Logo PTI Logo FedCSIS

Proceedings of the 19th Conference on Computer Science and Intelligence Systems (FedCSIS)

Annals of Computer Science and Information Systems, Volume 39

Empirical Insights into Cloud Adoption: A new Model Exploring Influencing Factors for Saudi Arabian Small and Medium Enterprises

, ,

DOI: http://dx.doi.org/10.15439/2024F3044

Citation: Proceedings of the 19th Conference on Computer Science and Intelligence Systems (FedCSIS), M. Bolanowski, M. Ganzha, L. Maciaszek, M. Paprzycki, D. Ślęzak (eds). ACSIS, Vol. 39, pages 75–85 ()

Full text

Abstract. Cloud computing technology has emerged as a crucial driver of success for Small and Medium Enterprises (SMEs) globally, accelerating work processes and optimizing operations. Notably, SMEs in developed nations, including the United States and the United Kingdom, have proactively harnessed Cloud computing services, reaping substantial benefits in operational efficiency and time utilization. However, in many developing countries, including Saudi Arabia, most SMEs continue to rely on traditional technology, such as On-Premises Servers, instead of Cloud computing services. To investigate the factors influencing Cloud adoption, a new empirical model, the Adoption of Cloud Computing Model for Saudi Arabian SMEs (ACCM-SME), was developed. This study collected quantitative data from 412 participants representing Saudi SMEs in Riyadh city. The empirical data analysis revealed that 12 out of the 17 tested hypotheses exhibited significant positive influence, while five hypotheses failed to meet the specified research criteria and were consequently rejected. This research underscores the critical need to accelerate Cloud technology adoption among SMEs in developing countries, particularly Saudi Arabia. Bridging this technology gap has the potential to significantly enhance SMEs' competitiveness and operational efficiency, contributing to overall economic development. The ACCM-SME model provides nuanced insights into the factors influencing Cloud adoption, guiding further research. The study's rejected hypotheses highlight areas requiring attention for successful adoption. Policymakers and business leaders can leverage these findings to formulate strategies that facilitate Cloud adoption among SMEs.

