Adoption of Free/Open Source ERP Software by SMEs
Increasing competitive pressures due to globalization and the prevalence of the e-business model have changed dramatically the environment in which Small and Medium-sized Enterprises (SMEs) operate. To remain competitive, SMEs find that they need to invest in information and communication technologies and especially in modern integrated business software. However, state-of-the-art propriety Enterprise Resource Planning (ERP) systems are not only too expensive but also too complex to install for the majority of SMEs. Viable alternative options, such as Free and Open Source ERP (FOS/ERP) software, are increasingly gaining attention by SMEs worldwide. Considering the scarcity of research on non-commercial ERP systems, the objective of this chapter is to provide an insight regarding the adoption decision made by SMEs regarding FOS-ERP software. The chapter aims at informing scholars, students, researcher managers of the issues and the risks involved and the factors influencing the decision of SMEs to adopt FOS-ERP software.