Institutional Pressures and Cloud Computing Adoption: The Moderating Effect of Organizational Mindfulness

Abstract

The literature on cloud computing adoption has grown substantially. Most of the focus on the antecedents of cloud computing adoption. While some of these studies have investigated the relationship between institutional pressures and cloud computing adoption, there is a dearth of empirical literature on how organizations can moderate the bandwagon effect of institutional pressures. The current study aims at investigating the moderating role of organizational mindfulness on the relationship between institutional pressures and cloud computing adoption. A priori model was developed and tested through SEM. A firm level cross sectional survey was conducted on a sample of 60 financial institutions. The results indicate that organizational mindfulness has a small moderating effect on the relationship between institutional pressures and cloud computing adoption. An implication of this study is that financial institutions, should adopt cloud services that suite their own individual needs discerned through mindfulness rather than following institutional bandwagons.