An Empirical Investigation of the Challenges of Cloud-Based ERP Adoption in Pakistani SMEs

Cloud-based ERP solutions offer many benefits to small and medium enterprises (SMEs) and help them to integrate their activities, such as improve communications and reduce operational and maintenance costs. Primarily, it was only adopted by large organizations, but now SMEs are also keen on adoption. However, the motivation regarding the adoption of these systems in SMEs is relatively low in developing countries. This fact urges us to investigate the challenges faced by Pakistani SMEs. A qualitative research approach along with unstructured interviews was conducted by means of face to face. Interview methods are used to extract understanding, opinions, and challenges faced by SMEs on their way to adopt the cloud-based ERP system. The data were collected from eight well-reputed organizations, directly involved in the adoption. The study found ten (10) themes that are reluctant to adopt cloud ERP among Pakistani SMEs. The main benefit of these themes is to provide results that can be easily accessible to enterprises who want to adopt a cloud-based ERP. This can also contribute to the lack of the literature of cloud ERP and delivers insight for future study by practitioners and researchers