Understanding the Factors Affecting the Small and Medium Enterprises Adoption of Cloud computing: A Literature Review

Authors

  • Giang Thi Nguyen Department of Tropical Agriculture and International Cooperation, National Pingtung University of Science and Technology, Taiwan
  • Shu-Yi Liaw Management College, Computer Centre, National Pingtung University of Science and Technology, Taiwan

DOI:

https://doi.org/10.47747/ijbme.v3i2.635

Keywords:

Cloud Computing Adoption, Environment Context, Organization Context, Technology Context

Abstract

Cloud computing is increasingly popular and brings many benefits to organizations. However, the adoption of cloud computing (CC) is influenced by many different factors. The current study is based on the Technology-Environment-Organization (TOE) framework to discover the influencing factors in the decision to adopt CC in SMEs. Quantitative methods have been used to analyze relevant articles. The findings of this study suggest that 28 factors influence the decision to adopt CC in SMEs. Moreover, top management support, technology readiness, security concern, and relative advantage have a stronger impact on CC adoption in SMEs. The findings of this study add to the present CC literature and help practitioners better comprehend the elements that drive CC adoption. As a result, they can develop a clear strategy for enhancing CC adoption in their enterprises

Downloads

Download data is not yet available.

References

Abd Elmonem, M. A., Nasr, E. S., & Geith, M. H. (2016). Benefits and challenges of cloud ERP systems – A systematic literature review. Future Computing and Informatics Journal, 1(1-2), 1-9.

Abubakar, A. D., Bass, M.J., Allison, I. (2014). Cloud computing: adoption issues for Sub-saharan African SMEs. Electronic Journal of Information Systems in Developing Countries, 62, 1-17.

Akar, E., Mardiyan, S. J. K. T. o. I., & Systems, I. (2016). Analyzing factors affecting the adoption of cloud computing: A case of Turkey. 10(1), 18-37.

Ali, A., Warren, D., & Mathiassen, L. (2017). Cloud-based business services innovation: A risk management model. International Journal of Information Management, 37(6), 639-649.

Ali, O., Shrestha, A., Soar, J., & Wamba, S. F. J. I. J. o. I. M. (2018). Cloud computing-enabled healthcare opportunities, issues, and applications: A systematic review. 43, 146-158.

Alshamaila, Y., Papagiannidis, S., & Li, F. (2013). Cloud computing adoption by SMEs in the north east of England. Journal of Enterprise Information Management, 26(3), 250-275.

Armbrust, M., Stoica, I., Zaharia, M., Fox, A., Griffith, R., Joseph, A. D., . . . Rabkin, A. (2010). A view of cloud computing. Communications of the ACM, 53(4), 50-58.

Budņiks, L., & Didenko, K. (2014). Factors Determining Application of Cloud Computing Services in Latvian SMEs. Procedia - Social and Behavioral Sciences, 156, 74-77.

Calisir, F., Altin Gumussoy, C., & Bayram, A. (2009). Predicting the behavioral intention to use enterprise resource planning systems. Management Research News, 32(7), 597-613.

Carreiro, H., & Oliveira, T. (2019). Impact of transformational leadership on the diffusion of innovation in firms: Application to mobile cloud computing. Computers in Industry, 107, 104-113.

Dincă, V. M., Dima, Alina Mihaela, Rozsa, Zoltán. (2019). Determinants of Cloud Computing Adoption by Romanian Smes in the Digital Economy. Journal of Business Economics and Management, 20(4), 798-820.

El-Gazzar, R., Hustad, E., & Olsen, D. H. (2016). Understanding cloud computing adoption issues: A Delphi study approach. Journal of Systems and Software, 118, 64-84.

Ezer Osei Yeboah-Boateng, K. A. E. (2014). Factors Influencing the Adoption of Cloud Computing by Small and Medium Enterprises in Developing Economies International Journal of Emerging Science and Engineering, 2, 13-20.

Fariba Safari, N. S., Alireza Hasanzadeh, and Ali Rajabzadeh Ghatari (2015). Factors affecting the adoption of cloud computing in small and medium enterprises 20, 117-137.

Gangwar, H. (2018). Understanding the Determinants of Big Data Adoption in India: An Analysis of the Manufacturing and Services Sectors. Information Resources Management Journal, 31(4), 1-22.

