Research On ICT Adoption Of Cloud Computing In Small & Medium Enterprises (SMEs)of Pakistan

The advent of Cloud Computing(CC)in the Information Technologies(IT)is providing new business opportunities to Small and Medium Enterprises(SMEs).Typically,CC offers dynamic ICT services through its variant deployment modes to each type of firms.CC got much attention in SMEs sector,because it is cost effective in providing convenient IT service platform.With the adoption of CC,SMEs will put more attention towards their core competencies irrespective of financial,HR,technological and other related problems.CC adoption in SMEs improves their productivity,growth and drags them towards development.So,as a result SMEs consistently play successful role in the country's economy.The present era of digital economy demands the application of high-tech in every sector of the economy and also it has become a key source of sustainable development.A number of dominated and emerging economies and their corporate sectors are earning above average return because of the adoption of high-tech in the form of information and communication technology(ICT)and its features.In these economies SMEs sector is in forefront to adopt emerging technology because of the nature of their competitive market.Also,SMEs are considered one of the major contributor to the overall country's GDP,employment opportunities,poverty alleviation and export revenue generations.For the sustainable development and growth of SMEs sector,it remained a primary requirement to adopt the emerging technologies,so that to devastate the challenges.The primary objective of this dissertation is to investigate the adopting determinants of CC among SMEs of Pakistan.Generally,there is a diverse set of adopting factors available in the literature that affect the SMEs intentions.In the light of two key adoption theories Technology-Organization-Environment(TOE)and Diffusion of Innovation Theory(DIT),this study aims to investigate the CC adoption determinants in SMEs.Moreover,it also aims to develop CC adoption model pertaining the overall dimensions of both theories TOE and DIT.Finally,it validates to construct a model by applying some statistical techniques and put forward study's implications.Exploratory and explanatory research approaches are used to attain the objectives of the study.A research framework of CC adoption was developed,for the preliminary test.Pilot study was conducted based on ten interviews of SMEs'stakeholders.Findings of pilot study were incorporated into the second stage of empirical section which involved 204 SMEs of Pakistan.Data were collected both through online and manually distributed paper questionnaires from SMEs' owners,managers and relevant staff.A random sampling and convenience sampling techniques was utilized for data collection.Data were analyzed by using validity(discriminant and convergent)and reliability tests,missing value treatment,confirmatory factor analysis and structural equation modeling.All statistical tests were generated by SPSS and AMOS version 20.To test the measurement model and hypotheses relation,CFA were employed.Study results revealed that CC adoption is still at nascent stage in Pakistan,however,extensive number of SMEs in the country expressed their intentions to adopt CC swiftly in near future.This dissertation mainly contributed to study factors affecting CC adoption in SMEs of Pakistan.Followings are the dissertation contributions.(1)This dissertation constructed a new theoretical approach called I-TOE,which is developed by the combination of two prominent adoption theories DIT and TOE.Existing literature revealed that several researchers followed both theories to support their work,but did not segregate the characteristics of TOE and DIT properly.So as a result they mixed and overlapped the dimensions of both theories.In order to overcome these issues,this study focused to segregate the characteristics of technology and innovation attributes.Although technology and innovation dimensions retain almost the similar characteristics,for instance,the characteristics of relative advantages and security issues constructs were examined through technological domain and the scholars did not differentiate these dimensions properly.However relative advantage is solely related to innovation context,because innovation is relatively advantageous only when it adds value or create something new which is unknown.While,technology refers to scientific applications that transform knowledge which is known.Consequently,relative advantage attribute should be connected with DIT theory.I-TOE theory seems to be more comprehensive and holistic in nature.By using this approach researcher will extensively examine the diffusion determinants of any information system in the organizations.(2)This dissertation built-up a CC adoption model which is correlated with ten variables.This model is more appropriate to examine the influential determinants of CC in SMEs.Results of revealed that CC adoption in SMEs of Pakistan is positively affected by eight cogent factors,namely relative advantage,cost reduction,compatibility,technology readiness,managerial support,firm size,competitive pressures and regulatory support.However,dynamic complexity and security issues seem to have a negative effect on ICT adoption of CC in SMEs of Pakistan.These cogent factors relatively related with four main dimensions namely technological,innovational,organizational and environmental.The purpose was accomplished to answer the central research question i.e.,"what drives the CC adoption in SMEs of Pakistan in order to optimize their resources and to gain sustainable competitive advantage at national and international levels".(3)This dissertation established a rank model of CC determinants,which align the precedence of CC adoption variables in the context of SMEs of Pakistan.This study,further elaborated the importance of profoundly affected CC determinants.Based on the study's findings,a rank adoption model has been established.Basically rank model prioritize the weightages of independent variables those strongly associated with dependent variable.Based on path coefficient values from SEM model,findings revealed that the relative advantage,and compatibility are strongly influential CC determinants in the context of SMEs of Pakistan.Hence SMEs and service providers require to pay more attention to CC services,whether these are relatively advantageous and compatible with their existing infrastructure.However,the rest of variables of this study have also significant impact in the adoption according to the priority of the rank model.This method will be more convenient and helpful for SMEs owners,service providers in the adoption process of CC.This study is the pioneer to investigate about the ICT adoption of CC determinants in Pakistani SMEs.The study findings tried to improve comprehension of the CC adoption process across different SMEs sectors in a developing country.The outcome of this dissertation propagate significant implications and great value to the research scholars,owners/managers and ICT providers,in terms of formulating better plans and strategies for CC adoption in SMEs.