IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vviiiy2020i3p176-201.html
   My bibliography  Save this article

Contextual Factors and Strategic Consequences of Cloud Enterprise Resource Planning (ERP) Adoption in Malaysian Manufacturing SMEs: A Conceptual Framework

Author

Listed:
  • Olakunle Jayeola
  • Shafie Sidek
  • Azmawani Abd Rahman
  • Anuar Shar Bali Mahomed
  • Hu Jimin

Abstract

Purpose: The purpose of this study is to holistically investigate the interrelationships between key contextual factors of cloud ERP adoption and the strategic consequences of such adoption. Design/Methodology/Approach: The key contextual factors whose influences are explored on cloud ERP adoption are Feature task-match, (FTM); Top Management Support on Change Management (TMSCM) and Government Financial Support (GFS) while the strategic consequences of cloud ERP adoption investigated are competitive advantage (CA) and organisational performance. A conceptual framework grounded in Technology-Organisation-Environment (TOE) model, Task technology-fit (TTF) model and Resource-Based View (RBV) theory is developed for empirical validation that will involve a projected sample of 382 respondents of SMEs in Malaysia using PLS-SEM as main statistical analysis tool. Practical Implications: Practically, this study will guide SMEs' managers on cloud ERP selection that fits their firms' tasks, how to effectively deal with resistance to change occasioned by technology adoption and how effective GFS has been influencing cloud ERP adoption. In addition, SMEs managers stand to gain insight into how cloud ERP adoption can simultaneously and/or indirectly lead to competitive advantage and organisational performance as strategic benefits. Originality/Value: Investigation of a new variant key contextual factors critical for successful cloud ERP adoption and their subsequent impact on CA and organisational performance simultaneously and indirectly.

Suggested Citation

  • Olakunle Jayeola & Shafie Sidek & Azmawani Abd Rahman & Anuar Shar Bali Mahomed & Hu Jimin, 2020. "Contextual Factors and Strategic Consequences of Cloud Enterprise Resource Planning (ERP) Adoption in Malaysian Manufacturing SMEs: A Conceptual Framework," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 176-201.
  • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:3:p:176-201
    as

