Abstract
To enhance the sustainability of business operations, enterprises have interests in enterprise resource planning (ERP) transitions from an existing on-premise method to a cloud-based system. This study conducts a comprehensive analysis using the technology-organization-environment, diffusion of innovation, and the model of innovation resistance frameworks. The empirical analysis shows that the factors of organizational culture, regulatory environment, relative advantage, trialability, and vendor lock-in all had a significant influence on the intention to adopt cloud-based ERP, while information and communications technology skill, complexity, observability, data security, and customization had no significant influence on the intention to adopt cloud-based ERP. This study’s findings provide meaningful guidance for companies that want to adopt cloud-based ERP, governments that support enterprise digitalization, and vendors who sell cloud-based ERP systems.
Highlights
Most large enterprises stopped introducing new enterprise resource planning (ERP) systems in around 2010
This study developed a framework that explains how small and large businesses are associated with the opportunities and concerns identified in adopting cloud-based ERP
This study found that the TOE and Ddiffusion of innovation (DOI) factors were strongly related to cloud-based ERP adoption
Summary
Most large enterprises stopped introducing new enterprise resource planning (ERP) systems in around 2010. The most important factor to consider in advanced ERP is the response to the advent of cloud technology. Studies on affecting the adoption of cloud-based ERP have been recently released, and many such studies are based on the technology-organization-environment (TOE) framework, Ddiffusion of innovation (DOI) theory, or the model of innovation resistance (MIR). Only by adding the MIR perspective to the above two perspectives can a truly comprehensive view be achieved With this background, this study intends to provide insights into what factors should be considered regarding the adoption of cloud-based ERP. Based on the TOE, DOI, and MIR frameworks, a research model was developed to identify influential factors on intention to adopt cloud-based ERP. A total of 10 characteristics are analyzed by classifying cloud-based ERP preference characteristics (i.e., information and communications technology (ICT) skill, organizational culture, regulatory environment, relative advantage, complexity, trialability, and observability) and resistance characteristics (i.e., data security, vendor lock-in, and customization) for this study
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