Skip to main content
SpringerLink
Log in

Conceptual Model for Software as a Service (SaaS) Enterprise Resource Planning (ERP) Systems Adoption in Small and Medium Sized Enterprises (SMEs) Using the Technology-Organization-Environment (T-O-E) Framework

  • Conference paper
  • First Online:
Information Technology and Systems (ICITS 2019)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 918))

Included in the following conference series:

Abstract

Enterprise Resource Planning (ERP) systems under a Software as a Service (SaaS) model are being established as a viable solution for Small and Medium-Sized Enterprises (SMEs). These systems are a great opportunity for SMEs because they obtain the benefits of an ERP system without maintenance and investment costs associated with on-premise models. Since SaaS ERP systems success involves their adoption, it is important to know the factors influencing their adoption in the context of SMEs. Based on a literature review, a conceptual adoption model is proposed using the Technological, Organizational, and Environmental (TOE) framework consisting of the following factors: perceived value, security concerns, configurability and customization, organizational readiness, top management support, competitive pressure, and vendor qualities.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Lewandowski, J., Salako, A.O., Garcia-Perez, A.: SaaS enterprise resource planning systems: challenges of their adoption in SMEs. In: 2013 IEEE 10th International Conference on e-Business Engineering (ICEBE), pp. 56–61. IEEE (2013)

    Google Scholar 

  2. Yan Huang, S., Huang, S.M., Wu, T.H., Lin, W.K.: Process efficiency of the enterprise resource planning adoption. Ind. Manag. Data Syst. 109(8), 1085–1100 (2009)

    Article  Google Scholar 

  3. Chen, C.C., Law, C.C., Yang, S.C.: Managing ERP implementation failure: a project management perspective. IEEE Trans. Eng. Manage. 56(1), 157–170 (2009)

    Article  Google Scholar 

  4. Mahmud, I., Ramayah, T., Kurnia, S.: To use or not to use: modelling end user grumbling as user resistance in pre-implementation stage of enterprise resource planning system. Inf. Syst. (2017)

    Google Scholar 

  5. Saade, R.G., Nijher, H.: Critical success factors in enterprise resource planning implementation: a review of case studies. J. Enterp. Inf. Manage. 29(1), 72–96 (2016)

    Article  Google Scholar 

  6. Seethamraju, R.: Adoption of software as a service (SaaS) enterprise resource planning (ERP) systems in small and medium sized enterprises (SMEs). Inf. Syst. Front. 17(3), 475–492 (2015)

    Article  Google Scholar 

  7. Mangiuc, D.M.: Enterprise 2.0-is the market ready? Account. Manage. Inf. Syst./Contabilitate si Informatica de Gestiune 10(4) (2011)

    Google Scholar 

  8. Peng, G.C.A., Gala, C.: Cloud ERP: a new dilemma to modern organisations? J. Comput. Inf. Syst. 54(4), 22–30 (2014)

    Google Scholar 

  9. Haselmann, T., Vossen, G.: Software-as-a-service in small and medium enterprises: an empirical attitude assessment. In: International Conference on Web Information Systems Engineering, pp. 43–56. Springer (2011)

    Google Scholar 

  10. Davis, F.D.: A technology acceptance model for empirically testing new end-user information systems: theory and results. Ph.D. thesis, Massachusetts Institute of Technology (1985)

    Google Scholar 

  11. Rogers, E.M.: The Diffusion of Innovation, 5th Edition (2003)

    Google Scholar 

  12. Tornatzky, L., Fleischer, M.: The Processes of Technological Innovation. Lexington Books, Lexington (1990)

    Google Scholar 

  13. Valdebenito, J., Quelopana, A.: Understanding the landscape of research in enterprise resource planning (ERP) systems adoption, pp. 35–39 (2018)

    Google Scholar 

  14. Lenart, A.: ERP in the cloud–benefits and challenges. In: Research in Systems Analysis and Design: Models and Methods, pp. 39–50 (2011)

    Google Scholar 

  15. Venkatachalam, N., Fielt, E., Rosemann, M., Mathews, S.: Small and medium enterprises sourcing software as a service-a dynamic perspective on is capabilities. Assoc. Inf. Sys. 7, 15–2012 (2012)

    Google Scholar 

  16. Mell, P., Grance, T., et al.: The NIST Definition of Cloud Computing (2011)

    Google Scholar 

  17. Awa, H.O., Ojiabo, O.U.: A model of adoption determinants of ERP within T-O-E framework. Inf. Technol. People 29(4), 901–930 (2016)

    Article  Google Scholar 

  18. Oliveira, T., Martins, M.F.: Literature review of information technology adoption models at firm level. Electron. J. Inf. Syst. Eval. 14(1), 110–121 (2011)

    Google Scholar 

  19. Rondan-Cataluña, F.J., Arenas-Gaitán, J., Ramírez-Correa, P.E.: A comparison of the different versions of popular technology acceptance models: a non-linear perspective. Kybernetes 44(5), 788–805 (2015)

