IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v74y2023ics0160791x23000891.html
   My bibliography  Save this article

An examination of cloud computing adoption decisions: Rational choice or cognitive bias?

Author

Listed:
  • Shuraida, Shadi
  • Titah, Ryad

Abstract

The objective of this study is to challenge the prevalent assumption that rational choice is the sole driver behind decisions related to Software as a Service (SaaS) adoption, and to demonstrate the impact of status quo bias, manifested as inertia, on the hesitancy to adopt SaaS. To validate our premise, we compared the effects of rational choice and status quo bias on SaaS adoption decisions made by decision-makers in both adopting and non-adopting firms, expanding upon prior research that primarily focused on adopting organizations. By analyzing a dual set of 157 cloud-adopting and 24 non-adopting organizations, our results show that inertia affects the decisions of non-adopters but not previous adopters. Furthermore, we found that previous adopters are more likely to consider the benefits of cloud computing, while non-adopters are more influenced by loss aversion in their cloud adoption decisions. Counter to expectations however, is the finding that previous adopters did not consider the risks of cloud computing adoption. This study adds to the understanding of cloud computing adoption by highlighting the impact of status quo bias on decision-making and providing deeper insights into the complexities of the cloud adoption process.

Suggested Citation

  • Shuraida, Shadi & Titah, Ryad, 2023. "An examination of cloud computing adoption decisions: Rational choice or cognitive bias?," Technology in Society, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:teinso:v:74:y:2023:i:c:s0160791x23000891
    DOI: 10.1016/j.techsoc.2023.102284
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X23000891
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2023.102284?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cho, Jaehan & DeStefano, Timothy & Kim, Hanhin & Kim, Inchul & Paik, Jin Hyun, 2023. "What's driving the diffusion of next-generation digital technologies?," Technovation, Elsevier, vol. 119(C).
    2. Adjei, Joseph K. & Adams, Samuel & Mamattah, Lovestone, 2021. "Cloud computing adoption in Ghana; accounting for institutional factors," Technology in Society, Elsevier, vol. 65(C).
    3. Arvind Malhotra & Sanjay Gosain & Omar A. El Sawy, 2007. "Leveraging Standard Electronic Business Interfaces to Enable Adaptive Supply Chain Partnerships," Information Systems Research, INFORMS, vol. 18(3), pages 260-279, September.
    4. Yogesh K. Dwivedi & Nripendra P. Rana & Anand Jeyaraj & Marc Clement & Michael D. Williams, 2019. "Re-examining the Unified Theory of Acceptance and Use of Technology (UTAUT): Towards a Revised Theoretical Model," Information Systems Frontiers, Springer, vol. 21(3), pages 719-734, June.
    5. E. Burton Swanson & Neil C. Ramiller, 1997. "The Organizing Vision in Information Systems Innovation," Organization Science, INFORMS, vol. 8(5), pages 458-474, October.
    6. Pei-Fang Hsu, 2022. "A Deeper Look at Cloud Adoption Trajectory and Dilemma," Information Systems Frontiers, Springer, vol. 24(1), pages 177-194, February.
    7. Robert J. Kauffman & Dan Ma & Martin Yu, 2018. "A metrics suite of cloud computing adoption readiness," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(1), pages 11-37, February.
    8. Michelle L. Zorn & Kaitlyn DeGhetto & David J. Ketchen & James G. Combs, 2020. "The impact of hiring directors' choice‐supportive bias and escalation of commitment on CEO compensation and dismissal following poor performance: A multimethod study," Strategic Management Journal, Wiley Blackwell, vol. 41(2), pages 308-339, February.
    9. E. Burton Swanson, 1994. "Information Systems Innovation Among Organizations," Management Science, INFORMS, vol. 40(9), pages 1069-1092, September.
    10. Samuelson, William & Zeckhauser, Richard, 1988. "Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
    11. Senyo, Prince Kwame & Addae, Erasmus & Boateng, Richard, 2018. "Cloud computing research: A review of research themes, frameworks, methods and future research directions," International Journal of Information Management, Elsevier, vol. 38(1), pages 128-139.
    12. Subhankar Dhar, 2012. "From outsourcing to Cloud computing: evolution of IT services," Management Research Review, Emerald Group Publishing Limited, vol. 35(8), pages 664-675, July.
    13. Subhankar Dhar, 2012. "From outsourcing to Cloud computing: evolution of IT services," Management Research Review, Emerald Group Publishing Limited, vol. 35(8), pages 664-675, July.
    14. Benlian, Alexander & Hess, Thomas, 2011. "Opportunities and risks of Software-as-a-Service: Findings from a survey of IT executives," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 58025, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    15. Subhankar Dhar, 2012. "From outsourcing to Cloud computing: evolution of IT services," Management Research Review, Emerald Group Publishing Limited, vol. 35(8), pages 664-675, July.
    16. Shahla Asadi & Mehrbakhsh Nilashi & Abd Razak Che Husin & Elaheh Yadegaridehkordi, 2017. "Customers perspectives on adoption of cloud computing in banking sector," Information Technology and Management, Springer, vol. 18(4), pages 305-330, December.
    17. Lian, Jiunn-Woei & Yen, David C. & Wang, Yen-Ting, 2014. "An exploratory study to understand the critical factors affecting the decision to adopt cloud computing in Taiwan hospital," International Journal of Information Management, Elsevier, vol. 34(1), pages 28-36.
