Market Perception on Cloud Computing Initiatives in Organizations: An Extended Resource-Based View

Information and Management, September 2014, 51(6), pp. 653-669.

47 Pages Posted: 13 Jun 2018

See all articles by Insoo Son

Insoo Son

Korea University Business School (KUBS)

Dongwon Lee

Korea University Business School

Jae Nam Lee

Korea University Business School (KUBS)

Young Bong Chang

Sungkyunkwan University - SKK Business School

Date Written: August 20, 2014

Abstract

This study aims to investigate the economic value of cloud computing from the perspective of the stock market. More specifically, we conceptualize the relationship between the cloud computing initiatives of firms and the market reaction based on resource-based and extended resource-based views. For this study, we analyze 212 firm-level cloud computing announcements between 2006 and 2011 by employing the event study methodology. Our empirical results indicate that the market positively reacts to the cloud computing initiatives of firms. Moreover, the market reactions to cloud computing initiatives depend on three key characteristics of cloud computing, namely, firm-specific, resource-specific, and vendor-specific factors.

Keywords: Cloud Computing; Event Study; Extended Resource Based View; Firm Performance; Market Value of Firm; Technology Innovation

Suggested Citation

Son, Insoo and Lee, Dongwon and Lee, Jae Nam and Chang, Young Bong, Market Perception on Cloud Computing Initiatives in Organizations: An Extended Resource-Based View (August 20, 2014). Information and Management, September 2014, 51(6), pp. 653-669.. Available at SSRN: https://ssrn.com/abstract=3186027

Insoo Son

Korea University Business School (KUBS) ( email )

Anam-Dong, Seongbuk-Gu
Seoul 136-701, 136701

Dongwon Lee (Contact Author)

Korea University Business School ( email )

Anam-Dong, Seongbuk-Gu
Seoul, 136701
Korea, Republic of (South Korea)

HOME PAGE: http://dongwon.info

Jae Nam Lee

Korea University Business School (KUBS) ( email )

Anam-Dong, Seongbuk-Gu
Seoul 136-701, 136701

Young Bong Chang

Sungkyunkwan University - SKK Business School ( email )

Seoul
Korea, Republic of (South Korea)

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