ANALYSIS OF FACTORS AFFECTING INTENTION OF ERP CLOUD ADOPTION IN SMEs Agung Terminanto (a*) ; Achmad Nizar Hidayanto (b) ; Kristian Cahyo (c)
a,b) Computer Science, Faculty of Computer Science, Universitas Indonesia, Depok, Indonesia * agung.terminanto[at]gmail.com c) Industrial Engineering, Universitas Pancasila, Department of Engineering, Jakarta, Indonesia
Industry 4.0 has changed the way of life, work and interact, creating new opportunities and challenges. One characteristic of Industry 4.0 is cloud computing. To deal with these challenges, SMEs need an application that can integrate and automate SME business processes. Cloud ERP applications can be one solution for SMEs because of the benefits that can be given such as providing information with fast response times, increasing interaction between parts of an organization, improving the management of goods ordering cycle, etc. This study aims to determine what factors influence intention adoption of Cloud ERP in SMEs using the Factor Analysis method. Determination of factors integrating the framework of TOE (Technology, Organization, Environment) and DOI (Diffusion On Innovation) which produces 17 research factors. The number of respondents is 95 SMEs. This study use extraction dan rotation phase with Varimax Method. The analysis of factors generating the value of Kaiser-Meyer Olkin (KMO) and Bartletts Test of 0.744. The results showed that there were 12 factors out of 17 factors that influenced the adoption of ERP Cloud in SMEs. With Factor Analysis, the 11 factors can be summarized into 3 main factors, namely the Companys Internal Factors (consisting of Management Support, Absorptive Capability, Employees Knowledge and Perceived Value); Supporting Factors (consisting of Size of Firm, Competitive Pressure, External Support, and Business Partners); and Technical Factors (consisting of Technical Know-How, Compatibility, Relative Advantage, and Observability).
Keywords: SMEs, Cloud ERP Adoption, TOE framework, DOI framework, Factor -Analysis.
Topic: International Symposium of Engineering, Technology, and Health Sciences