Abstract
Cloud computing services offer enterprise clients many advantages such as reduced costs, easy maintenance and the easy re-provisioning of resources, thus contributing to increased profits. However, little is known about the adoption behavior of such services among enterprises. This study applies the technology–organization–environment framework to investigate determinants of cloud computing service adoption behavior. Data collected from 102 valid enterprises in Taiwan provide strong support for the model. Results indicate that technological (i.e., relative advantage, observability and security), organizational (i.e., financial costs and satisfaction with existing IS) and environmental (i.e., competition intensity) factors were positively related to intention to adopt cloud computing services, accounting for 52 % of variance. Implications and limitations are discussed.
Similar content being viewed by others
References
Agarwal R, Prasad J (1997) The role of innovation characteristics and perceived voluntariness in the acceptance of information technologies. Decis Sci 28:557–582
Alshamaila Y, Papagiannidis S, Li F (2013) Cloud computing adoption by SMEs in the north east of England: a multi-perspective framework. J Enterp Inf Manag 26(3):250–275
Armbrust M, Fox A, Griffith R, Joseph AD, Katz R, Konwinski A, Lee G, Patterson D, Rabkin A, Stoica I, Zaharia M (2010) A view of cloud computing. Commun ACM 53(4):50–58
Armstrong JS, Terry SO (1977) Estimating non-response bias in mail surveys. J Mark Res 14(3):396–402
Bailey S (2015) Top 3 reasons enterprises hesitate to adopt the cloud. Cloud Security Alliance Blog. Retrieved from https://blog.cloudsecurityalliance.org/2015/04/02/top-3-reasons-enterprises-hesitate-to-adopt-the-cloud/
Beatty RC, Shim JP, Jones MC (2001) Factors influencing corporate web site adoption: a time-based assessment. Inf Manag 38(6):337–354
Benlian A, Hess T (2011) Opportunities and risks of software-as-a-service: findings from a survey of IT executives. Decis Support Syst 52(1):232–246
Benlian A, Hess T, Buxmann P (2009) Drivers of SaaS-adoption: an empirical study of different application types. Bus Inf Syst Eng 1(5):359–369
Bradford M, Florin J (2003) Examining the role of innovation diffusion factors on the implementation success of enterprise resource planning systems. Int J Account Inf Syst 4:205–225
Brodkin J (2008) Gartner: seven cloud-computing security risks. Network World. Retrieved from http://www.infoworld.com/d/security-central/gartner-seven-cloud-computing-security-risks-853?page=0,0
Buyya R, Yeo CS, Venugopal S (2008) Market-oriented cloud computing: vision, hype, and reality for delivering IT services as computing utilities. In: Proceedings of the 10th IEEE international conference on high performance computing and communications, pp 78–88
Byrd TA, Davidson NW (2003) Examining possible antecedents of IT impact on the supply chain and its effect on firm performance. Inf Manag 41:243–255
Chatterjee D, Grewal R, Sambamurthy V (2002) Shaping up for e-commerce: institutional enablers of the organizational assimilation of web technologies. MIS Q 26(2):65–89
Chau PYK, Hui KL (2001) Determinants of small business EDI adoption: an empirical investigation. J Organ Comput Electron Commerce 11(4):229–252
Chau PYK, Tam KY (1997) Factors affecting the adoption of open systems: an exploratory study. MIS Q 21(1):1–24
Chellappa RK, Pavlou P (2002) Perceived information security, financial liability, and consumer trust in electronic commerce transactions. J Logist Inf Manag 15(5–6):358–368
Chen L, Gillenson ML, Sherrell DL (2002) Enticing online consumers: an extended technology acceptance perspective. Inf Manag 39:705–719
Chen JV, Yen DC, Chen K (2009) The acceptance and diffusion of the innovative smart phone use: a case study of a delivery service company in logistics. Inf Manag 46(4):241–248
Chin WW (1998a) The partial least squares approach for structural equation modeling. In: Marcoulides GA (ed) Modern methods for business research. Lawrence Erlbaum, Mahwah
Chin WW (1998b) The partial least squares approach to structural equation modeling. In: Marcoulides GA (ed) Modern methods for business research. Lawrence Erlbaum Associates, Mahwah, pp 295–336
Durkee D (2010) Why cloud computing will never be free. Commun ACM 53(5):62–69