    Download full text from publisher

    File URL: https://www.ijeba.com/journal/495/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bernard Kwamena Cobbina Essel & Faizal Adams & Kwadwo Amankwah, 2019. "Effect of entrepreneur, firm, and institutional characteristics on small-scale firm performance in Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-20, December.
    2. Henderson, Dave & Sheetz, Steven D. & Trinkle, Brad S., 2012. "The determinants of inter-organizational and internal in-house adoption of XBRL: A structural equation model," International Journal of Accounting Information Systems, Elsevier, vol. 13(2), pages 109-140.
    3. Quangdung Tran & Changzheng Zhang & Hongyi Sun & Dechun Huang, 2014. "Initial Adoption Versus Institutionalization of E-Procurement in Construction Firms: An Empirical Investigation in Vietnam," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 17(2), pages 91-116, April.
    4. Huong, Vu Van & Cuong, Ly Kim, 2019. "Does government support promote SME tax payments? New evidence from Vietnam," Finance Research Letters, Elsevier, vol. 31(C).
    5. Yunis, Manal & Tarhini, Abbas & Kassar, Abdulnasser, 2018. "The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship," Journal of Business Research, Elsevier, vol. 88(C), pages 344-356.
    6. Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2013. "Evidence on the impact of R&D and ICT investments on innovation and productivity in Italian firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(3), pages 300-328, April.
    7. Kevin Zhu & Kenneth L. Kraemer, 2005. "Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry," Information Systems Research, INFORMS, vol. 16(1), pages 61-84, March.
    8. Riaz Ahmed & Noor Azmi bin Mohamed, 2017. "Development and validation of an instrument for multidimensional top management support," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 66(7), pages 873-895, September.
    9. Jugend, Daniel & Jabbour, Charbel Jose Chiappeta & Alves Scaliza, Janaina A. & Rocha, Robson Sø & Junior, José Alcides Gobbo & Latan, Hengky & Salgado, Manoel Henrique, 2018. "Relationships among open innovation, innovative performance, government support and firm size: Comparing Brazilian firms embracing different levels of radicalism in innovation," Technovation, Elsevier, vol. 74, pages 54-65.
    10. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    11. Pragati Priyadarshinee & Manoj Kumar Jha & Rakesh D. Raut & Manoj Govind Kharat & Sachin S. Kamble, 2017. "To identify the critical success factors for cloud computing adoption by MCDM technique," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 24(4), pages 469-510.
    12. Edwin M. Agwu & Peter J. Murray, 2015. "Empirical Study of Barriers to Electronic Commerce Uptake by SMEs in Developing Economies," International Journal of Innovation in the Digital Economy (IJIDE), IGI Global, vol. 6(2), pages 1-19, April.
    13. Ravi Seethamraju, 2015. "Adoption of Software as a Service (SaaS) Enterprise Resource Planning (ERP) Systems in Small and Medium Sized Enterprises (SMEs)," Information Systems Frontiers, Springer, vol. 17(3), pages 475-492, June.
    14. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    15. Robert R. Wiggins & Timothy W. Ruefli, 2002. "Sustained Competitive Advantage: Temporal Dynamics and the Incidence and Persistence of Superior Economic Performance," Organization Science, INFORMS, vol. 13(1), pages 81-105, February.
    16. John D'Ambra & Concepción S. Wilson & Shahriar Akter, 2013. "Application of the task‐technology fit model to structure and evaluate the adoption of E‐books by Academics," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 64(1), pages 48-64, January.
    17. John D'Ambra & Concepción S. Wilson & Shahriar Akter, 2013. "Application of the task-technology fit model to structure and evaluate the adoption of E-books by Academics," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 64(1), pages 48-64, January.
    18. Doh, Soogwan & Kim, Byungkyu, 2014. "Government support for SME innovations in the regional industries: The case of government financial support program in South Korea," Research Policy, Elsevier, vol. 43(9), pages 1557-1569.
    19. Chiu, Chia-Nan & Yang, Cheng-Liang, 2019. "Competitive advantage and simultaneous mutual influences between information technology adoption and service innovation: Moderating effects of environmental factors," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 192-205.
    20. Chin-Lung Hsu & Judy Chuan-Chuan Lin, 2016. "Factors affecting the adoption of cloud services in enterprises," Information Systems and e-Business Management, Springer, vol. 14(4), pages 791-822, November.
    21. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olakunle Jayeola & Shafie Sidek & Zulkiflee Abdul-Samad & Nornajihah Nadia Hasbullah & Saiful Anwar & Nguyen Binh An & Vu Thi Nga & Omar Al-Kasasbeh & Samrat Ray, 2022. "The Mediating and Moderating Effects of Top Management Support on the Cloud ERP Implementation–Financial Performance Relationship," Sustainability, MDPI, vol. 14(9), pages 1-17, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Orozco, Luis Antonio & Sanabria, John Alirio & Sosa, Juan Camilo & Aristizabal, Jeimy & López, Liliana, 2022. "How do IT investments interact with other resources to improve innovation?," Journal of Business Research, Elsevier, vol. 144(C), pages 358-365.
