IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i9p5688-d811087.html
   My bibliography  Save this article

The Mediating and Moderating Effects of Top Management Support on the Cloud ERP Implementation–Financial Performance Relationship

Author

Listed:
  • Olakunle Jayeola

    (Department of Business Administration, Adekunle Ajasin University, Akungba Akoko PMB 001, Nigeria
    Department of Management and Marketing, Universiti Putra Malaysia, Serdang 43400, Malaysia)

  • Shafie Sidek

    (Department of Management and Marketing, Universiti Putra Malaysia, Serdang 43400, Malaysia)

  • Zulkiflee Abdul-Samad

    (Department of Quantity Surveying, Faculty of Built Environment, University of Malaya, Kuala Lumpur 50603, Malaysia)

  • Nornajihah Nadia Hasbullah

    (Department of Marketing and Management, Universiti Teknologi Mara (UiTM), Cawangan Melaka, Kampus Bandaraya Melaka, Melaka 75350, Malaysia)

  • Saiful Anwar

    (Department of Sharia Accounting, IAIN Salatiga, Tentara Pelajar No. 2, Salatiga 50721, Indonesia)

  • Nguyen Binh An

    (Faculty of Law, Binh Duong University, Binh Duong 820000, Vietnam)

  • Vu Thi Nga

    (Faculty of Law, Binh Duong University, Binh Duong 820000, Vietnam)

  • Omar Al-Kasasbeh

    (Faculty of Economic and Management Science, Universiti Sultan Zainal Abidin (UnisZa), Kampung Gong Badak, Terengganu 21300, Malaysia)

  • Samrat Ray

    (The Institute of Industrial Management, Economics and Trade, Peter the Great Saint Petersburg Polytechnic University, Politekhnicheskaya Ulitsa 29, 195251 St. Petersburg, Russia)

Abstract

Cloud enterprise resource planning (ERP) is one of the most sought-after information technology (IT) solutions for improving business performance due to its affordability, scalability, and pay-per-use subscription model. The impact of cloud ERP implementation on business performance, on the other hand, remains inconclusive. Additionally, an important factor that transverses all organizational processes, including IT implementation, is top management support (TMS). However, the TMS’s role in the latter stage (business value realization) of cloud ERP implementation is unclear. The purpose of this paper is to examine the mediating and moderating impacts of top management support (TMS) on the relationship between cloud ERP implementation and financial performance. A total of 204 small and medium enterprises (SMEs) in Malaysia were surveyed, and data analysis was conducted using partial least square structural equation modelling (PLS-SEM). The results demonstrate that TMS plays a partial mediating role in the relationship between cloud ERP implementation and financial performance and that this relationship is significantly stronger in SMEs with low TMS levels. As a result, it is concluded that top management should provide the required support following successful cloud ERP implementation in order to achieve positive financial results. However, such support must be adjusted in order to avoid the deterioration of the firm’s financial performance.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5688-:d:811087
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/9/5688/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/9/5688/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Usman Musa Zakari Usman & Mohammad Nazir Ahmad & Nor Hidayati Zakaria, 2019. "The Determinants of Adoption of Cloud-Based ERP of Nigerian's SMES Manufacturing Sector Using Toe Framework and Doi Theory," International Journal of Enterprise Information Systems (IJEIS), IGI Global, vol. 15(3), pages 27-43, July.
    2. GROTSCH, Volker M. & BLOME, Constantin & SCHLEPER, Martin C., 2013. "Antecedents of proactive supply chain risk management - a contingency theory perspective," LIDAM Reprints CORE 2490, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Thomas C. Powell, 1995. "Total quality management as competitive advantage: A review and empirical study," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 15-37.
    4. Riaz Ahmed & Noor Mohamad & Muhammad Ahmad, 2016. "Effect of multidimensional top management support on project success: an empirical investigation," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 151-176, January.
    5. Loi Wai Yee & Siti Hasnah Hassan & T. Ramayah, 2016. "Sustainability and Philanthropic Awareness in Clothing Disposal Behavior Among Young Malaysian Consumers," SAGE Open, , vol. 6(1), pages 21582440156, January.
    6. Andra-Ileana Neicu & Anamaria-Cătălina Radu & Gheorghe Zaman & Ivona Stoica & Florian Răpan, 2020. "Cloud Computing Usage in SMEs. An Empirical Study Based on SMEs Employees Perceptions," Sustainability, MDPI, vol. 12(12), pages 1-14, June.
    7. Hye-Young Joo & Hyunsuk Suh, 2017. "The Effects of Government Support on Corporate Performance Hedging against International Environmental Regulation," Sustainability, MDPI, vol. 9(11), pages 1-25, October.
    8. Hair, Joseph F. & Astrachan, Claudia Binz & Moisescu, Ovidiu I. & Radomir, Lăcrămioara & Sarstedt, Marko & Vaithilingam, Santha & Ringle, Christian M., 2021. "Executing and interpreting applications of PLS-SEM: Updates for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    9. Khosravi, Pouria & Newton, Cameron & Rezvani, Azadeh, 2019. "Management innovation: A systematic review and meta-analysis of past decades of research," European Management Journal, Elsevier, vol. 37(6), pages 694-707.
    10. Sarstedt, Marko & Hair, Joseph F. & Cheah, Jun-Hwa & Becker, Jan-Michael & Ringle, Christian M., 2019. "How to specify, estimate, and validate higher-order constructs in PLS-SEM," Australasian marketing journal, Elsevier, vol. 27(3), pages 197-211.
    11. Emma Brandon-Jones & Brian Squire & Chad W. Autry & Kenneth J. Petersen, 2014. "A Contingent Resource-Based Perspective of Supply Chain Resilience and Robustness," Journal of Supply Chain Management, Institute for Supply Management, vol. 50(3), pages 55-73, July.
    12. 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.
    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. Rîndaşu Sînziana-Maria & Ionescu-Feleagă Liliana & Ionescu Bogdan-Ștefan & Barbu Alexandra Mihaela, 2024. "Unveiling challenges and insights in cloud Enterprise Resource Planning systems adoption: A case study of the Oracle Fusion Cloud ERP," Management & Marketing, Sciendo, vol. 19(4), pages 644-666.

