Perceived Use and Acceptance of Cloud Enterprise Resource Planning (ERP) Implementation in the Manufacturing Industries

Perceived Use and Acceptance of Cloud Enterprise Resource Planning (ERP) Implementation in the Manufacturing Industries

Adewale Adeboye (Southern Wesleyan University, Minneapolis, MN, USA)
DOI: 10.4018/IJSITA.2016070102

Abstract

The purpose of this study was to gain an insight into perceived use and acceptance for implementing an enterprise resource planning (ERP) system and the decision whether to contract out the ERP service to a cloud provider. A non-experimental, quantitative method of analysis was used for this research and a survey instrument developed by Venkatesh (2003) was used to gather data from information technology professionals in the United States. The data generated were tested using Chi Square and Multiple Regression. Chi square was used to test the hypotheses and the result establishes a pertinent relationship between the dependent variable and the independent variables. Multiple regression analysis was also conducted on the four independent variables and all of the independent variables tested have a p- value that is greater than 0.05 (p>0.05). Hence, it was concluded that the null hypothesis be accepted for all the four independent variables tested.
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Literature Review

Gap in Literature

The enterprise resource planning (ERP) system is a technology tool that has been in existence for more than 15 years in a variety of small and medium enterprise (SME) environments (Karchur, 2013). With the increasing market competition and globalization, SMEs are increasingly implementing these tools; however, the high cost of deployment is generally a deterrent in plans to use ERP (Mahara, 2013). Many organizations opt to find more cost effective solutions such as ERP in the cloud as a feasible possibility, therefore eliminating hardware and software costs that potentially lower financial investment. Organizations are expecting the adoption of cloud computing to provide some benefits to them, often the most important being a reduction in their capital expenditure (Durkee, 2010). The problem however is the fact that there are very few literatures that have discussed cloud enterprise resource planning implementation extensively hence organizations have limited resources to fall back on in order to expand their knowledge and views of cloud ERP implementation. The information obtained from this research may serve as guidance to organizations and give them a good understanding of the likely benefits and risks that could arise from the adoption of cloud computing during enterprise resource planning (ERP) implementations.

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