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The Mediating and Moderating Effects of Top Management Support on the Cloud ERP Implementation–Financial Performance Relationship

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  • Olakunle Jayeola

    (Department of Business Administration, Adekunle Ajasin University, Akungba Akoko PMB 001, Nigeria
    Department of Management and Marketing, Universiti Putra Malaysia, Serdang 43400, Malaysia)

  • Shafie Sidek

    (Department of Management and Marketing, Universiti Putra Malaysia, Serdang 43400, Malaysia)

  • Zulkiflee Abdul-Samad

    (Department of Quantity Surveying, Faculty of Built Environment, University of Malaya, Kuala Lumpur 50603, Malaysia)

  • Nornajihah Nadia Hasbullah

    (Department of Marketing and Management, Universiti Teknologi Mara (UiTM), Cawangan Melaka, Kampus Bandaraya Melaka, Melaka 75350, Malaysia)

  • Saiful Anwar

    (Department of Sharia Accounting, IAIN Salatiga, Tentara Pelajar No. 2, Salatiga 50721, Indonesia)

  • Nguyen Binh An

    (Faculty of Law, Binh Duong University, Binh Duong 820000, Vietnam)

  • Vu Thi Nga

    (Faculty of Law, Binh Duong University, Binh Duong 820000, Vietnam)

  • Omar Al-Kasasbeh

    (Faculty of Economic and Management Science, Universiti Sultan Zainal Abidin (UnisZa), Kampung Gong Badak, Terengganu 21300, Malaysia)

  • Samrat Ray

    (The Institute of Industrial Management, Economics and Trade, Peter the Great Saint Petersburg Polytechnic University, Politekhnicheskaya Ulitsa 29, 195251 St. Petersburg, Russia)

Abstract

Cloud enterprise resource planning (ERP) is one of the most sought-after information technology (IT) solutions for improving business performance due to its affordability, scalability, and pay-per-use subscription model. The impact of cloud ERP implementation on business performance, on the other hand, remains inconclusive. Additionally, an important factor that transverses all organizational processes, including IT implementation, is top management support (TMS). However, the TMS’s role in the latter stage (business value realization) of cloud ERP implementation is unclear. The purpose of this paper is to examine the mediating and moderating impacts of top management support (TMS) on the relationship between cloud ERP implementation and financial performance. A total of 204 small and medium enterprises (SMEs) in Malaysia were surveyed, and data analysis was conducted using partial least square structural equation modelling (PLS-SEM). The results demonstrate that TMS plays a partial mediating role in the relationship between cloud ERP implementation and financial performance and that this relationship is significantly stronger in SMEs with low TMS levels. As a result, it is concluded that top management should provide the required support following successful cloud ERP implementation in order to achieve positive financial results. However, such support must be adjusted in order to avoid the deterioration of the firm’s financial performance.

Suggested Citation

  • Olakunle Jayeola & Shafie Sidek & Zulkiflee Abdul-Samad & Nornajihah Nadia Hasbullah & Saiful Anwar & Nguyen Binh An & Vu Thi Nga & Omar Al-Kasasbeh & Samrat Ray, 2022. "The Mediating and Moderating Effects of Top Management Support on the Cloud ERP Implementation–Financial Performance Relationship," Sustainability, MDPI, vol. 14(9), pages 1-17, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5688-:d:811087
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    References listed on IDEAS

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