Impact of Cloud Enterprise Resource Planning System Adoption among Listed Manufacturing Companies in Sri Lanka

Abstract

Introduction: ERP cloud systems have become an intrinsic part of contemporary business operations to achieve efficiency, decision making, and competitiveness. This present research attempts to explore whether the adoption of cloud ERP results in enhanced performance among Sri Lankan listed manufacturing companies, mainly in ensuring processes are seamless and reducing any lag in operational processes. This research mainly aims to explore the significant factors that affect the successful adoption of cloud ERP systems and investigate their impact on the performance of listed manufacturing firms. It places special focus on top management support, organizational culture, IT knowledge, and business process reengineering as those factors that contribute much to ERP implementation outcomes.

Methodology: This study follows a quantitative methodology, where primary data from 35 listed manufacturing companies in Sri Lanka are gathered through structured surveys distributed among key personnel. The response rate of 71% provides a robust grounding for the data. Statistical tools are used in descriptive statistics, correlation analysis, and regression modeling to test the relationship between ERP adoption and organizational performance. This study measures firm performance as the dependent variable while top management support, organizational culture, IT knowledge and business process reengineering are independent variables.

Findings: It has been deduced that cloud ERP adoption greatly improves organizational efficiency, enhances the power of decision-making, and brings improvements in financial performance. Critical success factors for successful implementation are top management support and organizational culture, and to some extent, IT knowledge and business process reengineering have been positively related. Cloud ERP systems have tremendous potential for improving operational outcomes and thereby promote competitiveness among manufacturing organizations.

Conclusion: The study finds evidence that the adoption of cloud ERP systems has a positive influence on the operational and financial performance of Sri Lanka's listed manufacturing companies. These results provide useful insights to the business leaders and policymakers with respect to the strategic planning of resource allocation for optimizing ERP implementation for long-term benefits.