IDEAS home Printed from https://ideas.repec.org/a/eee/ininma/v33y2013i5p861-874.html
   My bibliography  Save this article

The usage and adoption of cloud computing by small and medium businesses

Author

Listed:
  • Gupta, Prashant
  • Seetharaman, A.
  • Raj, John Rudolph

Abstract

Cloud computing has become the buzzword in the industry today. Though, it is not an entirely new concept but in today's digital age, it has become ubiquitous due to the proliferation of Internet, broadband, mobile devices, better bandwidth and mobility requirements for end-users (be it consumers, SMEs or enterprises). In this paper, the focus is on the perceived inclination of micro and small businesses (SMEs or SMBs) toward cloud computing and the benefits reaped by them. This paper presents five factors influencing the cloud usage by this business community, whose needs and business requirements are very different from large enterprises. Firstly, ease of use and convenience is the biggest favorable factor followed by security and privacy and then comes the cost reduction. The fourth factor reliability is ignored as SMEs do not consider cloud as reliable. Lastly but not the least, SMEs do not want to use cloud for sharing and collaboration and prefer their old conventional methods for sharing and collaborating with their stakeholders.

Suggested Citation

  • Gupta, Prashant & Seetharaman, A. & Raj, John Rudolph, 2013. "The usage and adoption of cloud computing by small and medium businesses," International Journal of Information Management, Elsevier, vol. 33(5), pages 861-874.
    • Handle: RePEc:eee:ininma:v:33:y:2013:i:5:p:861-874
    DOI: 10.1016/j.ijinfomgt.2013.07.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S026840121300087X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijinfomgt.2013.07.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Emil BURTESCU, 2010. "Reliability and Security - Convergence or Divergence," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 14(4), pages 68-77.
    2. Linda Low, 2005. "Entrepreneurship Development in Ireland and Singapore," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 10(1), pages 116-138.
    3. Bernroider, Edward, 2002. "Factors in SWOT Analysis Applied to Micro, Small-to-Medium, and Large Software Enterprises:: an Austrian Study," European Management Journal, Elsevier, vol. 20(5), pages 562-573, October.
    4. Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
    5. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    6. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    7. Federico Etro, 2011. "The Economics of Cloud Computing," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(2), pages 7-22, May.
    8. Shahriar Akter & John D'Ambra & Pradeep Ray, 2011. "Trustworthiness in mHealth information services: An assessment of a hierarchical model with mediating and moderating effects using partial least squares (PLS)," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 62(1), pages 100-116, January.
    9. Shahriar Akter & John D'Ambra & Pradeep Ray, 2011. "Trustworthiness in mHealth information services: An assessment of a hierarchical model with mediating and moderating effects using partial least squares (PLS)," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 62(1), pages 100-116, January.
    10. Sathiadev Mahesh & Brett J. L. Landry & T. Sridhar & Kenneth R. Walsh, 2011. "A Decision Table for the Cloud Computing Decision in Small Business," Information Resources Management Journal (IRMJ), IGI Global, vol. 24(3), pages 9-25, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sharma, Mahak & Singh, Anupama & Daim, Tugrul, 2023. "Exploring cloud computing adoption: COVID era in academic institutions," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    2. Pei-Fang Hsu, 2022. "A Deeper Look at Cloud Adoption Trajectory and Dilemma," Information Systems Frontiers, Springer, vol. 24(1), pages 177-194, February.
