A Multi-Perspective Framework Established on Diffusion of Innovation (DOI) Theory and Technology, Organization and Environment (TOE) Framework Toward Supply Chain Management System Based on Cloud Computing Technology for Small and Medium Enterprises

Abstract

Cloud Computing (CC) has emerged as one of the most discussed topics among enterprise information technology (IT) professionals. Small and Medium Enterprises (SMEs) with low budget and human resources are one of the major groups that tend to use CC for achieving the benefit of this technology. A multitude of factors influence the adoption of CC for SMEs. These decisive factors must be systematically evaluated prior to making the decision to adopt cloud-based solutions. Integration of supply chain activities and the technologies to accomplish it have become competitive necessities in most industries. Accordingly, the trend toward greater use of supply chain technologies is on a clear path forward. As one manager has noted: ‘‘With almost daily technology advancement globally in every facet of the business, organizations need to synchronize by adopting and implementing new electronic commerce and supply chain technology in order to protect market share, not to mention improve market penetration’’. This paper develops a model of the key factors influencing the adoption of supply chain based on cloud computing technology. The following set of variables were hypothesized to have a significant impact upon the pace of technology adoption: relative advantage, compatibility, security concerns, cost savings, technology readiness, top manager support, competitive pressure and regulatory support. The model provides a better understanding of the supply chain technology diffusion process. The purpose of this study is to identify these factors and determine the extent to which they influence the adoption of CC for SMEs. Therefore, the project describes a research model that is based on the diffusion of innovation (DOI) theory and the technology, organization and environment (TOE) framework. Data was collected by survey questionnaires from a sample of 22 SMEs that all of these SMEs as a customer’s of one cloud provider. There are 77 experts in information technology department from those SMEs are selected to fill the questionnaires. The Smart PLS tool was used for data analysis. The results of the data analysis generally support the model, as well as all of the proposed hypotheses. In summary, the results of this research have shown relative advantage, compatibility, security concerns, cost savings, technology readiness, top manager support, competitive pressure and regulatory support were found to have significant influence on adoption of supply chain management based on CC for SMEs.

Keywords: Innovation Adoption, Supply Chain Management, Cloud Computing, DOI Theory