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.