A developmental model of key factors affecting adoption of cloud-based services in Indian small and medium-sized enterprises
Creators: name: Sandu, Nitirajsingh
Publisher: name: Central Queensland University
Year: 2019
Subjects: Cloud computing (CC)
Indian SME
Technology adoption
Developmental model
Technology organisation and environmental (TOE) factors
Diffusion of innovation (DOI)

description: The aim of this research is to develop a model of key factors influencing the adoption of Cloud-based services in Indian small and medium-sized enterprises (SMEs). As the role of information technology (IT) firms becomes increasingly important, Cloud computing (CC) has become a priority source for powerful computing applications, and social media tend to favour the choice of Cloud-centric services so as to gain a developmental advantage. In India, SMEs are confronted with issues because of the lack of information about Cloud services. Currently, when compared with large firms, SMEs possess less capital, and employees are generally hired on lower pay packages. Hence, given this drawback, SMEs often suffer from a lack of the necessary human resources to support basic IT requirements, that is, SMEs have infrequent full-time IT staff or are unable to afford traditional IT departments. However, SMEs are the backbone of the Indian economy. They generate considerable employment opportunities and utilise innovative technology to improve competitiveness by reducing costs and improving productivity, and this includes the use of CC. Given these important considerations, the present study has analysed the elements that influence the acceptance of Cloud-centric services among SMEs in India. The acceptance of the Cloudcentric services in Indian SMEs is dependent upon some critically relevant positive and negative factors. To acquire feedback from Indian SMEs regarding this phenomenon, questionnaire-centred research has been employed, and this has revealed that, apart from organisational and technological factors, both environmental and innovative components affect the acceptance of Cloud-centric services. However, the present research specifically identifies that there is no significant relationship between acceptance and technological and organisational factors, though these factors facilitate the growth of SMEs. This study takes positivism as its research paradigm. The research has adopted a positivist approach since it will evaluate the factors influencing Indian SMEs in their adoption of Cloud-based services using statistical techniques such as descriptive statistics, confirmatory factor analysis and structural equation modelling (SEM) analysis. Consequently, SMEs are considered as a unit of research with regards to epistemology in this analytical work. A quantitative study has been deemed appropriate because it enables a greater in-depth analysis of the underlying factors. The research suggests that the Indian Government and states need to provide support to aid SMEs that are planning CC adoption. A model/framework is proposed that shows the preparatory steps in ensuring efficient migration to the Cloud environment. In addition, research communities need to focus on the growing literature base that is precisely tailored to CC adoption within the SME context. The model will assist SMEs through the development of easy steps to adoption, which may inspire the SMEs to be more prepared and organised in their Cloud adoption efforts. Correspondingly, availability of this sort of model and related assistance might also inspire greater CC adoption among SMEs, as some respondents in the present research have not yet implemented CC. This model can be an essential incentive in improving financial competitiveness, and it can provide many benefits to SMEs through embracing CC.