Moderating Effect of Compliance, Network, and Security on the Critical Success Factors in the Implementation of Cloud ERP

Abstract

In a highly competitive business environment, Cloud based enterprise resource planning (ERP) plays a crucial role for small and medium enterprises (SMEs) to operate their business in a cost effect manner and yet deliver performance. The ability of a company to implement cloud ERP can be viewed as both strategic as well as tactical achievements. This tool integrates various business processes and thus it aids in real-time decision making. From cloud vendor's view-point compliance, network, and security play an important role in the implementation of cloud ERP. There are critical success factors (CSFs) that are crucial for a SME for successful cloud ERP implementation. This paper is aimed at proposing a link between the concerns of cloud vendor and the CSFs that are categorized as organizational, people, and technological factors. Structural Equation Modeling (SEM) was used to establish whether there is any moderating effect of compliance, network, and security on the CSFs for SMEs in India. Perspective of 208 respondents belonging to SMEs was taken into consideration and it was found that only the relationship of organizational factors with successful implementation of cloud ERP was moderated. There was no significant impact on the people factors and technological factors by the moderating variables compliance, network, and security.