    3. Baillette, Paméla & Barlette, Yves & Leclercq-Vandelannoitte, Aurélie, 2018. "Bring your own device in organizations: Extending the reversed IT adoption logic to security paradoxes for CEOs and end users," International Journal of Information Management, Elsevier, vol. 43(C), pages 76-84.
    4. Hosseini, Sahab & Fallon, Grahame & Weerakkody, Vishanth & Sivarajah, Uthayasankar, 2019. "Cloud computing utilization and mitigation of informational and marketing barriers of the SMEs from the emerging markets: Evidence from Iran and Turkey," International Journal of Information Management, Elsevier, vol. 46(C), pages 54-69.
    5. Gaurav, Akshat & Gupta, Brij B. & Panigrahi, Prabin Kumar, 2022. "A novel approach for DDoS attacks detection in COVID-19 scenario for small entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    6. Alenka Lena Klopcic & Jana Hojnik & Stefan Bojnec & Drago Papler, 2020. "Global Transition to the Subscription Economy: Literature Review on Business Model Changes in the Media Landscape," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 18(4 (Winter), pages 323-348.
    7. Jayalaxmi P Shetty & Rajesh Panda, 2021. "An overview of cloud computing in SMEs," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 175-188, December.
    8. Vazquez-Martinez, Gerardo A. & Gonzalez-Compean, J.L. & Sosa-Sosa, Victor J. & Morales-Sandoval, Miguel & Perez, Jesus Carretero, 2018. "CloudChain: A novel distribution model for digital products based on supply chain principles," International Journal of Information Management, Elsevier, vol. 39(C), pages 90-103.
    9. Shim, Seonyoung & Lee, Byungtae & Kim, Sojung Lucia, 2018. "Rival precedence and open platform adoption: An empirical analysis," International Journal of Information Management, Elsevier, vol. 38(1), pages 217-231.
    10. Shahbaz, Muhammad & Zahid, Rimsha, 2022. "Probing the factors influencing cloud computing adoption in healthcare organizations: A three-way interaction model," Technology in Society, Elsevier, vol. 71(C).
    11. Hsu, Pei-Fang & Ray, Soumya & Li-Hsieh, Yu-Yu, 2014. "Examining cloud computing adoption intention, pricing mechanism, and deployment model," International Journal of Information Management, Elsevier, vol. 34(4), pages 474-488.
    12. Sahut, Jean Michel & Lissillour, Raphael, 2023. "The adoption of remote work platforms after the Covid-19 lockdown: New approach, new evidence," Journal of Business Research, Elsevier, vol. 154(C).
    13. Omar Ali & Anup Shrestha & Maryam Ghasemaghaei & Ghassan Beydoun, 2022. "Assessment of Complexity in Cloud Computing Adoption: a Case Study of Local Governments in Australia," Information Systems Frontiers, Springer, vol. 24(2), pages 595-617, April.
    14. Liu, Sen & Chan, Felix T.S. & Yang, Junai & Niu, Ben, 2018. "Understanding the effect of cloud computing on organizational agility: An empirical examination," International Journal of Information Management, Elsevier, vol. 43(C), pages 98-111.
    15. Wang, Feng-Kwei & He, Wu, 2014. "Service strategies of small cloud service providers: A case study of a small cloud service provider and its clients in Taiwan," International Journal of Information Management, Elsevier, vol. 34(3), pages 406-415.
    16. Li, Xin & Qian, Zhuzhong & You, Ilsun & Lu, Sanglu, 2014. "Towards cost efficient mobile service and information management in ubiquitous environment with cloud resource scheduling," International Journal of Information Management, Elsevier, vol. 34(3), pages 319-328.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hedaya Abusafiya & Saad Suliman, 2017. "Causes and Effects of Cost Overrun on Construction Project in Bahrain: Part 2 (PLS-SEM Path Modelling)," Modern Applied Science, Canadian Center of Science and Education, vol. 11(7), pages 1-28, July.
    2. A. Seetharaman & Vikas Kumar Sahu & A. S. Saravanan & John Rudolph Raj & Indu Niranjan, 2017. "The Impact of Risk Management in Credit Rating Agencies," Risks, MDPI, vol. 5(4), pages 1-16, September.
    3. Asif Khan & Chih-Cheng Chen & Kwanrat Suanpong & Athapol Ruangkanjanases & Santhaya Kittikowit & Shih-Chih Chen, 2021. "The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital," Sustainability, MDPI, vol. 13(21), pages 1-25, November.
