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Hindi Exploring adoption and usage of cloud computing in SMES
Anuj Kumar
Apeejay School of Management, India
: J Comput Eng Inf Technol
Abstract
Introduction: In this document, the author is discussing the adoption and importance of cloud computing from the perspective of SMEs. The accelerated growth of SMEs is required for any developed or developing nation. Technology is the only way that can help SMEs in accelerated growth with the available resources. The author will discuss the theoretical frameworks and factors responsible for adoption based on previous literature. The author will also keep a check on the major drivers of cloud computing adoption. Objective: The major objective of the paper is to find out the factors responsible for the adoption of cloud computing in SMEs. Literature review: Neves et al. (2011) argued about cloud computing in SMEs. The authors have reviewed the literature and analyze the adoption of cloud computing from the perspective of Political, Economic, Social, and Technological factors. It has been identified that political factors which are leading towards the adoption of cloud computing are data protection, favorable policies towards SMEs technology adoption, and reduction in carbon emission. The economic factors leading towards adoption are innovation, competitive advantage, flexible pricing, improvement in cost, and productivity. Social factors lead to the user-friendly nature of technology, cooperation in information technology, the modern culture is also supporting the use of cloud computing. The technological factors are flexibility, reliability, and resistance to change. Cloud computing can make SMEs more competitive, and it can also help them in improving their worth. Tehrani & Shirazi (2014) also researched the adoption of cloud computing in SMEs. The researchers have performed a primary study on 101 SMEs. Theoretical frameworks adopted from the diffusion of innovation theory and TOE theory. The authors have discussed overall twelve factors of technology adoption. These factors include competitive pressure, external support, the innovative capability of decision-makers, knowledge about cloud computing, the skill set of employees on cloud computing, information intensity, relative advantage, cost, compatibility, trialability, complexity, and security. All the factors contribute to the adoption of cloud technology. Al Isma’ili et al. (2016) have also performed a study on the adoption of cloud computing in Australian SMEs. The data was collected from 203 firms located in Australia. Again the theoretical framework adoption for technology adoption is DOI theory and TOE theory. The technological factors contributing towards adoption are compatibility, reduction in overall cost, trialability, and relative advantages. The organizational factors contributing towards adoption are the size of the firm, support from top management, and innovative compatibility. Environmental factors include the overall scope of the market. Karkonasasi et al. (2016) also discussed the adoption of cloud computing in SMEs. The researchers have chosen the Malaysia region for the study. Again, the theoretical framework used for the adoption was the TOE framework. The data was collected from 41 Malaysian enterprises. The research results have shown that the adoption level is still low in SMEs. The organizational context is much more important for cloud computing adoption, followed by technology and environment. The significant factors which are contributing towards cloud computing adoption are the security of data, support from top management, cost-saving, pressure from peers (competitors), and pressure from trading partners. The Malaysian government needs to come together with IT enablers and decisions for making the adoption more appropriate for SMEs. Abdollahzadehgan et al. (2013) also argued organizational critical success factors for the adoption of cloud computing. Again the researchers have used the TOE framework to study the adoption factors of cloud computing in SMEs. There are various reasons for the adoption of cloud computing. A few of the reasons include it helps in providing centralized data, remote access of data is possible and easy implementation and better agility. After the COVID-19 pandemic, it is a must for SMEs to look for remote access to the data because the physical set-up is not always possible (Kumar, et al., 2020; Kumar & Ayedee, 2021). The other researchers have also identified the importance of technology adoption for SMEs in the field of marketing, business expansion, and achieving economies of scale (Kumar & Ayedee, 2021; Kumar & Pandey, 2018). Importance of cloud computing: SMEs don’t have the luxury of financial resources. Those organizations need to grow with limited resources. Cloud computing is important for SMEs to achieve the desired outcome with optimum utilization of resources available. With the adoption of cloud computing, it will be easy for organizations to work with employees at remote locations, and it will also help in business continuity and flow (Carcary, et al., 2014). Most of the researchers have found the importance of cloud computing in saving the money of small firms. They also talked about its mobility, quick access anywhere, security, and overall technological infrastructure is much simpler. In recent times, its importance has been increasing a lot because it is the solution provider of SMEs’ problems. Cloud computing and technology are the future. The firms realize it. They are making their employees technically skilled for the usage of cloud computing. Observations and future scope of research: Based on the literature review, it can be said that cloud computing adoption is still in its very nascent stage. The reviewed articles are showing that the most discussed theoretical framework for cloud computing adoption is the TOE framework. Cost reduction and remote access are the prime factors behind the adoption of cloud computing. Security, compatibility, and competitive advantage also are critical factors for adoption. In the TOE framework, organizational factors play a much more important role in comparison to technology and the environment. There is much future scope of research, as the results of previous researches can not be generalized. The researchers can test other theoretical models too for the adoption of cloud computing in SMEs. For example, In the Indian context, the UTAUT model and the factors associated with it can be tested.
Biography
Prof. Anuj Kumar is currently working as an Assistant Professor at the Apeejay School of Management, Dwarka, Delhi. He is pursuing an Executive-Ph. D in management from Aligarh Muslim University (Central University). He holds a double master’s degree in management with a specialization in Marketing and International Business. He has completed M.Sc. in International Business from University College Dublin, Ireland (Ranked among top 200 colleges of world – QS World ranking). He has published research papers in reputed SCOPUS/ Web of Science/ABDC/UGC Care Journals. He has more than 40 publications, one patent, three e-books, and 4 book chapters to his credit. He attended more than 30 conferences (National/International/ICSSR) and 30 FDPs. He is the associate editor for the Academy of Marketing Studies Journal (ABDC-B). He has also organized various FDPs and MDPs. Prof. Kumar has been invited as session chair, resource person, and judge in various conferences and FDPs.
