Cloud Enterprise Resource Planning Adoption Research Articles

Investigating the factors affecting the intention to adopt cloud-based ERP systems during the COVID-19 era: evidence from Jordan

PurposeGenerally, the use of cloud-based services has proliferated all around the world. This tendency increased dramatically during the coronavirus disease 2019 (COVID-19) pandemic when many people were obliged to conduct business remotely. This research study aims to investigate the intentions to adopt (IA) cloud-based enterprise resource planning (ERP) systems in Jordan, as this sort of research is scarce in developing countries. Specifically, this research study combined the model of Diffusion of Innovation (DOI) and the Technology-Organization-Environment (TOE) framework, in addition to looking at COVID-19 as a moderating variable.Design/methodology/approachData were collected from 60 participants working in Jordanian companies that currently use, or have the intention to use, cloud-based ERP systems. An online questionnaire was developed and used to collect responses. The study hypotheses were examined statistically using simple regression analysis and hierarchical multiple regression.FindingsThe study results clearly indicate that complexity, observability, employee information technology (IT) skills, organizational culture (OC) and top management support significantly affect the intention to adopt cloud-based ERP systems. In contrast, relative advantage (RA), compatibility, trialability, regulatory environment and competitive pressure had no significant effect on adoption intention. Interestingly, the advent of COVID-19 increased the intention to adopt cloud-based ERP systems.Research limitations/implicationsThe study's findings will provide theoretical and practical suggestions for the effective adoption of cloud ERP in Jordan, as well as aiding other developing nations in comparable situations in implementing cloud-based ERP systems.Originality/valueThe study enriches the knowledge and further examines the underlying reasons for adopting cloud-based ERP systems in a developing country.

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

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.

Factors Affecting Cloud ERP Adoption Decisions in Organizations

This paper summarizes research on the adoption of cloud enterprise resource planning (ERP) systems in small and medium-size organizations (SMEs) and large enterprises (LEs) that have employed the diffusion of innovation (DOI), and the theory and technology, organization, and environment (TOE) framework. Based on a systematic literature review, this paper concludes on 13 primary factors that are the most common influencers when adopting cloud ERP at the organizational level. These factors are categorized and discussed through the DOI, and the TOE framework. The perceived relative advantage, compatibility, complexity, trialability, and observability are identified as innovation characteristics influencing the decision to adopt cloud ERP. The technological factors are identified as system quality, security, vendor lock-in, and data accessibility, while the organizational factors are identified as a financial advantage and top management support. Finally, competitive and regulatory pressures and support are environmental factors affecting the adoption decisions. Out of the 13 factors identified, vendor lock-in, relative advantage, top management support, and competitive and regulatory environment were the most common factors affecting the decision to adopt cloud ERP. Finally, this review identifies a gap related to the lack of studies in the context of LEs, and a lack of differentiation between small and medium-size organizations, which may be fulfilled by future research.

Prioritising Organisational Factors Impacting Cloud ERP Adoption and the Critical Issues Related to Security, Usability, and Vendors: A Systematic Literature Review.

Cloud ERP is a type of enterprise resource planning (ERP) system that runs on the vendor’s cloud platform instead of an on-premises network, enabling companies to connect through the Internet. The goal of this study was to rank and prioritise the factors driving cloud ERP adoption by organisations and to identify the critical issues in terms of security, usability, and vendors that impact adoption of cloud ERP systems. The assessment of critical success factors (CSFs) in on-premises ERP adoption and implementation has been well documented; however, no previous research has been carried out on CSFs in cloud ERP adoption. Therefore, the contribution of this research is to provide research and practice with the identification and analysis of 16 CSFs through a systematic literature review, where 73 publications on cloud ERP adoption were assessed from a range of different conferences and journals, using inclusion and exclusion criteria. Drawing from the literature, we found security, usability, and vendors were the top three most widely cited critical issues for the adoption of cloud-based ERP; hence, the second contribution of this study was an integrative model constructed with 12 drivers based on the security, usability, and vendor characteristics that may have greater influence as the top critical issues in the adoption of cloud ERP systems. We also identified critical gaps in current research, such as the inconclusiveness of findings related to security critical issues, usability critical issues, and vendor critical issues, by highlighting the most important drivers influencing those issues in cloud ERP adoption and the lack of discussion on the nature of the criticality of those CSFs. This research will aid in the development of new strategies or the revision of existing strategies and polices aimed at effectively integrating cloud ERP into cloud computing infrastructure. It will also allow cloud ERP suppliers to determine organisations’ and business owners’ expectations and implement appropriate tactics. A better understanding of the CSFs will narrow the field of failure and assist practitioners and managers in increasing their chances of success.

