• No results found

AN INTEGRATED THEORETICAL FRAMEWORK FOR CLOUD COMPUTING ADOPTION BY SMALL AND MEDIUM-SIZED ENTERPRISES

N/A
N/A
Protected

Academic year: 2021

Share "AN INTEGRATED THEORETICAL FRAMEWORK FOR CLOUD COMPUTING ADOPTION BY SMALL AND MEDIUM-SIZED ENTERPRISES"

Copied!
11
0
0

Loading.... (view fulltext now)

Full text

(1)

AN INTEGRATED THEORETICAL FRAMEWORK FOR CLOUD

COMPUTING ADOPTION BY SMALL AND MEDIUM-SIZED

ENTERPRISES

Amin Saedi, Department of Information Systems, Faculty of Computing, Universiti

Teknologi Malaysia, Malaysia, [email protected]

Noorminshah A.Iahad, Department of Information Systems, Faculty of Computing,

Universiti Teknologi Malaysia, Malaysia, [email protected]

Abstract

Due to socio-technical reasons, cloud services are usually deployed in a heterogeneous network where both human and non-human actors are equally important in the process of technology adoption. Close examination of Information Systems adoption and diffusion theories shows that human and non-human actors, as the major elements in every heterogeneous network, cannot be fully integrated into the current adoption and diffusion theories. Thus, this research is aimed at exploring other theories in depth, and accordingly proposing a new integrated theoretical framework for cloud computing adoption in general, particularly in Small and Medium-Sized Enterprises.

Keywords: Cloud Computing, adoption, Technology-Organization-Environment framework, Actor Network Theory.

(2)

1

INTRODUCTION

The term, “Cloud Computing” (CC) can be explained in two parts. Firstly, it involves using a web browser on the Internet to dynamically allocate or de-allocate the access of the remote computing resources based on the users’ demands (Naone 2007). The second part refers to paying for the real use of the computing resources and facilities (Hoover & Martin 2008; Kim et al. 2009). The first part indicates that online users do not need to occupy the servers or storage in peak time use (Misra & Mondal 2011). Conversely, this advantage allows those servers and storage to be vacant for most of the time (Kim et al. 2009). Moreover, users do not need to access the computing resources in their premises or allocate a space for them, nor do they need to pay for electricity consumption and maintenance on computing resources (Kim et al. 2009). CC promises to deliver all Information Technology (IT) services on-demand whereby enabling clients to pay only for the specific amount of resources they actually use or in other words, follow the pay-as-you-go pricing model (Benton 2010a; Khajeh-Hosseini et al. 2010). Consequently, to reduce clients’ operating costs, users can simply rent servers, data storage and applications based on their requirements (Repschläger et al. 2011).

CC comprises three service models, including Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) (Goscinski & Brock 2010; Low et al. 2011; Wu 2011). In SaaS, cloud service providers offer their software applications via the Internet (Sultan 2010). In comparison to conventional IT solutions, in SaaS, there is no need to download and install any software applications (Jain & Bhardwaj 2010). However, the cloud service providers rent out their software applications over the Internet (Benton 2010a; Goscinski & Brock 2010; Khajeh-Hosseini et al. 2010; Low et al. 2011; Wu 2011). Thus, individuals, firms and organisations pay for their services on-demand, based on a subscription pricing model (Benton 2010a). At the platform level, CC service providers offer application developers which are nearly identical to the traditional desktop settings (Benton 2010a). “The emergence of such platforms allows independent software vendors and IT staff to develop and deploy online applications quickly using third-party infrastructure” (Benton 2010a, p. 3). In IaaS, the CC service providers offer the on-demand raw computing resources to the user (Goscinski & Brock 2010). Unlike traditional hosting services, which provide dedicated hardware to customers, IaaS systems accommodate fluctuating demand from different user (Low et al. 2011). Therefore, greater elasticity and cost advantages compared to traditional data centers are provided (Benton 2010a).

CC includes three forms: public, private and hybrid cloud (Das et al. 2011; Marston et al. 2011). Private clouds are on-premises clouds which are built inside the firm’s own firewall (Benton 2010b). In other words, private clouds are considered as the internal clouds for firms and can be accessed by users in various departments of the enterprise (Kim et al. 2009). Therefore, individual business units will pay the IT department for these remote computing services (Low et al. 2011). In comparison, public clouds are referred to as the off-premises clouds where their IT infrastructures are built outside of the enterprises’ own firewall (Marston et al. 2011). Hybrid clouds are a combination of public and private clouds (Khajeh-Hosseini et al. 2010) whereby “typically, non-critical information is outsourced to the public cloud, while business-critical services and data are kept within the control of the organization” (Marston et al. 2011, p. 180). To incorporate the benefits of public clouds with the privacy and security of private clouds, most of the firms are expected to deploy hybrid clouds which will enable enterprises to transfer part of their IT services to the public cloud, while the rest are maintained internally (Benton 2010a; Khajeh-Hosseini et al. 2010; Low et al. 2011).

