Cloud Enterprise Resource Planning (ERP) Adoption in Ethiopia

Extant literature reveals that organizations have interest to transit from an on-premise ERP to the new cloud-based ERP. Using technology-organization-environment, diffusion of innovation, and the model of innovation resistance frameworks as lens, the study aims at identifying factors contributing to adoption of cloud-ERP in Ethiopia. An online survey was conducted using Google Forms. 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 SmartPLS. The proposed model explained 58.5% of variance in cloud ERP adoption factors. The result indicated that relative advantage, trust, IT skill, and external pressure had significant influence (P<0.05) on the adoption of cloud ERP in Ethiopia whereas organizational culture, observability, and trialability had no significant impact (P > 0.05) on the adoption of cloud ERP service. The study provides a comprehensive understanding of the factors that affect adoption of cloud-based ERP in Ethiopia.