Assessing Cloud ERP Adoption in Ethiopian Shipping and Logistics Services Enterprise

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Addis Ababa University


The trend these days is towards Enterprise Resource Planning (ERP) systems as organizations are continuously searching for ways to operate more efficiently in order to remain competitive. ERPs are integrated information systems that transform organizations’ internal processes, provide collaboration with partners, external applications and information systems. Extant literature reveal that organizations have interest in transition from an on premise method to the new cloud-based ERP systems because the on premise solutions have many issues and challenges whereas cloud-based ERP systems facilitate extra benefits. Using the technologyorganization- environment, diffusion of innovation, and the model of innovation resistance frameworks as lens, this research aims at identifying factors contributing for the actual adoption of cloud ERP in Ethiopian context. A quantitative approach is adopted and survey was conducted using self-administered online questionnaire using Google Forms to gather data from employees of Ethiopian Shipping and Logistics Services Enterprise. Out of 295 questionnaires distributed, 152 valid questionnaires were collected and considered for the data analysis. The proposed model was tested using a partial least square with the help of the Smart PLS 2.0 software. The proposed model explained 58.5% of variance in cloud ERP adoption factors. The empirical analysis result of the study indicated that Relative advantage, Trust, Information technology skill and External pressure had significant influence ( P < 0.05) on the adoption of cloud ERP in Ethiopia whereas organizational culture, trialability and observability had no significant impact ( P > 0.05) on the adoption of cloud ERP service. The research was conducted in the single case organization, Ethiopian Shipping and Logistics Services Enterprise, which may limit the generalizability of the findings. The study provides a comprehensive understanding of the factors which affect the adoption of cloud-based ERP technology in Ethiopia which may help the Ethiopian Shipping and Logistics Enterprise to understand its workforces’ intention to adopt the cloud ERP and make strategy accordingly to realize potential benefits of the system. This research has contributed to theory, in that considering the shortage of literature that currently exists in general about cloud technology adoption, it is an addition to enrich cloud ERP service related literatures by exploring different factors which can affect adoption process, and also help as springboard for other researchers for the future work on the area. The study’s findings also provide guidance for companies that have interest to adopt cloud-based ERP in the future. Future research works could examine multiple cloud ERP implementing organizations with the research model that incorporating additional constructs in users’ cloud ERP adoption.



Enterprise Resource Planning (Erp), Cloud Erp, Critical Success Factors, Technology Organization Environment, Adoption