Cloud ERP Adoption and Financial Performance of SMEs: The Mediating Role of Strategic Alignment and Organizational Readiness

Asmae Brouksy, Miloudi Kobiyh

In an increasingly volatile economic environment, small and medium-sized enterprises (SMEs) face significant financial and operational constraints that threaten their sustainability. Cloud-based Enterprise Resource Planning (ERP) systems have emerged as a strategic solution to enhance financial performance, operational efficiency, and organizational agility. However, empirical evidence suggests that the financial benefits of cloud ERP adoption are not solely driven by technological capabilities, but largely depend on the degree of strategic alignment and organizational readiness.
This study aims to examine the relationship between cloud ERP adoption and the financial performance of SMEs by synthesizing existing empirical and conceptual research. A systematic literature review (SLR) was conducted following a rigorous selection process across major academic databases, resulting in a final sample of 55 peerreviewed studies published between 2011 and 2025. The analysis is grounded in the Technology–Organization– Environment (TOE) framework, Task–Technology Fit (TTF) theory, and Dynamic Capabilities theory.
The findings reveal that cloud ERP adoption positively influences financial performance through cost reduction, improved cash flow management, and enhanced decision-making, particularly when financial modules and data integration functionalities are strategically aligned with business objectives. Moreover, organizational readiness factors—such as top management support, employee training, and change management—play a critical mediating role in realizing these financial benefits.
This study contributes to the literature by positioning cloud ERP not merely as an IT investment, but as a strategic enabler of digital transformation and financial resilience in SMEs. Practical implications are provided to guide managers and policymakers in designing effective cloud ERP adoption strategies.