Abstract
This study empirically investigates the impact of Cloud ERP systems on firm performance in small and medium-sized enterprises (SMEs), focusing on the mediating role of innovation capability and the moderating role of top management support. The purpose is to understand how the adoption and utilization of Cloud ERP influence financial outcomes, operational efficiency, innovation capabilities, and overall competitive advantage in SMEs. A quantitative research approach was employed, collecting data through a structured questionnaire distributed to 450 SME managers in KSA, yielding 198 valid responses. Statistical analyses, including regression, mediation, and moderation analyses using SPSS, were conducted to examine the relationships between Cloud ERP implementation, innovation capability, top management support, and firm performance. The findings indicate that Cloud ERP implementation significantly enhances firm performance in SMEs. Innovation capability partially mediates the relationship between Cloud ERP implementation and firm performance, suggesting that ERP systems foster innovation, contributing to improved organizational outcomes. Furthermore, top management support moderates these relationships, highlighting its critical role in maximizing the benefits of ERP investments. This study contributes to the literature by providing empirical evidence of the transformative effects of Cloud ERP systems on SME performance, elucidating the mechanisms through which ERP adoption drives innovation and organizational success. The study's originality lies in its comprehensive examination of both direct and indirect pathways linking Cloud ERP to firm performance. It underscores the importance of strategic management and technological integration in enhancing SME competitiveness in the digital era.
Keywords
- Cloud ERP Systems Search this journal for Cloud ERP Systems (opens in a new tab)
- Firm Performance Search this journal for Firm Performance (opens in a new tab)
- Innovation Capability Search this journal for Innovation Capability (opens in a new tab)
- Top Management Support Search this journal for Top Management Support (opens in a new tab)
- ERP Implementation Search this journal for ERP Implementation (opens in a new tab)
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Keywords
- Cloud ERP Systems Search this journal for Cloud ERP Systems (opens in a new tab)
- Firm Performance Search this journal for Firm Performance (opens in a new tab)
- Innovation Capability Search this journal for Innovation Capability (opens in a new tab)
- Top Management Support Search this journal for Top Management Support (opens in a new tab)
- ERP Implementation Search this journal for ERP Implementation (opens in a new tab)
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Vol. 17 No. 1(I) (2025)
Service Quality, Flexible Work & Operational Excellence
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