References

  1. F. Dahlqvist, M. Patel, A. Rajko, and J. Shulman, “Growing opportunities in the Internet of Things,” McKinsey, July, 2019.
  2. M. Attaran, “Cloud computing technology: leveraging the power of the internet to improve business performance,” Journal of International Technology and Information Management, vol. 26, no. 1, pp. 112–137, 2017. http://dx.doi.org/https://doi.org/10.58729/1941-6679.1283.
  3. R. Almajalid, “A survey on the adoption of cloud computing in education sector,” arXiv preprint https://arxiv.org/abs/1706.01136, 2017. https://doi.org/10.48550/arXiv.1706.01136.
  4. W. Klug and X. Bai, “Factors affecting cloud computing adoption among universities and colleges in the United States and Canada.,” Issues in Information Systems, vol. 16, no. 3, 2015.
  5. R. Sahandi, A. Alkhalil, and J. Opara-Martins, “Cloud computing from SMEs perspective: a survey based investigation,” Journal of Information Technology Management, vol. 24, no. 1, pp. 1–12, 2013.
  6. M. O. Alassafi, A. Alharthi, R. J. Walters, and G. B. Wills, “Security risk factors that influence cloud computing adoption in Saudi Arabia government agencies,” in 2016 International Conference on Information Society (i-Society), IEEE, 2016, pp. 28–31. http://dx.doi.org/10.1016/j.tele.2017.04.010.
  7. B. S. Alghamdi, M. Elnamaky, M. A. Arafah, M. Alsabaan, and S. H. Bakry, “A Context Establishment Framework for Cloud Computing Information Security Risk Management Based on the STOPE View.,” IJ Network Security, vol. 21, no. 1, pp. 166–176, 2019. http://dx.doi.org/10.6633/IJNS.201901 21(1).21.
  8. Trade, “Saudi Arabia - Information and Communications Technology,” International Trade Adminstration. Accessed: Nov. 09, 2021. [Online]. Available: https://www.trade.gov/country-commercial-guides/saudi-arabia-information-and-communications-technology
  9. M. Alqahtani, N. Beloff, and M. White, “A new adoption of cloud computing model for Saudi Arabian SMEs (ACCM-SME),” in Proceedings of SAI Intelligent Systems Conference, Springer, 2022, pp. 192–210.
  10. M. Saunders, P. Lewis, and A. Thornhill, Research methods for business students. Pearson education, 2009.
  11. J. L. Perry, A. R. Nicholls, P. J. Clough, and L. Crust, “Assessing model fit: Caveats and recommendations for confirmatory factor analysis and exploratory structural equation modeling,” Meas Phys Educ Exerc Sci, vol. 19, no. 1, pp. 12–21, 2015. https://doi.org/10.1080/1091367X.2014.952370.
  12. W. M. A. B. W. Afthanorhan, S. Ahmad, and I. Mamat, “Pooled Confirmatory Factor Analysis (PCFA) using structural equation modeling on volunteerism program: A step by step approach,” International Journal of Asian Social Science, vol. 4, no. 5, pp. 642–653, 2014.
  13. T. Schmiedel, J. Vom Brocke, and J. Recker, “Development and validation of an instrument to measure organizational cultures’ support of Business Process Management,” Information & Management, vol. 51, no. 1, pp. 43–56, 2014. https://doi.org/10.1016/j.im.2013.08.005.
  14. J. F. Hair, W. C. Black, B. J. Babin, R. E. Anderson, and R. L. Tatham, “Multivariate data analysis (Vol. 6),” 2006.
  15. R. Kline, “Exploratory and confi rmatory factor analysis,” in Applied quantitative analysis in education and the social sciences, Routledge, 2013, pp. 183–217.
  16. Z. Awang, A. Afthanorhan, and M. A. M. Asri, “Parametric and non parametric approach in structural equation modeling (SEM): The application of bootstrapping,” Mod Appl Sci, vol. 9, no. 9, p. 58, 2015. http://dx.doi.org/10.5539/mas.v9n9p58.
  17. J. F. Hair, W. C. Black, B. J. Babin, and R. E. Anderson, Multivariate data analysis: Pearson new international edition PDF eBook. Pearson Higher Ed, 2013.
  18. C. Fornell and D. F. Larcker, “Evaluating structural equation models with unobservable variables and measurement error,” Journal of marketing research, vol. 18, no. 1, pp. 39–50, 1981. https://doi.org/10.2307/3151312.
  19. E. C. Papanastasiou, “Factor structure of the ‘Attitudes Toward Research’ scale,” Statistics education research journal, vol. 4, no. 1, pp. 16–26, 2005. http://dx.doi.org/10.1037/t64085-000.
  20. A. F. Hayes and K. J. Preacher, “Statistical mediation analysis with a multicategorical independent variable,” British journal of mathematical and statistical psychology, vol. 67, no. 3, pp. 451–470, 2014. https://doi.org/10.1111/bmsp.12028.
  21. D. Alrubaishi and P. Robson, “Innovation in Saudi Family SMEs: The Role of Social Capital and Family Involvement.,” International Review of Entrepreneurship, vol. 17, no. 1, 2019.
