Factors Affecting Intention to Adopt Open Source ERP Systems by SMEs in Yemen

Small and medium-sized enterprises (SMEs) are significant contributors to countries' economic activities. SMEs need to use enterprise resource planning (ERP) systems to increase revenue and productivity. Due to the high licensing costs of these systems, open source ERP (OSERP) could be an alternative solution to this problem. This study investigates the factors affecting the intention to adopt the OSERP system by SMEs in Yemen using the Technology-Organization-Environment (TOE) Framework and The Diffusion of Innovation (DOI) Theory. Using a questionnaire, data were collected from a sample of 600 subjects. The model was validated empirically using Structural Equation Modeling (SEM). The results show that relative advantage, compatibility, trialability, observability, ICT infrastructure, IT skills, top management support, cost-saving, competitive pressure, vendor support, and regulatory support positively influence the intention to adopt OSERP. In contrast, complexity has a negative impact on the intention to adopt. However, security and organizational culture have no significant influence on SMEs' intention to adopt OSERP in Yemen