Technological, organisational and environmental factors influencing managers’ decision to adopt cloud computing in the UK

Abstract

Purpose – The purpose of this paper is to determine the factors influencing managers’ decision to adopt cloud computing in the UK using the “Technology-Organisation-Environment” (TOE) framework. Design/methodology/approach – Data were collected through a self-created questionnaire based survey that was completed by 257 mid-to-senior level decision-making business and information technology (IT) professionals from a range of UK end-user organisations. The derived hypotheses were tested using various data analysis techniques including principal component analysis and logistic regression. Findings – The results show that four out of the eight factors examined have a significant influence on the adoption decision of cloud computing services in the UK. Those key factors include competitive pressure, complexity, technology readiness and trading partner pressure. The latter predictor; trading partner pressure, was the most significant factor for the adoption decision of cloud services reflecting organisations’ concerns on legal regulations, co-creation and customisation, service linkage and vendor locking which adds complexity to the process of selecting an appropriate vendor. Research limitations/implications – This research found trading partners (cloud service providers) significantly influence managers’ decisions to adopt cloud services, however, further research is required to fully understand all the aspects involved especially with the growing number of vendors available. Although over 250 usable responses to the questionnaire were received and analysed, there was not a sufficient quantity of responses from each industry sector or organisation size to conduct further analysis. Practical implications – The findings reveal the important role of cloud computing service providers to enable end-users to better evaluate the use of cloud computing. It also reveals that top management support is no longer a driver as organisations are starting to adopt cloud computing services on the basis of cheaper and more agile IT resources in order to support business growth. Originality/value – This research provides original insight for cloud computing adoption within the UK from a managerial perspective.

A Decision-Making Model for Adopting a Cloud Computing System

“…Bhat [36] suggested "laws and regulation" as the institutional factors. Besides, Yeboah-Boateng and Essandoh [37] mentioned the relative important influence of "adequate users and technical support" as the environmental factors. Oliveira et al [11] created a model to assess the determinants which influence to adopt cloud computing, and presented the holistic assessment factors by the model.…”

“…They proposed a toolkit that decision-makers can use to identify their risks and coordinate suitable tools and techniques [35]. A recent study of cloud adoption was conducted in terms of a national perspective and small and medium enterprises [33,36,37], and the case studies described the direct influences of cloud computing on the organization in a wide range of activities, including global enterprises [38,39].…”

Factors Affecting the Intention of Adopting Cloud Computing in Jordanian Hospitals

“…Taking in such support helps the organization to avoid any internal barriers and opposition to change. It can be concluded that top management support is vital for organizations searching to produce a competitive environment, whilst also providing the resources needed to adopt cloud service [61].…”

“…The more the technology is recognized as being compatible with existing systems and organizational values and beliefs, the more likely organizations are to think about adopting cloud computing. Cloud computing allows organizations to keep up with new technology without affecting existing legacy systems aligned with their different organizational, managerial, and operational needs [61].…”

Prediction of Propensity for Enterprise Cloud Computing Adoption

“…They found that relative advantage, technological readiness, top management support, and size had positive effects on CC adoption, while complexity has a negative effect. Another similar study has been conducted in [9], which examines the effects of a set of technological factors concerning the CC technology (relative advantage, complexity and compatibility), organizational factors (top management support, size, technological readiness) and environmental factors (competitive pressure, trading partners pressure) on CC adoption, using data collected from 257 mid-to-senior level decision-making business and ICT professionals from UK enterprises. They concluded that competitive pressure, complexity, technology readiness and trading partner pressure have a significant influence on the adoption of CC services.…”