According to National SME Development Council (NSDC) (2005), there are no common definitions for Small and Medium-Sized Enterprises (SMEs) in Malaysia, with different agencies describing SMEs based on their own criteria and benchmarks. However, in June 2005 NSDC published standard definitions for SMEs to be adopted by all government ministries, agencies and financial institutions in Malaysia. According to NSDC, the coverage of definitions for SMEs in Malaysia is based on two main criteria: (1) number of employees and (2) annual sales turnover. As such, enterprises are classified as SMEs if they meet either the specific number of employees or annual sales turnover criteria. Moreover, the definitions apply for the following sectors including (a) primary agriculture,

(3)

(b), manufacturing (including agro-based), (c) manufacturing-related services (MRS) and (d) services (including Information and Communications Technology).

Sector Size

Primary Agriculture Manufacturing (including AgroBased) & MRS

Services Sector (including ICT)

Micro < 5 employees OR Less than RM200,000 < 5 employees OR Less than RM250,000 < 5 employees OR Less than RM200,000 Small 5 <employees< 19 OR Between RM200,000 & less than RM1 million

5 <employees< 50 OR

Between RM250,000 & less than RM10 million

5 <employees< 19 OR

Between RM200,000 & less than RM1 million

Medium-sized

20 <employees< 50 OR

Between RM1 million & RM5 million

51 <employees< 150 OR

Between RM10 million & RM25 million

20 <employees< 50 OR

Between RM1 million & RM5 million

Table 1. The approved SME definitions in Malaysia based on number of full-time employees and annual sales turnover

As shown in table 2, for example, in terms of services sector (including ICT), a micro enterprise has less than 5 full-time employees or an annual sales turnover of less than RM200,000. A small enterprise has between 5 and 19 full-time employees or an annual sales turnover between RM200,000 to RM1million. A medium enterprise has 20 to 50 full-time employees or an annual sales turnover between RM1million and RM5 million.

2

LITERATURE REVIEW

2.1 Background of the Problem

Theoretically, CC provides vast opportunities for all organizations and enterprises, including SMEs, to have more flexible and easy-running business models (Benton 2010b). Thus, it would seem that these organizations could migrate to CC extremely easily. However, in practice, there is currently a lot of debate among all enterprises regarding CC adoption (Khajeh-Hosseini et al. 2010) and a considerable debate exists among organizations which are handling sensitive data (Kim et al. 2009). SMEs are the organizations in which the sensitivity of data they are handling is high (Misra & Mondal 2011). Financial data of companies, quotations for various tenders, company databases, on-going confidential research, trade secrets, drug formulas, early research findings and email accounts are some vivid examples of very sensitive data which are handled by SMEs (Misra & Mondal 2011). As a result, for those organizations including SMEs there is a big decision as to whether to embark on the cloud or remain with their own interior IT infrastructures (Benton 2010b). In terms of concerns, a report by Catteddu & Hogben (2009) reveals that the primary reasons with regard to avoiding capital expenditure in clouds, include privacy, security risks, availability and integrity of services and/or data, and confidentiality of corporate data. A survey of 349 German companies by Benlian & Hess (2011) indicates that security threats are the major issue influencing IT executives' overall risk perception. Wu et al. (2011) indicate that data security is one of the major hindrances when using SaaS. Similarly, a study by Misra & Mondal (2011) claims that concern for data security is one of the major issues facing firms who adopt and migrate to CC. According to Koehler et al. (2010, p. 2), “security and reliability concerns arose and are the major obstacles for the wide adoption of cloudcomputing.” As such, due to the high levels of data sensitivity handled by SMEs (Jain & Bhardwaj 2010; Misra & Mondal 2011), there are several barriers and concerns which discourage the use of cloud-based systems. In addition, CC is not just referred to as a technological enhancement of datacenters but also a principle and profound change in how IT is provisioned and deployed (Creeger 2009). Therefore, organizations including SMEs need to consider both the benefits and risks of CC in order to make a better decision regarding their adoption (Khajeh-Hosseini et al. 2010). According to Sullivan (2009), CC adoption cannot occur immediately and it is predicted that it might take around 10 to 15 years before firms make this trend.

