Moving from Evaluation to Trial: How do SMEs Start Adopting Cloud ERP?

Abstract

The advent of cloud technology involving low subscription overheads cost has provided small and medium-sized enterprises (SMEs) with the opportunity to adopt new cloud-based corporate-wide systems (i.e., cloud ERP). This technology, operating through subscriptionbased services, has now provided SMEs with a complete range of IT applications that were once restricted to large organisations. As anecdotal evidences suggest, SMEs are increasingly adopting cloud-based ERP software. The selection of an ERP is a complex process involving multiple stages and stakeholders, suggesting the importance of closer examination of cloud ERP adoption in SMEs. Yet, prior studies have predominantly treated technology adoption as a single activity and largely ignored the issue of ERP adoption in SMEs. Understanding of the process nature of the adoption and the factors that are important in each stage of the adoption potentially may result in guiding SMEs to make well-informed decisions throughout the ERP selection process. Thus, our study proposes that the adoption of cloud ERP should be examined as a multi-stage process. Using the theory of planned behaviour (TPB) and Ettlie's adoption stages, as well as employing data gathered from 162 owners of SMEs, our findings show that the factors that influence the intention to adopt cloud ERP vary significantly across adoptive stages.

A post publication review of “Moving from evaluation to trial: How do SMEs start adopting cloud ERP?”

“…Recognizing that ERP adoption in business settings is complex and thus goes beyond a single activity, Salim et al (2015) sought to understand the adoption process of cloud ERP and the critical adoption factors in the evaluation and trial stages of the adoption process. The studypremised on the theory of planned behavior (TPB), Ettlie's multi-stage adoption model, and a sample of 162 owners of small and medium-sized enterprises (SMEs)-is novel and makes important contributions by identifying potential differences in significance and impact of factors that influence the intention of SMEs to adopt cloud ERP across the two adoptive stages.…”

“…The studypremised on the theory of planned behavior (TPB), Ettlie's multi-stage adoption model, and a sample of 162 owners of small and medium-sized enterprises (SMEs)-is novel and makes important contributions by identifying potential differences in significance and impact of factors that influence the intention of SMEs to adopt cloud ERP across the two adoptive stages. Salim et al's (2015) article offers several positive takeaways:…”

“…accounting, human resources, inventory, order management). By improving the accessibility of internal data (employees can upload and access company data in real time via the cloud from any device with an Internet connection), cloud ERP provides work flexibility and mobility and enables greater collaboration among employees from both the same and different departments than traditional on-premises ERP solutions.Recognizing that ERP adoption in business settings is complex and thus goes beyond a single activity, Salim et al (2015) sought to understand the adoption process of cloud ERP and the critical adoption factors in the evaluation and trial stages of the adoption process. The studypremised on the theory of planned behavior (TPB), Ettlie's multi-stage adoption model, and a sample of 162 owners of small and medium-sized enterprises (SMEs)-is novel and makes important contributions by identifying potential differences in significance and impact of factors that influence the intention of SMEs to adopt cloud ERP across the two adoptive stages.…”

“…The studypremised on the theory of planned behavior (TPB), Ettlie's multi-stage adoption model, and a sample of 162 owners of small and medium-sized enterprises (SMEs)-is novel and makes important contributions by identifying potential differences in significance and impact of factors that influence the intention of SMEs to adopt cloud ERP across the two adoptive stages. Salim et al's (2015) article offers several positive takeaways:The article is exemplary in its articulation of the research problem in terms of the limitations of existing studies (i.e. simple technology adoption, technology adoption within a single broad stage) and the critical need for greater clarity on the factors that influence complex technology adoption (e.g.…”

“…limited to evaluation and trial stages in the adoption process, limited explanation on intention-behavior relationship, limited in generalizability to other types of complex technology adoption, limited to SMEs whose important decisions are made by one individual, and limited to SMEs in Malaysia), Salim et al's (2015) work contains two notable shortcomings that pave the way for further research in the area:…”