Factors Influencing Cloud Computing Adoption in Small Medium Enterprises

Abstract

Cloud computing offers information technology (IT) infrastructure, platform, and various applications via the Internet with minimum start-up cost, network access to a shared pool of configurable computing resources, and pay-per-use services. Although the potential for cloud computing is evident and much of the extant research has been carried out on cloud computing adoption, empirical studies on the factors that influence cloud computing adoption in the Malaysian Small and Medium Enterprises (SMEs) are, however, lacking. The objective of this study was to examine the factors that influence cloud computing adoption by the SMEs. We conducted a quantitative survey-based study to examine the relationship between perceived benefits, top management support, IT resources, external pressure, and cloud computing adoption. A free-form comment provided at the end of each section of the survey questionnaire was treated as qualitative data. We find that IT resources and external pressure significantly influence cloud computing adoption. Nonetheless, there is not enough evidence to support perceived benefits and top management support as significant factors of cloud computing adoption.

Factors Influencing Cloud Computing Adoption Among SMEs: The Jordanian Context

“…However, to explain technology adoption, many scholars have used an approach that integrates more than one theory to explain technology adoption (Isma'ili et al, 2016a; Asiaei and Rahim, 2017; Ayoobkhan and Asirvatham, 2019) in order to better understand the factors that influence organizations when it comes to making a decision with regard to the adoption of technology. Among these theories, TEO and DOI have been employed widely in the information technology adoption domain and have provided empirical support as they focus on the organizational point of view (Asiaei and Rahim, 2017; Hassan et al, 2017; Abed, 2020; Skafi et al, 2020). In addition, both theories overlap in terms of the characteristics that strengthen the explanation of adoption.…”

“…Therefore, SMEs, especially in developed countries including Jordan, have acknowledged the importance of utilizing cloud computing as an innovation that permits the efficient use of technology, offers a decisive competitive advantage, and introduces cost-effective solutions (Al-Hujran et al, 2018). However, the level of its adoption still lags behind that of most other countries (Hassan et al, 2017). In the developing countries and in Jordan specifically, SMEs are still reluctant to adopt cloud computing adoption (Al-Dwairi et al, 2018) (Rababah and Al-nassar, 2020).…”

Multi-Perspective Decision-making Cloud Computing Adoption Model for Small and Medium Enterprises (SMEs)

“…On the other hand, PaaS, and SaaS adopters are less likely to adopt since switching cost is less and the exit barrier is less difficult than IaaS. Gangwar et al (2015), and [45,58] reported that there is a significant relationship between competitive pressure and the adoption in Indian companies and Malaysian SMEs. On the other hand, Oliveira et al (2014), and Alismaili et al (2016) [23,35] claimed that competitive pressure is not significantly important.…”

“…On the other hand, Oliveira et al (2014), and Alismaili et al (2016) [23,35] claimed that competitive pressure is not significantly important. Competitive pressure has changed depending on the region [45,58]. Far East countries are also more likely to be affected in Indian and Malaysian companies Gangwar et al (2015) [45,58] respectively.…”

“…Competitive pressure has changed depending on the region [45,58]. Far East countries are also more likely to be affected in Indian and Malaysian companies Gangwar et al (2015) [45,58] respectively.…”