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SMEs for cloud

Towards better understanding of ERP adoption
determinants logistical factors in
SMEs for cloud ERP adoption in
developing economies 887

Moh’d Anwer AL-Shboul Received 6 January 2018

Revised 27 May 2018
Business Administration Department, King Talal School of Business Technology, Accepted 11 September 2018
Princess Sumaya University for Technology (PSUT), Amman, Jordan

Abstract
Purpose – The purpose of this paper is to investigate the main determinants logistical factors that have an
impact on the adoption of cloud enterprise resource planning (ERP) among small- and medium-sized enterprises
(SMEs) in developing economies. By adopting the diffusion of innovation, technological, organizational and
environmental model as a theoretical framework, the 14 factors examined in this study are as follows: relative
advantage (RA), compatibility, complexity, value creation, technology readiness (TR), security concerns,
technical barriers, top management support (TMS), enterprise readiness (ER), enterprise size (ES), enterprise
status, competitive advantage, government support and infrastructure/telecommunication.
Design/methodology/approach – Data were collected from 131 respondents’ senior executives and IT
managers in SMEs in developing economies ( Jordan, Lebanon, King Saudi Arabia, Bahrain, Qatar, Emirates,
Egypt, Oman, Kuwait and Turkey). A web-based survey questionnaire was used for data collection process.
The research framework and the derived hypotheses were tested by logistic regression analysis.
Findings – The findings indicate that compatibility, TR, technical barriers, TMS, ER, ES and competitive
pressure have a significant effect on the adoption of cloud ERP. This conclusion can be utilized in enhancing
the strategies for approaching ERP cloud by pinpointing the reasons why some SMEs choose to adopt this
technology, while others still do not go forward with this.
Originality/value – This study provides an overview and empirically shows the main determinants
logistical factors that might face SMEs in the developing economies. The findings also help SMEs consider
their information technologies investments when they think to adopt cloud ERP.
Keywords SMEs, TOE framework, Developing economies, Cloud ERP, Determinants logistics, DoI
Paper type Research paper

Introduction
There has been a globally widespread use of information and communication technologies
(ICTs) among various size enterprises due to dramatic business changes (Lian, 2015). One of
these sizes is small- and medium-sized enterprises (SMEs). The SMEs experience several
challenges and logistical determinants in comparison to big enterprises, due to lower budget
allocation and smaller personnel (Usman et al., 2017). Hence, their computing environment is
less complex as compared to their larger business counterparts. Furthermore, SMEs
experience similar demands to those experienced by larger firms (Fathey et al., 2016).
Therefore, SMEs need to enhance their level of services to fulfill the enterprise’s targeted
goals of effectively monitoring, controlling, organizing and minimizing the production costs,
inventory control levels, purchasing materials and utilizing resources. Additionally, SMEs
are expected to adapt different logistic activities to suit the needs of their information
technology (IT) departments (Khamis and Mohd, 2016).
A variety of SMEs have begun utilizing enterprise resource planning (ERP) to establish
Business Process Management
market competitivity, develop a strong consumer base and enhance the level of their Journal
efficiency (Esteves, 2009). An ERP system is “an integrated software solution that spans the Vol. 25 No. 5, 2019
pp. 887-907
range of business processes that enables companies to gain a holistic view of the business © Emerald Publishing Limited
1463-7154
enterprise” (Ehie and Madsen, 2005). Such a system makes use of software modules to DOI 10.1108/BPMJ-01-2018-0004
BPMJ coordinate different organizational processes throughout different organizational units by
25,5 using one data repository (Peng and Nunes, 2013). ERP system utilization establishes a
higher level of co-ordination between different functional units in an organization. An
adequate understanding of business processes was a key component of ERP systems
(Bansal and Agarwal, 2015). Regarding SMEs, a proper understanding of business
processes was essential for ERP competitive strength improvement (de Salas et al., 2017).
888 Studies highlighted that there was weak IT support for business processes within SMEs
(Cragg et al., 2007). Therefore, SMEs need to use ERP systems to establish a higher level of
competence and efficiency. However, this conventional approach of utilizing ERPs
presented several disadvantages to organizations. On-premise approach of utilizing ERPs
bore excessive expenses on the organizations in terms of initial investments (Mangiuc,
2011). Therefore, ERP systems were needed that were cost effective and less time
consuming than traditional ERP systems.
In this regard, the field of ERP has seen an evolution through the development of
cloud-based ERP systems (Raihana, 2012). These cloud ERPs enable corporations to use
third-party hosting IT applications and resources virtually rather than physically (Gangwar
et al., 2015). Therefore, there is no requirement to physically install the software modules in
user PCs or store the pertinent data in local servers, meaning that there will be a lesser need
for hardware investments and fees (Dutta et al., 2013). The use of cloud-ERP hardware
presents significant power saving through using solid-state discs rather than conventional
hard discs (Berl et al., 2010). Additionally, the cost for operating a thousand servers for 1 h
was equivalent to the cost of operating one server for 1,000 h. Due to this, a greater quantity
of tasks may be carried out at limited cost. The use of cloud computing has reduced
operating costs due to the swift allocation or de-allocation of resources as required.
Consequently, there is no requirement for the service provider to allocate the capacities in
accordance with the peak load (Zhang et al., 2010). Additionally, high capacity of the servers
enables host-to-host communication the complete bandwidth of its local network interface
(Zhang et al., 2010). For these reasons, cloud-based ERP presents an affordable alternative to
traditional ERPs. Thus, it would be highly advantageous for SMEs to adopt these systems.
SMEs face issues in using traditional ERP models due to the high costs of licensing and
software package installation. The use of traditional ERP packages presents complexities to
SMEs due to their structural makeup in terms of lack of IT infrastructure, hardware and
maintenance costs, lack of trained IT specialists to support ERP implementation and
reduced IT spending by enterprises (Rohani and Hussin, 2015). Cloud-ERP systems present
many attractive advantages to SMEs due to their feasibility in terms of cost and time spent.
SMEs are not obliged to own IT infrastructure but are only required to lease hardware and
make payment for the required services. Cloud computing systems can produce savings for
SMEs, maximize flexibility and agility in internal and external operations and reduce
production costs (Rezaei et al., 2016).
The implementation and execution of ERP systems over the cloud offers great
advantages through the collection, recording, integration, management and conveyance of
accurate data. Furthermore, information is gathered across all the functional units in the
enterprise departments and other business departments in order to achieve different
objectives (Mathews and Duy, 2013). Cloud-based ERP and computing diffusion system are
a crucial demand for all SMEs because they enable enterprises to execute data transactions
along value chain activities and help break down information between inventory,
manufacturing, finance, planning, sales, materials, distribution, engineering, human
recourses, marketing, operations and all other departments within the enterprise and among
other enterprises (Khamis and Mohd, 2016).
Most modern ERP systems are established to work via internet. Such systems have the
ability to integrate, coordinate, collaborate and cooperate with suppliers, manufactures,
wholesalers, retailers, partners, distributers, customers and even with competitors SMEs for cloud
(Hsu et al., 2014). There is enhanced tracking of incoming raw material and outgoing ERP adoption
final products which helps to extend the visibility and control inside the enterprise and
outside among other enterprises within the ERP cloud. Many enterprises recognized that the
implementation of ERP systems is a costly process, which increases in proportion with the
enterprise size (ES). However, SMEs are small in size and therefore the complexity of ERP
systems used for these small-scale firms is very low. However, the existing work on cloud 889
ERPs involving SMEs in developing economies is still in its preliminary status and still
neither well-known nor widely adopted in developing countries (AlBar and Hoque, 2015).
Although prior research studies have examined the impact of cloud-ERP adoption
among SMEs, Hsu et al. (2014) stated that few studies investigated the adoption of cloud
ERPs among SMEs from a comprehensive view of technology, organization and
environment perspectives. There is a lack of awareness regarding the logistical
determinants factors that play a vital role in influencing the decision of SMEs to
implement cloud ERPs in developing countries (Kamhawi, 2008). Studies had highlighted
the widespread presence of SMEs in Arab developing countries such as Saudi Arabia and
discussed the potential of cloud-ERP adoption in these developing nations. The
implementation of cloud ERP may contribute effectively to the economic growth of SMEs
and consequently, to the growth of the developing nations (Yamin, 2013). Therefore, the
main purpose of this study is to investigate the cloud-ERP adoption process by SMEs in
developing economies and identify the main determinants logistical factors that might affect
the cloud-ERP adoption process. The study addresses the following research questions:
RQ1. What are the main determinants logistical factors that influence the decision of
SMEs to adopt cloud ERPs in developing economies?
RQ2. If the decision is to adopt cloud ERPs, what logistical factors are to determine the
extent of the adoption?
The study made use of two relevant theories, which were the theory of diffusion of
innovation (DoI) and the technology–organization–environment (TOE) theory. Based on
these theories, this study proposes a multi-perspective framework to investigate the main
determinants logistical factors of cloud-ERP adoption among SMEs in developing
economies using web-based survey system for data gathering.

