Advertisement

Information Systems Frontiers

, Volume 21, Issue 4, pp 861–875 | Cite as

Differential cloud adoption: A comparative case study of large enterprises and SMEs in Germany

  • Surya KarunagaranEmail author
  • Saji K Mathew
  • Franz Lehner
Article

Abstract

Cloud computing is widely advertised as a technology-based service model and an emerging business model which is highly beneficial for the adopting organizations. But, academic landscape lacks sufficient empirical studies of cloud adoption at firm-level, and the existing cloud adoption factors are mostly anecdotal in nature. A multiple case study approach was used to extract and compare adoption characteristics of SMEs and large firms in Germany, based on the Technology-Organization and Environment (TOE) framework. The study shows that there exist important differences between SMEs and large enterprises regarding the cloud adoption factors. The results further show that large firms perceive characteristics of the cloud to be more complicated and not easy to implement compared to SMEs which contradicts the popular belief that large firms are forerunners in adopting innovations and, the widely publicized cost benefits of cloud services are perceived to be in favor of SMEs.

Keywords

Cloud computing TOE Technology adoption Comparative study Innovation adoption 

References

  1. Abdollahzadehgan, A., Che Hussin, A. R., Gohary, M. M., & Amini, M. (2013). The organizational critical success factors for adopting cloud computing in SMEs. Journal of Information Systems Research and Innovation, 4(1), 67–74.Google Scholar
  2. Adomavicius, G., Bockstedt, J. C., Gupta, A., & Kauffman, R. J. (2008). Making sense of technology trends in the information technology landscape: A design science approach. Management Information Systems Quarterly, 32(4), 779–809.CrossRefGoogle Scholar
  3. Alshamaila, Y., Papagiannidis, S., & Li, F. (2013). Cloud computing adoption by SMEs in the north east of England: A multi-perspective framework. Journal of Enterprise Information Management, 26(3), 250–275.CrossRefGoogle Scholar
  4. Borgman, H. P., Bahli, B., Heier, H., & Schewski, F. (2013). Cloudrise: Exploring cloud computing adoption and governance with the TOE framework. In Proceedings of the annual Hawaii international conference on system sciences (pp. 4425–4435). Washington, DC, USA: IEEE.Google Scholar
  5. Buonanno, G., Faverio, P., Pigni, F., Ravarini, A., Sciuto, D., & Tagliavini, M. (2005). Factors affecting ERP system adoption: A comparative analysis between SMEs and large companies. Journal of Enterprise Information Management, 18(4), 384–426.CrossRefGoogle Scholar
  6. Carcary, M., Doherty, E., Conway, G., & McLaughlin, S. (2014). Cloud computing adoption readiness and benefit realization in Irish SMEs-an exploratory study. Information Systems Management, 31(4), 313–327.CrossRefGoogle Scholar
  7. Chang, V., Walters, R. J., & Wills, G. B. (Eds.) (2015). Cloud computing and frameworks for organisational cloud adoption. In Delivery and Adoption of Cloud Computing Services in Contemporary Organizations (pp. 1–25). Hershey, PA: IGI Global.Google Scholar
  8. Coursaris, C. K., Van Osch, W., & Sung, J. (2013). A “cloud lifestyle”: The diffusion of cloud computing applications and the effect of demographic and lifestyle clusters. In Proceedings of the annual Hawaii international conference on system sciences (pp. 2803–2812). Washington, DC, USA: IEEE.Google Scholar
  9. Downward, P., & Mearman, A. (2006). Retroduction as mixed-methods triangulation in economic research: Reorienting economics into social science. Cambridge Journal of Economics, 31(1), 77–99.CrossRefGoogle Scholar
  10. Dwivedi, Y. K., Wade, M. R., & Schneberger, S. L. (2012). Information systems theory: Explaining and predicting our digital society. New York: Springer.CrossRefGoogle Scholar
  11. Easton, G. (2010). Critical realism in case study research. Industrial Marketing Management, 39(1), 118–128.CrossRefGoogle Scholar
