Do strategy, processes, personnel and technology affect firm’s propensity to adopt cloud computing?

Abstract

Purpose Previous empirical research on cloud computing (CC) adoption factors has examined the effects of only a small number of firm’s characteristics on CC adoption. The purpose of this paper is to investigate empirically the effects of a wide set of firm’s characteristics, which concern four important aspects of it, its strategy, processes, personnel and technology, on the propensity to adopt CC. Design/methodology/approach Having as theoretical background the technology, organization and environment (TOE) theory of technological innovation adoption, in combination with Scott-Morton’s framework on firm’s main elements, ten research hypotheses have been developed based on previous CC and management literature. They were tested using data collected through the e-Business W@tch Survey of the European Commission from 676 European firms from three traditional manufacturing sectors. Findings The results reveal three characteristics of a firm that affect positively its propensity to adopt CC for all firm sizes: the adoption of ICT investment reduction strategy, the adoption of product/service innovation strategy and the sophistication of firm’s administration support ICT infrastructure. Furthermore, they reveal four additional characteristics of a firm that affect positively the propensity for CC adoption only in the small firms: the adoption of process innovation strategy, the employment of ICT personnel, as well as the sophistication of firm’s production support and e-sales ICT infrastructures. Research limitations/implications First, this study provides a theoretical foundation for the elaboration of the organizational perspective of the TOE theory of technological innovation adoption, which opens a new stream of CC adoption factors research, investigating the effects of a wide range of firm’s characteristics on CC adoption. Second, based on the above foundation, this study enriches substantially the empirical literature on CC adoption factors. The main limitation of this study is that it has been based on data from only three European manufacturing sectors. Practical implications The findings provide new interesting insights concerning specific firm’s characteristics and therefore internal conditions that increase its propensity for CC adoption, and reveal specific kinds of strategy and ICT infrastructures for which CC is more appropriate and beneficial. Originality/value The authors have developed a theoretical foundation for extending our knowledge concerning the characteristics and internal conditions of firms that favor/promote the adoption of CC, which supports and enables the substantial extension of the existing knowledge base on CC adoption factors. Based on this theoretical foundation, the authors have formulated and tested ten research hypotheses concerning effects of firm’s strategic directions, processes, ICT infrastructures and ICT personnel, which have not been investigated previously, on CC adoption propensity.

Quantifying SWOT analysis for cloud adoption using FAHP-DEMATEL approach: evidence from the manufacturing sector

“…Further, it can ameliorate all arenas of product managementstarting from testing, projecting, production, designing and marketing strategies. ACC increases productivity by allowing real-time live collaboration of the multiple teams involved, thereby significantly reducing the product development time (Kyriakou and Loukis, 2019). Sharma et al (2020a) highlighted that ACC helps to reduce maintenance work related to IT infrastructure and investment costs, providing the opportunity to concentrate on firm's vital business needs, thereby innovating and maintaining their value in the international market.…”

A multi-disciplinary review of enablers and barriers to Cloud ERP implementation and innovation outcomes

“…Regarding the form of the principal-agent relationship, vendor relationship management is of crucial importance to successfully accomplish both short-term and long-term Cloud ERP implementation (Winkler and Brown, 2013). Kyriakou and Loukis (2019) investigated the relationship between client firms and implementation consultants deploying Cloud ERP systems by applying agency theory and subsequently assessing how the relationship can affect the success of the implementation. The implementation of Cloud ERP is the result of various forces assisting the organisation in making isomorphic changes in the view of normative, mimetic and coercive manners (Senarathna et al, 2016;Gutierrez et al, 2015).…”

“…This study advances the current literature by integrating critical barriers scattered across different studies, including organisational issues, policy and regulation barriers, economic constraints, personnel-related challenges and technology constraints. By reviewing enablers and barriers, we also respond to recent calls from Schreieck et al (2021) and Kyriakou and Loukis (2019), who highlight the need for a better concentration on influential determinants before Cloud ERP implementation. Secondly, existing studies suggest that technology investment results in innovation within an organisation (Ali et al, 2023;Gupta et al, 2018b;Senarathna et al, 2016;Raut et al, 2018b).…”

A Model of Knowledge-sharing for the 21st Century Organizations

“…In the interorganizational collaboration context, cloud computing has been identified as a means to not only reduce costs, but to also increase organizations' capacities and flexibility (Loukis, Kyriakou, et al, 2017). The adoption of such technology by an organization is favoured by an ICT cost reduction strategy, the adoption of an innovation-oriented strategy, and management's support of an organization's ICT structure (Kyriakou & Loukis, 2019).…”