Factors That Contribute to The Resistance to Cloud Computing Adoption by Tech Companies vs. Non-Tech Companies


Cloud computing (CC) may be the most significant development in recent history for businesses seeking to utilize technology. However, the adoption of CC hinges on many factors, and can have a greater positive impact on organizational performance. This study examined the different factors that contribute to the resistance to CC adoption. Anchored in The Theory of Technology-Organization-Environment (TOE), the study used a qualitative, grounded theory approach to develop a theoretical model for the acceptance of CC across firms. CC can have significant effects on efficiency and productivity for firms, but these effects will only be realized if IT usage becomes utilized globally. Thus, it was essential to understand the determinants of IT adoption, which was the goal of this research. The central research question involved understanding and examining the factors of resistance that contribute to cloud computing adoption across firms. Data was collected through semi-structured interviews with 22 chief information officers (CIOs) of various firms, including those considered technology companies (TCs) and those considered non-technology companies (NTCs). Data was analyzed using qualitative thematic analysis to determine what factors influence the adoption of CC systems and, moreover, to determine what factors create resistance to the adoption of CC in firms despite its well-documented advantages and benefits. Additionally, by examinging and focusing on the factors of resistance, the rsults of this study were generalized across a wider array of firms located in the Southeastern region of the US. A total of 12 categories were identified. These were organized into two groups. The core category being financial risks represented the probability of loss inherent in financing methods which may impair the ability to provide adequate return. The categories lack of knowledge, resistance to change, excessive cost to adopt, and cost saving fit under financial risks. Together these categories were indicators of the factors of resistance to adopt cloud computing technology. The core category security risks represented the overall perception of privacy in online environment. The categories process of research, accessing organization fit, perceived security risks, phased deployment, approval to adopt, and increase flexibility fit under security risks. Together these categories were direct indicators of the factors of resistance that contribute to the adoption of cloud computing technology by both TC and NTC. The result of this study showed that the predominant and critical factors of resistance that contribute to cloud computing adoption by TC were financial risks and security risks vs. security risks by NTC. A critical distinction between TC and NTC is that 86.4% of NTC’s participants did not care about cost, they only cared about data security. A model was subsequently developed based on the lived experiences of Chief Information Officers (CIOs) who have been faced with challenges regarding cloud acceptance, and cloud computing adoption. The theoretical model produced by this study may guide future researchers and enhance the understanding and implementation of cloud computing technologies. The results of this study will add to the body of literature and may guide companies attempting to implement cloud computing to do so more successfully

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This paper was published in NSU Works.

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