    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. Mohammad Ali Yamin, 2021. "Investigating the Drivers of Supply Chain Resilience in the Wake of the COVID-19 Pandemic: Empirical Evidence from an Emerging Economy," Sustainability, MDPI, vol. 13(21), pages 1-16, October.
    2. Chowdhury, Md Maruf H. & Quaddus, Mohammed, 2017. "Supply chain resilience: Conceptualization and scale development using dynamic capability theory," International Journal of Production Economics, Elsevier, vol. 188(C), pages 185-204.
    3. Ahmed Hamdy, 2024. "Supply chain capabilities matter: digital transformation and green supply chain management in post-pandemic emerging economies: A case from Egypt," Operations Management Research, Springer, vol. 17(3), pages 963-981, September.
    4. Iftikhar, Anas & Purvis, Laura & Giannoccaro, Ilaria, 2021. "A meta-analytical review of antecedents and outcomes of firm resilience," Journal of Business Research, Elsevier, vol. 135(C), pages 408-425.
    5. Salomée Ruel & Jamal El Baz & Dmitry Ivanov & Ajay Das, 2024. "Supply chain viability: conceptualization, measurement, and nomological validation," Annals of Operations Research, Springer, vol. 335(3), pages 1107-1136, April.
    6. Parast, Mahour M., 2022. "Toward a contingency perspective of organizational and supply chain resilience," International Journal of Production Economics, Elsevier, vol. 250(C).
    7. Troiville, Julien, 2024. "Connecting the dots between brand equity and brand loyalty for retailers: The mediating roles of brand attitudes and word-of-mouth communication," Journal of Business Research, Elsevier, vol. 177(C).
    8. Ooi, Keng-Boon & Lee, Voon-Hsien & Hew, Jun-Jie & Leong, Lai-Ying & Tan, Garry Wei-Han & Lim, Ai-Fen, 2023. "Social media influencers: An effective marketing approach?," Journal of Business Research, Elsevier, vol. 160(C).
    9. Jun-Jie Hew & Voon-Hsien Lee & Soo-Ting T’ng & Garry Wei-Han Tan & Keng-Boon Ooi & Yogesh K. Dwivedi, 2024. "Are Online Mobile Gamers Really Happy? On the Suppressor Role of Online Game Addiction," Information Systems Frontiers, Springer, vol. 26(1), pages 217-249, February.
    10. Rameshwar Dubey & Angappa Gunasekaran & Stephen J. Childe & Thanos Papadopoulos & Zongwei Luo & David Roubaud, 2020. "Upstream supply chain visibility and complexity effect on focal company’s sustainable performance: Indian manufacturers’ perspective," Annals of Operations Research, Springer, vol. 290(1), pages 343-367, July.
    11. Nikookar, Ethan & Gligor, David & Russo, Ivan, 2024. "Supply chain resilience: When the recipe is more important than the ingredients for managing supply chain disruptions," International Journal of Production Economics, Elsevier, vol. 272(C).
    12. Younès El Manzani & Mostapha El Idrissi & Zakaria Lissaneddine, 2022. "Soft quality management practices and product innovation ambidexterity: the mediating role of market orientation ambidexterity," Post-Print hal-04317941, HAL.
    13. Pam Manhart & James K. Summers & Jennifer Blackhurst, 2020. "A Meta‐Analytic Review of Supply Chain Risk Management: Assessing Buffering and Bridging Strategies and Firm Performance," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(3), pages 66-87, July.
    14. Ethan Nikookar & Mark Stevenson & Mohsen Varsei, 2024. "Building an antifragile supply chain: A capability blueprint for resilience and post‐disruption growth," Journal of Supply Chain Management, Institute for Supply Management, vol. 60(1), pages 13-31, January.
    15. Emilia Vann Yaroson & Soumyadeb Chowdhury & Sachin Kumar Mangla & Prasanta Kumar Dey, 2024. "Unearthing the interplay between organisational resources, knowledge and industry 4.0 analytical decision support tools to achieve sustainability and supply chain wellbeing," Annals of Operations Research, Springer, vol. 342(2), pages 1321-1368, November.
    16. Jiatong Yu & Jiajue Wang & Taesoo Moon, 2022. "Influence of Digital Transformation Capability on Operational Performance," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    17. Ting Chi & Olabisi Adesanya & Hang Liu & Rebecca Anderson & Zihui Zhao, 2023. "Renting than Buying Apparel: U.S. Consumer Collaborative Consumption for Sustainability," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    18. Kwame Owusu Boakye & Isaac Nyarko Adu & Michael Kyei-Frimpong & Evelyn Twumasi, 2024. "Gaining competitive advantage through integrated talent development and engagement practices in the telecommunication sector; the mediating role of corporate image," Future Business Journal, Springer, vol. 10(1), pages 1-15, December.
    19. Carlos Bazan, 2022. "Effect of the University’s Environment and Support System on Subjective Social Norms as Precursor of the Entrepreneurial Intention of Students," SAGE Open, , vol. 12(4), pages 21582440221, October.
    20. Tapio Riepponen & Mikko Moilanen & Jaakko Simonen, 2023. "Themes of resilience in the economics literature: A topic modeling approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(2), pages 326-356, April.

    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:gam:jsusta:v:14:y:2022:i:9:p:5688-:d:811087. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.