(4)

Innovation adoption is the most significant factor that impact on organizations’ competitiveness and performance (Choudrie & Dwivedi 2005). Due to the small size of SMEs, limited managerial abilities and limited resources will result in a challenging task in innovation adoption (Brammer et al. 2011; Caldeira & Ward 2002). SMEs as compared to larger organizations are weakly structured and have low market power with insufficiency of resources to appreciate the benefits of innovation (Galligan & Mansor 2011). In terms of CC adoption, according to Galligan & Mansor (2011), a survey by Microsoft Sponsored Springboard in 2011 reveals that although 62 per cent of larger Asian enterprises with more than 500 PCs have eagerly embraced CC services or were planning to adopt CC, 68 per cent of SMEs with less than 50 PCs were lagging behind larger enterprises and had no plans to adopt CC. This will result in a wasted opportunity for some Asian cultures, including Malaysia, that might influence competitiveness for the country (Galligan 2011). Additionally, this shows the SMEs’ lack of confidence in their knowledge of the cloud compared to large organizations (Kwang 2011). Galligan (2011) attributed this big difference to the fact that IT experts in large enterprises have a greater chance of being provided with training and education to equip them with cloud-related skills. In addition, a lack of internal IT professionals and the unwillingness to embrace new IT offerings will result in the low uptake of CC among SMEs (Kwang 2011). As such, it can be concluded that the larger the enterprise, the higher its confidence in CC.

Adoption of CC is still in its infancy (Khajeh-Hosseini et al. 2010; Saya et al. 2010). Many studies in the field of Information Systems (IS) have investigated significant factors influencing the adoption of new technologies or service solutions (Marston et al. 2011; Saya et al. 2010). However, research on CC adoption seems to be one of the less explored and examined topics in the IS domains, particularly for SMEs (Wu et al. 2011). According to Saya et al. (2010), most of the literature on CC has widely focused on CC architecture (Rochwerger et al. 2009 ), potential applications (Liu & Orban 2008), and CC costs and benefits (Assuncao et al. 2009). In addition, much of the previous research on CC adoption in the SME context has focused only on a particular type or service model of CC. For example, a research study by Wu et al. (2011) has focused solely on adoption of SaaS by organizations. However, as discussed earlier, CC can be delivered in several forms and service models and therefore, a reasonable research on CC adoption can only occur when all CC forms and service models are considered together in the one study. As such, inadequate theoretical frameworks for CC adoption in general, and the lack of a comprehensive theoretical framework for SMEs, with simultaneous consideration of all CC forms and service levels in particular, reflect a fundamental need to further explore the adoption of CC by SMEs (Benton 2010b).

CC adoption is a different scenario compared to conventional innovation adoption (Feuerlicht 2010). CC technology, in contrast to other innovations, consists of three major players including cloud-based services, cloud users (clients), and cloud service providers (Dargha 2009). Therefore, in terms of CC adoption, external factors (environmental factors) including the role of third parties (e.g. cloud based service providers), and organizational factors such as the firm’s size, are as important as internal factors (e.g. cloud’s technological characteristics) (Feuerlicht 2010; Low et al. 2011). Many previous research studies in CC adoption have focused only on the technological aspects of adoption in this emerging innovation (Low et al. 2011). For example, they have focused exclusively on areas such as technology complexity, technology compatibility, security requirements, and future expectancy (Low et al. 2011). However, because of the nature of socio-technical influences in cloud-based services, there is a fundamental need to further explore how environmental and organizational factors, as well as technological factors, may influence the adoption of CC by SMEs (Low et al. 2011). Wang et al. (2010, p. 7) state that “some aspects of business to business adoption are missed if viewed only from a technological perspective.” Low et al. (2011) believe that environmental and organizational factors affecting CC adoption vary across different organizational contexts. Nevertheless, despite a wide range of theories in IS discipline, there is no single study which has explored and examined the role of environmental factors and mediated the role of institutional influences such as competitors for CC adoption by SMEs.

Theories of adoption in IS discipline are aimed at understanding, explaining, or predicting how, why and to what extent individuals, firms or organizations will adopt and agree to deploy a new technology (Choudrie & Dwivedi 2005). Examination of IS adoption and diffusion innovation

(5)

theories shows that the role of organizational and environmental factors are not fully integrated in most adoption/diffusion theories (Frambach 1993; Parker & Castleman 2009). As such, adoption/diffusion theories cannot fully integrate the role of cloud users as an adopter of CC and the role of CC service providers as a provisioner of innovation to organizations including SMEs. Moreover, based on the socio-technical aspects of CC services, cloud-based solutions are usually deployed in a heterogeneous network. A network in which numerous dissimilar elements called actors/actants such as human or non-human, social or technical entities are equally important to recognize the processes of technological innovation (Tatnall & Burgess 2002). Thus, there are reasonable motivations for researchers to explore other theories in-depth, such as the Technology-Organization-Environment (TOE) framework and Actor Network Theory (ANT), and accordingly propose a comprehensive theoretical framework for the adoption of CC by SMEs.

