.5 Perceived ease of use: Based on the questionnaire developed by Davis (1989) and Davis et al (1989) applied and adjusted in accordance with 5 questions and with 5 point 5= Strongly agree; 4= Agree; 3= Neutral; 2= Disagree; 1 = Strongly disagree. As follows Table 4: Measurement perceived ease of use Variable Perceived ease of use Content of Item 1. It will be easy to get human resource management system to do what I want it to do. 2. human resource management system will be flexible to interact with. 3. Our interaction with human resource management system will be clear and understandable. 4. human resource management system will be easy to use 3.3.6 Intention to use Based on the questionnaire was developed by (Delone and McLean, 2003); this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following:

33

Table 5: Measurement intention to use Variable Intention to use Content of Item 1. I intend to use human resource management system for my job 2. I intend to use e-learning to manage users 3. I intend to use e-learning to communicate with other users 4. I intend to use e-learning to get the schedule for my job and other user

3.3.7 Satisfaction Based on the questionnaire was developed by (Davis, 1989) and Vankatesh et al (2003); this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following: Table 6: Measurement user's satisfaction Variable User's Satisfaction Content of Item 1. I feel human resource management system can meet the information processing needed of my area of responsibility. 2. Overall, I am satisfied with human resource management

34

system.

3.4 Sampling Method From The purpose of this thesis is to study the factors affecting to users intention to use the HR system at the General Department of Taxation. Therefore, the questionnaire was designed specifically for who are using the HR system at the General Department of Taxation. The participants answered questionnaires are 180 users, who are using the HR system at the General Department of Taxation. The participants answered the questionnaire will be required to answer all the questions. Each question will have a scale from 1 (completely disagree) to 5 (completely agree). Right after the questionaires collected, only completed questionaires will be used to analysis following four research methods such as: descriptive, validity, reliability and regression analysis. 3.5 Research Method 3.5.1 Descriptive Statistics After data is collected will be used the first method of analysis is a descriptive analysis, the personal information such as gender, age, experience, department, .... will

35

be analyzed follows percentage, distribution of age, gender, experience, department ... how relevant to the clause in their research. 3.5.2 Factors Analysis Factor analysis is often used in data analysis. Now, there are many researchers of social research are applying this research method in order to evaluate the relationship between factors together, reduction data, development scale, classification and testing hypothesis (Rummel, 1970). When conducting factor analysis, a problem should be considered when conducting analysis: determine the need to analyze, model and number of factors used to analyze Ford et al (1986 ). Firstly, researchers should develop the model before conducting to analysis. There are two methods commonly used to analyze factors include: common analysis and components analysis factors Ford et al (1986). The second problem is how to determine the number of factors. (Kim & Mueller, 1978) showed that the number of factors is a result of the analysis process and it is determined based on the value of eighen value. The eighen value must be greater than one. However, Tucker et al (1969) offer a different view, following the view of Tucker et al (1969), the number of factors can be identified earlier, based on the purpose of the

36

researcher. Thus, based on previous studied, and the purpose of this thesis. I will conduct factor analysis method by pre-determined number of factors before factors analysis. 3.5.3 Reliability analysis After gathering data, it is difficult to ensure data is collected. To ensure the reliability of data, means that can we really trust the data has been collected or not ? To ensure data is collected in a reliable, we must analyze the reliability of data based on the value of Cronbach's . If Cronbach's greater than 0.7 it meant that factor is accepted for its reliability, and Cronbach's in less than 0.35 meant that the reliability of the factors are very low and should be removed (Robinson, Shaver, and Wrightsman 1973). 3.5.4. Regression Analysis After the data is ensure accuracy and reliability, the last method to evaluate and test the hypothesis that the regression analysis method. Regression analysis is a statistical method commonly used to analyze the correlation between factors together. Normally, researchers look the cause - results relationship of research model. The inspection will be done with the help of SPSS software based on the coefficient as R2, adjusted R2, pvalue, beta ... to assess the hypotheses are supported or not. According to

37

Daniel Muijs who wrote the book Doing quantitative research in education recommended for the R square value should be: <0.1: poor fit; 0.110.3: modest fit; 0.310.5: moderate fit ; > 0.5: strong fit.