Gangwar, H., Date, H., & Ramaswamy, R. (2014). Understanding determinants of cloud computing adoption using an integrated TAM-TOE model. Journal of Enterprise Information Management, 28(1), 107-130.

Ghaith Jaafar Mohammed, M. B. (2018). Conceptual Model for Adoption Cloud-Based ERP in SMEs: Case Study Iraq. International Journal of Engineering & Technology, 7, 756-758.

Gupta, P., Seetharaman, A., & Raj, J. R. (2013). The usage and adoption of cloud computing by small and medium businesses. International Journal of Information Management, 33(5), 861-874.

Habahbeh, A., Fadiya, S. O., & Akkaya, M. (2018). Factors influencing SMEs CloudERP adoption: A test with generalized linear model and artificial neural network. Data Brief, 20, 969-977.

Hani Al-Mascati, & Al-Badi, A. H. (2016). Critical Success Factors Affecting the Adoption of Cloud Computing in Oil and Gas Industry in Oman. International Conference on Big Data and Smart City. 1-7.

Haslinda Hassan, M. H. M. N., Norhaiza Khairudin & Iskandar Adon. (2016). Factors influencing cloud computing adoption in small and medium enterprises. Journal of ICT, 16, 21-41.

Hassan, H. (2017). Organisational factors affecting cloud computing adoption in small and medium enterprises (SMEs) in service sector Procedia Computer Science 121, 976-981.

Hsu, P.-F., Ray, S., & Li-Hsieh, Y.-Y. (2014). Examining cloud computing adoption intention, pricing mechanism, and deployment model. International Journal of Information Management, 34(4), 474-488.

Jianwen, C., & Wakil, K. (2020). A model for evaluating the vital factors affecting cloud computing adoption. Kybernetes, 49(10), 2475-2492.

Karkonasasi, K., Baharudin, A. S., Esparham, B., Mousavi, S. A., & Suhaimi Baharudin, A. (2016). Adoption of cloud computing among enterprises in Malaysia. Indian Journal of Science Technology, 9(48), 1-7.

Kumar, D., Samalia, H. V., & Verma, P. (2017a). Exploring suitability of cloud computing for small and medium-sized enterprises in India. Journal of Small Business and Enterprise Development, 24(4), 814-832.

Kumar, D., Samalia, H. V., & Verma, P. (2017b). Factors Influencing Cloud Computing Adoption by Small and Medium-Sized Enterprises (SMEs) In India. Pacific Asia Journal of the Association for Information Systems, 9(3), 25-48.

Lai, Y., Sun, H., & Ren, J. (2018). Understanding the determinants of big data analytics (BDA) adoption in logistics and supply chain management. The International Journal of Logistics Management, 29(2), 676-703.

Lian, J.-W., Yen, D. C., & Wang, Y.-T. (2014). An exploratory study to understand the critical factors affecting the decision to adopt cloud computing in Taiwan hospital. International Journal of Information Management, 34(1), 28-36.

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

Ming, C. F., On, C. K., Rayner, A., Guan, T. T., & Patricia, A. (2018). The determinant factors affecting cloud computing adoption by small and medium enterprises (SMEs) in Sabah, Malaysia. Journal of Telecommunication, Electronic Computer Engineering, 10(3-2), 83-88.

Niazmand, N. (2015). The impact of Cloud Computing in the banking industry resources. International Journal of Information, Security and Systems Management, 4(2), 436-440.

Novais, L., Maqueira, J. M., & Ortiz-Bas, Á. (2019). A systematic literature review of cloud computing use in supply chain integration. Computers & Industrial Engineering, 129, 296-314.

Oke, A. E., Kineber, A. F., Al-Bukhari, I., Famakin, I., & Kingsley, C. (2021). Exploring the benefits of cloud computing for sustainable construction in Nigeria. Journal of Engineering, Design and Technology, ahead-of-print.

Oliveira, T., Thomas, M., & Espadanal, M. (2014). Assessing the determinants of cloud computing adoption: An analysis of the manufacturing and services sectors. Information & Management, 51(5), 497-510.

Premkumar, G., & Potter, M. (1995). Adoption of computer aided software engineering (CASE) technology: an innovation adoption perspective. ACM SIGMIS Database: the DATABASE for Advances in Information Systems, 26(2-3), 105-124.

