Abstract
As the fast speed of bandwidth and rapidly growing utilization of the Internet and associated information technologies, cloud computing has become as a popular solution for organization’s performance improving and competitive advantage maintenance. Cloud-based enterprise resource planning (ERP) system is an important application of cloud computing, and firms can thus receive various gains or benefit by shifting their local information systems to a cloud platform, in order to increase data accessibility, decrease the total cost of ownership and so on. Though there are many benefits provided by cloud-based ERP, the adoption seems to be difficult due to several major inhibitors, and it is called to provide a deeper understanding of cloud-based ERP system implementation intention from manager’s viewpoint. However, limited studies have been conducted in investigating such phenomenon. In order to fulfill the above research gaps, the objective of this study is to explore the factors relevant to transaction attributes affecting the intention of cloud-based ERP system adoption from the perspective of transaction cost economics. We collect empirical data from Taiwan top 1000 manufacturing firms list, and we found (1) uncertainty and switching cost positively increase perceived risk, (2) perceived risk negatively and switching benefits positively affect the adoption intention of cloud-based EPR platform. We conclude our study with a discussion of the theoretical insights and practical contributions and relevant implications for managers. Suggestions for future research are also addressed in this study.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Benlian, A., Hess, T., Buxmann, P.: Drivers of SaaS adoption: an empirical study of different application types. Bus. Inf. Syst. Eng. 1(5), 359–369 (2009)
Ben-Yehuda, O.A., Ben-Yehuda, M., Schuster, A., Tsafrir, D.: The rise of RaaS: the resource-as-a-service cloud. Commun. ACM 57(7), 76–84 (2014)
Castellina, N.: SaaS and cloud ERP observations: Is cloud ERP right for you? (2012). http://www.fronde.com/assets/PDF/wp-abrdn-saas-and-cloud-erp-observations-060713.pdf. Accessed 08 Oct 2013. Aberdeen Group
Chau, P.Y.K., Tam, K.Y.: Factors affecting the adoption of open systems: an exploratory study. MIS Q. 21(1), 1–24 (1997)
Chin, W.W., Marcolin, B.L., Newsted, P.R.: A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Inf. Syst. Res. 14(2), 189–217 (2003)
Cusumano, M.A.: Technology strategy and management: the cloud as an innovation platform for software development: how cloud computing became a platform. Commun. ACM 62(10), 20–22 (2019)
Falk, T., Schepers, J., Hammerschmidt, M., Bauer, H.H.: Identifying cross-channel dissynergies for multichannel service providers. J. Serv. Res. 10(2), 143–160 (2007)
Fornell, C., Larker, D.F.: Structural equation models with unobservable variables and measurement errors. J. Mark. Res. 18(2), 39–50 (1981)
Gupta, S., Meissonier, R., Drave, V.A.: Examining the impact of cloud ERP on sustainable performance: a dynamic capability view. Int. J. Inf. Manage. 51, 1–13 (2020)
Kathuria, A., Mann, A., Khuntia, J., Saldanha, T.J.V., Kauffman, R.J.: A strategic value appropriation path for cloud computing. J. Manag. Inf. Syst. 35(3), 740–775 (2018)
Kern, T., Willcocks, L., Van Heck, E.: The winner’s curse in IT outsourcing: strategies for avoiding relational Trauma. Calif. Manag. Rev. 44(2), 47–69 (2002)
Kim, H.W., Kankanhalli, A.: Investigating user resistance to information systems implementation: a status Quo bias perspective. MIS Q. 33(3), 567–582 (2009)
Kim, S.S., Son, J.Y.: Out of dedication or constraint? A dual model of post-adoption phenomena and its empirical test in the context of online services. MIS Q. 33(1), 49–70 (2009)
Kogut, B., Zander, U.: Knowledge of the firm, combinative capabilities, and the replication of technology. Organ. Sci. 3(3), 383–397 (1992)
Lee, S., Park, S.B., Lim, G.G.: Using balanced scorecards for the evaluation of software-as-a-service. Inf. Manag. 50(7), 553–561 (2013)
Lee, S.G., Chae, S.H., Cho, K.M.: Drivers and inhibitors of SaaS adoption in Korea. Int. J. Inf. Manag. 33(3), 429–440 (2013)
Liang, T.P., Huang, J.S.: An empirical study on consumer acceptance of products in electronic markets: a transaction cost model. Decis. Support Syst. 24(1), 29–43 (1998)
Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., Ghalsasi, A.: Cloud computing—the business perspective. Decis. Support Syst. 51(1), 176–189 (2011)
Paswan, A.K., Panda, S.: B-to-B relationships: a resource, knowledge, and capability (RKC) perspective. Ind. Mark. Manag. 91, 92–99 (2020)
Rindfleisch, A., Heide, J.B.: Transaction cost analysis: past, present and future applications. J. Mark. 61(4), 30–54 (1997)
Subramani, M.R., Venkatraman, N.: Safeguarding investments in asymmetric interorganizational relationships: theory and evidence. Acad. Manag. J. 46(1), 46–62 (2003)
Susarla, A., Barua, A., Whinston, A.B.: A Transaction cost perspective of the software as a service business model. J. Manag. Inf. Syst. 26(2), 205–240 (2009)
Teo, H.H., Wei, K.K., Benbasat, I.: Predicting intention to adopt interorganizational linkages: an institutional perspective. MIS Q. 27(1), 19–49 (2003)
Vazquez, X.H.: Allocating decision rights on the shop floor: a perspective from transaction cost economics and organization Theory. Organ. Sci. 15(4), 463–480 (2004)
Wathne, K.H., Heide, J.B.: Relationship governance in a supply chain network. J. Mark. 68(1), 73–89 (2004)
Williamson, O.E.: The Economic Institutions of Capitalism: Firms Markets, Relational Contracting. Free Press, New York (1985)
Williamson, O.E.: Transaction cost economics. In: Schmalensee, R., Willing, R. (eds.) Handbook of Industrial Organization, pp. 136–182. Elsevier Science, Amsterdam (1989)
Williamson, O.E.: The Mechanisms of Governance. Oxford University Press, New York (1996)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 Springer Nature Switzerland AG
About this paper
Cite this paper
Su, Bc., Chen, CD. (2021). A Study of Factors Influencing the Adoption of Cloud-Based ERP System: The Perspective of Transaction Cost Economics. In: Nah, F.FH., Siau, K. (eds) HCI in Business, Government and Organizations. HCII 2021. Lecture Notes in Computer Science(), vol 12783. Springer, Cham. https://doi.org/10.1007/978-3-030-77750-0_27
Download citation
DOI: https://doi.org/10.1007/978-3-030-77750-0_27
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-77749-4
Online ISBN: 978-3-030-77750-0
eBook Packages: Computer ScienceComputer Science (R0)