38

Chapter 4: Data Analysis and Result

4.1 Descriptive analysis The detail description of samples or the respondents personal data, such as their gender, age, education ..and so on will be analyzed. Every construct of the data will be analyzed in percentage, frequency distribution in order to know the sample distribution.

Table 7: Descriptive analysis Variables Frequency Percentage

39

(%) Age Under 25 years 25-35 years 35-45 years 45-55 years Higher 55 Gender Female Male Education Lower College Barchelor Master Higher 23 49 19 30 34 73 82 8 46 76 23 2 14.8 31.6 12.3 19.4 21.9 47.1 52.9 4.6 26.4 43.7 13.2 1.1

4.2 Factor Analysis Tucker et al (1969) offer a different perspective, which is the number of factors can be identified earlier, based on the purpose of the research study. Hair et al. suggested that an item is significant if its factor loading is greater than 0.50. From the table show items is strongly validity.

40

Thus, based on previous studied, and the purpose of this thesis. I will conduct factor analysis method by pre-determined number of factors. Table 9 shows the results of the VARIMAX rotation on the original 22 items constrained to six factors. We can see that, the loading value smallest is US2 (0.520), which is greater that 0.5, so that, all loading value of each questions are greater than 0.5 mean that, the data collected is validity.

Table 8: Factor Analysis

Intention to Use IO1 IO2 IO3 IO4 US1 US2 0,753 0,818 0,781 0,775

User

Perceived

Perceived Ease of use

Information Quality

System Quality

Satisfaction Usefulness

0,565 0,520

41

Intention to Use PU1 PU2 PU3 PU4 PEOU1 PEOU2 PEOU3 PEOU4 PQ1 PQ2 PQ3 PQ4 SQ1 SQ2 SQ3 SQ4

User

Perceived

Perceived Ease of use

Information Quality

System Quality

Satisfaction Usefulness 0,835 0,726 0,788 0,864

0,767 0,771 0,790 0,793 0,725 0,819 0,834 0,854 0,698 0,819 0,872 0,880

42

4.3 Reliability Analysis Reliability analysis method used in order to evaluate the reliability of the data collected via Cronback value. Data collected achieved reliability when cronback value is greater than 0.7. After the data has been collected will be analyzed on SPSS 17.0 software and the following table is the results analyzed on SPSS 17.0 software Table 9: Reliability Analysis Factors Intention to Use User Satisfaction Perceived usefulness Perceinved ease of use Information Quality System Quality Cronbachs 0.934 0.948 0.856 0.827 0.887 0.880

Through the data table shows the Cronback value lowest is System quality equal 0.880 and it is greater than 0.7. Thus, we can conclude that the data collected has good reliability.

43

4.4 Regression Analysis After factor and reliability analysis for the data collected. Just in time we need to evaluate the relationship between these factors together through SPSS 17.0 software. 4.4.1 Linear Regression Analysis for User intention to use Human Resource Management System. The results of linear regression analysis for user intention in the Table 11 below: Table 10: Linear Regression Analysis for User Intention

Constructs

St. coefficients

t value

R2

Adj-R2

F value

User Satisfaction Information Quality System Quality Perceived Usefulness Perceived Ease of use

0.283** 0.271*** 0.213** 0.129* 0.144*

3.370 4.136 3.497 2.074 2.309

0.581

0.567

41.295***

Dependent variable: User Intention ***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1 The final model shown in the Table 11 had a good overall fit (41.295***, p = 0.000). And at significant level 0.05, User satisfaction, Information quality, System

