Conceptual model for cloud ERP adoption for SMEs

Abstract

The Small and Medium Enterprise industry is experiencing a major transformation towards cloud ERP systems. These systems can organize, and maintain data remotely, accept a pay-as-you- use method and enhance related information through a cloud computing platform. Hence, this makes the cloud ERP system crucial for their sustainability and enables them to become competitive in the market. However, the adoption rate of cloud ERP among Small and Medium Enterprises (SMEs) has been recorded as slightly low compared to other enterprise systems like Customer Relationship Management. This could be attributed to unclear adoption factors among SMEs and the lack of a theoretical model that can enhance the predictive power to adopt a cloud ERP system. To address this gap, the objective of this study is to develop a conceptual model by which to investigate the broad factors which influence or inhibit the adoption of cloud ERP, the model based on TOE, DOI and FVM. Thus, this model intends to help SMEs managers understand and increase predictive capacity on cloud ERP adoption. The model has been constructed using four dimensions, namely; task, technology, organization and environmental. Findings from this study are projected to be able to instruct SMEs decision-makers on the factors that will lead to successful adoption. The proposed model will be a critical lens for decision-makers on cloud ERP adoption.