Effects of Personal Innovativeness on IS Managers' Intentions to Switch Toward Cloud ERP in Saudi SMEs

Authors

  • Karim Mezghani

Keywords:

Cloud Computing, Enterprise Resources Planning (ERP), Intention to switch, personal innovativeness, IS Managers

Abstract

SMEs are increasingly pushed to adopt cloud‑based solutions given the risks and costs associated with On‑Premise ERP. Cloud ERP systems are considered to offer high scalability and flexibility since they are proposed as a service. Nevertheless, switching toward such systems remains a hard decision since cloud computing is associated to other kinds of risks such as security, data confidentiality, network dependency, vendor lock‑in, amongst others. While several studies have focused on attitudes and perceptions as the main determinants of switching decisions, this research investigated the effects of personal innovativeness in the IT domain in respect of intentions to switch toward cloud ERP systems with a focus on moderating effects. The author adopted a quantitative approach based on a structured questionnaire administered to IS Managers in Saudi SMEs that actually use On‑Premises ERP. Data collected from 83 firms are analyzed by Structural Equation Modelling using PLS (Partial Least Squares) technique to test the research hypotheses. Among the main results, personal innovativeness is found to significantly moderate the effects of the antecedent (information channels exposure) rather than the effects of the determinants (expected switching risks, satisfaction with current ERP). Unlike previous studies, the results of this study show that personal innovativeness is more crucial when managers develop their perceptions rather than later when deciding about switching toward cloud ERP. From a theoretical perspective, such results steer toward a greater focus on antecedents of intentions to adopt ERP systems. From a managerial perspective, the proposed research model could be used as a framework to help managers assess the opportunities to switch toward cloud ERP.

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Published

1 Feb 2018

Issue

Section

Articles