[2023-02] Exploring Factors Influencing Cloud Computing Adoption Decisions in Large Corporate Groups: The effect of organizational inertia in IT affiliates.
Exploring Factors Influencing Cloud Computing Adoption Decisions in Large Corporate Groups: The effect of organizational inertia in IT affiliates. Kang, Jaewon Moon Soul Graduate School of Future Strategy, KAIST
Yi, Sangyoon Moon Soul Graduate School of Future Strategy, KAIST
Abstract Cloud computing is a booming market that is expected to double in size in the next five years, showing how important it is as a basic IT infrastructure for organizations. Many researchers view cloud computing as a new type of IT Outsourcing (ITO) that requires changes in how organizations source their IT needs. There is a lot of research on what factors influence sourcing decisions for ITO, but most studies on cloud computing sourcing decisions only focus on technical aspects. However, there are many other factors that can affect the decision to adopt cloud computing. This study aims to identify the key factors that influence the transition to cloud computing for large corporates. To do this, we propose a research model based on the Technology-Organization-Environment (TOE) framework and the Push-Pull-Mooring (PPM) model from migration theory. We use variables from previous research on ITO decision making and recent studies on cloud computing to see if the same factors that determine sourcing decisions for ITO also apply to cloud computing sourcing decisions. In particular, we look at the role of IT affiliates within large domestic corporate groups, which have a significant impact on the cloud computing transition of their parent organizations. This aspect has been surprisingly overlooked by most research. We consider IT affiliates as a major mooring factor that makes organizations hesitate to adopt cloud computing due to organizational inertia and we plan to test their effect empirically.