The Determinants of Adoption of Cloud-Based ERP of Nigerian's SMES Manufacturing Sector Using Toe Framework and Doi Theory

The Determinants of Adoption of Cloud-Based ERP of Nigerian's SMES Manufacturing Sector Using Toe Framework and Doi Theory

Usman Musa Zakari Usman (University Technology Malaysia, Johor Bahru, Malaysia), Mohammad Nazir Ahmad (Universiti Kebangsaan Malaysia, Bangi, Malaysia) and Nor Hidayati Zakaria (University Technology Malaysia, Johor Bahru, Malaysia)
Copyright: © 2019 |Pages: 17
DOI: 10.4018/IJEIS.2019070102

Abstract

Adoption factors relating to enterprise resource planning (ERP) have been studied quite extensively over the years. Most of the earlier studies on cloud ERP have focused only on technical and operational issues. A few studies have addressed the adoption of cloud ERP from the user's perspective, mostly assessing the effects of the innovation characteristics or the contextual factors. Very few studies to date have conducted a holistic evaluation of both the direct and indirect effects of the determinants on cloud ERP adoption in manufacturing SMEs. Therefore, this study aims to explore and gain an understanding of the determinants of adoption factors for cloud ERP and its relative advantage to small and medium enterprises (SME) organisations. The manufacturing SMEs in Nigeria are specifically targeted. This study also seeks to develop a research model that integrates the innovation characteristics and technology-organisation-environment (TOE) perspectives that underlie its adoption.
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Introduction

The Small, medium enterprises (SMEs) are constantly aimed at finding alternatives to combine their IT infrastructures and services and at the same time raise their investment return (OECD, 2013). Enterprise resource planning systems (ERPs) is an IT-based system established within the modern business environment, which creates the primary information systems software and the distinctive organisational model of computing (Bodlaj et al., 2018). These systems integrate the company’s information and all the functional areas as well as the external organisational information-based processes in order to strategise and manage the entire company’s resources effectively. (Gupta et al., 2018; Yaokuma et al., 2017). The ERP adoption has great benefit to the company as it assists in; providing better customer service, cost reduction, organisation empowerment, better quality and improved productivity, improved management of resources and better planning and decision making (Gupta et al., 2018). Studies have been conducted to examine and evaluate the factors responsible for encouraging SMEs to adopt C-ERP systems in their operations. For example, Adeboye et al. (2016) and Yang (2015) have recognised the ease of use, costs effectiveness, extendibility and ability to concentrate on core business activities, as the factors influencing the C-ERP adoption. Though, the studies have only listed all prompting factors and considered the C-ERP adoption as being a one-off dichotomous decision (Senyo et al., 2016). Exploring these factors were done, but reviewing how these factors influence one another over a period of time and underlining the level of the most prominent factors that lead to final adoption decision and putting these factors into comprehensive view towards the adoption are unable to be achieved.

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