44

quality, Perceived usefulness, Perceived ease of use (H2, H4, H6, H7 and H8) have significant positive relationships with User intention to use humana resource management system. We also can see in the table that the adjusted R2 is 0.581, meaning that the explanation ability of the independent constructs is good for our dependent variables. 4.4.2 Linear Regression Analysis for User Satisfaction The results of linear regression analysis for User Satisfaction are shown in the Table 12 below: Table 11: Linear Regression Analysis for User Satisfaction

Constructs Information Quality System Quality Perceived usefulness

St. coefficients 0.381***

t value 6.127

R2 0.523

Adj-R2 0.513

F value 55.179***

0.250***

4.089

0.364***

6.197

45

Dependent variable: User Satisfaction ***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1 The final model shown in the Table 12 had a good overall fit (55.179***, p = 0.000). And at significant level 0.05, Information quality, System quality and Perceived usefulness (H1, H3 and H5) have significant positive relationships with User satisfaction. We also can see in the table that the adjusted R2 is 0.513, meaning that the explanation ability of the independent constructs is good for our dependent variables.

46

Chapter 5 Conclusion
5.1 Research Result In chapter four we analyzed collected data based on four methods of analysis such as descriptive analysis, factor analysis, reliability analysis and regression analysis in order to assess and test the hypotheses. The final results are summarized as the following table: Table 12: Research Result Hypotheses H1: Results Information quality has a positive affect user Supported satisfaction H2: Information quality has a positive affect user Supported intention H3: System quality has a positive affect user Supported satisfaction H4: H5 System quality has a positive affect user intention Supported

Perceived usefulness has positive affect user Supported satisfaction

H6

Perceived usefulness has positive affect user Supported

47

intention H7: User intention H8 Perceived ease of use has positive affect user Supported intention From the research results, we can summarize the final model of the factors affecting the intention to use human resource management systems in general departments of Taxation as follows: satisfaction has positive affect user Supported

Information Quality 0.381*** 0.271***

User Satisfaction

0.283** System Quality 0.250*** 0.213** 0.364*** Perceived Usefulness 0.129* 0.144* Intention to Use

Figure 5: Result Model

Perceived ease of use

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5.2 Significance and contribution From research result shows us more detailed look at factors affecting the intention to use the system of human resources at the General Department of Taxation. In the model shows that user satisfaction has positive affect user's intention to use. This result received support not only from this thesis results, also received support from previous studies. User satisfaction is a very important factor found in many researchers such as (Ives, Olson and Baroudi, 1983), (Bharati, 2003), Delone and Mclean (1992). In the IS success model shows that satisfaction is an important factor affecting the success or failure of an information technology system (Delone and Mclean, 1992). Moreover, from the results of this thesis show that user satisfaction is the greatest factor affecting the user's intended use. In the TAM model of Davis (1989) had demonstrated the importance of perceived usefulness and perceived of use. Research results show that perceived ease of use has a positive effect on the user's intended use. Again, from the results of this study also showed perceived usefulness has a positive effect to both of user satisfaction and their intention to use. In addition, perceived usefulness is the second important factor

49

affecting satisfaction right after information quality. Thus perceived usefulness direct and indirect impact on the user's intention to use. In the results of this thesis can not forget the importance of information quality. Information quality is the biggest factor that influence the users satisfaction. Fadi Taher Qutaishat (2012) also demonstrated the information quality of an information system is very important and is the most important factor affecting satisfaction of users. In the final model showed that the quality of information have a huge impact on both of users satisfaction and their intention to use. This shows importance of the quality of information is huge. Although, the system quality is not the most factor affecting the user's itention to use and their satisfaction. But quality of the system affecting users intention and satisfaction is not small. This thesis demonstrates the importance of system quality with human resource management system in the finnal model. Thus, the results of this thesis demonstrated the relationship between factors. The results in this study have great significance for the leaders of the General Department of Taxation, the department of information and the users. The leaders will see importance