Based on the study which has been done in the background of the problem, the main research question for this study is:

 How can CC be adopted by SMEs?

The following sub-research questions are framed to answer the research problems.

1. How can technological, organizational and environmental factors in a heterogeneous network influence the adoption CC by SMEs?

2. What are the barriers of CC adoption by SMEs?

3. What is the theoretical framework for adoption of CC by SMEs?

2.2 Prior Research on Cloud Computing Adoption

CC adoption refers to the acceptance and agreement to use cloud-based services as a new way of deploying technology (Marston et al. 2011). A new technology or a new service solution results in improving an organization’s competitiveness. Thus, adoption of a new technology or a new service solution is an eternal hot topic among scholars, firms, and organizations (Wu et al. 2011). Many studies have investigated significant factors influencing the adoption of new technologies or service solutions. However, CC adoption seems to be one of the less explored topics in the IS domains (Marston et al. 2011; Saya et al. 2010). Moreover, developing a theoretical framework is less explored and examined for CC adoption. Most of the literature has focused on CC adoption regardless of considering CC service models and forms. However, each cloud service model and type have their own privacy and security issues (Catteddu & Hogben 2009; Subashini & Kavitha 2011).

Based on the literature, a considerable number of factors can affect the adoption of CC. For example, Misra & Mondal (2011) believe that the size of IT resources, the utilization pattern of the resources, data sensitivity, and the criticality of work done by organizations affect the adoption of CC in organizations. A survey of 101 IT professionals by Saya et al. (2010) shows that institutional influences such as perceived accessibility, perceived scalability, perceived cost effectiveness, and a perceived lack of security can increase the intention to adopt CC. Another survey by Wei-Wen (2011) indicates that factors including social influence, perceived usefulness, and security and trust influenced adoption of SaaS for Taiwanese vendors and enterprises. A research by Benlian & Hess (2011) analysed the opportunities and risks of SaaS adoption as perceived by IT executives at adopter and non-adopter German companies. According to Benlian & Hess (2011), cost advantages through SaaS are perceived as most salient benefit.

2.3 Technology- Organization-Environment Framework

Technology-Organization-Environment framework or model (TOE) is proposed by DePietro et al. (1990) to analyze adoption of technological innovations by firms and organizations (Melville & Ramirez 2008). The TOE framework posits that adoption of IT technology by firms and organizations is influenced by three different context groups: technological, organizational, and environmental contexts (DePietro et al. 1990; Melville & Ramirez 2008).

The technological context refers to the characteristics of innovation such as availability, complexity, and compatibility which significantly affect adoption of innovation (Low et al. 2011; Melville &

(6)

Ramirez 2008). In addition, the technological context is related to both internal/external and to existing/new technologies which are relevant to the firms or organizations (DePietro et al. 1990; Doolin & Troshani 2007). The organizational context refers to the characteristics of an organization such as size, the degree of complexity in managerial structure, degree of formalization, human resources, amount of slack resources, and linkages among employees (DePietro et al. 1990; Low et al. 2011). For example, Zhu et al. (2003) note that large organizations as compared to SMEs may have more financial resources to invest in IT innovation and adoption. The environmental context includes structure of the industry, competitors, and government’s regulations and policies (DePietro et al. 1990). In fact, within this context, the relationship between organizations and trading partners, competitors, government, pressure from trading partners, and industry community may affect adoption decisions (DePietro et al. 1990; Melville & Ramirez 2008). For example, to obtain competitive advantages in the marketplace, the more intense the competition in a business, the more pressure is on an organization to adopt a new innovation and technology (Doolin & Troshani 2007). There are several reasonable motivations which make TOE framework feasible for CC adoption. CC adoption is a different scenario to conventional innovation adoption and diffusion (Feuerlicht 2010). CC services are usually offered to firms and organizations by a third party (cloud service provider). Thus, CC technology compared to other conventional innovations, consists of three foremost players: cloud-based services, cloud users (clients), and cloud service providers (Dargha 2009). As a result, adoption of CC is influenced by three major factors which include the characteristics of CC technology as a technological context, the characteristics of firms and organizations as an organizational context, and the characteristics of a third party as an environmental context (Low et al. 2011). Most prior studies have only identified the technological determinants of CC adoption (Low et al. 2011). However, because of the nature of socio-technical factors in cloud-based services, organizational and environmental factors are equally as important as technological factors (Feuerlicht 2010; Low et al. 2011). As discussed earlier, the TOE framework explains the adoption of technology through three elements: technological, organizational, and environmental contexts. Therefore, TOE framework compared to other adoption and diffusion theories is a much more relevant analytical tool to classify all determinants of CC adoption in technological, organizational, and environmental contexts. In addition, The TOE framework is a useful analytical tool for explaining the adoption of innovation by firms and organizations (DePietro et al. 1990).

