Determinants of cloud ERP adoption in Jordan: an exploratory study

Abstract

Enterprise resource planning (ERP) systems are usually adopted through two major options: cloud computing or on-premise infrastructure. The issues related to hardware, servers, implementation costs, and facilities, which are necessary to run on-premise ERP systems, are rather great for small and mid-sized enterprises (SMEs). The purpose of this research is to highlight the factors influencing cloud ERP adoption among SMEs. The technological, organisational, and environmental (TOE) model will be used as a theoretical base. This qualitative, exploratory study gathers data from 13 different SMEs and cloud ERP service providers through semi-structured interviews, focusing on SMEs in Jordan. According to our results, support from both service providers and top management within the company play an important role in whether a firm adopts cloud ERP services, in addition to a number of other factors at varying rates. Research findings can be used by service providers and business owners to enhance their approach to cloud ERP by showing the reasons why some SMEs chose to adopt this technology and others did not. Cloud ERP providers need to intensify their efforts to build a progressive environment for their services that will eliminate any ambiguity regarding this type of technology.