Factors affecting adoption of FLOSS ERP system by SMEsfdirectors and managers in developing countries using UTAUT2, SEM and R

Abstract

Integrated Information Systems have become the standard in both small and large companies as the most effective approach to managing critical business processes, information flows, and supporting better decision making. Taking note of the Free/Libre & Open Source Software (FLOSS) movement rise and benefits as well, in the contemporary climate of fierce competition. A ready made FLOSS Enterprise Resource Planning (ERP) System that offer great opportunities for cost reduction and quality improvement is always a wiser decision for Developing Countries' Small and Medium-sized Enterprises (SME) over getting a “From scratch” software solution. The aim of this paper is to provide further understanding of issues surrounding adoption of FLOSS ERP by SME in Developing Countries. We employed the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model to determine the strength of predictors for SMEs' managers and directors' intention to accept and use FLOSS ERP systems of better operational, tactical and strategical decision making. Questionnaires were administered to 200 SMEs' managers and directors in the Kingdom of Morocco, Republic of Tunisia and Republic of Ivory Coast, with 177 returned, a xx% return rate. LimeSurvey and Google Forms have been used to collect data through web based surveys published on-line, sent to people via email and via social networks profiles, groups and pages. R Software for Statistical Computing, Psych and Lavaan R packages for Structural Equation Modeling were used to analyze data collected. The measurement and structure model was examined using Structural Equation Modeling. Constructs Performance Expectancy (PE) and Effort Expectancy (EE) significantly predicted Behavioral Intention (BI) to use FLOSS ERP, where Social influence (SI), Price Value (PV) and Use Behavior (UB) were statistically insignificant, as was Facilitating Conditions (FC), Hedonic Motivation (HM), Habit (HT) on both UB and BI. We recommend that future studies should differentiate between SME's obtaining aids from government or NGOs, and other SMEs that depends on its own resources, for more reliable results and conclusions.