Examining the Factors Influencing the Intention to Adopt Cloud ERP Systems by SMEs in Jordan

Introduction

Information and Communications Technology (ICT) has proven to be a major enabler for SMEs in achieving a competitive advantage (Stratman, 2007; Ram et al., 2014). ERP systems are among a vast range of Enterprise Information Systems (EIS) offered by software vendors to SMEs, and yet the most viable one (Zach et al., 2014). Such that, ERP systems improve the ability and efficiency of SMEs to perform their business operations and activities through integrating the functions of all departments within an enterprise (Abd Elmonem et al., 2016). Moreover, ERP systems support the decision-making process via exchanging information systematically among all the wings of an enterprise (Caserio & Trucco, 2018).

The evolution of cloud computing has transformed the way by which traditional EISs are being implemented and utilized (Reffad & Alti, 2018). Whereas the infrastructure and data for an on-premise EIS are handled internally by the enterprise, in the cloud computing model they are handled by a remote service provider (Hiran et al., 2019). Cloud computing “refers to a model of computing that provides access to a shared pool of computing resources (computers, storage, applications, and services) over the network, often the Internet. These clouds of computing resources can be accessed on an as-needed basis from any connected device and location” (Laudon & Laudon, 2019, p. 200).

Cloud computing provides SMEs with an alternative, and yet viable, ICT solutions to achieve their business goals (Chandrakumar & Parthasarathy, 2014). Adopting cloud ERP systems has several advantages compared to traditional (on-premise) ERP systems, including access anytime from anywhere, low initial cost, low operating cost, virtually no maintenance cost, scalability, flexibility for future updates and upgrades (Parthasarathy, 2013; Abd Elmonem et al., 2016; Scholtz & Atukwase, 2016; Hustad et al., 2019).

Adopting a state-of-the-art EIS is critical for SMEs to maintain a competitive advantage and create business value in a globalized world (Shivam Gupta et al., 2020). Thus, SMEs are inclined, if not obligated, to adopt Cloud ERP systems to maintain sustainable business opportunities (Johansson et al., 2015, January). Consequently, this study aims at exploring and examining the factors influencing the intention to adopt cloud ERP systems by SMEs in Jordan, where SMEs contribute significantly to the Gross Domestic Product (GDP) (The Organisation for Economic Co-operation and Development, 2017).

When the literature about the intention to adopt cloud ERP systems by SMEs in Jordan was examined, a research gap was identified. That is, there is a lack of understanding of the relationship among computer self-efficacy, system complexity, system compatibility, organizational support, perceived usefulness, perceived ease-of-use, and the intention to adopt cloud ERP systems by SMEs in Jordan. Therefore, this study postulates that the aforementioned factors are crucial to the intention to adopt cloud ERP systems by SMEs. By exploring these factors, SMEs should be able to realize important considerations to be taken to support a successful adoption and implementation of cloud ERP systems. Moreover, the findings might help SMEs in deciding on the right cloud ERP platform for them.

Based on the identified literature gap, this study developed and examined a research model with the following three research questions:

• 1.

  What is the relationship between computer self-efficacy, organizational support, complexity, compatibility, and the perceived usefulness of cloud ERP systems in SMEs in Jordan?

• 2.

  What is the relationship between computer self-efficacy, organizational support, complexity, compatibility, and the perceived ease-of-use of cloud ERP systems in SMEs in Jordan?

• 3.

  What is the relationship between perceived usefulness, perceived ease-of-use of cloud ERP systems, and the intention to adopt cloud ERP systems by SMEs in Jordan?

The rest of the article is organized as follows: following the current section which provided the introduction, the literature review is presented. After that, the adopted research methodology is delineated followed by the data analysis and results section. Then, the discussion of major findings is given. Finally, the drawn conclusion is provided along with future research directions.