  12. El-Gazzar, R. (2014). A literature review on cloud computing adoption issues in enterprises. In Creating Value for All Through IT (IFIP Advances in Information and Communication Technology), 429, pp. 214–242.Google Scholar
  13. Elias, A. A. (2015). Analysing the stakes of stakeholders in research and development project management: A systems approach. R&D Management, 46(4), 749–760.CrossRefGoogle Scholar
  14. Elias, A. A., Cavana, R. Y., & Jackson, L. S. (2002). Stakeholder analysis for R&D project management. R&D Management, 32(4), 301–310.CrossRefGoogle Scholar
  15. Eurostat. (2014). Eurostat regional yearbook 2014. Publications Office of the European Union. http://ec.europa.eu/eurostat/en/web/products-statistical-books/-/8_RYB2014. Accessed 13 October 2016.
  16. Grandon, E. E., & Pearson, J. M. (2004). Electronic commerce adoption: An empirical study of small and medium US businesses. Information Management, 42(1), 197–216.CrossRefGoogle Scholar
  17. 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.CrossRefGoogle Scholar
  18. Iyer, B., & Henderson, J. C. (2010). Preparing for the future: Understanding the seven capabilities of cloud computing. MIS Quarterly Executive, 9(2), 117–131.Google Scholar
  19. Jeyaraj, A., Rottman, J. W., & Lacity, M. C. (2006). A review of the predictors, linkages, and biases in IT innovation adoption research. Journal of Information Technology, 21(1), 1–23.CrossRefGoogle Scholar
  20. Kasemsap, K. (2015) The Role of Cloud Computing Adoption in Global Business. In V. Chang, R. Walters, & G. Wills (Eds.), Delivery and Adoption of Cloud Computing Services in Contemporary Organizations (pp. 26-55). Hershey, PA: IGI Global. doi: 10.4018/978-1-4666-8210-8.ch002.
  21. Laukkanen, S., Sarpola, S., & Hallikainen, P. (2005). ERP system adoption - does the size matter? In Proceedings of the 38th annual Hawaii international conference on system sciences, 0(C) (pp. 1–9). Big Island, HI, USA: IEEE.Google Scholar
  22. Levy, Y., & Ellis, T. J. (2006). A systems approach to conduct an effective literature review in support of information systems research. Informing Science, 9, 181-212.Google Scholar
  23. Lin, A., & Chen, N. C. (2012). Cloud computing as an innovation: Percepetion, attitude, and adoption. International Journal of Information Management, 32(6), 533–540.CrossRefGoogle Scholar
  24. Low, C., Chen, Y., & Wu, M. (2011). Understanding the determinants of cloud computing adoption. Industrial Management & Data Systems, 111(7), 1006–1023.CrossRefGoogle Scholar
  25. Mahmood, Z., & Hill, R. (2011). Cloud computing for enterprise architectures: Concepts, principles and approaches. In Cloud computing for Enterprise architectures (pp. 3–19). London: Springer.CrossRefGoogle Scholar
  26. Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., & Ghalsasi, A. (2011). Cloud computing - the business perspective. Decision Support Systems, 51(1), 176–189.CrossRefGoogle Scholar
  27. Mell, P., & Grance, T. (2011). The NIST definition of cloud computing. NIST Special Publication, 145, 7 http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf. Accessed 13 October 2016.Google Scholar
  28. Moore, G., & Benbasat, I. (1991). Development of an instrument to measure the perceptions of adopting an information technology innovation. Information Systems Research, 2(3), 192–222.CrossRefGoogle Scholar
  29. Morgan, L., & Conboy, K. (2013). Factors affecting the adoption of cloud computing: An exploratory study. In Proceedings of the 21st European conference on information systems (pp. 1–12). Utrecht, Netherlands: AISeL.Google Scholar
  30. Nkhoma, M., & Dang, D. (2013). Contributing factors of cloud computing adoption: A technology-organisation-environment framework approach. International Journal of Information Systems and Engineering, 1(1), 38–49.Google Scholar
  31. Nuseibeh, H. (2011). Adoption of cloud computing in organizations adoption of cloud computing in organizations. In Proceedings of Americas Conference on Information Systems (pp. 372). Helsinki, Finland: AISeL.Google Scholar
