Factors affecting the adoption of cloud computing by SMES in Sabah

• Main Author: Chin, Fook Ming
• Format: Thesis
• Language: English
• Published: 2019
• Online Access: https://eprints.ums.edu.my/id/eprint/25142/1/Factors%20affecting%20the%20adoption%20of%20cloud%20computing%20by%20SMES%20in%20Sabah.pdf; https://eprints.ums.edu.my/id/eprint/25142/

Cloud computing offers organisations many benefits such as cost saving with pay-as­you-go structure, enhanced flexibility of work practices, ubiquitous access of shared resources and applications, as well as scalability in terms of operational resources and storage needs. Despite the benefits, Small and Medium Enterprises (SMEs) are still hesitated towards the adoption of cloud computing services as compared to large organisations. Moreover, recent cloud computing studies show that the adoption rate of cloud computing is slower than anticipated. Hence, it is important to determine and understand the adoption of cloud computing services in SMEs as compared to large organisations. Nonetheless, there are only limited literature, works and research frameworks that were designed to examine the factors affecting the adoption of cloud computing by SMEs in the context of Sabah. Therefore, this study attempts to bridge the gap by studying various factors affecting the adoption of cloud computing by SMEs in Sabah. As the Technology Organisation Environment (TOE) framework is a matured framework to study IT adoption within the organisation, it is chosen as the research model to conduct this research. In this research, data were collected via survey questionnaires from 500 SMEs across all sectors within Sabah. There was a total of twelve factors have been verified in this research, and the results indicated that compatibility, cost saving, top management support, technology readiness and regulatory support were factors affecting the adoption of cloud computing by SMEs in Sabah. However, other factors, such as relative advantage, complexity, security and privacy, firm size, competitive pressure, trading partner pressure and external support have not affected the adoption. Therefore, the current research findings have provided another insight and clarity information for the SMEs' decision and policymakers in various sectors for the better understanding of the various influential factors which affect the SMEs perceptions on the importance of adopting cloud computing. Besides, in order to promote the adoption of cloud computing among SMEs in Sabah, cloud service providers have to provide reliable services and secure environments in the most cost-effective, scalable and accessible manner to the customers. For example, 24/7 technical support for cloud services can be provided to gain confidence from the customers, thus help to increase the adoption of cloud computing among SMEs in Sabah. Lastly, the government agencies may use it as a roadmap to promote the use of cloud computing among SMEs as well as to decide on appropriate policies, legislative measure and economic incentives.