CLOUD COMPUTING Class name

CLOUD COMPUTING Class name

CLOUD COMPUTING 21

CLOUDCOMPUTING

Classname

School

Cloudcomputing is a model that provides an enabling and on demand networkenvironment to business eneterprises. The model enables organizationsto share from a pool of computing resources that are configurable tomeet user needs such as networks, servers, applications and storage.The advantage of the resources is the requirement for minimalmanagement effort or the interaction of a service providers. Overall,cloud computing promotes availability of resources to organizations(Ambrust et al , 2010,p.88). Cloudcomputing has become an integral part of conducting business andmajority of organizations have either adopted the infrastructure orare on the verge of adopting. The advantages of cloud computinginclude massive cost savings from the use of Information Technologysystems. Despite the massive movement by organizations towardacquisition, implemetation and use of the cloud computinginfrastructure, there exixts little to no research on the adoption ofthe internet and cloud computing in specific (Ambrust et al ,2010,p.88)Thetheory of Technology–Organization–Environment(TOE)frame work was developed by Tornatzky and Fleischer (1990). The aimwas to develop a process to analyze the adoption of technologicalinnovations by business organizations. Accordingto the theory,there are three aspects of firm’s characteristics that dictate theadoption and implementation of technological innovations. Theyinclude the external, internal and technical environments. Thetechnological environment includesthe internal and external technologies that are relevant to theorganization. The technical contexts influence how the organizationadopts the technology. It includes both the existing technologies andthose that need to be taken. The organization context involves thecharacteristics of the firm that influence the adoption oftechnological innovations(Tornatzkyand Fleischer 1990, p.38).Thetechnical contexts entail the size, structure, support from topmanagement, the quality of the human resources and the amount ofinternal resources available for use by the organization. Theexternal characteristics involve the field within which theorganization conducts its business activities. They are the industry,competitors, regulations, resource availability and the government.Organizations technological decisions depend on the characteristicsof the industry to a greater part due to competition and therelationship that it has with the various stakeholders such ascustomers and suppliers(Tornatzkyand Fleischer 1990, p.52). Thediffusion theory was developed by Everett Rogers in the year 1962.According to the theory, an innovationis an idea or a practice perceived to be adopted by a unit. Similar to the theory of Technology Organization Environment, thediffusiontheory considers innovationsand specifically, cloud computing technology as anecessaryadaptation strategyfororganizations in the modern world. Its used todescribe the process through which the particular change moves viacommunication channels from one member to another member of a socialsystem. The theory is effectively used in areas that need explanation behindsome organizations adopting to technology earlier than others. Specifically, it assesses the impact of various organization factorssuch as centralization, formalization, complexity and their effect onthe adaptation capability of the organization. (Rogers1995,p. 88). Accordingto Rogers(1995,p. 88),adoptionis the decision arrived at by an individual to implement and use theinnovation. The different characteristicsof adoptersreduce theiruncertainty of a particular benefit .Thetheory addresses innovation from variousinnovation featuressuch asthe relativeadvantage thatreflectsthe degree to which the innovation appears superior to the previousversions. Second is compatibility that is the extent to which theinnovation is viewed to be consistent with the current trends andneeds of the adopters. Third is complexity that is the degree theinnovation is perceived to be easy or difficult to use andunderstand. Fourthit explains trainabilitythat is the extent to which the change is perceived to be easy toexperiment on a trial basis and finally is observabilitythatis the degree to which the innovation is perceived to be easy or hardto observe the results of acquisition, implementation and use (Rogers1995,p. 88).The institutional theory was developed by DiMaggio and Powell in theyear 1983. It provides thatorganizations come up with irationaldecisions to adopt IT innovations in the effort to improve theirefficiency and effectiveness. Thereexistother innovation influences that determine organization`s adoption ofIT innovations. Specifically, the adoption of innovation by firms isto ensure their longterm survival. Similarto Diffusion and TOE theories, itpays attention to the broad factors that determine the firms adoptionof innovationsat the institutional level (DiMaggioand Powell 1983, p.32). The external environment provides pressuresto the organization and further forces it to adopt the variousstructures strategies and processes that are adopted by other similarorganizations. Incontrastto (DOI) and (TOE), the theory provides that organizations adapt tothe given technologies to achieve organizational legitimacy asopposed to improving their efficiency. The legitimacy determines thelevel to which the external environment accepts the group. Thevarious pressures include mimetic, coercive and normative pressures.Mimetic pressures are those that make the firm imitate the otherorganizations in their environment. The coercive pressures areimpacted by other firms that the organization relies upon while thenormative pressures are as a result of the need to adopt new businesspractices that require a given technology and thus calls for itsadoption (DiMaggioand Powell 1983, p.32).Thetheory of planned behavior was developed by Icek Ajzen in the year1985. It provides that there are psychological processes that enablepeople and organizations to put up with a behavior. Incontrast toothers, the theory explains the micro elements of an organization-the individuals that make up an organization, and their influence tothe adoption of technological innovations. It is a micro theory thatfocuses on the processes behind the bahaviour of individuals towardschange. The processes emerge from intentions that are influenced byvarious beliefs such as the individual’s attitude towards thepractice. The factors include the subjective norm and the perceivedbehavior control. The theory is used to address why organizationsengage in technological innovations and examines the impact of thedecision to adopt the innovations. The subjective norms combine withthe perceived behavior control to determine the organization`sattitude towards the change. The position that the group developstowards the innovation determines whether the organization adopts theinnovation or not (Ajzen 1985, p. 22).Thetheory of Technology Acceptance Model was proposed by Fred Davis andRichard Bagozzi in the year 1989. It provides that organizations arerational decision makers. Specifically, they indulge in constantcalculations to evaluate the relevant behavior or beliefs whenforming their attitude to a given behavior. Consequently, theindividuals form an attitude towards the behavior . The theoryemploys expectancy – value model to calculate the attitude valuestowards innovations that are created by individuals . Similar to theplanned behavior theory, it pays attention to the micro environmentin the organization by paying attention to the individual level ofanalysis. (Davis, Bagozzi, and Warshaw 1989, p. 105).Thetheory’s is widly used to explain thesource of attitudesdeveloped byorganizations towardsthe innovation.The total attitude towards an innovation includes theattitude towards the innovation, multiplied by the attitude towards the outcomeof adopting the innovation.Inconclusion, the expected outcome from the adoption of a giveninnovation plays a great role in determining the attitude developedby the organization towards the innovation. The attitude furtherdetermines the decision to adopt or not to adopt the innovation (Alharthi, et al., 2014, p.56)Thetable below indicates the different kinds of cloudcomputing evaluation used by different studies