    Article  Google Scholar 

  20. Gangwar, H., Date, H., Raoot, A.: Review on IT adoption: insights from recent technologies. J. Enterp. Inf. Manag. 27(4), 488–502 (2014)

    Article  Google Scholar 

  21. Zhu, K., Kraemer, K.L., Dedrick, J.: Information technology payoff in e-business environments: an international perspective on value creation of e-business in the financial services industry. J. Manag. Inf. Syst. 21(1), 17–54 (2004)

    Article  Google Scholar 

  22. Pan, M.J., Jang, W.Y.: Determinants of the adoption of enterprise resource planning within the technology-organization-environment framework: Taiwan’s communications industry. J. Comput. Inf. Syst. 48(3), 94–102 (2008)

    Google Scholar 

  23. Ilin, V., Ivetic, J., Simic, D.: Understanding the determinants of e-business adoption in ERP-enabled firms and non-ERP-enabled firms: a case study of the Western Balkan Peninsula. Technol. Forecast. Soc. Chang. 125, 206–223 (2017)

    Article  Google Scholar 

  24. Haberli Jr., C., Oliveira, T., Yanaze, M.: Understanding the determinants of adoption of enterprise resource planning (ERP) technology within the agri-food context: the case of the Midwest of Brazil. Int. Food Agribusiness Manag. Rev. 20(5), 729–746 (2017)

    Article  Google Scholar 

  25. Awa, H.O., Uko, J.P., Ukoha, O.: An empirical study of some critical adoption factors of ERP software. Int. J. Hum.-Comput. Inter. 33(8), 609–622 (2017)

    Article  Google Scholar 

  26. Melão, N., Loureiro, J.: ERP in the education sector: evidence from Portuguese non-higher education institutions. In: World Conference on Information Systems and Technologies, pp. 592–602. Springer (2017)

    Google Scholar 

  27. Low, C., Chen, Y., Wu, M.: Understanding the determinants of cloud computing adoption. Ind. Manag. Data Syst. 111(7), 1006–1023 (2011)

    Article  Google Scholar 

  28. Alkhalil, A., Sahandi, R., John, D.: An exploration of the determinants for decision to migrate existing resources to cloud computing using an integrated TOE-DOI model. J. Cloud Comput. 6(1), 2 (2017)

    Article  Google Scholar 

  29. Oliveira, T., Thomas, M., Espadanal, M.: Assessing the determinants of cloud computing adoption: an analysis of the manufacturing and services sectors. Inf. Manag. 51(5), 497–510 (2014)

    Article  Google Scholar 

  30. Masana, N., Muriithi, G.M.: Investigating TOE factors affecting the adoption of a cloud-based EMR system in the free-state, South Africa. In: International Conference on Emerging Technologies for Developing Countries, pp. 233–238. Springer (2017)

    Google Scholar 

  31. Priyadarshinee, P., Raut, R.D., Jha, M.K., Gardas, B.B.: Understanding and predicting the determinants of cloud computing adoption: a two staged hybrid SEM-neural networks approach. Comput. Hum. Behav. 76, 341–362 (2017)

    Article  Google Scholar 

  32. Hsu, C.L., Lin, J.C.C.: Factors affecting the adoption of cloud services in enterprises. Inf. Syst. e-Bus. Manag. 14(4), 791–822 (2016)

    Article  Google Scholar 

  33. Şener, U., Gökalp, E., Eren, P.E.: Cloud-based enterprise information systems: determinants of adoption in the context of organizations. In: International Conference on Information and Software Technologies, pp. 53–66. Springer (2016)

    Google Scholar 

  34. Salum, K.H., Rozan, M.Z.A.: Conceptual model for cloud ERP adoption for SMEs. J. Theor. Appl. Inf. Technol. 95(4), 743 (2017)

    Google Scholar 

  35. Bhatia, S.S., Gupta, V.: Principles and practices for the implementation of cloud based ERP in SMEs. In: MATEC Web of Conferences, vol. 57. EDP Sciences (2016)

    Article  Google Scholar 

  36. Kinuthia, J.N.: Technological, organizational, and environmental factors affecting the adoption of cloud enterprise resource planning (ERP) systems. Ph.D. thesis, Eastern Michigan University (2014)

    Google Scholar 

  37. AlBar, A.M., Hoque, M.R.: Determinants of cloud ERP adoption in Saudi Arabia: an empirical study. In: 2015 International Conference on Cloud Computing (ICCC), pp. 1–4. IEEE (2015)

    Google Scholar 

  38. Gangwar, H., Date, H., Ramaswamy, R.: Understanding determinants of cloud computing adoption using an integrated TAM-TOE model. J. Enterp. Inf. Manag. 28(1), 107–130 (2015)

    Article  Google Scholar 

  39. Awa, H.O., Ojiabo, O.U., Orokor, L.E.: Integrated technology-organization-environment (TOE) taxonomies for technology adoption. J. Enterp. Inf. Manag. 30(6), 893–921 (2017)