Theories and literature review

The concept of cloud-based ERP
Existing literature addresses the presence of several computing paradigms that are able to
deliver a utility computing vision, such as grid computing, cluster computing and recently,
cloud- based ERP systems (Hsu et al., 2014). These cloud-ERP systems present a shift in
paradigm from traditional ERPs and are inclusive of software packages, computing
resource services and data storage. The last two decades have digitally transformed the
world through the use of digital systems that derive several applications for millions of
individuals to extend the service rather than to run on their personal computers (Fawaz
et al., 2016). The cloud-ERP term refers to using computer resources (hardware, software,
platform, database servers, application and software packages) over a network for a
massive majority of those engaged in the service-level understanding of the processing and
payment (Hsin-Pin and Tsung-Sheng, 2016). There are several definitions of cloud-ERP
concept in existing literature due to different theoretical perspectives (Fathey et al., 2016).
Cloud-ERP systems are enterprise-wide information system packages that contain a
comprehensive set of software modules, which aim to integrate the key logistics in business
processes across various functional departments of firms by using a single data repository
BPMJ (Rezaei et al., 2016). ERP contains different functional modules that reflect different logistics
25,5 departments of a firm, such as accounting, procurement, sales, production, inventory
control, warehousing, transportation and human resources (Khamis and Mohd, 2016).
SME future growth was strongly associated with the active implementation of “Internet of
Things.” Technological investments would aid in the potential growth of SMEs beyond what
was previously expected (Pratono, 2016). Further studies highlighted the role of short-term
890 internet-based enterprise co-operations in improving an SME’s competitive advantage (Berlak
and Weber, 2004). SMEs need to enhance their competitive advantage through the use of
technological investments and e-commerce solutions (Subba Rao et al., 2003;
Papazafeiropoulou et al., 2002). This idea of technological innovations with regard to SMEs
was explored by similar studies endorsing the use of radio-frequency identification technology
within SMEs (Fosso Wamba et al., 2016). Moreover, studies highlighted the role played by
social networking sites in enhancing an SME’s innovative growth (Scuotto, Del Giudice and
Carayannis, 2017; Scuotto, Caputo, Villasalero and Del Giudice, 2017; Scuotto, Del Giudice,
della Peruta and Tarba, 2017). Digitization of supply chain management systems was
immensely essential for the technological advancement of an SME (Scuotto, Del Giudice and
Carayannis, 2017; Scuotto, Caputo, Villasalero and Del Giudice, 2017; Scuotto, Del Giudice,
della Peruta and Tarba, 2017). Therefore, technological advancements with regard to the
adoption of cloud-ERP systems will be greatly beneficial in furthering the growth of SMEs.
These cloud ERPs are developed and offered by ERP vendors and sold as “standard
software” that suit the needs of many firms and are often modified for a particular industry or
vertical solution. They usually undergo significant customizations to fulfill the unique
requirements of each firm and can be integrated with other packages (Hsin-Pin and
Tsung-Sheng, 2016). The influence of developing countries, like China, Brazil, India and Russia,
drives the market toward more widespread implementation of cloud computing (Kshetri, 2010).
There is a high potential for cloud implementation in China and India (Kshetri, 2010). However,
there is a lack of widespread awareness of cloud computing applications in the large firms in
these developing countries (Burt, 2009). Nevertheless, there is a high potential for SME
development through the use of cloud-based ERP systems in those developing countries. The
lack of an infrastructure requirement enables SMEs to develop their entrepreneurial systems in
the same ways as large firms and therefore aids better competition with these firms (Irani, 2008).
Cloud ERP presents a revolutionary approach in the deployment of an ERP solution which
is flexible, adaptable, scalable, efficient and affordable (AlBar and Hoque, 2015). Private cloud
ERPs are less threatening than an overall move to the public cloud. Therefore, it is easier to
hand individual services over to trade partner providers in future (Ricardo et al., 2016). Rimal
et al. (2011) stated that cloud ERP is generally sub divided into three categories: Software as a
Service (SaaS), Platform as a Service and Infrastructure as a Service.