2.4 Actor Network Theory

Actor Network Theory (ANT) is a sociological theory developed by Callon & Latour (1981) to recognize the processes of technological innovation in a heterogeneous network (Callon 1986; Latour 1986; Latour 1996; Law & Callon 1988). The heterogeneous network is a coextensive network comprising a range of dissimilar elements called actors/actants (Tatnall & Burgess 2002). ANT claims that (1) actors, including human or non-human (social or technical) entities are equally important to a network (Law 1992), (2) the actors are treated as inseparable by ANT (Dolwick 2009), and (3) the interactions and associations between the actors and networks are the key issue (Tatnall & Burgess 2002). As such, ANT deals with the socio-technical situations in which there are no distinctions between human or non-human (social or technical) actors (Kennan et al. 2010). Neither social nor technical elements are favored in the network (Kennan et al. 2010). For example, Tatnall & Burgess (2002), by employing ANT in a socio-technical situation involving technological innovation, believe that human actors (e.g. customers, programmers, and development managers) and non-human actors (e.g. computers, modems, telephone lines, and web development tools) are equally important to implement a business-to-business e-commerce portal for regional SMEs in Melbourne, Australia. The ANT approach is conceptually beneficial in helping to appreciate the complexity of an organization’s network, the fluidity of this network, and the vigorous role of technology in different contexts (Cresswell et al. 2010). This can demonstrate an understanding of how social influences (Datta 2011) are generated as a result of associations between different actors in a network (Linderoth 2010). Literature on CC shows that theory which aims to explain the CC adoption decisions of organizations needs to consider a complex network and relationships among owner-managers, employees, and external parties which may influence the decision of organization owner-managers

(7)

(Saya et al. 2010). The decisions made in the adoption of CC in organizations such as SMEs are very complex and involve many actors, both human and non-human. In other words, rather than characteristics of technology itself (non-human actors), human issues also determine how organizations may adopt and migrate to CC (Datta 2011; Low et al. 2011). This means that complex networks in organizations benefit from being informed by ANT perspectives (Cresswell et al. 2010) and ANT offers a suitable framework for analyzing CC adoption by organizations including SMEs.

3

METHODOLOGY

Technology adoption and diffusion research within the IS domains is usually studied at two different levels, these being organizational level and user level (Chan & Ngai 2007; Choudrie & Dwivedi 2005). Moreover, technology and innovation adoption studies must consider the context of the study, stage of adoption, and the feasibility of deploying specific methods in their research design (Choudrie & Dwivedi 2005). Since SMEs were targeted in this study, the researcher chooses organizational level for analysis. The normal methods used in ANT involve qualitative data collection techniques such as interviews, document analysis and other methods used in ethnography (Deering et al. 2010; Kennan et al. 2010; Tatnall & Burgess 2002). Therefore, in this research, the qualitative method has been used to 1) uncover the concepts, constructs, and a set of human and non-human actors and 2) generate the hypothesis and as a result, (3) propose a theoretical framework for adoption of CC by SMEs. In terms of data collection activity, in-depth interviews (open-ended questions) have been conducted on a group of three Malaysian SMEs selected as the case study across ICT sector that were willing to adopt or have already adopted CC. According to Benbasat et al. (1987), a case study is a feasible IS research strategy when (1) the area of the research is in its infancy and minimal previous studies have been carried out, (2) the aim of the research is to explore, classify and develop hypothesis, (3) a set of independent and dependent variables may not have been stipulated by the researcher in advanced, (4) the researcher intends to generate and develop theories, (5) answers to “how” and “why” questions are sought which shows the complexity of the process, and (6) the research focuses on contemporary events.

After collecting data from the interview phase, the researcher then analyzed the data. There are two different types of data analysis in the case study strategy and these are within-case analysis and cross-case analysis (Yin 2009). A within-cross-case analysis is suitable when a single-cross-case is involved in the research and/or the researcher intends to compare different theories used and the data gathered from the single-case (Yin 2009). However, a cross-case analysis occurs between multiple-case designs to find out the similarities and differences and where the aim of the study is to enhance generalizability and to enrich understanding (Yin 2009). Therefore, due to the number of SMEs involved in this study, the researcher performed a cross-case analysis (using Nvivo Software) to analyse the qualitative data and to find the similarities and differences between these three cases. The findings of the interview sessions and literature review were then used to develop an initial theoretical framework for CC adoption by SMEs.

