An Analysis of Motivational Factors Affecting Employee Performance

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

Abstract

Enterprises have interests in Enterprise Resource Planning (ERP) transitions from an existing on-premise method to a cloud-based system. The aim of doing this is to enhance sustainability in business operations. This study carries out an analysis comprehensively using diffusion of innovation, technology-organization-environment, and innovation resistance framework model. According to the empirical analysis, the results show that the organizational culture factors, relative advantage, triability, regulatory environment, and vendor lock-in all significantly influenced the intention of adopting the ERP, which is cloud-based. Those that do not affect the need to adopt the cloud-based ERP are; data security, observability, information and communication technology skill, and customization. The findings of this particular study give guidance that is meaningful for those companies to adopt the cloud-based ERP, vendors who associate themselves with the sale of cloud-based ERP systems, and the government supporting enterprises’ digitalization.

Table of Contents

Abstract………………………………………………………………………..................1

1. Introduction ……………………............1

2. Theoretical Background………………....2

2.1. Cloud-Based ERP and On-Premise ERP………………………………….……………..…2

2.2 Cloud-Based ERP Adoption……………….3

2.3 technology-Organization-Environment(TOE) Framework……………………………………….……4

2.4 The Diffusion of Innovation (DOI) Theory……………………………………………………4

2.5 The Model of Innovation Resistance…………………………………………………..5

3 Research Model………………………………….5

3.1. Technological Context: Cloud-Based ERP Skill (ICT Skill)…………………………6

3.2. Organizational Context: Organizational Culture………………………………………6

3.3. Environmental Context: Regulatory Environment……………………………………….6.

3.4 Innovation Characteristics……………..7

3.4.1. Innovation Characteristic: Relative Advantage…………………………………….……7

3.4.3. Innovation Characteristic: Trialability...7

3.4.4. Innovation Characteristic: Observability……………………………………………….7

3.5 Resistance Characteristics…………….……….8

3.5.1 Resistance Characteristic: Data Security……………….8

3.5.2. Resistance Characteristic: Vendor Lock-……..8

3.5.3. Resistance Characteristics: Customization………………………………………….8

4. ResearchMethodology……………………………………………………9

4.1.Measurements……………………………………………………………9

4.2. Data Collection……………………………………………………………………….9

5. Analysis and Results…………………………………………………………………..11

5.1. Measurement Model……………………………………………………………………11

5.2. Hypothesis Test……………………………………………………………………….15

6. Discussion and Conclusions…………………………………………………………16

6.1. Discussion of Findings……………………………………………………………...16

6.2. Theoretical Implications…………………………………….…………………..17

6.3. Practical Implications…………………………………………………………………..17

6.4. Limitations and Future Research Directions……………………………………………18

Abbreviations……………………………………………………………………………….19

Appendix A……………………………………………………………………………….20

References………………………………………………………………………………..22

Introduction

The article ‘‘Factors Affecting Intention to Adopt Cloud-Based ERP from a Comprehensive Approach” extensively discusses how cloud-based Enterprise Resource Planning is successful. The main aim is to convince on the benefits of incorporating the systems in organizations. It outlines the factors that promote this process and those that hinder the adoption with the help of the theoretical background. Using a research model, the article can outline the research carried out empirically to examine the innovation, the impact of the Technology Organization Environment, and the resistance characteristics associated with adopting this cloud-based ERP system. To verify the research methodology was used that involved measurements and data collection. The results were then analyzed; from the research, this cloud-based system is gaining popularity with time. Very soon, large enterprises will replace their on-premise ERP with the model of SaaS service. This gives a hint that the market is undergoing a shift in terms of generational technology.

Body

The article gives a detailed explanation of the process involved in adopting the ERP cloud-based system. This shows the strength of this article because of how the details are explained systematically. It begins by giving an overview of what the procedure entails, and this is successful with the help of the theoretical background (Ahn & Ahn, 2020). The framework gives a structure that supports the adoption of this system in this research article. It starts by introducing the theory that explains why we need to study the research about this system’s adoption and validates the existence of the study. The Cloud-Based ERP and On-Premise ERP both show the significance of the transformation in technology. With the development in cloud computing technology, Cloud-Based ERP is slowly replacing the On-Premise ERP. The fact that Cloud-based ERP has many advantages compared to the latter gives a validation of why it is being adopted.

According to the article, the adoption involves the implementation perspectives that articulate the benefits and challenges of adopting this system (AlBar & Hoque, 2019). For example, recently, Adnan Albar carried out a study about the adoption of the cloud-based ERP in Saudi Arabia to better understand logistical factors associated with adoption in medium and small enterprises in the developing economies. The article continues to examine the adoption using the technology-organization-environment framework. This identifies the competitive pressure, technological readiness, and other factors that significantly influence the adoption of this system.

The article then gives the innovative theories that affect IT, which determines the rate of adoption. These innovative features have a relative advantage in the adoption rate. The model of Innovation Resistance then explains that for an adoption to occur, the system has to overcome some initial resistance (Zadeh. et al., 2018). With high innovative resistance, then there are adverse effects in adoption. The research to support the adoption of Cloud-Based ERP is then well described using the research model, and the data is analyzed to give the best results. The article is well articulated, so it is applicable and should be used for related studies.

This article’s procedures and data analysis strategies give a well-illustrated image of how the research model covers this adoption’s technological, organizational, and environmental contexts. Data security and observation characteristic are also included in the model (Moh’d Anwer, 2019). Hypothesis concerning the findings of those contexts is then developed. The research methodology is used to verify the research model wherein the measured items concerning innovative characteristics were picked from previous studies to fit the research. Surveys helped in data collection where companies participated in the surveys. The survey questionnaires were distributed through phones and emails, and the defining features of the respondent enterprises were tabulated.