Understanding the determinants of cloud computing adoption

The research revealed that relative advantage, top management support, firm size, competitive pressure, and trading partner pressure characteristics have a significant effect on the adoption of cloud computing.

Abstract

Purpose The purpose of this paper is to investigate the factors that affect the adoption of cloud computing by firms belonging to the high-tech industry. The eight factors examined in this study are relative advantage, complexity, compatibility, top management support, firm size, technology readiness, competitive pressure, and trading partner pressure. Design/methodology/approach A questionnaire-based survey was used to collect data from 111 firms belonging to the high-tech industry in Taiwan. Relevant hypotheses were derived and tested by logistic regression analysis. Findings The findings revealed that relative advantage, top management support, firm size, competitive pressure, and trading partner pressure characteristics have a significant effect on the adoption of cloud computing. Research limitations/implications The research was conducted in the high-tech industry, which may limit the generalisability of the findings. Practical implications The findings offer cloud computing service providers with a better understanding of what affects cloud computing adoption characteristics, with relevant insight on current promotions. Originality/value The research contributes to the application of new technology cloud computing adoption in the high-tech industry through the use of a wide range of variables. The findings also help firms consider their information technologies investments when implementing cloud computing.