Factors Influencing SMEs’ Adoption of Cloud Computing Services in Lebanon: An Empirical Analysis Using TOE and Contextual Theory

Abstract

An increasingly important advancement in information and communication technologies is cloud computing, and a remarkably increasing trend is its adoption by various organizations. The trend is attributed to the potential of this growing computing paradigm to improve the scalability, efficiency, and reliability of IT systems. Diffusion of cloud computing innovation is changing the way business information systems are developed, paid for, and maintained Alshamaila et al. 2013, Low et al. 2011, thus contributing to efficiency and better value for enterprises. This not only applies to large organizations, but also progressively more to small and medium-sized enterprises (SMEs). However, little is known about the factors most likely to be associated to the adoption behavior of cloud computing services among small and medium enterprises operating in Lebanon. This study deploys the technology-organization-environment (TOE) framework and the Contextual Theory to empirically examine the determinants of cloud computing service adoption in a developing country, namely Lebanon. A model is proposed, and data collected from 139 respondents working in SMEs in Lebanon and analyzed using confirmatory factor analysis and logistic regression in SPSS provide strong support for the model. Results indicate that technological (i.e., complexity and security) and organizational (i.e., top management support and prior IT experience) factors are positively related to the decision to adopt cloud computing services. Moreover, one of the areas of potential interest is the effect of country-specific, or contextual factors, among those who intend to adopt cloud computing. The analysis shows that context-specific factors (i.e. poor infrastructure and lack of government initiatives) are negatively related to the adoption decision. Implications and limitations are discussed, and recommendations for future research are proposed.