  22. M. R. Faridi and A. Malik, “Customer engagement technology in sme’s in Saudi Arabia: Does it ensue in disturbance or disruption,” International Journal of Entrepreneurship, vol. 23, no. 1, pp. 1–8, 2019.
  23. K. Mezghani and M. A. Almansour, “Study of Intentions to Use Cloud CRM Within Saudi SMEs: Integrating TAM and TPB Frameworks,” in Business Transformations in the Era of Digitalization, IGI Global, 2019, pp. 33–50. http://dx.doi.org/10.4018/978-1-5225-7262-6.ch003.
  24. Y. AlHumaidan, L. AlAjmi, M. Aljamea, and M. Mahmud, “Analysis of cloud computing security in perspective of saudi arabia,” in 2018 IEEE 20th International Conference on e-Health Networking, Applications and Services (Healthcom), IEEE, 2018, pp. 1–4. http://dx.doi.org/10.1109/HealthCom.2018.8531141.
  25. D. Chen and H. Zhao, “Data security and privacy protection issues in cloud computing,” in 2012 international conference on computer science and electronics engineering, IEEE, 2012, pp. 647–651. http://dx.doi.org/10.1109/ICCSEE.2012.193.
  26. A. Khayer, M. S. Talukder, Y. Bao, and M. N. Hossain, “Cloud computing adoption and its impact on SMEs’ performance for cloud supported operations: A dual-stage analytical approach,” Technol Soc, vol. 60, p. 101225, 2020. http://dx.doi.org/10.1016/j.techsoc.2019.101225.
  27. N. Al Mudawi, N. Beloff, and M. White, “Developing a framework of critical factors affecting the adoption of cloud computing in government systems (ACCE-GOV),” in Intelligent Computing: Proceedings of the 2021 Computing Conference, Volume 1, Springer, 2022, pp. 520–538. https://doi.org/10.1007/978-3-030-80119-9_32.
  28. F. Alharbi, A. Atkins, and C. Stanier, “Understanding the determinants of Cloud Computing adoption in Saudi healthcare organisations,” Complex & Intelligent Systems, vol. 2, pp. 155–171, 2016. http://dx.doi.org/10.1007/s40747-016-0021-9.
  29. H. Hassan, M. H. Mohd Nasir, and N. Khairudin, “Cloud computing adoption in organisations: review of empirical literature,” in SHS Web of Conferences, EDP Sciences., 2017. https://doi.org/10.1051/shsconf/20173402001.
  30. H. Hassan, M. H. M. Nasir, N. Khairudin, and I. Adon, “Factors influencing cloud computing adoption in small medium enterprises,” Journal of Information and Communication Technology, vol. 16, no. 1, pp. 21–41, 2017.
  31. A. Tarhini, A. Al-Badi, M. Almajali, and S. H. Alrabayaah, “Factors Influencing Employees¡ Intention to Use Cloud Computing,” Journal of Management and Strategy, vol. 8, no. 2, pp. 47–62, 2017.
  32. A. Cardoso, F. Moreira, and D. F. Escudero, “Information technology infrastructure library and the migration to cloud computing,” Univers Access Inf Soc, vol. 17, no. 3, pp. 503–515, 2018.
  33. M. Al-Ruithe, E. Benkhelifa, and K. Hameed, “Key issues for embracing the cloud computing to adopt a digital transformation: A study of saudi public sector,” Procedia Comput Sci, vol. 130, pp. 1037–1043, 2018. https://doi.org/10.1016/j.procs.2018.04.145.
  34. T. Alsafi and I.-S. Fan, “Investigation of Cloud Computing Barriers: A Case Study in Saudi Arabian SMEs,” Journal of Information Systems Engineering and Management, vol. 5, no. 4, p. em0129, 2020. https://doi.org/10.29333/jisem/8534.
  35. C. Low, Y. Chen, and M. Wu, “Understanding the determinants of cloud computing adoption,” Industrial management & data systems, vol. 111, no. 7, pp. 1006–1023, 2011. http://dx.doi.org/10.1108/02635571111161262.
  36. K. K. Hiran, “Impact of Driving Factors on Cloud Computing Adoption in the Higher Education,” in IOP Conference Series: Materials Science and Engineering, IOP Publishing, 2021, p. 012016. http://dx.doi.org/10.1088/1757-899X/1131/1/012016.
  37. N. Alkhater, R. Walters, and G. Wills, “An empirical study of factors influencing cloud adoption among private sector organisations,” Telematics and Informatics, vol. 35, no. 1, pp. 38–54, Apr. 2018, http://dx.doi.org/10.1016/J.TELE.2017.09.017.
  38. H. M. Sabi, F.-M. E. Uzoka, and S. V Mlay, “Staff perception towards cloud computing adoption at universities in a developing country,” Educ Inf Technol (Dordr), vol. 23, pp. 1825–1848, 2018.
  39. M. Jaradat, H. T. Ababneh, K. M. Faqih, and N. M. Nusairat, “Exploring cloud computing adoption in higher educational environment: an extension of the UTAUT model with trust,” International Journal of Advanced Science and Technology, vol. 29, no. 5, pp. 8282–8306, 2020.