ERP adoption of SMEs in Romania: An IT innovation step or a business transactional necessity?

Abstract The study aims to determine the influencing factors of Enterprise Resource Planning (ERP) systems adoption in the Romanian small and medium companies (SMEs). Our research is based on a national level representative survey with 374 personal interviews of CEOs. The conceptual framework is based on a detailed literature review and adopts the main dimensions of the Technological Organisational and Environmental (TOE) model. Applying a binomial logistic regression model, the significant factors for ERP adoption are identified. The main result is that the ERP system is an operative, necessary tool of business transactions for SMEs, not a cutting edge, IT innovative implementation. The adoption of ERP is positively impacted by a wider market scope since ERP systems support the expanded business partnerships and market extension procedures. Further results of the model show that business performance indicators do not affect ERP adoption, however the managers' perception of the competitive pressure and the top management support toward IT applications increase the likelihood of adoption.