A survey on adoption factors of cloud-based enterprise systems and their differences in Iranian SMEs

This paper documents the difference between adoption factors in cloud-based enterprise systems (ES) in small and medium organisations [small and medium-sized enterprises (SMEs)] in Iran. These factors include enterprise resource planning (ERP), supply chain management (SCM), and customer relationship management (CRM). To assess the determinants that influence the adoption of cloud-based ES, a research model based on the innovation characteristics from the diffusion of innovation (DOI) theory and the technology-organisation-environment (TOE) framework was developed. The results of the field study among 200 Iranian SMEs revealed that while top management support has the greatest impact on cloud SCM, relative advantage has the most impact on cloud CRM adoption. Moreover, technological readiness was identified as the most effective factor in the adoption of cloud ERP among SMEs.

Evaluating and Ranking of Critical Success Factors of Cloud Enterprise Resource Planning Adoption Using MCDM Approach

Digital technology advancement and the Internet of Things (IoT) are playing a major role to take a big leap towards achieving Industry 4.0. Cloud-based data management and big data analytics have given rise to adopt Cloud Enterprise Resource Planning (CERP). The CERP has become a significant tool for the success of the information management system (IMS) which is ultimately responsible for the success of any organization. The selection of CERP depends on many critical success factors (CSFs) that must be considered while evaluating and selecting a CERP. In this work, identified CSFs of CERP are modeled using a multi-criteria decision-making (MCDM) approach. The Analytic Hierarchy Process (AHP) and Fuzzy Analytic Hierarchy Process (FAHP) based modelling have been carried out to derive the ranking of the CSFs responsible for the CERP. The group decision-making (GDM) based AHP has also been adopted to build the decision-making model. The paper models 5 dimensions and 20 sub-criteria factors to provide the prioritized rank of dimensions and sub-criteria factors. The AHP and FAHP models identify the ranking of the 5 dimensions as Organizational Behavior, Cloud ERP Essentials, Technological Advancement, Innovational Ideas, and Environmental Impact.

A Review of Cloud-Based ERP Systems in SMEs

The adoption of Enterprise Resource Planning (ERP) system in small and medium enterprises (SMEs) could offer significant benefits in terms of managing the resources and support business function. However, the traditional ERP systems are quite expensive and have complex procedures for the adoption especially for SMEs. With the introduction of cloud-based ERP systems that have similar functionalities with traditional ERP, SMEs are now able to adopt this system. However, the adoption of cloud ERP remains low and question arise on how to encourage SMEs to adopt this system. Drawing from management and Information Systems literature, this study proposes and conceptual framework for cloud ERP adoption among SMEs. Using archival analysis approach and technology-push and demand-pull as the theoretical background, this research has come out with six main themes namely: firm qualities, internal pressure, external pressure, technology features, organizational readiness and external support. This paper will give significant benefits to ERP vendors to understand their potential buyer’s behaviour towards the adoption of cloud ERP.

Factors Affecting the Cloud ERP: A Case Study of Learning Resources Department at Jordanian Education Ministry

Enterprise resource planning (ERP) systems have been used by organizations for years, whereas, Cloud ERP systems gained audience a few years ago both from practitioners and academicians. As such, there is a migration from the traditional ERP to the Cloud ERP system, and employees in most organizations are accustomed to the traditional ERP system. In order to improve the efficiency and effectiveness of the Cloud ERP system used in the operation stage. Organizations need to research the factors that have an impact on users’ satisfaction and managerial decision making. There is a great deal of prior studies that measured users' adoption of ERP systems using a technological acceptance model (TAM). Thus, this study also utilized the TAM model in examining the factors that influence users’ adoption of Cloud ERP systems. To get the maximum value of the validity and reliability of the findings, the study was conducted in two folds which are pre-implementation and post-implementation. In addition, structural equation modelling was employed to reach the findings. Finally, the study identified the technology factor, employee factor, perceived usefulness and perceived ease of use as important variables for affecting Cloud ERP adoption; and as important antecedents influencing managerial decision making. This study comes to be the first study to employ the TAM model in the Cloud ERP area in two waves: pre-post implementation phases. Interestingly, the relationships between the variables in pre and post-implementation do not differ significantly.

