Critical success factors of cloud enterprise resource planning systems and financial performance: Evidence from emerging markets

Abstract

Cloud ERP (C-ERP) systems help firms to reach greater levels of sustainable performance (Gupta, Qian, Bhushan, & Luo, 2019). Ali (2016) demonstrate that the enterprise resource planning (ERP) system implementation influences financial performance indicators. Huang, Rahim, Foster, and Anwar (2021) had investigated and identified the critical success factors (CSFs) which may affect the successful implementation of C-ERP systems. However, no empirical evidence was found on the relationship between C-ERP critical success factors and financial performance. This study examined the effect of key CSFs of the C-ERP systems on financial performance in the post-implementation stage. An online questionnaire was developed to collect data about CSFs in C-ERP firms. The financial ratios were collected from the Amman Stock Exchange (ASE) filings. OLS analysis suggests that financial performance is affected by technological competence, management support, organizational culture, and system characteristics. The study provides empirical evidence on the cause-effect relationship which emphasizes the difference made in long-term financial success by the various managerial techniques. The results provide practical implications to management and service providers that help in installing and maintaining C-ERP systems.