Ein-Dor P, Segev E (1978) Organizational context and the success of management information systems. Manag Sci 24(10):1064–1077
Fornell CR (1982) A second generation of multivariate analysis methods: vols. I and II. Praeger Special Studies, New York
Fornell C, Bookstein FL (1982) Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. J Mark Res 19:440–452
Fornell CR, Larcker DF (1981) Structural equation models with unobservable variables and measurement error. J Mark Res 18:39–50
Frost and Sullivan (2012) 2012 Cloud user survey: how understanding market perceptions can help providers turn cloud skeptics into adopters. Retrieved from http://www.frost.com/sublib/display-report.do?Src=RSS&id=99E4-00-09-00-00
Gefen D, Straub D, Boudreau MC (2000) Structural equation modeling and regression: guidelines for research practice. Commun Assoc Inf Syst 4(7):2–77
Gibbs JL, Kraemer KL (2004) Cross-country investigation of the determinants of scope of e-commerce use: an institutional approach. Electron Mark 14(2):124–137
Global Industry Analysts (2015) Cloud computing services—a global strategic business report. Retrieved from http://openviewpartners.com/news/global-cloud-computing-services-market-to-reach-us127-billion-by-2017-according-to-new-report-by-global-industry-analysts-inc/
Goscinski A, Brock M (2010) Computing services based publication, discovery and selection for cloud computing”. Future Gener Comput Syst 26:947–970
Grover V (1993) An empirically derived model for the adoption of customer-based interorganizational systems. Decis Sci 24(3):603–639
Grover V, Goslar MD (1993) The initiation, adoption, and implementation of telecommunications technologies in U.S. organizations. J Manag Inf Syst 10(1):141–163
Grover V, Martin DG (1993) The Initiation, Adoption, and Implementation of Telecommunications Technologies in U.S. Organizations. J Manag Inf Syst 10(1):141–163
Gupta P, Seetharaman A, Raj JR (2013) The usage and adoption of cloud computing by small and medium businesses. Int J Inf Manage 33(5):861–874
Gurbaxani V, Whang S (1991) The impact of information systems on organizations and markets. Commun ACM 34(1):59–73
Hair J, Anderson R, Tatham R, Black W (1992) Multivariate data analysis with readings. MacMillan, New York
Hon WK, Millard C, Walden I (2012) Negotiating cloud contracts: looking at cloud form both sides now. Stanf Technol Law Rev 16(1):79–129
Hsu PF, Kraemer KL, Dunkle D (2006) Determinants of e-business use in US firms. Inte J Electron Commerce 10(4):9–45
Hsu CL, Lu HP, Hsu HH (2007) Adoption of the mobile internet: an empirical study of multimedia message service (MMS), OMEGA. Int J Manag Sci 35:715–726
Hsu P, Ray S, Li-Hsieh Y (2014) Examining cloud computing adoption intention, pricing mechanism, and deployment model. Int J Inf Manag 34(4):474–488
Hung SY, Chang SI, Hsu KC, Chang IC (2010a) Critical factors of collaborative commerce adoption: an empirical study. NTU Manag Rev 20(1):29–68
Hung SY, Hung WH, Tsai CA, Jiang SC (2010b) Critical factors of hospital adoption on CRM system: organizational and information system perspectives. Decis Support Syst 48:592–603
IBM (2013) What will we make of this moment, 2013 IBM Annual Report, Retrieved from https://www.ibm.com/annualreport/2013/bin/assets/2013_ibm_annual.pdf
IDC (2008) Retrieved from https://www-304.ibm.com/isv/library/pdfs/cloud_idc.pdf
IDG (2014) Enterprise cloud computing study 2014. Retrieved from http://www.idgenterprise.com/report/idg-enterprise-cloud-computing-study-2014
Infoworld (2013) 9 top threats to cloud computing security. Retrieved from http://www.infoworld.com/article/2613560/cloud-security/cloud-security-9-top-threats-to-cloud-computing-security.html
Jaeger PT, Lin J, Grimes J (2008) Cloud computing and information policy: computing in a policy cloud? J Inf Technol Polit 5(3):269–283
Jarvenpaa SL, Majchrzak A (2008) Knowledge collaboration among professionals protecting national security: role of transactive memories in ego-centered knowledge networks. Organ Sci 19(2):260–276
Jarvenpaa SL, Shaw RT, Staples DS (2004) Toward contextualized theories of trust: the role of trust in global virtual teams. Inf Syst Res 15(3):250–267
Jensen M, Schwenk JO, Gruschka N, Iacono LL (2009) On technical security issues in cloud computing. In: IEEE international conference on cloud computing (CLOUD-II 2009), Bangalore, India, pp 109–116
