FACTORS AND CHALLENGES OF CLOUD ERP ADOPTION WITH TOE APPROACH IN MSMEs: A LITERATURE REVIEW

Abstract

Business competition is an inevitable dynamic in the corporate world. Cloud ERP is a form of technology that can encourage companies to manage data efficiently, including MSMEs that face technical difficulties and limited resources, both HR and finance. This study aims to examine what factors need to be considered in adopting Cloud ERP, especially in MSMEs. The research method uses systematic literature review analysis and articles obtained through Watase Uake, Publish or Perish, Science Direct, IEEE, Scopus, Taylor and Francis, Google Scholar, ProQuest by producing as many as 33 scopus articles in accordance with the research topic. The results show that the most influential factor in adopting Cloud ERP is the technology factor because it is at the core of using Cloud ERP technology. The second factor is an organizational factor that helps MSMEs evaluate internal readiness to adopt Cloud ERP changes. And the last factor is the environmental factor MSMEs can anticipate the impact of external environmental changes that can affect the adoption process of Cloud ERP technology. In addition to the adoption factor of Cloud ERP, there are challenges that need to be faced by MSMEs, especially related to costs because they involve initial investment and operational costs.