Influential Characteristics and Benefits of Cloud ERP Adoption in New Zealand SMEs: A Vendors’ Perspective

Abstract

Cloud enterprise resource planning (ERP) systems are hosted services offering opportunities for small and medium-sized enterprises (SMEs) that often lack IT resources. Few studies have examined the adoption of cloud ERP systems in SMEs, specifically, from the perspective of cloud ERP vendors who are the domain experts. Drawing on vendors’ perspectives in the New Zealand (NZ) context, this paper evaluates the influential characteristics for adopting cloud ERP systems in SMEs. The paper uses an integrative model combining the technological, organizational, and environmental (TOE) framework with the unified theory of acceptance and use of technology (UTAUT) based on individual dimension for a holistic evaluation. Findings reveal novel characteristics including system reliability and data security that influence adoption of cloud ERP. Further, benefits are identified such as reduced cost and time for deployment, increased scalability, and improved accessibility. The paper presents new insights that can help SME managers successfully adopt cloud ERP in their firms in addition to providing practical guidelines for adoption in NZ. The development of a theoretical model integrating TOE and UTAUT is a novel approach, substantially contributing to the body of knowledge.