    2. Nayak, Bishwajit & Bhattacharyya, Som Sekhar & Krishnamoorthy, Bala, 2022. "Exploring the black box of competitive advantage – An integrated bibliometric and chronological literature review approach," Journal of Business Research, Elsevier, vol. 139(C), pages 964-982.
    3. Yunis, Manal & Tarhini, Abbas & Kassar, Abdulnasser, 2018. "The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship," Journal of Business Research, Elsevier, vol. 88(C), pages 344-356.
    4. Karim, Mohammed Shamsul & Nahar, Sharmin & Demirbag, Mehmet, 2022. "Resource-Based Perspective on ICT Use and Firm Performance: A Meta-analysis Investigating the Moderating Role of Cross-Country ICT Development Status," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    5. Shah, Tushar R., 2022. "Can big data analytics help organisations achieve sustainable competitive advantage? A developmental enquiry," Technology in Society, Elsevier, vol. 68(C).
    6. Muhammad Haseeb & Hafezali Iqbal Hussain & Sebastian Kot & Armenia Androniceanu & Kittisak Jermsittiparsert, 2019. "Role of Social and Technological Challenges in Achieving a Sustainable Competitive Advantage and Sustainable Business Performance," Sustainability, MDPI, vol. 11(14), pages 1-23, July.
    7. Amit Kumar & Bala Krishnamoorthy, 2020. "Business Analytics Adoption in Firms: A Qualitative Study Elaborating TOE Framework in India," International Journal of Global Business and Competitiveness, Springer, vol. 15(2), pages 80-93, December.
    8. Sang-Uk Jung & Valeriia Shegai, 2023. "The Impact of Digital Marketing Innovation on Firm Performance: Mediation by Marketing Capability and Moderation by Firm Size," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    9. Abhay Nath Mishra & Prabhudev Konana & Anitesh Barua, 2007. "Antecedents and Consequences of Internet Use in Procurement: An Empirical Investigation of U.S. Manufacturing Firms," Information Systems Research, INFORMS, vol. 18(1), pages 103-120, March.
    10. Saghiri, Soroosh & Wilding, Richard, 2021. "On the effectiveness of supplier development programs: The role of supply-side moderators," Technovation, Elsevier, vol. 103(C).
    11. Do, Hoa & Budhwar, Pawan & Shipton, Helen & Nguyen, Hai-Dang & Nguyen, Bach, 2022. "Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism," Journal of Business Research, Elsevier, vol. 141(C), pages 808-821.
    12. Haitham Mohsin Kareem & Khairul Azman Aziz & Ruhanita Maelah & Yusasniza Mohd Yunus & Awatif Alsheikh & Warda Alsheikh, 2021. "The Influence of Accounting Information Systems, Knowledge Management Capabilities, and Innovation on Organizational Performance in Iraqi SMEs," International Journal of Knowledge Management (IJKM), IGI Global, vol. 17(2), pages 1-32, April.
    13. Vicente López-López & Susana Iglesias-Antelo & Esteban Fernández, 2020. "Is Sustainable Performance Explained by Firm Effect in Small Business?," Sustainability, MDPI, vol. 12(23), pages 1-13, December.
    14. Benlagha, Noureddine & Hemrit, Wael, 2020. "Internet use and insurance growth: evidence from a panel of OECD countries," Technology in Society, Elsevier, vol. 62(C).
    15. Díez, José Ignacio & Giannasi, Nadia & Scudelati, Mariela, 2022. "Redes, conocimientos y capacidades en el contexto de la industria del software. Análisis del caso Bahía Blanca [Network, knowledge and capabilities in the context of the software industry. Analysis," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 34(1), pages 137-154, December.
    16. Abhay Nath Mishra & Ritu Agarwal, 2010. "Technological Frames, Organizational Capabilities, and IT Use: An Empirical Investigation of Electronic Procurement," Information Systems Research, INFORMS, vol. 21(2), pages 249-270, June.
    17. Nadia Zahoor & Francis Donbesuur & Zaheer Khan & Shlomo Y. Tarba & Cary L. Cooper, 2023. "Revisiting the Accelerated Internationalization of Emerging Market SMEs: The Roles of Firms’ Collaborations and Environmental Management Practices," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    18. Venugopal Gopalakrishna-Remani & Robert Paul Jones & Kerri M. Camp, 2019. "Levels of EMR Adoption in U.S. Hospitals: An Empirical Examination of Absorptive Capacity, Institutional Pressures, Top Management Beliefs, and Participation," Information Systems Frontiers, Springer, vol. 21(6), pages 1325-1344, December.
    19. Dedy Dewanto Soeprapto, 2022. "The characteristic of follower’s personal mastery: A case in Indonesian construction industry," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 657-669, September.
    20. Peter E. Harland & Zakir Uddin & Sven Laudien, 2020. "Product platforms as a lever of competitive advantage on a company-wide level: a resource management perspective," Review of Managerial Science, Springer, vol. 14(1), pages 137-158, February.

    More about this item

    Keywords

    Contextual; cloud ERP; adoption; Malaysia; SMEs; strategic consequences.;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:viii:y:2020:i:3:p:176-201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.