Prior research studies in cloud ERP adoption and SMEs

Cloud-ERP adoption revolutionized the global business environment due to the
development of accessible technological innovations, enhancement facilities and resources
(Signe et al., 2017). Many previous studies in the field of cloud-ERP adoption have addressed
dimensions, such as new technologies, security tools and risks, control over cloud, loss of IT
competencies, organizational challenges and costs, loss of technical knowledge and the
future expectations in these emerging environments. There are business models for
enterprises with an existing IT infrastructure and business models for start-up enterprises.
Hsu et al. (2014) stated that a contemporary survey found that the current logistics charging
factor and other factors of the cloud make it highly convenient for SMEs. However, ES was
found to have an effect on strategic importance of cloud ERP in very fast technological
development and innovation. A number of prior studies drew systematic studies of
cloud-ERP adoption. Pareek (2014) has compared all the aspects of traditional ERP systems
with cloud base ERP architectures. The implementation cost of cloud-based ERP is lower SMEs for cloud
than that of traditional ERPs and the flexibility of cloud ensures competitive advantages to ERP adoption
a particular enterprise. Additionally, they provide mature system functionality and abilities
of greater customization and integration for several different enterprises. On the other hand,
Fawaz et al. (2016) argued that cloud ERPs provide solutions to all the difficulties faced by
traditional ERP systems. It provides flexibility and enhances overall efficiency and
performance of the enterprises. 891
Signe et al. (2017) analyzed the complexity in the implementation of ERP adoption and
cloud computing. Additionally, they studied the major benefits of challenges during
cloud-ERP implementation. Other studies established a framework for selecting a non-core
business process from preferred ERP service partners (Sharma and Keswani, 2013). These
research works studied the security issues related to data or information that have already
moved out from enterprise premises to the cloud eco-system. An additional study aimed to
reduce the total costs through combining ERP and cloud computing together and the
implementation delays through a proposed framework (Al-Johani and Youssef, 2013). On the
one hand, their framework follows a multi-instance cloud-ERP infrastructure that initiates
different ERP instances for different industries. On the other hand, Sahin (2013) proposed
and identified 27 contributing factors for transition to the adoption of cloud ERP using
100 studies. The transition process was classified into two phases, where the first one is
under the “necessary” name, which means that transition factors are needed to be exist in
order to let the firm be able to move to the next phase, and the other is under the “sufficient”
name, which means that the firm still assisting in the movement.
In summary, this study concludes that the above prior research related to cloud-ERP
adoption and its determinants are twofold. First, most research studies have focused on the
benefits and challenges of cloud-ERP adoption in the context of developed nations.
Although the findings of prior studies present various factors that affect cloud-ERP
adoption, all these factors can be classified in technological, organizational or environment
contexts. Consequently, many studies apply the TOE framework to explore the cloud-ERP
adoption issue. Second, most prior studies emphasized that technological factors affect
cloud-ERP adoption. However, the influences of organizational and environmental
dimensions on cloud-ERP adoption vary across different industry sectors. Therefore,
little research has been conducted in drawing a systematic study and analyzing the
determinants logistics factors of cloud-ERP adoption in different industries to acquire a
better understanding of cloud-ERP adoption in developing economies.

Diffusion of innovation, technology, organization and environment (DoITOE) framework

A theoretical framework is proposed and developed in this study based on the concepts that
are derived from DoITOE contexts. The DoITOE framework includes four context groups:
diffusion of innovation, technological, organizational and environmental. According to Thong
and Yap (1995), the DoI context refers to the degree of willingness to try new ideas, solutions
or technologies that have not been tried or tested before. The technological context refers to a
set of variables influencing an individual, enterprise and enterprise’s adoption of innovation,
which includes internal and external technologies applicable to the enterprise (Gangwar et al.,
2015). Awa et al. (2017) identified organizational context as the characteristics of the enterprise
and its internal resources, which includes ES and scope, status, complexity of managerial
structure, centralization, knowledge capability, enterprise readiness (ER), quality of human
resources, formalization and top management support (TMS). Environmental context refers to
the external factors that influence the adoption of cloud ERP, which includes service
providers, government regulations and competitors (Yeh et al., 2015).
The current study includes four features affecting cloud-ERP adoption: DoI context
(RA, compatibility, complexity and value creation (VC)), technological context (technology
BPMJ readiness (TR), security concerns (SC) and technical expertise), organizational context (TMS,
25,5 ES, ER and enterprise status) and environmental context (competitive pressure (CP),
government support (GS) and infrastructure/telecommunication).

Theoretical research framework and hypotheses

Figure 1 shows the theoretical research framework developed in this study. The framework
892 includes DoI, technology, organization and environment contexts as important determinants
logistical factors of cloud-ERP adoption. As shown in Figure 1, this combination of the four
contexts proposed 14 elements for cloud-ERP adoption. The researchers performed regression
analysis to test the hypotheses and these elements are hypothesized to have a direct effect on
enterprise adoption of cloud ERP; the relationships’ effects between the 14 elements were outside
the scope of this study.

Diffusion of Innovation
Context
H1 (+) Relative advantage (RA)
H2 (+) Compatibility (CM)
H3 (–) Complexity (CX)
H4 (+) Value creation (VC)

Technological Context
H5 (+) Technology readiness (TR)
H6 (+) Security concerns (SC)
H7 (–) Technical barriers (TB)

Cloud ERP
Adoption

Organizational Context
H8 (+) Top management support
(TMS)
H9 (+) Enterprise readiness (ER)
H10 (+) Enterprise size (ES)
H11 (+) Enterprise status (EST)