4

RESEARCH THEORETICAL FRAMEWORK

Figure 1 illustrates an initial integrated theoretical framework for adoption of CC by SMEs. As discussed earlier, the theoretical framework is proposed through cross-case analysis of three SMEs selected as the case study and enfolding literature. Moreover, the framework is founded by two theories, including TOE framework and ANT. In the TOE framework, the factors of and the barriers to CC adoption are categorized into three contexts such as technology, organization and environment. In the ANT, the actors first are uncovered and then classified as human and non-human. Later, the factors of and the barriers to CC adoption are shown as some properties of the actor relating to them. According to Tatnall (2012), ANT is quite flexible in what is called an actor and what might be a property of an actor; there are no set views in ANT on diagrammatic representations. Therefore, researchers really cannot be wrong about how they do this as long as they do not contradict ANT principals. As shown in figure 1, cost-savings, relative advantages, compatibility and accessibility as the technological context, SMEs’ size and top manager’s intentions as the organizational context and

(8)

service-level agreement, suppliers’ competences, government supports, competitors’ pressures, friends and family members’ advises, IT specialists and consultants’ advises and business network’s advises as the environmental context, accelerate the adoption of CC by SMEs. However, lack of data security, lack of data privacy and size of IT resources hindrance CC adoption.

* Barriers to CC adoption

Technology Organization Environment

Cloud Computing Adoption Cloud Computing  Cost-savings  Relative advantages  Compatibility  Accessibility

 Lack of Data Security*

 Lack of Data Privacy*

SME  Size  Size of IT Resources* Top Manager  Intentions Supplier  Service-Level agreement  Competencies Government  Supports Competitor  Pressures

Friends and Family Members

 Advises

IT Specialist and Consultants

 Advises Business Network  Advises Actor Properties Non-Human Actors Human Actors

Figure 1. An initial integrated theoretical framework for adoption of CC by SMEs

5

DISCUSSION AND CONCLUSION

The term CC is referred to as “a fundamental change in the way IT services are invented, developed, deployed, scaled, updated, maintained and paid for” (Marston et al. 2011, p. 176). Based on the research questions and objectives, this study offers a new CC adoption framework to both SMEs and CC service providers. For SMEs, similar to any new technology, early adopters are able to gain more advantages compared to late adopters (Benton 2010a). In terms of CC service providers, it is also crucial to determine how to influence organizations’ adoption decision and consequently, understand how to convince them to migrate to cloud solutions (Saya et al. 2010). According to Benlian & Hess (2011), CC service providers must consider factors that should be prioritized or avoided when offering CC services to firms at different stages of their technology adoption lifecycle.

By conducting in-depth interviews with the three Malaysian SMEs selected as the case study, and through cross-case analysis and enfolding literature, the researcher uncovered initial concepts, constructs, a set of preliminary detriments influencing CC adoption and a set of barriers to CC adoption. As a result, an initial integrated theoretical framework for adoption of CC by SMEs was founded by TOE framework and ANT. While the research almost has reached its aims, there are some unavoidable limitations. First, in-depth interviews was conducted only on a small sample size. Therefore, to generalize the results for larger groups and to generate research hypothesis, the study must involve more participants. Second, the initial research framework is still untested. Thus, developing an instrument for survey and testing of the research theoretical framework is crucial for future research.

(9)

References

Assuncao, M. D., Costanzo, A., and Buyya, R. (2009). Evaluating the cost-benefit of using cloud computing to extend the capacity of clusters. Paper presented at the 18th ACM International Symposium on High Performance Distributed Computing, Garching, Germany.

Benbasat, I., Goldstein, D. K., and Mead, M. (1987). The case research strategy in studies of information systems. MIS Quarterly, 11 (3), 369-386.

Benlian, A., and Hess, T. (2011). Opportunities and risks of software-as-a-service: Findings from a survey of it executives. Decision Support Systems, 52 (1), 232-246.

Benton, D. (2010a). Banking on the cloud Retrieved 15 Jan, 2012, from www.accenture.com. Benton, D. (2010b). How cloud computing will influence banking strategies in the future Retrieved

15 Jan, 2012, from www.accenture.com/banking

Brammer, S., Hoejmose, S., and Marchant, K. (2011). Environmental management in smes in the uk: Practices, pressures and perceived benefits. Business Strategy and the Environment, 21 (3), 141-156.

Caldeira, M. M., and Ward, J. M. (2002). Understanding the successful adoption and use of is/it in smes: An explanation from portuguese manufacturing industries. Information Systems Journal, 12 (2), 121-152.

Callon, M. (1986). Some elements of a sociology of translation: Domestication of the scallops and fishermen of st. Brieuc bay. In J. Law (Ed.), Power, action and belief: A new sociology of knowledge? (pp. 196-233). London: Routledge & Kegan Paul Books.

