Exploring the Challenge Impacted SMEs to Adopt Cloud ERP

Objective: Cloud Enterprise Resource Planning (ERP) systems provide generic benefits to Small and Medium Enterprises (SMEs). However, SMEs motivation to adopt this system is low. Our study aimed to explore the challenges faced by SMEs to adopt the system. Methods/Statistical Analysis: To achieve this objective, exploratory research approach was used with semi-structure interview with SMEs was executed. Semi-structure interview was conducted by means of face to face approach. Interview methods used to extract understanding, opinions and challenge faced SMEs on their way to adopt cloud ERP system. Five (5) SMEs are involved in this study along with one ERP and cloud computing expert in Southern Malaysia. Findings: Current study employs conventional content analysis to determine the themes from exploratory approach; the study found eight (8) emerged themes that are reluctance to adopt cloud ERP among SMEs, this is attributed by knowledge, data security, vendor trust, technology trust, system availability and cloud ERP system functional fit. Also study investigate that SMEs needs extra support from government agency and external environment. Applications/Improvements: This exploratory study contributes to the lack of literature on cloud ERP adoption and provides insight for future study by researchers and practitioners.