A Review of Cloud-Based ERP Systems in SMEs

Abstract

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.

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

“…In the context of observability, the finding that the evident result of using a cloud ERP system, such as rapid implementation, provision of servers and storage by CSPs and their operation and maintenance, inspires company managers to adopt. This finding is in alignment with Jaffa and Salim [141] in which such results of deploying cloud ERP systems could be used as a reference for SMEs and the success stories from CSPs could encourage SMEs to adopt the system. Compatibility is another important characteristic in the adoption of cloud ERP as these systems can integrate with existing technologies (e.g., electronic data interchange (EDI) or electronic funds transfer (EFT)) to automate processes for exchanging data from different locations.…”

Determinants of ERP Adoption, User Satisfaction, and User Engagement

“…Soliman & Karia, 2015). However, despite such numerous organisational advantages, prior studies have documented many instances where the adoption rate of ERP is very low, and failure of implementation is high (Ali & Miller, 2017;Salim & Jaffar, 2020). Many ERP implementation projects in the organisation failed before the realisation of their actual potential (Costa et al, 2020;Lee et al, 2020).…”