Priyadarshinee, P., Raut, R. D., Jha, M. K., & Gardas, B. B. (2017). Understanding and predicting the determinants of cloud computing adoption: A two staged hybrid SEM - Neural networks approach. Computers in Human Behavior, 76, 341-362.

Priyadarshinee, P., Raut, R. D., Jha, M. K., & Kamble, S. S. (2017). A cloud computing adoption in Indian SMEs: Scale development and validation approach. The Journal of High Technology Management Research, 28(2), 221-245.

Rahimli, A. (2013). Factors influencing organization adoption decision on cloud computing. International Journal of Cloud Computing Services Science, 2(2), 140-146.

Raut, R. D., Gardas, B. B., Jha, M. K., & Priyadarshinee, P. (2017). Examining the critical success factors of cloud computing adoption in the MSMEs by using ISM model. The Journal of High Technology Management Research, 28(2), 125-141.

Raut, R. D., Priyadarshinee, P., Gardas, B. B., & Jha, M. K. (2018). Analyzing the factors influencing cloud computing adoption using three stage hybrid SEM-ANN-ISM (SEANIS) approach. Technological Forecasting and Social Change, 134, 98-123.

Rogers, E. (2003). Diffusions of Innovations. New York: Free press.

Rogers, E. M. (1995). Lessons for Guidelines from the Diffusion of Innovations. The Joint Commission Journal on Quality Improvement, 21(7), 324-328.

Seethamraju, R. (2014). Adoption of Software as a Service (SaaS) Enterprise Resource Planning (ERP) Systems in Small and Medium Sized Enterprises (SMEs). Information Systems Frontiers, 17(3), 475-492.

Sohaib, O., Naderpour, M., Hussain, W., & Martinez, L. (2019). Cloud computing model selection for e-commerce enterprises using a new 2-tuple fuzzy linguistic decision-making method. Computers & Industrial Engineering, 132, 47-58.

Stieninger, M., Nedbal, D., Wetzlinger, W., Wagner, G., Erskine, M. A. J. I. J. o. I. S., & Management, P. (2018). Factors influencing the organizational adoption of cloud computing: a survey among cloud workers. 6(1), 5-23.

Tan, K. S., Chong, S. C., Lin, B., Eze, U. C. J. I. M., & Systems, D. (2009). Internet‐based ICT adoption: evidence from Malaysian SMEs. 109(2), 224-244.

Tarmidi, M., Rasid, S. Z. A., Alrazi, B., & Roni, R. A. (2014). Cloud Computing Awareness and Adoption among Accounting Practitioners in Malaysia. Procedia - Social and Behavioral Sciences, 164, 569-574.

Tornatzky, L. G., & Fleischer, M. (1990). The Processes of Technological Innovation. Lexington Books, Massachusetts.

Trigueros-Preciado, S., Pérez-González, D., & Solana-González, P. (2013). Cloud computing in industrial SMEs: identification of the barriers to its adoption and effects of its application. Electronic Markets, 23(2), 105-114.

Vafamehr, A., & Khodayar, M. E. (2018). Energy-aware cloud computing. The Electricity Journal, 31(2), 40-49.

van de Weerd, I., Mangula, I. S., & Brinkkemper, S. (2016). Adoption of software as a service in Indonesia: Examining the influence of organizational factors. Information & Management, 53(7), 915-928.

Wang, P., Gao, R. X., & Fan, Z. (2015). Cloud Computing for Cloud Manufacturing: Benefits and Limitations. Journal of Manufacturing Science and Engineering, 137(4), 1-9.

Yang, Z., Sun, J., Zhang, Y., & Wang, Y. (2015). Understanding SaaS adoption from the perspective of organizational users: A tripod readiness model. Computers in Human Behavior, 45, 254-264.

Zhu, K., & Kraemer, K. L. (2005). Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry. Information Systems Research, 16(1), 61-84.

Downloads

Published

2022-03-18

How to Cite

Nguyen, G. T., & Liaw, S.-Y. (2022). Understanding the Factors Affecting the Small and Medium Enterprises Adoption of Cloud computing: A Literature Review. International Journal of Business, Management and Economics, 3(2), 149 - 162. https://doi.org/10.47747/ijbme.v3i2.635