  32. Oliveira, T., & Martins, M. (2011). Literature review of information technology adoption models at firm level. Electronic Journal of Information, 14(1), 110–121.Google Scholar
  33. 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.CrossRefGoogle Scholar
  34. Opitz, N., Langkau, T. F., Schmidt, N. H., & Kolbe, L. M. (2012). Technology acceptance of cloud computing: Empirical evidence from German IT departments. In Prodeedings of 45th Hawaii international conference on system sciences (pp. 1593–1602). Maui, HI, USA: IEEE.Google Scholar
  35. Petrescu, M. (2012). Cloud computing and business-to-business networks. International Journal of Business Information Systems, 10(1), 93–108.CrossRefGoogle Scholar
  36. Ragin, C. C. (2011). Constructing social research: The unity and diversity of method. Thousand Oaks: Pine Forge Press.Google Scholar
  37. Rajagopal, P. (2002). An innovation—Diffusion view of implementation of enterprise resource planning (ERP) systems and development of a research model. Information Management, 40(2), 87–114.CrossRefGoogle Scholar
  38. Rogers, E. M. (1962). Diffusion of innovations. New York: The Free Press.Google Scholar
  39. Saedi, A., & Iahad, N. (2013). An integrated theoretical framework for cloud computing adoption by small and medium-sized enterprises. In Proceedings of Pacific Asia Conference on Information Systems. Jeju Island, South Korea : AISeL.Google Scholar
  40. Samani, R., Honan, B., Reavis, J., & Jirasek, V. (2015). CSA guide to cloud computing: Implementing cloud privacy and security. Amsterdam: Syngress.Google Scholar
  41. Senarathna, I., Warren, M., Yeoh, W., & Salzma, S. (2015)A conceptual model for cloud computing adoption by SMEs in Australia.. In Delivery and Adoption of Cloud Computing Services in Contemporary Organizations (pp. 100–128). Hershey, PA: IGI Global.Google Scholar
  42. Stieninger, M., Nedbal, D., Wetzlinger, W., Wagner, G., & Erskine, M. a. (2014). Impacts on the organizational adoption of cloud computing: A reconceptualization of influencing factors. Procedia Technology, 16, 85–93.CrossRefGoogle Scholar
  43. Strauss, A., & Corbin, J. (2008). Basics of qualitative research: Techniques and procedures for developing grounded theory. Thousand Oaks: Sage.Google Scholar
  44. 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.CrossRefGoogle Scholar
  45. Webster, J., & Watson, R. T. (2003). Analyzing the past to prepare for the future: Writing a literature review. Management Information Systems Quarterly, 26(2), xiii–xxiii.Google Scholar
  46. Welsh, J. A., & White, J. F. (1981). A small business is not a little big business. Harvard Business Review, 59(4), 18–27.Google Scholar
  47. Wu, Y., Cegielski, C. G., Hazen, B. T., & Hall, D. J. (2013). Cloud computing in support of supply chain information system infrastructure: Understanding when to go to the cloud. Journal of Supply Chain Management, 49(3), 25–41.CrossRefGoogle Scholar
  48. Yang, H., & Tate, M. (2012). A descriptive literature review and classification of cloud computing research. Communications of the Association of Information Systems, 31, 35–60.CrossRefGoogle Scholar
  49. Yin, R. K. (2009). Case study research: Design and methods, essential guide to qualitative methods in organizational research. Essential guide to qualitative methods in organizational research (4th ed.). Thousand Oaks: Sage.Google Scholar
  50. Zhu, K., Kraemer, K. L., Xu, S., & Dedrick, J. (2004). Information technology payoff in E-business environments : An international perspective on value creation of E-business in the financial services industry. Journal of Management Information Systems, 21(1), 17–54.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC 2017

Authors and Affiliations

  1. 1.Department of Management StudiesIndian Institute of Technology MadrasChennaiIndia
  2. 2.Chair of Information SystemsUniversity of PassauPassauGermany

Personalised recommendations