Prioritizing the factors affecting cloud ERP adoption – an analytic hierarchy process approach

Abstract

PurposeIn today’s competitive world, the adoption of cloud enterprise resource planning (ERP) has become one of the critical criteria for running a successful business. In this regard, knowing the factors that influence cloud ERP adoption plays a significant role. The purpose of this paper is to rank the factors influencing the cloud ERP adoption in multi-national companies (MNCs) in India. This research would enable the cloud ERP vendors to identify the expectations of MNC customers and develop suitable strategies.Design/methodology/approachThe research is being conducted among the cloud ERP consultants of designation middle managers and above from 29 different ERP consulting firms located in India. Analytical hierarchical processing approach was used to rank the factors influencing the cloud ERP adoption in MNCs located in India. The primary factors considered for this study are usability, assurance, agility, security and privacy, and vendor-related factors.FindingsThe three most preferred criteria were usability, assurance and agility. The five most preferred sub-criteria were data accessibility, availability, user friendliness, scalability, and data backup and recovery.Research limitations/implicationsThe study is limited to the perspective of cloud ERP consultants in India.Practical implicationsThe outcome of this research provides cloud ERP vendors with a better understanding of factors that influence the adoption of cloud ERP in MNCs so that they can develop a focused strategy. From the MNCs point of view, the study provides a guideline on what factors they should consider while going for a cloud ERP implementation.Originality/valueThe research model is developed based on the cloud ERP literature, and the research results and findings would add value to the body of knowledge.