The Nexus between Top Management Support on Change Management, Cloud ERP Implementation, and Performance of SMEs

Abstract

Top management support (TMS) is a critical success factor in cloud computing (CC) implementation and firm performance. However, extant empirical research on these relationships has obtained mixed findings due to earlier studies focusing on a one-dimensional TMS construct with diverse measurement items that muddle up different behaviours of top management. TMS is typically a multi-dimensional construct, such as TMS change management (TMSCM), TMS resource provision (TMSR), and TMS vision sharing (TMSV). The aim of this study is to examine a specific TMS dimension, TMSCM, on cloud ERP implementation and, further, to measure the effect of TMSCM on the financial performance of manufacturing small and medium-sized enterprises (SMEs) through the mediating effect of cloud ERP implementation. The proposed research model was validated using partial least squares structural equation modelling (PLS-SEM) with a sample of 204 Malaysian manufacturing SMEs. Results reveal that TMSCM significantly impacts cloud ERP implementation and financial performance. Moreover, cloud ERP implementation is a significant driver of financial performance, and it partially mediates the relationship between TMSCM and financial performance. Contributing to disentangling the mixed findings of TMS impact on cloud ERP implementation and firm performance, this study also generates insights for practitioners that they need to balance TMSCM and cloud ERP implementation to improve the financial performance of SMEs.
 
 Received: 17 December 2021 / Accepted: 21 February 2022 / Published: 5 May 2022

Government financial support and financial performance of SMEs: A dual sequential mediator approach

“…Further, the two-stage (including the disjoint two-stage and embedded two-stage) and extended repeated indicators approaches are proposed for specifying and evaluating HOCs in PLS-SEM ( Sarstedt et al., 2019 ). In this study, the HOCs were specified and evaluated using a disjoint two-stage approach because it allows for an enhanced parameter recovery of paths to be illustrated ( Jayeola et al., 2022c ; Sarstedt et al., 2019 ). Only the LOCs of the HOCs are considered in a disjoint two-stage method, removing HOCs from the path model.…”

“…Nevertheless, the mediation category (partial or full) is yet unidentified. Partial mediation arises when both the direct and mediating effects are significant, whereas full mediation arises when the direct effect is insignificant but the mediating effect is significant ( Cepada-Carrión et al., 2018 ; Jayeola et al., 2022c ; Yusof et al., 2021 ). The indirect (mediating) effect is significant and the direct effect is insignificant, as earlier explained and as indicated in Table 7 Therefore, a full mediation can be established between GFS and FPER through the sequential mediation of CERPI and CA.…”

“…The measurement of the constructs in this study is reflective in nature since the latent variables cause the observed variables (indicators/items) ( Hair et al., 2019 ). For instance, the CERPI construct causes its indicators of “usage” and “strategic alignment” of cloud ERP in the firm ( Jayeola et al., 2022c ). Measurements for the constructs (dimensions and indicators) were obtained from previous related studies and revised according to the context of this current study.…”

Critical success factors for change management in business process management

“…So the expectation is that, the greater the work of appropriately managing projects, the greater the need for change management and support from the top management. The literature has shown that the top management team can improve the change management process as they make strategic decisions to guide the company toward success through significant changes (Jayeola et al, 2022). In this regard, considering the above discussion, the following hypotheses were formulated: H1.…”

The Influence of Change Management Process on Cloud Transitioning

“…Various studies have focused on behavioural changes, for instance Kotter's (1995) 8-step change methodology. Jayeola et al (2022) discussed the role of top management in the adoption of enterprise resource planning (ERP) cloud solutions. Da Veiga (2018) introduced the Prosci's ADKAR (Awareness, Desire, Knowledge, Ability and Reinforcement) change management model to investigate culture change regarding security.…”