Exploring suitability of cloud computing for small and medium-sized enterprises in India

Abstract

Purpose The purpose of this paper is to evaluate the suitability of cloud computing for small and medium-sized enterprises (SMEs) in India. Design/methodology/approach Literature review is used to identify benefits, challenges, and factors concerning usage and adoption of cloud computing by SMEs. A conceptual framework was developed based on the existing theoretical models and factors identified from the literature. A survey based on questionnaire method was followed to collect data from 121 manufacturing SMEs in India. The conceptual framework was refined by using factor analysis, and multiple regression analysis was used to test the hypotheses. Findings Major benefits of cloud computing for SMEs include cost advantage, easy deployment process, easier access to latest information and communication technologies, automatic updates and upgrades, scalability, flexibility, and improved disaster recovery and back-up capabilities. The concern area includes perceived loss of control, vendor lock-in, security issues, reliability and availability issues, and internet connectivity and speed. The factors that are found significant include perceived benefits, top management support, competitive pressure, and perceived concerns. The model explained 73 percent of cloud computing adoption. Research limitations/implications The study is expected to make significant contribution toward body of knowledge pertaining to information technology adoption in SMEs. Practical implications The study is expected to provide SMEs an insight into real benefits and challenges associated with adopting cloud computing. The model can help SMEs in evaluating their readiness for adopting cloud computing and can ensure successful outcome of cloud computing adoption in SMEs. Providers are also going to be benefited through their enhanced understanding of SMEs’ requirements. Originality/value The proposed framework incorporates all the relevant factors including perceived benefits, perceived concerns, and other organizational and environmental factors to improve model’s predictive power.

Cloud computing utilization and mitigation of informational and marketing barriers of the SMEs from the emerging markets: Evidence from Iran and Turkey

“…In addition, the proposed solutions of S17 & S18 for the barriers MB17 and MB18 are rejected empirically. Therefore, the findings are respectively inconsistent with EM-SMEs' experience and with the prior studies of Kumar et al (2017), Cheng et al (2014) and Kim et al (2011) who discuss how CCU facilitates the transaction between customer and supplier more effectively, as this technology helps EM-SMEs to cut costs by streamlining their business processes, harnessing improved and faster communications with their customers, and enhancing product distribution through expanding utilization of online channels.…”

“…It can be inferred that the respondents benefit from appropriate data stored and shared in home/foreign official cloud-based websites to gain effective information. Moreover, the findings show that CCU enables EM-SMEs to enhance their informational capabilities as well as providing constant awareness of possible business opportunities in the foreign markets (Kumar et al, 2017; Iovan & Daian, 2013).…”

Factors Influencing Cloud Computing Adoption by Small and Medium-Sized Enterprises (SMEs) In India

“…According to this definition SMEs are categorized into Micro, Small and Medium Enterprises (MSMEs) based on the investment in plant and machinery/ equipment. "Micro enterprises are defined as those manufacturing firms where investment up to ₹ 2.5 million is made (for service firms limit is ₹ 1 million); Small enterprises are categorized as firms where investment in plant and machinery is more than ₹ 2.5 million but not more than ₹ 50 million (for service firms investment more than ₹ 1 million and less than ₹ 20 million); Medium enterprises are defined as those firms where investment is more than ₹ 50 million but less than ₹ 100 million is made in plant and machinery (for service firms investment more than ₹ 20 million and less than ₹ 50 million)" (Kumar et al, 2017).…”

Adoption of Cloud Human Resource Information System in Egyptian Hotels: An Experimental Design Research

“…A well developed and refined Cloud HRIS could reduce overall employees' costs and help to simplify the way customers, managers and staff access and use HRIS everywhere. Cloud HRIS provides management with strategic data recruitment, retention strategies and to merge HRIS data into large-scale corporate strategy (Aleem and Ryan, 2012;Rader, 2012;Truong and Dustdar, 2012;Ross and Blumenstein, 2013;Dai et al, 2015;Kumar et al, 2017). However, cloud HRIS adoption in hotels is still scarce and needed as recommended by Low et al (2011) and Jooss and Burbach (2017).…”

“…Adequate time, energy and money are considered challenges in implementing cloud HRIS (Lal and Bharadwaj, 2016;Kumar et al, 2017). Cloud HRIS is implemented at different levels which include staff information publishing, automation of transaction and transforming the whole work of HR department.…”