Theoretical method

Analyzed variables

Methods

Data and Context

TOE and DOI

Technological context 

Service quality

Usefulness

Security

Complexity

IT Infrastructure readiness

Feasibility

Trust

Privacy risk

Organizational context 

organization size.

Organization culture

Organization structure

Cost

Environmental context 

Regulatory concern

External pressure

Culture

Industry type

Preserved benefits

Direct benefits

In Direct benefits

T-test analysis

Regression Analysis

Survey

4 Saudi government organizations

169 respondents

Saudi Arabia

(Alsanea and Barth, 2014)

DOI and TOE

Technological context 

Relative Advantage

Complexity

Compatibility

Organizational context 

Organization size.

Organizational culture

Organization structure

Regression Analysis

F and T-statistics

Phone interview with hospital IT

managers’ + Survey

sample size=110

U.S. hospitals

Lee Terence, 2015

DOI and TOE

Business Dimension

Business Competitiveness

Business Environment

Technology dimension

ICT infrastructure

Technology innovation

Technology Readiness

Government dimension

E-government

E-participation

Government Policy and vision

Country characteristics

Corruption

Human capital

Partial least squares (PLS)

A set of data from 61 countries

(Venkata and Dan, 2010)

DOI and TOE

TECHNOLOGICAL CONTEXT 

Technological readiness

Security concerns

Technology barriers

ORGANIZATIONAL CONTEXT

Organizational readiness

Firm size

Firm status

Industry sector

Topmanagement support

ENVIRONMENTAL CONTEXT

Competitive pressure

External support

Government support

DIFFUSSION OF INNOVATION

Relative advantage

Comparability

Complexity

Security

Complexity

Regression analysis

F and T-statistics

103 business firms in Saudi Arabia

Abdullah et al. (2015)

TAM

Individual beliefs:

Percieved Ease of Use (PEOU)

Percieved Useflness (PU)

Attitude Towards Usage (ATU)

Actual Syten Usage (ASU)

Users’ Behavioral Intention to Use the system(BIU)

Regression analysis

Hong Kong

Saudi

Alharbi Saad , 2012

(Eugenia et al, 2013)

TAM.

.

User behavioral intentions

Percieved Useflness (PU)

Percieved Ease of Use (PEOU)

Behavioural intention (INT)

Attitude Towards Sytem (ATT)

Regression analysis.

Montreal

Canada

(Raafat,et al, 2007),

TAM.

.

User behavioral intentions

Percieved Useflness (PU)

Percieved Ease of Use (PEOU)

Behavioural intention (INT)

Attitude Towards Sytem (ATT)

Partial least squares approach

F and T-statistics

102 Saudi undergraduates

Saadé &amp Bahli

(2005)

TAM.

.

User behavioral intentions

Percieved Useflness (PU)

Attitude Towards Sytem (ATT)

Regression analysis.

