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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Do Small and Medium Enterprises (SMEs) need Government Financial Support to Successfully Implement Cloud ERP for Better Performance?

Olakunle Jayeola, Shafie Sidek, Azmawani Abd Rahman, Anuar Shah Bali Mahomed, Hu Jimin

http://dx.doi.org/10.6007/IJARBSS/v12-i2/12361

Open access

In driving economic development, small and medium enterprises (SMEs), which are the economic pillars of many countries receive support from the government for various technological innovations such as cloud enterprise resource planning (ERP). In Malaysia, government financial support (GFS) for cloud ERP implementation in SMEs has been encouraging. However, despite numerous GFS, SMEs are hesitant to implement the technology. Given cloud ERP is a low-cost technology coupled with SMEs’ challenges in accessing GFS, the question of whether GFS is required for SMEs to successfully implement cloud ERP for improved performance arises. While the impact of government support on cloud ERP implementation has been well documented, the precise impact of GFS on cloud ERP implementation success and how this affects performance remains unclear. The goal of this research is to determine the impact of GFS on cloud ERP implementation success and how this affects the financial performance of SMEs. The study's model was validated using data from 204 Malaysian manufacturing SMEs. The results of partial least square structural equation modelling (PLS-SEM) show that GFS has a positive influence on cloud ERP implementation success, which in turn improves financial performance. The findings can be used by policymakers and practitioners to develop strategies for improving cloud ERP implementation and economic development.

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In-Text Citation: (Jayeola et al., 2022)
To Cite this Article: Jayeola, O., Sidek, S., Rahman, A. A., Mahomed, A. S. B., & Jimin, H. (2022). Do Small and Medium Enterprises (SMEs) need Government Financial Support to Successfully Implement Cloud ERP for Better Performance? International Journal of Academic Research in Business and Social Sciences, 12(2), 32–49.