Environmental Context
H12 (+) Competitive pressure (CP)
H13 (+) Government support (GS)
Figure 1. H14 (+) Infrastructure/Telecommunication
Research framework (ITE)
DoI, RA and compatibility SMEs for cloud
RA and compatibility. Rogers (2003) defined RA as “the degree to which an innovation is ERP adoption
perceived as being better than the idea it superseded.” Further, as a secondary definition, it
was defined as the degree to which technological factor is perceived as providing greater
benefit for enterprise. Enterprises should consider the advantages of adopting innovation
(Ngai et al., 2008). Cloud-ERP adoption produces several services, which permit internal
operations within the enterprise to be generalized and transferred via internet transactions 893
and can substitute for or complement ERP software. The expected benefits and services of
adopting cloud ERP mainly include better communications between enterprises within the
cloud, access to market information mobilization, efficient co-ordination and collaboration
among set or group of enterprises and speed of sharing of information, software packages
and communications through businesses (Rezaei et al., 2016).
However, enterprises may not be confident to adopt cloud ERP due to the novel nature of
cloud-based applications (Lian, 2015). Many enterprises may take a long time to understand
and implement this system in their premises. The compatibility concept refers to the degree to
which extent the innovation fits with the potential adopter’s existing values, previous
practices and current needs (Rogers, 2003). Compatibility is considered as a crucial factor for
innovation adoption in cloud ERPs (Khamis and Mohd, 2016). When technology is
incompatible with work application systems within the ERP or even in the cloud, enterprises
are usually likely to consider the adoption of new technology. Then, major adjustments in
processes should be performed and developed within the enterprise, which involve
considerable learning are required. Therefore, two hypotheses are proposed for cloud-ERP
adoption as follows:
H1. The implementation of cloud-ERP systems may be solely influenced by the RA of
the SMEs within the developing countries.
H2. The implementation of cloud-ERP systems may be solely influenced by its
compatibility within the SMEs operating in the developing countries.
Complexity and VC. Complexity refers to the degree to which an innovation is perceived as
relatively difficult to understand, use and apply (Borgman et al., 2013). Complexity in
innovation comes with some barriers and challenges including security, privacy and using of
advanced technology. The main purpose of innovation is to create enterprise value
(Ngah et al., 2017). VC can be defined as the incremental improvements to existing products,
services and information and even reducing cost within the ERP cloud. Therefore, enterprises
seek to create value for survival, growth and the ability to compete in a rapidly changing
market on whether they innovate effectively. Thus, adopting cloud ERP requires expertise
staff and new skills to manage cloud problems and provide solutions. Therefore, the following
hypotheses are proposed:
H3. The implementation of cloud-ERP systems may solely depend on the degree of
complexity it presents to the SME within the developing countries.
H4. The implementation of cloud-ERP systems may solely depend on the importance
placed by SMEs of developing countries on VC.

Technological context
TR, SC and technical barriers. The technological readiness of an enterprise aims to measure the
capability of that enterprise to adopt new technology, offer technological infrastructure and IT
human resources that can provide the knowledge and skills to implement adoption of cloud ERP
(Yeh et al., 2015). Technological infrastructure means installing network technologies and
BPMJ enterprise software packages systems, through which cloud-ERP applications can be built.
25,5 Thus, adoption of cloud ERP provides services that can become a part of value chain activities
only if enterprises have the necessary infrastructure and technical competences (Awa et al.,
2017). SC provide the highest risk in cloud-ERP adoption, such as loss in data, individual records
or other critical information. A few studies negated the presence of a relationship between
security and the adoption of cloud ERP (Rahimli, 2013). However, other studies found that the
894 shared-tenant environment offered by the adoption of cloud-ERP paradigm increases SC
(Schneiderman, 2011). Phaphoom et al. (2015) argued that technical barriers refer to the
complexity of implementing and existing IT equipment and systems. Portability,
interoperability and vendor lock have been identified as possible barriers to the adoption of
cloud ERP. These considerations lead to the following hypotheses:
H5. The implementation of cloud-ERP systems may solely depend on the technological
readiness of the SMEs within the developing countries.
H6. The implementation of cloud-ERP systems in SMEs that operate within developing
countries may be strongly affected by security risks posed as a result of its
implementation.
H7. The implementation of cloud-ERP systems may solely depend on the presence of
technical barriers within the SMEs within the developing countries.

Organizational context
TMS and ER. The organizational context includes many issues, such as enterprise status,
quality of human resources and enterprise’s managerial structure (Mathews and Duy, 2013).
TMS is a crucial factor affecting the supportive climate for providing adequate resources,
vision and commitment for the innovation and the adoption of cloud ERP (Yeh et al., 2015).
This is because the adoption and implementation of cloud ERP may involve the integration
of resources and reengineering of multi-processes. Many research studies have emphasized
that ER is one of the major logistical determinants of IT innovation such as offering IT
expertise and technical staff (Awa et al., 2017). The findings of some empirical research
studies indicate that there is a positive relationship between TMS and adoption of cloud
ERP (Ngah et al., 2017). Thus, the following hypotheses are proposed:
H8. The implementation of cloud ERPs may solely depend on the degree of top
management support within the SME in developing countries.
H9. The implementation of cloud ERPs may solely depend on the ER of the SMEs in the
developing countries.
ES and status. Large enterprises tend to adopt cloud ERP rather than small enterprises due
to their flexibility and ability to take risk (Khamis and Mohd, 2016). Thus, economic factors
and financial status are considered as major factors for cloud-ERP adoption (Usman et al.,
2017). Consequently, ES is an important factor affecting the perceived strategic importance
of cloud-ERP adoption. Enterprise status is defined as having either an establish enterprise
or as a start-up enterprise. There is a lack of empirical studies investigating the impact of
enterprise status on technology adoption and/or cloud adoption (Sadiku et al., 2014). These
considerations lead to the following hypotheses:
H10. The implementation of cloud-ERP systems may solely be influenced by the size of
the SMEs (ES) within the developing countries.
H11. The implementation of cloud-ERP systems may solely be influenced by the status
of the SMEs (enterprise status) within the developing countries.
Environmental context SMEs for cloud
Competitive pressure and government support. The environmental context refers to all ERP adoption
external factors that influence cloud-ERP adoption, such as governmental rules and
regulations, competitors and service providers. CP refers to the level of pressure felt by the
enterprise from other external partners such as competitors in the industry. An important
logistic determinant of cloud-ERP adoption is the experience of intense competition. Through
this, enterprises become increasingly aware of and follow their competitor’s adoption of cloud 895
ERP. This will allow greater benefits in operation efficiency, better understanding of market
visibility and more accurate data collection from the dynamic markets. The GS context refers
to the rules, regulations, instructions, policies and initiatives that support enterprises in cloud
ERP. Low et al. (2011) argued that government regulations had a significant impact on the
adoption of e-business in developing countries comparing with developed countries. An
additional study highlighted that Saudi SMEs are supported by the government in cloud-ERP
adoption (AlBar and Hoque, 2015). Governmental support of cloud-ERP systems in
developing countries may enable technological development of the governments in those
countries. Ethiopia demonstrated great governmental support of cloud computing, where the
government commissioned the cloud computing provider FullArmor to remotely organize and
manage 250,000 laptops in this nation (Marston et al., 2011). Thus, this study has drawn the
following two hypotheses for the adoption of cloud ERP:
H12. The adoption of cloud-ERP systems may be solely influenced by the CPs faced by
the SMEs within the developing countries.
H13. The adoption of cloud-ERP systems may be solely influenced by the governmental
support shown to the SMEs within the developing countries.
Infrastructure framework/telecommunication. The main role of existing and offering
permanent well-established telecommunication infrastructure (TE) for any firm at any
country is to facilitate the smooth flow of information sharing through different partners
within the ERP cloud, enabling more flexibility, speedy and agility for information sharing
(Al-Shboul, 2017).
Well-established communication infrastructure may achieve highly adequate and
accurate information, quality, dependability, speed, effectively and reliability to achieve the
lowest cost strategy of information sharing within the cloud ERP. Thus, it allows the main
partners to work and cooperate as a single entity under the umbrella of information sharing
within the same cloud ERP. These considerations lead to the following hypothesis:
H14. The adoption of cloud-ERP systems may be solely influenced by well-established
telecommunication infrastructure of the SMEs within the developing countries.