Callon, M., and Latour, B. (1981). Unscrewing the big leviathan: How actors macro-structure reality and how sociologists help them to do so. In K. Knorr-Cetina, A. V. Cicourel, R. Paul & K. Paul (Eds.), Advances in social theory and methodology. Toward an integration of micro and macro-sociologies. (pp. 277-303). London.

Catteddu, D., and Hogben, G. (2009). Cloud computing: Benefits, risks and recommendations for information security (pp. 1-25): European Network and Information Security Agency (ENISA). Chan, S. C. H., and Ngai, E. W. T. (2007). A qualitative study of information technology adoption:

How ten organizations adopted web-based training. Information Systems Journal, 17 (3), 289-315. Choudrie, J., and Dwivedi, Y. K. (2005). Investigating the research approaches for examining

technology adoption issues. Journal of Research Practice, 1 (1), 1-12.

Creeger, M. (2009). Cto roundtable: Cloud computing Communications of the ACM, 52 (8), 50-56. Cresswell, K. M., Worth, A., and Sheikh, A. (2010). Actor-network theory and its role in

understanding the implementation of information technology developments in healthcare. BMC Medical Informatics and Decision Making, 10 (67), 2-11.

Dargha, R. (2009). Cloud computing: Key considerations for adoption. Apr 2009. Retrieved from www.Infosys.com

Das, R. K., Patnaik, S., and Misro, A. K. (2011). Adoption of cloud computing in e-governance. In N. Meghanathan, B. K. Kaushik & D. Nagamalai (Eds.), (Vol. 133, pp. 161-172): Springer Berlin Heidelberg.

Datta, P. (2011). A preliminary study of ecommerce adoption in developing countries. Information Systems Journal, 21 (1), 3-32.

Deering, P., Tatnall, A., and Burgess, S. (2010). Adoption of ict in rural medical general practices in australia: An actor-network study. International Journal of Actor-Network Theory and

Technological Innovation (IJANTTI), 2 (1), 54-69.

DePietro, R., Wiarda, E., and Fleischer, M. (1990). The context for change: Organization, technology, and environment. In L. G. Tornatzky & M. Fleischer (Eds.), Processes of technological innovation (Vol. 273, pp. 151-175). Lexington, MA: Lexington Books.

Dolwick, J. S. (2009). The social and beyond: Introducing actor-network theory Journal of Maritime Archaeology 4(1), 21-49.

Doolin, B., and Troshani, I. (2007). Organizational adoption of xbrl. Electronic Markets, 17 (3), 199-209.

Feuerlicht, G. (2010). Next generation soa: Can soa survive cloud computing? Advances in intelligent web mastering - 2. In V. Snášel, P. Szczepaniak, A. Abraham & J. Kacprzyk (Eds.), (Vol. 67, pp. 19-29): Springer Berlin / Heidelberg.

(10)

Frambach, R. T. (1993). An integrated model of organizational adoption and diffusion of innovations. European Journal of Marketing, 27 (5), 22-41.

Galligan, J. (2011, 27 Sep). The cloud and smes: Fuelling the engines for sustainable growth Retrieved 14 April, 2012, from http://www.asiacloudforum.com/

Galligan, J., and Mansor, D. (2011, August 2011). Cloud computing for smes in malaysia: A public private partnership- unlocking the potential of cloud computing for a new world of business myForesight, 32-33.

Goscinski, A., and Brock, M. (2010). Toward dynamic and attribute based publication, discovery and selection for cloud computing. Future Generation Computer Systems, 26 (7), 947-970.

Hoover, J. N., and Martin, R. (2008). Demystifying the cloud. InformationWeek Research & Reports, 30-37.

Jain, L., and Bhardwaj, S. (2010). Enterprise cloud computing: Key considerations for adoption. International Journal of Engineering and Information Technology, 2 (2), 113-117.

Kennan, M. A., Cecez-Kecmanovic, D., and Underwood, J. (2010). Having a say voices for all the actors in ant research? International Journal of Actor-Network Theory and Technological Innovation (IJANTTI), 2 (2), 1-16.

Khajeh-Hosseini, A., Greenwood, D., Smith, J. W., and Sommerville, I. (2010). The cloud adoption toolkit: Addressing the challenges of cloud adoption in enterprise. Retrieved from http://arxiv.org/ Kim, W., Kim, S. D., Lee, E., and Lee, S. (2009). Adoption issues for cloud computing. Paper

presented at the Proceedings of the 11th International Conference on Information Integration and Web-based Applications &amp; Services, Kuala Lumpur, Malaysia.

Koehler, P., Anandasivam, A., Dan, M., and Weinhardt, C. (2010). Cloud services from a consumer perspective. AMCIS 2010 Proceedings, 329.