F and T-statistics

544 Chinese students

China

Lee et al. (2005),

TAM.

.

User behavioral intentions

Percieved Useflness (PU)

Attitude Towards Sytem (ATT)

Regression analysis.

F and T-statistics

1,370 internet users

Teo, Lim, &amp Laia

(1999)

Planned Behavior

BEHAVIORAL INTENTION

Attitude (AT)

Cognitive

Emotion

Organization

Subjective norm (SN)

Peers ( Emoticonx Cognitive)

Superiors ( Emoticonx Cognitive)

Organization

Percieved Behavioral control

Emotional

Cognitive

Organization

Regression analysis

F and T-statistics

35 FINANCIAL AND SYSTEM Auditors of the big 5 firms in the USA

Brad and Marther (2010)

Planned Behavior

Attitude A

Subjective Norms SN

Percieved Behavioral Control PBC

Regression analysis

F and T-statistics

50 Random business institutions from the USA

William et al. (2004)

Planned Behavior

Subjective norms

Percieved behavioral Control

SEM- structural Equation Modelling

partial least squares algorithm

140 Internet users from randomly selected African countries on their attitude towards the use of E-democracy

(Abinwi, 2012)

The following table illustrates the studies that employ TOE frameworkto study the adoption of cloud computing.

Factors within the TOE Context Frequency &amp relationship direction Related work
Technological environment
The expected advantages – relative benefits, expected business value from the use of cloud computing and the expected usefulness 15(+) Anand and Kulshreshtha, 2007 Nguyen and barrett, 2006 Wu and Lee, 2005 Mackay et al Grandon and Pearson, 2004 King and Gibbins, 2003 Levy and Powell, 2003 Teo et al., (1997-98) Merthens et al, 2001 Betty et al, 2001 Walczuch et al., 200 Poon and Swatman, 1999 tan and Teo, 1998 Vandapalli and Ramanurthy (1997-98) Mcbride, 1997
Perceived Compatibility 4(+) Lee and Kim, 2007 Hong and Zhu, 2006 Grandon and Pearson, 2004 teo et al., (1997-98)
Percieved ease of use 1 (+) Grandon and Pearson, 2004
Organizational Context
Firm size 8(+) Anand and Kulshreshtha, 2007 Hong and Zhu, 2006 Forman ,2005 Teo and Pian, 2004 Tan and Teo, 1998 Morganosky, 1997
Firm scope ( number of establishments and geographical dispersion od employees) 4(+) Beatty etal., 2001 Kambil.,etal 2000 Tan and Teo, 1998 Teo etal., (1997-98)
Organizational readiness 2(+) MacKay et al., 2004 Mehrtens et al., 2001
Technological readiness
Technological Resource availability 2(+) Del-Aguila-Obra and Padila-Melendez,2006 kambil et al., 2000
Technology competence (IS infrastructure, know how, employee IS skills etc. 4(+) Anand and Kulshreshtha, 2007 Lee and Kim, 2007 Hong Nd Zhu, 2006 Xhu etal., 2004 Zhu et al., 2003 Kowtha and Choon,2001
Prior use of related technologies (Past experience with related technologies IT experience) 2(+) Forman ,2005 forman, 2002 Goode and stevens, 200
Availability of knowledge IT staff 1 (+) King and Gibbins, 2003
Existence of IT support unit 1(+) Goode and Stevens, 2000
Financial readiness
Financial Resources Availability 2(+) Goode and Stevens, 2000 Kambil et al., 2000
Proactive (aggressive) business technology strategy 2(+) Teo and Pian, 2003 Teo et al., 1997-98
Market orientation 1(+) Nguyen and Barrett, 2003
Existence of Champion 1 (+) Tan and Teo, 1998
Environmental Context
External pressures
Customer pressures 8(+) Anand and Kulshreshtha, 2007 Beckinsale etal., 2006 Wu and Lee, 2005 Beckinsale and Levy, 2004 MacKlay etal., 2004 Zhu etal., 2003 Slade and Akkeren, 2002 Mehrtens et al., 2001
Competitive pressures 5(+) Anand and Kulshreshtha, 2007 Forman, 2005 Dholakia and Kshteri, 2004 Teo and Pian, 2003, king and Gibbins, 2003
Government policies 5 (+) Anand and Kulshreshtha, 2007 Forman, 2005 Dholakia and Kshteri, 2004 Teo and Pian, 2003, king and Gibbins, 2003
Anand and Kulshreshtha, 2007 Xhu etal., 2004
Factors within TOE Contexts
Intensity of competition 2(+) Xhu etal., 2004, Kowtha and choon, 2001
Normative pressure 1(+) Wu and Lee, 2005
Consumer readiness Zhu et al., 2003

