Factors Influencing Cloud Computing Adoption by Small and Medium-Sized Enterprises (SMEs) In India

Abstract

The purpose of this paper is to examine and assess the determinants of cloud computing adoption by small and medium-sized enterprises (SMEs) in an Indian context through an integrated research framework. A questionnaire based survey method was used to collect data from 271 SMEs from the northern region of India. An integrated model founded on Technology Acceptance Model (TAM), Diffusion of Innovation (DOI) and Technology-OrganizationEnvironment (TOE) was proposed to test ten hypotheses through a confirmatory factor analysis and structural equation modelling. The analysis reveals that relative advantage, security concerns, top management support, external pressure and service providers’ support are the significant factors which influence intention to adopt cloud computing by SMEs in India. The integrated research framework used and validated in this study is intended to enhance the predictive power of the ensuing model. The empirically validated research model and the instrument used for data collection can be adopted in other similar studies. The findings of this study can be useful for consumers, practitioners, and policy makers who are involved in utilizing, spreading and promoting the adoption of cloud computing among organizations, especially the SMEs.