Cloud ERP adoption in Ekurhuleni’s logistics SMEs: A conceptual model

Abstract

Background: Logistics small and medium enterprises (SMEs) in Ekurhuleni face operational inefficiencies due to manual processes and outdated systems. Although cloud-based enterprise resource planning (ERP) solutions offer scalable and cost-effective improvements, adoption remains limited.
Objectives: This study aimed to develop a Cloud ERP Adoption Model (CEAM) by identifying organisational, technological and environmental factors influencing adoption. The study was guided by the Technology–Organisation–Environment (TOE) framework, with additional constructs from diffusion of innovation theory.
Method: A quantitative approach was used. Data were collected from 123 participants, including information technology (IT) personnel, decision-makers and logistics managers in Ekurhuleni-based SMEs. Analysis was conducted using IBM SPSS Statistics version 31.0.0.0, IBM Corp., Armonk, NY, United States, applying descriptive statistics, Pearson correlation and multiple regression.
Results: Significant relationships were observed across constructs (r = 0.55–0.84; p < 0.01). All predictors, except skills (β = –0.113; p = 0.799), significantly influenced adoption, with 10 of 11 hypotheses supported.
Conclusion: Cloud ERP adoption among logistics SMEs is driven primarily by organisational readiness, leadership commitment, financial capacity and strategic intent rather than technical attributes.
Contribution: The study contributes by proposing an empirically validated CEAM to support SMEs, technology vendors and policymakers in advancing digital transformation.