Research methodology
Research context
Arab developing countries such as Jordan have been attracting significant attention from
ERP vendors that consider such developing countries to be prime locations for sales growth
(Sbool, 2006). There is an immense potential of cloud-ERP systems in SMEs that operate in
developing countries such as Saudi Arabia. The large number of SMEs in Arab developing
countries such as Saudi Arabia presents many opportunities for cloud-ERP implementation
(Yamin, 2013). However, there is a lack of research surrounding the logistical determinant
factors for cloud-ERP implementation. Furthermore, the culture of ICT implementation
faces significant complexities within SMEs of developing countries such as Oman (Ashrafi
and Murtaza, 2008). There is a lack of awareness regarding ERP systems within the SMEs
of developing countries, due to which they are unable to enhance their competitive strengths
BPMJ (Seethamraju, 2008). This gap needs to be filled through conducting studies on SMEs within
25,5 Arab developing countries to encourage a culture of cloud-ERP adoption in these nations.
This study has aimed to investigate the main determinants logistic factors influencing an
SME’s decision to adopt cloud ERPs in developing economies. Additionally, this study
aimed to investigate the logistical factors determining the extent of the adoption when an
SME chooses to implement cloud-ERP systems. The targeted respondents of this study
896 were middle- and/or high-level position of senior executives and IT managers in SMEs in the
developing economies of Jordan, Lebanon, King Saudi Arabia, Bahrain, Qatar, Emirates,
Egypt, Oman, Kuwait and Turkey. A sample was randomly selected, inclusive of 1,141
SMEs that had registered and were listed in the Ministry of Industry and Trade in each
country. Each enterprise in the sample met the following criteria: must be in market at least
three years; and must have fewer than 100 employees. These countries were chosen because
they are in a better position to understand current IT operations, increase in growth rates
and future trends for their enterprises (AlBar and Hoque, 2015). A web-based survey in
English language was utilized to investigate the key informants of this study.

Sampling and instrumentation

Since a majority of correspondents hailed from Arab countries, the survey was initially
written in their native Arabic language and then translated and distributed in English
language. It was designed and distributed for data collection process due to many
advantages, such as quicker distribution, a more professional appearance, cost-effectiveness
and response rate increase. A cover letter was attached in each survey to introduce the
research objectives, which included the main instructions for completion. To follow-up,
reminder notices were sent by e-mail to the selected enterprises that did not respond to or
had not completed the survey after two weeks following the initial distribution to ensure the
completion of the survey. In total, 43 survey items for 14 constructs in the survey came from
prior studies and literature which was modified by the researcher to fit the context of cloud-
ERP adoption. The first part of the survey addressed the demographic information of
enterprises as shown in Table I, including enterprise working in business, number of
employees, average annual sales, enterprise type and adoption of cloud-ERP services. The
second part evaluated the 14 predictors.
There were only 131 completed and usable responses out of 1,141, after eliminating
13 surveys due to incompletion, contained errors or missing data. Thus, the response rate is
11.48 percent, which is acceptable for a web survey that was sent via e-mail/internet (Kypri et al.,
2004). Table II shows the main sources of items that were adapted for this study. Consequently,
non-response bias has been addressed, which is a potential source of bias in survey studies. Tests
for early and late respondents’ homogeneity considered the enterprise’s working in business and
number of employees. No significant differences were found between the early and the late
respondents’ groups, meaning that there was not a significant bias. The common method bias
was addressed by running Harman’s single factor analysis test of the research components to
identify the presence of common method variance. The findings of this test explained that when
taking all items for all constructs into an exploratory factor analysis, there is no one general
factor which accounts for a majority of the variances. The factor analysis method to identify
common method bias was supported by existing research (Richardson et al., 2009).

Scale reliability and factor analysis

The most popular reliability test is the Cronbach’s α, which measures the internal
consistency of an instrument. An α score of higher than 0.7 is accepted for all constructs of
this study (Nunnally, 1978). This is the minimum value at which the correlation variables
are considered to be significant. In this study, all constructs had an adequate α ( W0.7) and
were therefore significant. In total, 43 items were formulated to capture the 14 elements
Characteristic Sample composition, n (%)
SMEs for cloud
ERP adoption
Enterprise working in business (years)
Less than or equal 5 22 (16.79)
6–10 36 (27.48)
11–20 26 (19.84)
21–30 34 (25.95)
Over 30 13 (9.92) 897
Number of employees
51–199 60 (45.80)
200–499 71 (54.19)
Over 500 0 (0.0)
Average annual sales (NT$ million)
Less than or equal 1 33 (25.19)
2–5 28 (21.37)
6–10 50 (38.16)
More than 10 20 (15.26)
Enterprise sector/type
Manufacturing 79 (60.30)
Service 52 (39.69)
Enterprise status
Start-up 59 (45.03)
Established 41 (31.29)
Do not know 31 (23.66) Table I.
Notes: n ¼ 131. The percentage values are given in parenthesis Sample characteristics

under investigation. A five-point Likert scale was used to measure each item. The
researchers performed factor analysis with principal component factoring method to
evaluate the construct validity of the measures. All the primary factor loadings should be
W0.5 and there should be no cross-loading while assessing the fit between the items and
their constructs (Hair et al., 1998). Based on the mentioned study, four items were deleted
due to cross-loadings. The factor analysis was then run again and 14 factors were identified
as explaining the main logistical determinants of cloud-ERP adoption in the current study
(having eigenvalues W1). The findings explained 78.54 percent of the independents
variables, meaning that there was a satisfactory degree of construct validity.
The Kaiser–Meyer–Olkin (KMO) tests the adequacy of the sample and was found to be 0.876.
According to Kaiser (1974), this is an excellent value (KMO ⩾ 0.8) revealing that the correlation
matrix was adequate for the factor analysis. The KMO for each variable was also adequate. The
14 elements are as follows: RA, compatibility (CM), complexity (CX), VC, TR, SC, technology
barriers, TMS, ER, ES, enterprise status (EST), CP, GS and infrastructure/telecommunication
(ITE). Table III illustrates the findings of reliability analysis and factor analysis.