50

of human resources management system for General Department of Taxation as well as see factors affect the success of human resource management system. With the department of will get better insight into the factors affecting the success of the system. Thereby helping them make strategic plans in the future to help the system work better and more successful. In addition, the results of this thesis also has academically contribution. Researchers can use the thesis results to study in other organizations. Or they can use the final model as a orginal model in their study. The research questions in this study also can be used with a slightly modified in order to study the same problem. 5.4 Limitation In this study, even though I tried as much as possible. The limitations in this study is not inevitable. One of the major limitation is the language. English is not my native language makes difficulty in presenting my ideas. On the other hand, due to the conditions and time constraints. Does not allow me to study a lot of factors affecting satisfaction and intentions of users. The only factors include those factors in the TAM model of Davis (1989) and other factors in the IS

51

success model of Delone and Mc Lean (2003). I can not study further to study other factors and this is a limitation of this thesis. Moreover, this thesis focuses on human resource management system using at the General Department of Taxation. Therefore, the limited number of participants interviewed is other limitation. Therefore, findings may only be true to the General Department of Taxation, the research results will be different when applied in other agencies and organizations. 5.5 Research on future Future studies can use the final model in this study for further research into other information systems deployed in other agencies and organizations. In addition, future studies should continue to expand with the addition of new factors or the addition new hypothesis. Future studies should conduct to research with larger of samples will give more accurate results.

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References
[1]. Adams, D., Nelson, R., & Todd, P. (1992). Perceived Usefulness, Ease of Use and Usage of Information Technology: A Replication. MIS Quarterly, (47). [2]. Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211. [3]. Andreas I. Nicolaou, 2006; Perceived Information Quality in Data Exchanges: Effects on Risk, Trust, and Intention to Use [4]. Anna Wingkvist, 2009. Understanding Scalability and Sustainability in Mobile Learning: A Systems Development Framework (doktorsavhandling). ISBN: 978-91-7836-687-5. ed, McGraw-Hill Book Company, New York. [5]. Berry, L.L., Parasuraman, A. and Zeithaml, V.A. (1988),``The service quality puzzle'', Business Horizons, September-October, pp. 35-43. [6]. Bharati, 2003 The Study Centre for Indian Literature in English and Translation; [7]. [8]. Crosby, P.B. Quality is Free, New York: McGraw-Hill, 1979. Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319-340. [9]. Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User Acceptance of Computer Technology: A Comparison of Two Theoretical Models. anagement Science, 35(8), 982-1003. [10]. DeLone, W.H., and McLean, E.R., 2003, The DeLone and McLean Model of Information Systems Success: A Ten-year Update, Journal of Management Information Systems, vol. 19, pp. 9-30. [11]. DeLone, W.H., and McLean, E.R., 2003, The DeLone and McLean Model of

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Information Systems Success: A Ten-year Update, Journal of Management Information Systems, vol. 19, pp. 9-30. [12]. Ives, B., Olson, M. H., & Baroudi, J. J. (1983). The measurement of user information satisfaction. Communications of the ACM, 26, 785-793. [13]. James Y.L Thong, 1999; An Integrated Model of Information Systems Adoption in Small Businesses [14]. Kandampully, J. & Duddy, R., 1999, Competitive Advantage through Anticipation, Innovation and Relationships, Management Decision, 37 (1), pp. 51-56. [15]. Kaydos, Will. (1998). Operational Performance Measurement: CRC Press, 272p, ISBN: 1574440993 [16]. Kim, J.O. & Mueller, C.W. (1978). Factor analysis: Statistical methods and practical issues (Sage University Paper Series on Quantitative Applications in the Social Sciences). Beverly Hills, CA, and London, England: Sage Publications. [17]. [18]. Kotler, Philip (2003), Marketing Management, education pulisher. Fifth edition Lin, J. C., & Lu, H. (2000). Towards an understanding of the behavioral intention to use a Web Site. International Journal of Information Management, 20, 197208 [19]. Moon, J.-W., & Kim, Y.-G. (2001). Extending the TAM for a World-Wide-Web context. Information & Management, 38(4), 217-230. [20]. Oliver, R.L (1997). Satisfaction: A Behavioural Perspective on the Consumer . New York: The McGraw-Hill Companies, Inc. [21]. Parasuraman, A., Zeithaml, V., and Berry, L.L. (1988), SERVQUAL: a