Accordingto Alam (2009, p.94) and Alatawi et al. (2012,p. 31), most researchon the adoption of IT related innovation in organizations are basedon the Theory of Planned Behaviour (TPB), Technology Acceptance Model(TAM), The Diffusion of Innovation (DOI), and TheTechnology-Organization-Environment Model (TOE). The DOI, TPB, TAMand TOE theories are highly applicable in predicting adoptionbehaviour of the firm in considering new technology. However, the TAMand the TPB mainly aim to explain the perceptions and the attitudesand consequently have been used for groundwork research on the microunits at the individual level. The current study is to examine andevaluate the adoption of cloud computing services by Saudi Hospitalsand the frame works that focuss on the organization level are moreadaptable.Followingthe careful review of literature on the various frameworks, thecurrent study identified the TOE framework as the most appropriate tolearn the adoption of IT innovations in organizations. Lin and Lin(2008, p.104) asserts that the TOE framework is suitable to evaluatethe relevance of various factors that affect the propensity oforganizations to adopt IT innovations. Accordingto Ven and Verelst (2011, p.30), the TOE framework serves as ataxonomy for classifying the various factors into their respectivecontext. Specifically, it enables the researcher to consider thebroad realm within which innovation adoption takes place. Similary,Mehrtens et al. (2001, p.78) assserts that the TOE framework provides the most appropriate theoretical foundation for the exploration ofthe adoption of IT innovations in organizations. According toChristensen (1995, p. 87) , the theory is employed in various pastempirical studies to learn the adoption of acquisition,implementation and use of IT innovations by organizations.Consequently, the theory is wide enough to encompass the variousareas of organizations as compared to its counterpart theories. Accordingto Awa et al., (2011, p.48) Henderson et al., (2012, p.99) Chong &ampChan, (2012, p.81) and Alatawi et al., (2012, p.28) the TOEframework should not be used alone but incombination with othertheories. The reason is to enable the researcher to identify specifictechnological, environmental and organizational factors and developthe exixting casual relationships required to develop a hypothesis.Similary, Awa et al. (2011, p.65 ), asserts that integrating TOE withother frameworks results into richer theoretical lenses necessaryfor the understanding of behavior.Followingthe literature review, the current study identified that the DOItheory is commonly used together with the TOE framework. According toOliveira and Martins (2011, p.56), the two models complement eachother- the technological context found in TOE includes the knowledgeof innovation characteristics from the DOI model. Similarto Rogers (1995, p.33), the two frameworks are consistent as the DOI,similar to the TOE framework, highlights individual as well asinternal and external characteristics that determine innovationadoption in organizations. The two theories best improve the understsnading of the organizational adoption of innovations.Specifically, the TOE and the DOI frameworks are similar inexplaining interorganizational systems.Thecurrent study relates to the Thong’s model of 1999 that called forthe inclusion of the decision maker characteristics in combination tothe technological, environmental and organizational contexts adoptedby TOE and DOE frameworks. Although there are several changes fromthe initial model, the study reviews the previous literature oninnovation and develops new variables that suit the innovationadoption among Saudi Arabian hospitals (Thong 1999, p.84),.Accordingto Thong (1999, p.100), organizations are made of highly cenralisedstructures. Consequently, the CEOs or the owner managers areresponsible for making most critical decisions. As a result, it isdifficult to separate the owners form the organizations due to theirrole in making key decisions such as those related to adaptation ofIT innovation. The influence of decision makers extend from planning, implementing and the maintenance of the IT related innovations. Theadaptation depends on both the decision makers feelings and functionsthat reflect to the attitudes motivations and perceptions towardsinnovation adoption.Asa result, Thong developed a fourth dimension (besides environmental,organizational and technological) that is classified as the Decisionmakers or CEO’s characteristics. The previous TOE framework has afourth dimension of decision maker to form DTOE. The four conceptualpredictors of innovation adaptation provide a more detailed set offactors.Accordingto Antlova (2009, p.38) the resistance to organization changes by keydecision makers is one of the key barriers to adaptation ofinnovations by organizations. The rate of change in businesses ishighly related to the ability and capacities of managers to acceptchange. The decision makers are crucial in determining theinnovativeness of the business and require to be included in studieson the adaptation of innovations in organizations.Inconclusion,the main use of the TOE framework is due to

  • The theory’s suitability to evaluate the relevance of various factors that affect the propensity of organizations to adopt IT innovations
  • The TOE framework serves as a taxonomy for classifying the various factors into their respective context
  • It enables the researcher to consider the broad realm within which innovation adoption takes place.
  • The TOE framework provides the most appropriate theoretical foundation for the exploration of the adoption of IT innovations in organizations
  • The theory is employed in various past empirical studies to learn the adoption of acquisition, implementation and use of IT innovations by organizations and
  • The theory is wide enough to encompass the various areas of organizations as compared to its counterpart theories.

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