Data analysis
Table IV shows the final scores of the 15 factors that were calculated with the mean values
and standard deviation. In order to test the theoretical research framework, logistic
regression technique was run with all 15 factors (independent variables) due to the
sensitivity to multicollinearity. Two ways were used to assess the multicollinearity for the
regression technique, First, the variance of inflation factor was calculated, which ranged
from 1.05 (low) to 3.38 (high). All the values were below the threshold of 10. Second,
identification of all condition indices that had above 30 thresholds been carried out.
BPMJ Constructs Variables Sources
25,5
Diffusion of innovation Relative advantage Rogers (2003), Ngai et al. (2008), Rezaei et al. (2016),
context Lian (2015)
Compatibility Rogers (2003), Khamis and Mohd (2016)
Complexity Borgman et al. (2013), Ngah et al. (2017)
Value creation
898 Technological context Technology reediness Yeh et al. (2015), Awa et al. (2017)
Security concerns Rahimli (2013), Schneiderman (2011)
Technical barriers Phaphoom et al. (2015)
Organizational context Top management support Mathews and Duy (2013), Yeh et al. (2015)
Enterprise readiness Awa et al. (2017), Ngah et al. (2017)
Table II. Enterprise status Sadiku et al. (2014)
Constructs and Environmental context Competitive pressure Usman et al. (2017)
their resources Government support AlBar and Hoque (2015), Low et al. (2011)

RA CO CX VC TR SC TB TMS ER ES EST CP GS ITE

RA1 0.778
RA2 0.812
RA3 0.654
CO1 0.876
CO2 0.765
CO3 0.879
CX1 0.763
CX2 0.858
CX3 0.586
VC1 0.775
VC2 0.861
VC3 0.833
TR1 0.577
TR2 0.687
TR3 0.844
SC1 0.761
SC2 0.846
SC3 0.576
SC4 0.822
TB1 0.774
TB2 0.727
TB3 0.588
TMS1 0.871
TMS2 0.659
TMS3 0.705
ER1 0.652
ER2 0.718
ER3 0.553
ES1 0.846
ES2 0.597
ES3 0.783
EST1 0.679
EST2 0.599
EST3 0.667
CP1 0.878
CP2 0.755
CP3 0.563
GS1 0.676
GS2 0.878
GS3 0.811
ITE1 0.783
ITE2 0.887
ITE3 0.768
Eigenvalue 2.901 2.435 12.132 11.63 1.737 3.529 1.956 4.734 1.073 1.727 2.321 1.845 1.765 1.736
Table III. Variance 10.64 29.64 33.73 38.77 44.67 50.82 59.82 62.17 66.84 69.82 70.72 75.69 76.43 78.543
Factor analysis α coefficient 0.764 0.856 0.895 0.961 0.968 0.988 0.875 0.822 0.785 0.753 0.714 0.709 0.765 0.862
 Mean (SD) Diagnosing multicollinearity
SMEs for cloud
Independent variables All Adapter Non-adapter VIF CI ERP adoption
RA 3.88 (0.72) 3.77 (0.59) 3.55 (0.85) 1.74 1.12
CO 3.79 (0.85) 3.36 (0.71) 3.35 (0.56) 1.41 5.45
CX 3.72 (0.78) 3.43 (0.99) 3.21 (0.87) 1.99 7.73
VC 3.69 (0.81) 2.67 (0.87) 3.44 (0.75) 2.45 9.67
TR 3.61 (0.91) 3.64 (0.84) 3.26 (0.93) 2.21 12.76 899
SC 3.56 (0.76) 2.64 (0.94) 3.64 (0.78) 2.33 14.55
TB 3.48 (0.93) 3.86 (0.76) 3.32 (0.82) 3.32 15.64
TMS 3.40 (0.80) 3.22 (0.78) 2.94 (0.90) 1.05 17.43
ER 3.38 (0.89) 3.88 (0.96) 3.47 (0.67) 3.04 18.77
ES 3.31 (0.84) 3.76 (1.03) 3.11 (0.56) 2.07 20.15
EST 3.28 (0.82) 3.35 (0.73) 3.67 (0.66) 3.38 22.71 Table IV.
CP 2.78 (0.92) 2.73 (0.97) 3.42 (1.02) 1.05 24.85 Means and diagnosing
GS 2.66 (0.83) 1.97 (0.63) 2.24 (0.69) 1.33 26.72 multicollinearity of all
ITE 2.57 (0.75) 2.45 (0.96) 2.77 (0.90) 1.36 25.74 independent variables

The results as shown in Table IV strongly indicated that there is no critical problem of
multicollinearity among all independent variables (Hair et al., 1998). Table V illustrates the
results of the logistics regression for this study. The likelihood ratio was found (LR ¼ 99.1),
suggesting a strong relationship between the dependent and independent variables for each
regression. The Hosmer and Lemeshow goodness-of-fit test ( χ2 ¼ 3.97, p ¼ 0.862) implied
that there are no differences between the fitted values of the research framework and the
actual values. The p-value for the research framework was not significantly different from a
perfect one that can correctly classify all participants into their respective groups (Hosmer
and Lemeshow, 1980). The Nagelkerke R2 indicated that about 41 percent of the data
variation was explained by the logistic research framework.

Variable β coefficient SE coefficient Wald statistics Significance

Relative advantage 1.384 0.743 5.319 0.632
Compatibility 1.648* 0.654 8.641 0.041
Complexity 0.856 0.363 4.453 0.129
Value creation 0.321 0.566 0.188 0.544
Technology readiness −1.973* 0.643 9.774 0.032
Security concerns −1.271 0.788 2.543 0.314
Technical barriers −4.667 3.543 1.861 0.033
Top management support 1.585* 0.754 3.976 0.024
Enterprise readiness 0.432* 0.654 0.165 0.019
Enterprise size 0.854* 0.437 5.053 0.029
Enterprise status 1.438 0.862 2.542 0.471
Competitive pressure 1.202** 0.765 4.054 0.045
Government support 0.654 0.465 0.212 0.471
Infrastructure/
telecommunication 1.769 0.743 0.862 0.727
Constant −4.974 3.976 1.865 0.127
Observed total Non-adapter enterprises Adopter enterprises
Correct (%)
Non-adapter enterprises 112 108 4 96.6
Adopter enterprises 19 17 2 10.5
Overall 87.2 Table V.
Notes: −2 log likelihood: χ2 ¼ 79.34 (df ¼ 14), p o0.05; goodness of fit: χ2 ¼ 3.97 (df ¼ 14), p ¼ 0.862. Results of the logistic
*p o0.05; **po 0.01 regression analysis
BPMJ The significance of the regression coefficients for all hypothesized predictors was examined
25,5 by using Wald statistics. Table V illustrates that the coefficients of compatibility ( po0.05),
TR ( p o 0.05), TMS ( p o 0.05), ER ( p o 0.05), ES ( p o 0.05), CP ( p o 0.01) and
telecommunication ( p o0.05) were significant at the 0.05 level. Thus, supporting evidence
was found for H2, H5, H7–H10 and H12. All remaining variables were not significant.
However, the sign of the regression coefficient ( β) represents either positive or negative
900 effect on the adoption of cloud ERP. Subsequently, this study may state that: the
compatibility, TMS, ER and ES were positively related to the enterprise likelihood to adopt
cloud ERP. Furthermore, TR, technical barriers and CP were negatively related to the
enterprise adoption of cloud ERP.
Additionally, Table V shows that the overall discriminating power has a prediction
accuracy of 87.2 based on the logistic regression research framework, as there are 19
enterprise adopters and 112 non-adopter’s enterprises in this study. The adoption of cloud
ERP by random choice would result in (19/131)2+(112/131)2 ¼ 75.20%, which was less than
in the case of this study’s regressions. It was concluded that logistic regression has a higher
discriminating power than the random choice research framework.