Karahanna E, Straub DW, Chervany NL (1999) Information technology adoption across time: a cross-sectional comparison of pre-adoption and post-adoption beliefs. MIS Q 23(2):183–213
Keil M, Tan BCY, Wei KK, Saarinen T (2000) A cross-cultural study on escalation of commitment behavior in software projects. MIS Q 24(2):299–325
King W, Grover V, Hufnagel E (1989) Using information and information technology for sustainable competitive advantage: some empirical evidence. Inf Manag 17:87–93
Kraemer KL, Gibbs J, Dedrick J (2002) Environment and policy facilitators shaping e-commerce diffusion: a cross-country comparison. In: Applegate L, Galliers R, DeGross JI (eds) Proceedings of the twenty-third international conference on information systems, Barcelona, Spain
Kuan KKY, Chau PYK (2001) A perception-based model for EDI adoption in small businesses using a technology–organization–environment framework. Inf Manag 38:507–521
Laudon KC, Laudon JP (2012) Management information systems: managing the digital firm, 12th edn. Pearson Education Limited, England
Lee G, Xia W (2006) Organizational size and IT innovation adoption: a meta-analysis. Inf Manag 43(8):975–985
Lee OK, Wang M, Lim KH, Peng Z (2009) Knowledge management systems diffusion in chinese enterprises: a multistage approach using the technology–organization–environment framework. J Glob Inf Manag 17(1):70–84
Lertwongsatien C, Wongpinunwatana N (2003) E-commerce adoption in Thailand: an empirical study of small and medium enterprises. J Glob Inf Technol 6(3):67–83
Lian Jiunn-Woei, Yen David C, Wang Yen-Ting (2014) An exploratory study to understand the critical factors affecting the decision to adopt cloud computing in Taiwan hospital. Int J Inf Manag 34(1):28–36
Lin HF (2014) Understanding the determinants of electronic supply chain management system adoption: using the technology–organization–environment framework. Technol Forecast Soc Change 86:80–92
Low C, Chen Y, Wu M (2011) Understanding the determinants of cloud computing adoption. Ind Manag Data Syst 111(7):1006–1023
Lu H-P, Yeh D-C (1998) Enterprises’ perception on business process re-engineering: a path analytic. Omega 26(1):17–27
Marston S, Li Z, Bandyopadhyay S, Zhang J, Ghalsasi A (2011) Cloud computing—the business perspective. Decis Support Syst 51(1):176–189
Matsuura J (2011) Opinion: regulatory compliance in the cloud. Retrieved from http://computerworld.co.nz/news.nsf/news/opinion-regulatory-compliance-in-the-cloud
Mell P, Grance T (2011) The NIST definition of cloud computing, NIST Special Publication 800-145. Retrieved from http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf
Menon G (2013) Regulatory issues in cloud computing—an Indian perspective. J Eng Comput Appl Sci 2(7):18–22
Meyer AD, Goes JB (1988) Organizational assimilation of innovations: a multilevel contextual analysis. Acad Manag J 31:897–923
Miller M (2008) Cloud computing: web-based applications that change the way you work and collaborate online. Que Publisher, Indianapolis
Min H, Galle WP (2003) E-purchasing: profiles of adopters and nonadopters. Ind Mark Manag 32:227–233
Moore GC, Benbasat I (1991) Development of an instrument to measure the perceptions of adopting an information technology innovation. Inf Syst Res 2(3):192–222
Nelson R, Soete L (1988) Policy conclusions. In: Dosi G et al (eds) Technical change and economic theory. Pinter, New York, pp 631–636
Oliveira T, Martins MF (2010) Understanding e-business adoption across industries in European countries. Ind Manag Data Syst 110(9):1337–1354
Pan MJ, Jang WY (2008) Determinants of the adoption of enterprise resource planning within the technology–organization–environment framework: Taiwan’s communications. J Comput Inf Syst 48(3):94–102
Pavlou PA, Fygenson M (2006) Understanding and predicting electronic commerce adoption: an extension of the theory of planned behavior. MIS Q 30(1):115–143
Petrakou A, Brandt P, Gustavsson R, Jokela P (2011) Collaborative e-marketplaces containing clusters of SMEs: drivers and barriers in the local food sector. Paper presented at the 44th Hawaii international conference on system sciences (HICSS), pp 4–7
Pflughoeft KA, Ramamurthy K, Soofi ES, Yasai-Ardekani M, Zahedi F (2003) Multiple conceptualizations of small business web use and benefit. Decis Sci 34(3):467–512
Porter M, Millar VE (1985) How information gives you competitive advantage. Harvard Bus Rev 63(4):149–160