    Article  Google Scholar 

  40. Lee, J.: Discriminant analysis of technology adoption behavior: a case of internet technologies in small businesses. J. Comput. Inf. Syst. 44(4), 57–66 (2004)

    Google Scholar 

  41. Alshamaila, Y., Papagiannidis, S., Li, F.: Cloud computing adoption by SMEs in the north east of England: a multi-perspective framework. J. Enterp. Inf. Manage. 26(3), 250–275 (2013)

    Article  Google Scholar 

  42. Martins, R., Oliveira, T., Thomas, M.A.: An empirical analysis to assess the determinants of saas diffusion in firms. Comput. Hum. Behav. 62, 19–33 (2016)

    Article  Google Scholar 

  43. Borgman, H.P., Bahli, B., Heier, H., Schewski, F.: Cloudrise: exploring cloud computing adoption and governance with the TOE framework. In: 2013 46th Hawaii International Conference on System Sciences (HICSS), pp. 4425–4435. IEEE (2013)

    Google Scholar 

  44. Lal, P., Bharadwaj, S.S.: Understanding the impact of cloud-based services adoption on organizational flexibility: an exploratory study. J. Enterp. Inf. Manage. 29(4), 566–588 (2016)

    Article  Google Scholar 

  45. Awa, H.O., Ukoha, O., Emecheta, B.C.: Using TOE theoretical framework to study the adoption of ERP solution. Cogent Bus. Manage. 3(1), 1196571 (2016)

    Google Scholar 

  46. Ramdani, B., Kawalek, P., Lorenzo, O.: Predicting SMEs’ adoption of enterprise systems. J. Enterp. Inf. Manage. 22(1/2), 10–24 (2009)

    Article  Google Scholar 

  47. Faasen, J., Seymour, L.F., Schuler, J.: SaaS ERP adoption intent: explaining the South African SME perspective. In: Enterprise Information Systems of the Future, pp. 35–47. Springer (2013)

    Google Scholar 

  48. Lian, J.W., Yen, D.C., Wang, Y.T.: An exploratory study to understand the critical factors affecting the decision to adopt cloud computing in Taiwan hospital. Int. J. Inf. Manage. 34(1), 28–36 (2014)

    Article  Google Scholar 

  49. Lechesa, M., Seymour, L., Schuler, J.: ERP software as service (SaaS): factors affecting adoption in South Africa. In: Re-Conceptualizing Enterprise Information Systems, pp. 152–167. Springer (2012)

    Google Scholar 

  50. Mcsi, M.: Configurability in SaaS (software as a service) applications. In: Proceedings of 2nd Annual Conference on India Software Engineering Conference, pp. 19–26 (2009)

    Google Scholar 

  51. Guo, P.: A survey of software as a service delivery paradigm. In: TKK T-110.5190 Seminar on Internetworking (2009)

    Google Scholar 

  52. DeSisto, R.: Software as a Service: Uncertainties Revealed. Gartner Research (2009)

    Google Scholar 

  53. Young, R., Jordan, E.: Top management support: mantra or necessity? Int. J. Project Manage. 26(7), 713–725 (2008)

    Article  Google Scholar 

  54. Yang, Z., Sun, J., Zhang, Y., Wang, Y.: Understanding SaaS adoption from the perspective of organizational users: a tripod readiness model. Comput. Hum. Behav. 45, 254–264 (2015)

    Article  Google Scholar 

  55. van de Weerd, I., Mangula, I.S., Brinkkemper, S.: Adoption of software as a service in Indonesia: examining the influence of organizational factors. Inf. Manage. 53(7), 915–928 (2016)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Universidad Católica del Norte, 1270709, Antofagasta, Chile

    Jose Valdebenito & Aldo Quelopana

Authors
  1. Jose Valdebenito
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Aldo Quelopana
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jose Valdebenito .

Editor information

Editors and Affiliations

  1. DEI/FCT, Universidade de Coimbra, Coimbra, Portugal

    Álvaro Rocha

  2. Facultad de Geografía, Universidad de Santiago de Compostela, Santiago Compostela, La Coruña, Spain

    Carlos Ferrás

  3. Departamento de Eléctrica, Electrónica y Telecomunicaciones, Universidad de las Fuerzas Armadas “ESPE”, Sangolqui, Ecuador

    Manolo Paredes

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Valdebenito, J., Quelopana, A. (2019). Conceptual Model for Software as a Service (SaaS) Enterprise Resource Planning (ERP) Systems Adoption in Small and Medium Sized Enterprises (SMEs) Using the Technology-Organization-Environment (T-O-E) Framework. In: Rocha, Á., Ferrás, C., Paredes, M. (eds) Information Technology and Systems. ICITS 2019. Advances in Intelligent Systems and Computing, vol 918. Springer, Cham. https://doi.org/10.1007/978-3-030-11890-7_15

Download citation

Publish with us

Policies and ethics

Search

Navigation