Discussion
This study aimed to investigate cloud-ERP adoption related to core business processes. This
adoption enables the enterprise to perform critical tasks along value chain functions and
activities. This study found that there are seven determinants logistical factors for cloud-ERP
adoption in SMEs. These are compatibility, TR, technical barriers, TMS, ER, ES and CP.

DoI context
Relatively few studies addressed cloud-ERP adoption in terms of an innovation of diffusion
framework. This framework addresses the rate at which technological ideas and innovations
spread in common use. This research has made a novel contribution to the study of cloud-ERP
implementation by utilizing an innovation of diffusion framework for examining cloud-ERP
adoption. Regarding the DoI context, it was seen that the RA of cloud-ERP adoption services
would improve the speed of enterprise communications, co-ordination within cloud and
among other enterprises, customer communications, access and sharing of information
regarding to markets (Khamis and Mohd, 2016). Unexpectedly, the findings indicated that the
RA, complexity and VC factors did not significantly influence cloud-ERP adoption in SMEs.
The findings of complexity and VC are consistent with some previous studies (Rezaei et al.,
2016; Alhammadi et al., 2015; Alismaili et al., 2015), whereas the finding of RA is consistent
with a study by Low et al. (2011). Conversely, this finding was inconsistent with that obtained
by Alhammadi et al. (2015). These results may strongly contribute to the development of cloud
ERP in SMEs through utilizing these factors of influence.
These results showed that enterprises realized the RA, complexity and VC of conducting
cloud ERP with information system applications, but they may have a lower level of cloud-
ERP adoption. Cloud ERP is a relatively recent technological application that has
sophisticated charging mechanisms. Therefore, the enterprises may consider trading off the
RA and charging service costs. Additionally, the cost of establishing and implementing such
IT systems may be high, presenting as major logistical funding barriers to cloud-ERP
adoption (Shirish and Teo, 2010). RA, complexity and VC do not have a significantly
negative impact. One possible explanation for these factors not being significant may be
attributed to the immaturity of cloud ERP and technology used. If the enterprise’s previous
experiences with information systems are compatible and match with the current
information infrastructure, the changes due to cloud-ERP services will be consistent with
the current practices. This correlation indicates that the compatibility of cloud-ERP
adoption and its implementation can be a part of barrier to cloud-ERP adoption.
Compatibility was found to be a significant discriminator. This finding is inconsistent with SMEs for cloud
some previous studies (Alismaili et al., 2015; Low et al., 2011), and consistent with others ERP adoption
(Alhammadi et al., 2015; Mathews and Duy, 2013).

Technological context
The attributes of enterprise should play a crucial role in the decision-making process (Signe
et al., 2017; Rohani and Hussin, 2015). The findings found that TR and SC were significant 901
discriminators between cloud-ERP adopters and non-adopters. TR and technical barriers
were inconsistent, while support and SC were consistent with some previous studies
(Alhammadi et al., 2015; Yeh et al., 2015; Alismaili et al., 2015). TR is consistent with other
studies (Hsu et al., 2014). These results may stem from the fact that the enterprises were
current cloud-ERP adopters. Thus, there is likely to be reasonable variance in the current
enterprise processes. However, enterprises with sophisticated technological networks and
resources may affect initial cloud-ERP adoption, but extent of implementation instead.
Enterprises adopting cloud ERP may have already made requisite core changes, reducing
the effect of enterprise technological competency in distinguishing different levels of cloud-
ERP adoptions services. Based on the positive effect in the logistic regression, the
adoption of new technology needs TMS and an adequate capability in technology
integration in the enterprise (Sadiku et al., 2014). Technical barriers were found negatively
significant to cloud-ERP adoption. This finding is inconsistent with some previous studies
(Alhammadi et al., 2015; Alismaili et al., 2015).

Organizational context
Interestingly, three predictors in the form of TMS, ER and ES were found as statistically
significant influences in ERP adoption decisions. The findings of TMS and ER are
consistent and similar to the findings of some previous studies (Alhammadi et al., 2015;
Alismaili et al., 2015). In terms of the ES, the finding is consistent and in line with the
outcomes of Alismaili et al. (2015) and Low et al. (2011), whereas it is inconsistent with the
findings of Alhammadi et al. (2015) study. Contrary to expectations, this study did not find a
significant relationship between ES and cloud-ERP adoption. This finding is in contrast
with the finding of Alhammadi et al. (2015) study. Large enterprises may have a higher
probability of cloud-ERP adoption because they have more resources and may be better able
to take risks than other sizes.