Rajagopal P (2002) An innovation—diffusion view of implementation of enterprise resource planning (ERP) systems and development of a research model. Inf Manag 40(2):87–114
Raymond L, Bergeron F (1996) EDI success in small and medium-sized enterprises: a field study. J Organ Comput Electron Commerce 6(2):161–172
Rogers EM (1983) Diffusion of innovations. Free Press, New York
Sandeep B, Sachin H, Deepak NK, Manjunatha HYA (2014) Issues of cloud security and its implications. Int J Res Eng Technol 3(3):305–309
Sivo SA, Saunders C, Chang Q, Jiang JJ (2006) How low should you go? Low response rates and the validity of inference in is questionnaire research. J Assoc Inf Syst 7(6):351–414
Slyke CV, Lou H, Day J (2002) The impact of perceived innovation characteristics on intention to use groupware. Inf Resour Manag J 15(1):5–12
Soares-Aguiar A, Palma-Dos-Reis A (2008) Why do firms adopt e-procurement systems? Using logistic regression to empirically test a conceptual model. IEEE Trans Eng Manag 55(1):120–133
Subashini S, Kavitha V (2011) A survey on security issues in service delivery models of cloud computing. J Netw Comput Appl 34(1):1–11
Sultan NA (2011) Reaching for the “cloud”: how SMEs can manage. Int J Inf Manage 31(3):272–278
Taiwan Research Institute (2015) Retrieved from http://www.tri.org.tw/ceo/
Tam KY (1996) Dynamic price elasticity and the diffusion of mainframe computing. J Manag Inf Syst 13(2):163–183
Tan M, Teo TSH (2000) Factors influencing the adoption of internet banking. J Assoc Inf Syst 1:1–42
Taylor S, Todd P (1995) Understanding information technology usage: a test of competing models. Inf Syst Res 6(2):144–176
Teo TSH, Lin S, Lai KH (2009) Adopters and non-adopters of e-procurement in Singapore: an empirical study. Omega 37(5):972–987
Thong JYL (1999) An integrated model of information systems adoption in small businesses. J Manag Inf Syst 15(4):187–214
Tornatsky LG, Fleischer M (1990) The process of technological innovation. Lexington Books, Lexington
Tornatzky LG, Klein KJ (1982) Innovation characteristics and innovation adoption-implementation: a meta-analysis of findings. IEEE Trans Eng Manag EM-29 1:28–45
Vaquero LM, Rodero-Merino L, Caceres J, Lindner M (2009) A Break in the clouds: towards a cloud definition. ACM SIGCOMM Comput Commun Rev 39(1):50–55
Vouk MA (2008) Cloud computing—issues, research and implementations. J Comput Inf Technol 16(4):235–246
W3C (2004) http://www.w3.org/TR/2004/NOTE-ws-arch-20040211/#whatis
Walczuch R, Lemmink J, Streukens S (2007) The effect of service employees’ technology readiness on technology acceptance. Inf Manag 44:206–215
Wang L, von Laszewski G, Kunze M, Tao J (2010) Cloud computing: a perspective study. New Gener Comput 28(2):137–146
Williamson OE (1983) Organizational innovation: the transaction cost approach. In: Ronen J (ed) Entrepreneurship. Lexington Books, Lexington, pp 101–133
Wu IL, Wu KW (2005) A hybrid technology acceptance approach for exploring e-CRM adoption in organizations. Behav Inf Technol 24(4):303–316
Xu S, Zhu K, Gibbs J (2004) Global technology, local adoption: a cross-country investigation of internet adoption by companies in the United States and China. Electron Mark 14(1):13–24
Zhu K (2002) Information transparency in electronic marketplaces: why data transparency may hinder the adoption of B2B exchanges. Electron Mark 12(2):92–99
Zhu K, Kraemer KL (2005) Post-adoption variations in usage and value of e-business by organizations: cross-country evidence from the retail industry. Inf Syst Res 16(1):61–84
Zhu K, Kraemer K, Xu S (2003) Electronic business adoption by European firms: a cross-country assessment of the facilitators and inhibitors. Eur J Inf Syst 12:251–268
Zhu K, Xu S, Dedrick J (2004) Information technology payoff in e-business environments: an international perspective on value creation of e-business in the financial service industry. J Manag Inf Syst 21(1):17–54
Zhu K, Kraemer K, Xu S (2006) The process of innovation assimilation by firms in different countries: a technology diffusion perspective on e-business. Manag Sci 52(10):1557–1576
Acknowledgments
This research was supported by grants from the National Science Council of the Republic of China under Contract Number MOST100-2410-H-141-007. The authors would like to thank the editor and anonymous reviewers for valuable comments and suggestions.
