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

Abstract

Purpose The 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/approach Data 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. Findings The 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/value This 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 Intention to Adopt Cloud-Based ERP from a Comprehensive Approach

“…Recently, Adnan AlBar and Md. Hoque [6] studied the factors affecting cloud-based ERP adoption in Saudi Arabia, and Moh'd Anwer Al-Shboul [7] sought a better understanding of the logistical factors of cloud-based ERP adoption by small and medium enterprises (SMEs) in developing economies. There have been studies conducted in Europe, South Africa, Egypt, and Taiwan.…”

“…The framework examines three important factors that influence the adoption of new technologies: technology, organization, and environment [41]. The TOE framework has been widely utilized to research the adoption of cloud-based ERP [5][6][7][8][9][10][11][12][13][14][15] and cloud computing [42]. Juiz et al [43] used the TOE framework for SaaS ERP adoption by SMEs, and explored perceived value, security concerns, configurability and customization, organizational readiness, top management, competitive pressure, and vendor qualities.…”

“…AL-Shboul [7] examined cloud-based ERP adoption based on the TOE framework and identified competitive pressure, top management support, enterprise readiness, enterprise size, technological readiness, and technical barriers as factors that exerted a significant influence on cloud-based ERP adoption. AlBar and Hoque [6] also investigated cloud-based ERP adoption intention based on the TOE framework, and found that ICT skill, ICT infrastructure, top management support, regulatory environment, and competitive environment were significantly related to cloud-based ERP adoption, while organizational culture was not significantly related.…”

“…In particular, studies on affecting the adoption of cloud-based ERP have been recently released, and many such studies are based on the technology-organization-environment (TOE) framework, Ddiffusion of innovation (DOI) theory, or the model of innovation resistance (MIR). So far, cloud-based ERP adoption has been analyzed in terms of TOE [5][6][7][8][9][10][11][12][13][14][15], DOI [16][17][18][19][20], and MIR [21][22][23]. TOE-centered research has the advantage of approaching ERP from a comprehensive point of view, but it cannot reflect the innovation characteristics of new technology, like cloud-based ERP.…”

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

“…The global cloud ERP market is predicted to reach $40.5 by 2025, increasing between 2019 and 2025 at a CAGR of 13.6% (Liu, 2020). The cloud-based ERP systems are germane for all SMEs because they allow them to conduct data transactions along the value chain and help simplify information between finance, inventory, planning, manufacturing, human resources, marketing, engineering, distribution, materials and sales and all other units within the organisation and among other organisations (Al-Shboul, 2018;Khamis and Mohd, 2016).…”