multiple-item scale for measuring consumer perception of service quality,

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Journal of Retailing , 64, 12-40. [22]. Rummel, R.J. (1970). Applied factor analysis. Evanston, IL: Northwestern University Press. [23]. Su-Chao Chang, Chi-Min Chou, 2008; Factors affecting the Satisfaction of Chinas Mobile Services Industry Customer [24]. Tucker, L.R., Koopman, R.F., & Linn, R.L. (1969).Evaluation of factor analytic research procedures by means of correlation matrices. Psvchometrika, 34(4): 42 l-459. [25]. Venkatesh, V., & Davis, F. D. (2000). A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies. Management Science, 46(2), 186-204 [26]. Wanjau Kenneth Macharia et al, 2012 ; Factors Affecting Adoption of Electronic Commerce among Small Medium Enterprises in Kenya: Survey of Tour and Travel Firms in Nairobi; International Journal of Business, Humanities and Technology; Vol. 2 No. 4; June 2012

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Appendix 1 Questionnaires
This questionnaire constitutes part of a students individual academic research work in partial fulfillment of the MBA graduation requirement. While the Shute University respects and abides by the Privacy Data Ordinance, it is the students responsibility to comply with the Ordinance during every aspect of this thesis. Please contact the sender of this questionnaire for specific details. Please ignore this questionnaire if you have responded or are not interested in responding to it. Thank you. School Name: ____________________________________________________________ (Optional, only for future acknowledgement) Part I. General Information (Please tick your answer) Age Under 18 years Gender Female Experience using computer Male 19-20 years 21-22 years Over 22 years

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 Never Department IT

1-2 years

3-4 years

5-6 years

Greater 7 years

Non-IT

Part II. Please base on your experience of using E-learning to answer the following questions. (Please circle one of the numbers in the five point scale that best describe your points of view. In which, "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree) A. Information Quality The information provided by human resource management system is accessible at any requested time. The information provided by human resource management system is true and accurate. The information provided by human resource management system is updated. The output information provided by human resource management system is ease to read 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

B. System Quality human resource management system is flexible to change or 1 2 3 4 5

57

update in response to new conditions, demands human resource management system is easy to use and utilize its capability human resource management system can completely intergrate into my organization The elapsed time between an userinitiated request for service or action and reply to that request by human resource management system is acceptable. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

C. Service Quality When I have a problem, the official human resource management system units will show a sincere interest in solving it. The employees of the official human resource management system support units have the knowledge to maintain the system and solve problems well. The employees of the official human resource management system support units have followingup service to ensure I and other workmates can be able to adapt human resource management system When I have a problem on using human resource management system I can find supports from certain online support sources. (e.g. Email, Web Forum) 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

58

F. Perceived Usefulness

Using human resource management system will enhance my effectiveness on the job. Using human resource management system will make my job easier. Using human resource management system will increase my productivity. Using human resource management system will enable me to accomplish tasks faster.

G Perceived ease of use It will be easy to get human resource management system to 1 do what I want it to do. human resource management system will be flexible to interact with. Our interaction with human resource management system will be clear and understandable. human resource management system will be easy to use 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 2 3 4 5

H Intention to use

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I intend to use human resource management system for my job I intend to use e-learning to manage users I intend to use e-learning to communicate with other users I intend to use e-learning to get the schedule for my job and other user

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

I. User Satisfaction I feel human resource management system can meet the information processing needed of my area of responsibility. Overall, I am satisfied with human resource management system. 1 2 3 4 5 1 2 3 4 5

60