    4. Ming Yang & Jinglu Jiang & Melody Kiang & Fangyun Yuan, 2022. "Re-Examining the Impact of Multidimensional Trust on Patients’ Online Medical Consultation Service Continuance Decision," Information Systems Frontiers, Springer, vol. 24(3), pages 983-1007, June.
    5. Fatih Özcan & Meral Elçi, 2020. "Employees’ Perception of CSR Affecting Employer Brand, Brand Image, and Corporate Reputation," SAGE Open, , vol. 10(4), pages 21582440209, November.
    6. Loureiro, Sandra Maria Correia & Araújo, Cristiano Mineiro Branco de, 2014. "Luxury values and experience as drivers for consumers to recommend and pay more," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 394-400.
    7. Lei, Jing & de Ruyter, Ko & Wetzels, Martin, 2008. "Consumer Responses to Vertical Service Line Extensions," Journal of Retailing, Elsevier, vol. 84(3), pages 268-280.
    8. Arumugam Seetharaman & Saurabh Singhal & Pankaj Galdhar & John Rudolph Raj & A. S. Saravanan, 2016. "Customers’ Expectations for Next Generation Internet Banking," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-28, March.
    9. Chee-Hua Chin & May-Chiun Lo & T. Ramayah, 2013. "Market Orientation and Organizational Performance," SAGE Open, , vol. 3(4), pages 21582440135, November.
    10. Ana Lanero & José-Luis Vázquez & César Sahelices-Pinto, 2020. "Heuristic Thinking and Credibility of Organic Advertising Claims: The Role of Knowledge and Motivations," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    11. A. Seetharaman & A.S. Saravanan & Nitin Patwa & Jigar Mehta, 2017. "Impact of Bitcoin as a World Currency," Accounting and Finance Research, Sciedu Press, vol. 6(2), pages 230-230, May.
    12. Asif Khan & Chih-Cheng Chen & Kuan-Hua Lu & Ardy Wibowo & Shih-Chih Chen & Athapol Ruangkanjanases, 2021. "Supply Chain Ambidexterity and Green SCM: Moderating Role of Network Capabilities," Sustainability, MDPI, vol. 13(11), pages 1-13, May.
    13. Bertrand Venard, 2013. "Institutions, Corruption and Sustainable Development," Post-Print hal-00874275, HAL.
    14. Linder, Christian, 2019. "Customer orientation and operations: The role of manufacturing capabilities in small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 216(C), pages 105-117.
    15. Jaafar, Mastura & Noor, Shuhaida Md & Rasoolimanesh, S. Mostafa, 2015. "Perception of young local residents toward sustainable conservation programmes: A case study of the Lenggong World Cultural Heritage Site," Tourism Management, Elsevier, vol. 48(C), pages 154-163.
    16. Wee-Kek Tan & Chuan-Hoo Tan & Hock-Hai Teo, 2012. "Conveying information effectively in a virtual world: Insights from synthesized task closure and media richness," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 63(6), pages 1198-1212, June.
    17. Bertrand Venard, 2013. "Institutions, Corruption and Sustainable Development," Economics Bulletin, AccessEcon, vol. 33(4), pages 2545-2562.
    18. Tsou, Hung-Tai & Hsu, Sheila Hsuan-Yu, 2015. "Performance effects of technology–organization–environment openness, service co-production, and digital-resource readiness: The case of the IT industry," International Journal of Information Management, Elsevier, vol. 35(1), pages 1-14.
    19. Mareike Bergmann & Christian Brück & Thorsten Knauer & Anja Schwering, 2020. "Digitization of the budgeting process: determinants of the use of business analytics and its effect on satisfaction with the budgeting process," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(1), pages 25-54, April.
    20. Hani, Umme & Akter, Shahriar & Wickramasinghe, Ananda & Kattiyapornpong, Uraiporn, 2021. "How does relationship quality sustain the rich world’s poorest businesses?," Journal of Business Research, Elsevier, vol. 133(C), pages 297-308.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ininma:v:33:y:2013:i:5:p:861-874. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-information-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.