Kwang, K. (2011). Biz benefits now driving apac cloud adoption Retrieved 18 March, 2011, from http://www.zdnetasia.com/

Latour, B. (1986). The powers of association. In J. Law (Ed.), Power, action and belief: A new sociology of knowledge? (pp. 264-280). London: Routledge & Kegan Paul.

Latour, B. (1996). Aramis or the love of technology. Cambridge, Ma: Harvard University Press. Law, J. (1992). Notes on the theory of the actor network: Ordering, strategy and heterogeneity.

Retrieved from

Law, J., and Callon, M. (1988). Engineering and sociology in a military aircraft project: A network analysis of technological change. Social Problems, 35 (3), 284-297.

Linderoth, H. C. J. (2010). Understanding adoption and use of bim as the creation of actor networks. Automation in Construction, 19 (1), 66-72.

Liu, H., and Orban, D. (2008). Gridbatch: Cloud computing for large-scale data-intensive batch applications. Paper presented at the 8th IEEE International Symposium on Cluster Computing and the Grid, Lyon, France.

Low, C., Chen, Y., and Wu, M. (2011). Understanding the determinants of cloud computing adoption. Industrial Management & Data Systems, 111 (7), 1006-1023.

Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., and Ghalsasi, A. (2011). Cloud computing — the business perspective. Decision Support Systems, 51 (1), 176-189.

Melville, N., and Ramirez, R. (2008). Information technology innovation diffusion: An information requirements paradigm. Information Systems Journal, 18 (3), 247-273.

Misra, S. C., and Mondal, A. (2011). Identification of a company’s suitability for the adoption of cloud computing and modelling its corresponding return on investment. Mathematical and Computer Modelling, 53 (3-4), 504-521.

Naone, E. (2007, 18 Sep 2007). Computer in the cloud. Technology Review.

National SME Development Council. (2005). Definitions for smes in malaysia Secretariat to National SME Development Council, Bank Negara Malaysia.

Parker, C. M., and Castleman, T. (2009). Small firm e-business adoption: A critical analysis of theory. Journal of Enterprise Information Management, 22 (1/2), 167-182.

Repschläger, J., Wind, S., Zarnekow, R., and Turowski, K. (2011). Developing a cloud provider selection model. Paper presented at the Gesellschaft für Informatik eV (GI) publishes this series in order to make available to a broad public recent findings in informatics (ie computer science and

(11)

informa-tion systems), to document conferences that are organized in co-operation with GI and to publish the annual GI Award dissertation.

Rochwerger, B., Breitgand, D., Levy, E., Galis, A., Nagin, K., Llorente, I., . . . Galan, F. (2009 ). The reservoir model and architecture for open federated cloud computing. IBM Journal of Research and Development 53 (4), 1-17.

Saya, S., Pee, L. G., and Kankanhalli, A. (2010). The impact of instutational influences on preceived technological characteristics and real options in cloud computing adoption. Paper presented at the ICIS 2010 Proceedings, St. Louis.

Subashini, S., and Kavitha, V. (2011). A survey on security issues in service delivery models of cloud computing. Journal of Network and Computer Applications, 34 (1), 1-11.

Sullivan, T. (2009). The ways cloud computing will disrupt it Retrieved 23 June, 2012, from http://www.cio.com.au/

Sultan, N. (2010). Cloud computing for education: A new dawn? International Journal of Information Management, 30 (2), 109-116.

Tatnall, A. (2012, 13 December ). [Some questions regarding ant].

Tatnall, A., and Burgess, S. (2002). Using actor-network theory to research the implementation of a b-b portal for regional smes in melb-bourne, australia. Paper presented at the 15th International Bled eCommerce Conference, Bled, Slovenia.

http://www.deakin.edu.au/buslaw/infosys/jissb/conferences.php

Wang, W. Y. C., Heng, M. S. H., and Chau, P. Y. K. (2010). The adoption behaviour of information technology industry in increasing business-to-business integration sophistication. Information Systems Journal, 20 (1), 5-24.

Wei-Wen, W. (2011). Mining significant factors affecting the adoption of saas using the rough set approach. Journal of Systems and Software, 84 (3), 435-441.

Wu, W.-W. (2011). Mining significant factors affecting the adoption of saas using the rough set approach. Journal of Systems and Software, 84 (3), 435-441.

Wu, W.-W., Lan, L. W., and Lee, Y.-T. (2011). Exploring decisive factors affecting an organization's saas adoption: A case study. International Journal of Information Management, 1-8.

Yin, R. K. (2009). Case study research: Design and methods (4th ed.). Beverly Hills, California: Sage Publications.

Zhu, K., Kraemer, K., and Xu, S. (2003). Electronic business adoption by european firms: A cross country assessment of the facilitators and inhibitors. European Journal of Information Systems, 12 (4), 251-268.

References

Related documents