Contextual Factors and Strategic Consequences of Cloud Enterprise Resource Planning (ERP) Adoption in Malaysian Manufacturing SMEs: A Conceptual Framework

Purpose: The purpose of this study is to holistically investigate the interrelationships between key contextual factors of cloud ERP adoption and the strategic consequences of such adoption. Design/Methodology/Approach: The key contextual factors whose influences are explored on cloud ERP adoption are Feature task-match, (FTM); Top Management Support on Change Management (TMSCM) and Government Financial Support (GFS) while the strategic consequences of cloud ERP adoption investigated are competitive advantage (CA) and organisational performance. A conceptual framework grounded in Technology-Organisation-Environment (TOE) model, Task technology-fit (TTF) model and Resource-Based View (RBV) theory is developed for empirical validation that will involve a projected sample of 382 respondents of SMEs in Malaysia using PLS-SEM as main statistical analysis tool. Practical Implications: Practically, this study will guide SMEs' managers on cloud ERP selection that fits their firms' tasks, how to effectively deal with resistance to change occasioned by technology adoption and how effective GFS has been influencing cloud ERP adoption. In addition, SMEs managers stand to gain insight into how cloud ERP adoption can simultaneously and/or indirectly lead to competitive advantage and organisational performance as strategic benefits. Originality/Value: Investigation of a new variant key contextual factors critical for successful cloud ERP adoption and their subsequent impact on CA and organisational performance simultaneously and indirectly.

What drives organizations to switch to cloud ERP systems? The impacts of enablers and inhibitors

PurposeSwitching to public cloud enterprise resource planning (ERP) systems not only provides financial and functional benefits to organizations, but also results in sunk costs of incumbent systems and uncertainty costs of cloud systems. The purpose of this study is to investigate the enablers and inhibitors concerning switching to cloud ERP systems at the organizational level.Design/methodology/approachData were collected from 212 top managers and owners of the enterprises in Taiwan, and 10 hypotheses were examined using structural equation modeling.FindingsTechnological (system quality), organizational (financial advantage), and environmental contexts (industry pressure) are found to be the antecedents of switching benefits. Perceived risk of cloud ERP systems and satisfaction with and breadth of use of incumbent ERP systems are found to be the predictors of switching costs. Switching benefits positively affect switching intention, but switching costs negatively affect switching intention.Research limitations/implicationsThis study develops a theoretical model grounded in a set of theoretical foundations, including two-factor theory, technology-organization-environment (TOE) framework, information systems (IS) success model, and expectation confirmation theory (ECT). Two-factor theory is used to characterize switching benefits and costs that affect switching intention. Technological factors come from IS success model, and the factors affecting benefits are organized based on TOE framework. Sunk costs of incumbent ERP systems are developed based on ECT.Originality/valueDifferent from previous studies on cloud computing adoption, this study provides insights into switching intention to cloud computing. The study also proposes an integrated model grounded in multiple perspectives to explain organizations' decisions to switch to cloud ERP systems. These findings help cloud service providers better understand how to promote cloud ERP adoption from technical, organizational, and environmental perspectives.

Determinants of cloud ERP adoption in Jordan: an exploratory study

Enterprise resource planning (ERP) systems are usually adopted through two major options: cloud computing or on-premise infrastructure. The issues related to hardware, servers, implementation costs, and facilities, which are necessary to run on-premise ERP systems, are rather great for small and mid-sized enterprises (SMEs). The purpose of this research is to highlight the factors influencing cloud ERP adoption among SMEs. The technological, organisational, and environmental (TOE) model will be used as a theoretical base. This qualitative, exploratory study gathers data from 13 different SMEs and cloud ERP service providers through semi-structured interviews, focusing on SMEs in Jordan. According to our results, support from both service providers and top management within the company play an important role in whether a firm adopts cloud ERP services, in addition to a number of other factors at varying rates. Research findings can be used by service providers and business owners to enhance their approach to cloud ERP by showing the reasons why some SMEs chose to adopt this technology and others did not. Cloud ERP providers need to intensify their efforts to build a progressive environment for their services that will eliminate any ambiguity regarding this type of technology.

The Determinants of Adoption of Cloud-Based ERP of Nigerian's SMES Manufacturing Sector Using Toe Framework and Doi Theory

Adoption factors relating to enterprise resource planning (ERP) have been studied quite extensively over the years. Most of the earlier studies on cloud ERP have focused only on technical and operational issues. A few studies have addressed the adoption of cloud ERP from the user's perspective, mostly assessing the effects of the innovation characteristics or the contextual factors. Very few studies to date have conducted a holistic evaluation of both the direct and indirect effects of the determinants on cloud ERP adoption in manufacturing SMEs. Therefore, this study aims to explore and gain an understanding of the determinants of adoption factors for cloud ERP and its relative advantage to small and medium enterprises (SME) organisations. The manufacturing SMEs in Nigeria are specifically targeted. This study also seeks to develop a research model that integrates the innovation characteristics and technology-organisation-environment (TOE) perspectives that underlie its adoption.