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
The authors declare that they have no conflict of interest.
Appendix
Appendix
List of items by construct
Relative advantage (RA) Moore and Benbasat (1991).
-
1.
Using cloud services reduces costs (e.g., customer service, procurement, human resources, IT training, investment and administration management).*
-
2.
Using cloud services saves time (e.g., customer support, employee and supplier management).*
-
3.
Using cloud services increase my productivity.*
Perceived ease of use (PE) Moore and Benbasat (1991).
-
1.
Learning to operate cloud services is easy for me.*
-
2.
I believe that it is easy to get a cloud service to do what I want it to do.*
-
3.
My interaction with cloud services is clear and understandable.*
-
4.
Overall, I believe that cloud services are easy to use.*
Compatibility (CO) Moore and Benbasat (1991).
-
1.
Using cloud services is compatible with all aspects of my work.*
-
2.
I think that using cloud services fits well with the way I like to work.*
-
3.
Using cloud services fits into my work style.*
Trialability (TR) Moore and Benbasat (1991).
-
1.
I’ve had a great deal of opportunity to try various cloud services.
-
2.
Before deciding whether to use any cloud services, I was able to properly try them out.*
-
3.
I was permitted to use a cloud service on a trial basis long enough to see what it could do.*
Observability (OB) Moore and Benbasat (1991).
-
1.
I would have no difficulty telling others about the results of using cloud services.*
-
2.
I believe I could communicate to others the consequences of using cloud services.*
-
3.
I have seen what others in my organization do with cloud services.*
-
4.
Cloud services are very visible in my organization.*
Perceived security (PS) Chellappa and Pavlou (2002).
-
1.
I believe that my work will not be manipulated by unauthorized persons when using cloud services.*
-
2.
I believe that cloud services will not expose my work to unauthorized persons.*
-
3.
I believe that cloud service providers and their personnel are careful to comply with relevant laws and regulations.*
-
4.
I believe that cloud services provide reliable data recovery to keep my business running well.*
Firm size Meyer and Goes (1988).
Approximately how many employees does your organization have in total, including all branches, divisions, and subsidiaries?
__________ (people) Don’t know
Global scope Zhu et al. (2004).
-
1.
Was your company established outside of Taiwan? (Y/N)?
-
2.
Does your company have international subsidiaries? (Y/N)?
Financial cost (FC) Kuan and Chau (2001).
-
1.
Using cloud services reduces set-up costs.
-
2.
Using cloud services reduces running costs.*
-
3.
Using cloud services reduces systems management and maintenance costs. *
-
4.
Using cloud services reduces training costs.*
Satisfaction with existing IS (SA) Kuan and Chau (2001).
-
1.
Our existing IS serves the needs of the company.*
-
2.
I am satisfied with the price/performance of our existing IS.
Competition Intensity (CI) Zhu et al. (2003, 2006).
-
1.
Degree of local competition. (1—low, 5—high)*
-
2.
Degree of national competition. (1—low, 5—high)*
-
3.
Degree of international competition. (1—low, 5—high)*
Regulatory Environment (RE) Zhu et al. (2003, 2006).
-
1.
Government provides incentives to adopt cloud services.*
-
2.
Government procurement policies mandated the use of cloud services.
-
3.
Business law supports cloud services.*
-
4.
There is adequate legal protection for customer or supplier transactions using cloud services.*
Behavioral intention to adopt cloud services Lu and Yeh (1998); Taylor and Todd (1995).
-
1.
The company intends to use cloud services.*
-
2.
Our company is willing to adopt cloud services.
-
3.
It is worth using cloud services in our company.*
*Denotes items retained for data analysis.
Y/N dummy variable.
Rights and permissions
About this article
Cite this article
Hsu, CL., Lin, J.CC. Factors affecting the adoption of cloud services in enterprises. Inf Syst E-Bus Manage 14, 791–822 (2016). https://doi.org/10.1007/s10257-015-0300-9
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10257-015-0300-9