Environment context
Governmental support and TE were statistically significant for cloud-ERP adoption in SMEs in
both manufacturing and service sectors. In terms of GS, the finding of this study is consistent
with the finding of some previous studies (Alhammadi et al., 2015; Mathews and Duy, 2013).
Governments in technologically developing economies play a crucial role in supporting
enterprises in adopting new technology such cloud ERP in terms of their regulations and
initiatives (Ngah et al., 2017). In terms of TE, there is no prior study that has examined this
factor empirically in relation to cloud ERP or technology adoption in general. Furthermore,
there was a lack of studies highlighting cloud-ERP adoption in SMEs in developing countries.
This study had aimed to fulfill this research gap and found that start-up enterprises were more
likely to adopt cloud ERP. Established enterprises in countries such as Saudi Arabia already
have a developed infrastructure. Cloud computing offers heavy advantages to SMEs in those
developing countries due to the lack of requirement of a ready infrastructure.
Unexpectedly, CP did not significantly affect cloud-ERP adoption. This result was
consistent with previous studies (Alhammadi et al., 2015; Rohani and Hussin, 2015). In
contrast, Alismaili et al. (2015) and Oliveria et al. (2014) found that CP has a significant
BPMJ impact in association with cloud-ERP adoption. Finally, enterprises with stronger DoITOE
25,5 conceptual model of adopting of cloud ERP will be in a better position to facilitate easier
diffusion of cloud-ERP services. The main implication of this finding is that enhancing user
awareness of the benefits of cloud ERP positively affects the efficient use and diffusion of
adopting cloud ERP (Low et al., 2011).
This study integrated the DoI and TOE framework to investigate the main determinants
902 logistical factors affecting cloud-ERP adoption decision in developing economies. To reinforce
cloud-ERP adoption, it is necessary to highlight the main determinants logistical factors that
are barriers to cloud-ERP adoption. The complexity and compatibility of cloud-ERP
implementation and services can be a barrier to cloud-ERP adoption. While cloud ERP has
been considered as an important technology tool that can provide strategic and operational
benefits, significant rates of implementation and adoption in the developing economies are yet
to be seen. Therefore, enterprises that would like to adopt cloud ERP can start with gradual
implementation in studied steps by slowly increasing the number of processes through the
development of greater internet infrastructure and/or portable used electronic devices.
Enterprises can start by applying cloud-ERP services into different functional internal
businesses and branches such as customer resource management. These processes will be of
high value and potential benefits of adopting SaaS among other enterprises in the cloud which
can help them compete with their larger enterprise counterparts.
To investigate cloud-ERP implementation in firms, it is necessary to comprehend the
different motivational factors influencing these companies toward ERP implementation. Cloud-
based ERPs offer novel advantages through the elimination of infrastructure requirement. This
may be greatly advantageous to SMEs in terms of growth, but not to large firms as these
already have a developed infrastructure. Moreover, there are various disadvantages, such as
contemplation of failure downtime that varies according to the service provider.
The main contributions of this study were that cloud-ERP implementation by an
enterprise in the developing economy is greatly dependent on that enterprise’s DoITOE
contexts. Furthermore, compatibility, TR, technical barriers, TMS, ER, ES and CP were
significant determinants logistical factors of cloud-ERP adoption. RA, complexity, VC,
technological barriers, enterprise status, GS and infrastructure/telecommunication were
found to be insignificant determinant logistical factors of cloud-ERP adoption. Table VI

Diffusion of innovation context

H1 Relative advantage Rejected
H2 Compatibility Accepted
H3 Complexity Rejected
H4 Value creation Rejected
Technological context
H5 Technology readiness Accepted
H6 Security concerns Rejected
H7 Technical barriers Accepted
Organizational context
H8 Top management support Accepted
H9 Enterprise readiness Accepted
H10 Enterprise size Accepted
H11 Enterprise status Rejected
Environmental context
H12 Competitive pressure Accepted
Table VI. H13 Government support Rejected
Summary of results H14 Infrastructure/Telecommunication Rejected
summarizes these results by illustrating that among all determinants logistical factors, TMS SMEs for cloud
was the most influential factor affecting an enterprise’s cloud-ERP adoption. As seen from ERP adoption
the table, technical barriers presented as a major obstacle to cloud-ERP adoption.

Conclusion
This study investigated the determinants logistical factors through cloud-ERP adoption in
SMEs in developing countries. Seven factors (compatibility, TR, technical barriers, TMS, ER,
ES and CP) were significant determinants of logistical factors of cloud-ERP adoption. Seven
903
factors (RA, complexity, VC, technological barriers, enterprise status, GS and infrastructure/
telecommunication) were insignificant. TMS was the most influential factor affecting an
enterprise’s cloud-ERP adoption. Technical barriers presented as a major obstacle to cloud-
ERP adoption. Governments of developing countries need to establish regulations that support
the management of an enterprise’s cloud-ERP adoption. These governments should eliminate
technical barriers through conducting educational programs that address the use and
implementation of cloud-ERP systems in enterprises. Since developing countries heavily rely
on governmental intervention, this study has gleaned the influence of these governments in the
growth and proliferation of cloud-ERP systems in the enterprises operating in these regions.
The results of this study present notable managerial implications. First, strong evidence is
provided to manufacturing firms in developing economies that cloud-ERP adoption greatly
enhances supply chain(s) and the firms’ performance. The senior executives and IT managers
in these firms are provided with a useful, multi-dimensional operational measure of the cloud-
ERP construct for evaluating the comprehensiveness of the current main determinants
logistics factors for their firms. Benchmarking could be used to review the design and
performance of manufacturing systems in these firms, aiding managers in the decision-
making process. Second, a shift in perceptions regarding cloud-ERP applications may be
achieved. As yet, many firms regard cloud-ERP adoption to being limited to purchasing and
supplying service management and/or cost-oriented rather than saving time, effort, waste and
resources. Although a few firms emphasized the significance of cloud-ERP adoption, there
were issues regarding its appropriate implementation. IT managers should focus on building
strategic supplier partnership, leveraging level of information sharing with several trading
partners and implementing effective internal lean system.
There are a few limitations posed by this research. First, the major constructs included
within the TOE framework may not indicate the major constructs in the conceptual model and
the variables in each construct. Future research should combine more than two theoretical
models to express better understanding of the ERP adoption phenomenon. Second, this study
relied on logistic regression technique for analysis to explain the main determinant logistical
factors that define between enterprise adopters and non-adopters. The analysis used focused
only on the singular relationship between the dependent and independent variables.
Therefore, this study was limited in the interrelationships among the independent variables,
use of control variables and moderators were not analyzed in the current study. Future
research studies should investigate a series of variable impacts and relationships. Finally, this
study investigated both manufacturing and service sectors, which meant that there was no
singular focus on each industry. Future studies should investigate each sector individually by
using individual samples from the service and manufacturing industries.

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Further reading
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About the author

Dr Moh’d Anwer AL-Shboul is Assistant Professor in the Business Administration
Department, King Talal School of Business Technology, Princess Sumaya University
for Technology (PSUT), Amman, Jordan, since 2018. He has published many articles
in leading international journals in the areas of SCM, logistics sciences, operations
management and its implementations, Jordan in particular, Arabic and regional
countries in general. Dr AL-Shboul earned his PhD from Bradford University,
UK (2012); MBA from Yarmouk University in Jordan (2002); additionally, AL-Shboul
has double major (BSc) in the areas of Electrical Engineering/Telecommunication from JUST (1992)
and Business Administration from Yarmouk University (2000), Jordan. Dr AL-Shboul has long
academic and professional experience in the areas of teaching as an instructor in Business and
Electrical Engineering; had worked at Jordan Customs for more than 10 years and more than 10 years
in Electrical Engineering in several Jordanian companies. His current research interests include lean
and agile supply chain, supply chain management, logistics sciences, supply chain responsiveness and
operations management. Dr Moh’d Anwer AL-Shboul can be contacted at: [email protected]

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