Understanding the Drivers of Cloud-Based Service Adoption and Their Impact on the Organizational Performance

Prerna Lal, Sangeeta Bharadwaj

OAI: oai:igi-global.com:242966 • DOI: 10.4018/JGIM.2020010104

This study aims to understand the drivers of cloud-based services (CBS) adoption and its impact on the performance of Indian organizations. The conceptual model was developed using diffusion of innovation theory, technology-organization-environment framework, transaction cost economics, technology acceptance model, and balanced scorecard model. This quantitative study collected data from IT experts of 334 Indian organizations using questionnaire survey method. Data analysis using structural equation modelling reveals that among six identified drivers, credibility of cloud service provider has the strongest impact on the decision to adopt CBS, followed by top management attitude, economic flexibility, perceived usefulness, and relative advantage. While perceived ease of use of the CBS was found statistically not significant. Conversely, the impact of CBS adoption was found strongest on the financial performance of the organizations. Further, CBS's adoption drivers and their impact on performance vary significantly on the basis of age and size of the organizations.

Global Information Technology Computer Science and Information Technology IT Research and Theory