A Survey on Adoption Factors of Cloud-based Enterprise Systems and Their Differences in Iranian SMEs

This paper documents the difference between adoption factors in cloud-based enterprise systems (ES) in small and medium organisations [small and medium-sized enterprises (SMEs)] in Iran. These factors include enterprise resource planning (ERP), supply chain management (SCM), and customer relationship management (CRM). To assess the determinants that influence the adoption of cloud-based ES, a research model based on the innovation characteristics from the diffusion of innovation (DOI) theory and the technology-organisation-environment (TOE) framework was developed. The results of the field study among 200 Iranian SMEs revealed that while top management support has the greatest impact on cloud SCM, relative advantage has the most impact on cloud CRM adoption. Moreover, technological readiness was identified as the most effective factor in the adoption of cloud ERP among SMEs.

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

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.

Towards better understanding of determinants logistical factors in SMEs for cloud ERP adoption in developing economies

PurposeThe purpose of this paper is to investigate the main determinants logistical factors that have an impact on the adoption of cloud enterprise resource planning (ERP) among small- and medium-sized enterprises (SMEs) in developing economies. By adopting the diffusion of innovation, technological, organizational and environmental model as a theoretical framework, the 14 factors examined in this study are as follows: relative advantage (RA), compatibility, complexity, value creation, technology readiness (TR), security concerns, technical barriers, top management support (TMS), enterprise readiness (ER), enterprise size (ES), enterprise status, competitive advantage, government support and infrastructure/telecommunication.Design/methodology/approachData were collected from 131 respondents’ senior executives and IT managers in SMEs in developing economies (Jordan, Lebanon, King Saudi Arabia, Bahrain, Qatar, Emirates, Egypt, Oman, Kuwait and Turkey). A web-based survey questionnaire was used for data collection process. The research framework and the derived hypotheses were tested by logistic regression analysis.FindingsThe findings indicate that compatibility, TR, technical barriers, TMS, ER, ES and competitive pressure have a significant effect on the adoption of cloud ERP. This conclusion can be utilized in enhancing the strategies for approaching ERP cloud by pinpointing the reasons why some SMEs choose to adopt this technology, while others still do not go forward with this.Originality/valueThis study provides an overview and empirically shows the main determinants logistical factors that might face SMEs in the developing economies. The findings also help SMEs consider their information technologies investments when they think to adopt cloud ERP.

Factors affecting cloud ERP adoption in Saudi Arabia: An empirical study

Cloud ERP (Enterprise Resource Planning) systems have represented a paradigm shift in the information systems domain. They can provide flexibility, cost efficiency, scalability, adaptability, availability and configurable data to any type of company. This system has enjoyed rapid growth around the world. However, the adoption of cloud ERP in developing Middle Eastern countries such as Saudi Arabia is still in its infancy, and little research has been done to investigate this issue. This study examined the factors that influence the adoption of cloud ERP in the Kingdom of Saudi Arabia by combining the Diffusion of Innovation theory (DOI) and Technology-Organization-Environment (TOE) framework. The study found that a competitive environment, complexity, ICT infrastructure, observability, relative advantage, regulatory environment, ICT skill and top management support had a significant influence (p < 0.05) on the adoption of cloud ERP, while compatibility, organizational culture and trialability had no signi...

Exploring the Challenge Impacted SMEs to Adopt Cloud ERP

Objective: Cloud Enterprise Resource Planning (ERP) systems provide generic benefits to Small and Medium Enterprises (SMEs). However, SMEs motivation to adopt this system is low. Our study aimed to explore the challenges faced by SMEs to adopt the system. Methods/Statistical Analysis: To achieve this objective, exploratory research approach was used with semi-structure interview with SMEs was executed. Semi-structure interview was conducted by means of face to face approach. Interview methods used to extract understanding, opinions and challenge faced SMEs on their way to adopt cloud ERP system. Five (5) SMEs are involved in this study along with one ERP and cloud computing expert in Southern Malaysia. Findings: Current study employs conventional content analysis to determine the themes from exploratory approach; the study found eight (8) emerged themes that are reluctance to adopt cloud ERP among SMEs, this is attributed by knowledge, data security, vendor trust, technology trust, system availability and cloud ERP system functional fit. Also study investigate that SMEs needs extra support from government agency and external environment. Applications/Improvements: This exploratory study contributes to the lack of literature on cloud ERP adoption and provides insight for future study by researchers and practitioners.