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

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.

An Empirical Study of E-Marketplace Acceptance by MSMEs in Bali using TOE Model

“…In other words, the third hypothesis is accepted. The result is consistent with previous study [2,5,[18][19] which showed that external pressure was an important factor that positively influencing the acceptance of technologies in MSMEs. External pressure in this paper includes competitors, partners and customers, as well as the role of government.…”

Factors Affecting Intention to Adopt Cloud-Based ERP from a Comprehensive Approach

“…The framework examines three important factors that influence the adoption of new technologies: technology, organization, and environment [41]. The TOE framework has been widely utilized to research the adoption of cloud-based ERP [5][6][7][8][9][10][11][12][13][14][15] and cloud computing [42]. Juiz et al [43] used the TOE framework for SaaS ERP adoption by SMEs, and explored perceived value, security concerns, configurability and customization, organizational readiness, top management, competitive pressure, and vendor qualities.…”

“…A survey was conducted to verify the research model. The measured items regarding TOE and innovation characteristics were selected from prior studies [5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20]24,35,[40][41][42][43][44][45][46]. In addition, the measured items regarding resistance characteristics were selected from revisions of existing items to better fit the research context [3,13,[21][22][23]38,[47][48][49][50][51][76][77][78][79][80][81][82][83].…”

“…First, it was good to introduce the TOE viewpoint, but because there are too many variables in the model, only one factor per T, O, and E, respectively, was considered. However, according to other papers that introduced the TOE framework [5][6][7][8][9][10][11][12][13][14][15]35,42], in addition to ICT skill, ICT infrastructure, information quality, etc., were also considered as the technology context. In addition to organizational culture, we considered, top management support and enterprise size are considerable.…”

“…In particular, studies on affecting the adoption of cloud-based ERP have been recently released, and many such studies are based on the technology-organization-environment (TOE) framework, Ddiffusion of innovation (DOI) theory, or the model of innovation resistance (MIR). So far, cloud-based ERP adoption has been analyzed in terms of TOE [5][6][7][8][9][10][11][12][13][14][15], DOI [16][17][18][19][20], and MIR [21][22][23]. TOE-centered research has the advantage of approaching ERP from a comprehensive point of view, but it cannot reflect the innovation characteristics of new technology, like cloud-based ERP.…”