    18. Benlian, Alexander, 2009. "A transaction cost theoretical analysis of Software-as-a-Service (SaaS)-based sourcing in SMBs and Enterprises," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57932, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. Khayer, Abul & Talukder, Md. Shamim & Bao, Yukun & Hossain, Md. Nahin, 2020. "Cloud computing adoption and its impact on SMEs’ performance for cloud supported operations: A dual-stage analytical approach," Technology in Society, Elsevier, vol. 60(C).
    20. Messerschmidt, Christian & Hinz, Oliver, 2013. "Explaining the Adoption of Grid Computing: An Integrated Institutional Theory and Organizational Capability Approach," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 63397, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    21. Ravi Seethamraju, 2015. "Adoption of Software as a Service (SaaS) Enterprise Resource Planning (ERP) Systems in Small and Medium Sized Enterprises (SMEs)," Information Systems Frontiers, Springer, vol. 17(3), pages 475-492, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shahbaz, Muhammad & Zahid, Rimsha, 2022. "Probing the factors influencing cloud computing adoption in healthcare organizations: A three-way interaction model," Technology in Society, Elsevier, vol. 71(C).
    2. Esra Cengiz Tırpan & Hülya Bakırtaş, 2024. "Technology Acceptance Model 3 in Understanding Employee’s Cloud Computing Technology," Global Business Review, International Management Institute, vol. 25(1), pages 117-136, February.
    3. Elaheh Yadegaridehkordi & Mehrbakhsh Nilashi & Liyana Shuib & Shahla Asadi & Othman Ibrahim, 2019. "Development of a SaaS Adoption Decision-Making Model Using a New Hybrid MCDM Approach," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(06), pages 1845-1874, November.
    4. Pei-Fang Hsu, 2022. "A Deeper Look at Cloud Adoption Trajectory and Dilemma," Information Systems Frontiers, Springer, vol. 24(1), pages 177-194, February.
    5. Richard J. Boland & Kalle Lyytinen & Youngjin Yoo, 2007. "Wakes of Innovation in Project Networks: The Case of Digital 3-D Representations in Architecture, Engineering, and Construction," Organization Science, INFORMS, vol. 18(4), pages 631-647, August.
    6. Asadi, Shahla & Nilashi, Mehrbakhsh & Iranmanesh, Mohammad & Hyun, Sunghyup Sean & Rezvani, Azadeh, 2022. "Effect of internet of things on manufacturing performance: A hybrid multi-criteria decision-making and neuro-fuzzy approach," Technovation, Elsevier, vol. 118(C).
    7. Yigitbasioglu, Ogan M., 2015. "External auditors' perceptions of cloud computing adoption in Australia," International Journal of Accounting Information Systems, Elsevier, vol. 18(C), pages 46-62.
    8. Spanjers, R., 2012. "Be patient : A longitudinal study on adoption and diffusion of information technology innovation in Dutch healthcare," Other publications TiSEM 594c1680-fb6d-4396-aaf6-e, Tilburg University, School of Economics and Management.
    9. Ghazanfar Ali Abbasi & Noor Fareen Abdul Rahim & Hongyan Wu & Mohammad Iranmanesh & Benjamin Ng Chee Keong, 2022. "Determinants of SME’s Social Media Marketing Adoption: Competitive Industry as a Moderator," SAGE Open, , vol. 12(1), pages 21582440211, January.
    10. Robert J. Kauffman & Dan Ma & Martin Yu, 2018. "A metrics suite of cloud computing adoption readiness," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(1), pages 11-37, February.
    11. Vincent Cho & Aman Chan, 2015. "An integrative framework of comparing SaaS adoption for core and non-core business operations: An empirical study on Hong Kong industries," Information Systems Frontiers, Springer, vol. 17(3), pages 629-644, June.
    12. Ali, Omar & Shrestha, Anup & Soar, Jeffrey & Wamba, Samuel Fosso, 2018. "Cloud computing-enabled healthcare opportunities, issues, and applications: A systematic review," International Journal of Information Management, Elsevier, vol. 43(C), pages 146-158.
    13. Ravi Seethamraju & Angela Hecimovic, 2023. "Adoption of artificial intelligence in auditing: An exploratory study," Australian Journal of Management, Australian School of Business, vol. 48(4), pages 780-800, November.
    14. Gediminas Adomavicius & Jesse Bockstedt & Alok Gupta, 2012. "Modeling Supply-Side Dynamics of IT Components, Products, and Infrastructure: An Empirical Analysis Using Vector Autoregression," Information Systems Research, INFORMS, vol. 23(2), pages 397-417, June.
    15. Hsieh, Pi-Jung, 2021. "Understanding medical consumers’ intentions to switch from cash payment to medical mobile payment: A perspective of technology migration," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    16. Senyo, Prince Kwame & Addae, Erasmus & Boateng, Richard, 2018. "Cloud computing research: A review of research themes, frameworks, methods and future research directions," International Journal of Information Management, Elsevier, vol. 38(1), pages 128-139.
    17. Severin Oesterle & Jan Jöhnk & Robert Keller & Nils Urbach & Xin Yu, 2020. "A contingency lens on cloud provider management processes," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1451-1489, November.
    18. Narasimhaiah Gorla & Ananth Chiravuri & Ravi Chinta, 0. "Business-to-business e-commerce adoption: An empirical investigation of business factors," Information Systems Frontiers, Springer, vol. 0, pages 1-23.
    19. Gianluca Vagnani & Corrado Gatti & Luca Proietti, 2019. "A conceptual framework of the adoption of innovations in organizations: a meta-analytical review of the literature," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(4), pages 1023-1062, December.
    20. Narasimhaiah Gorla & Ananth Chiravuri & Ravi Chinta, 2017. "Business-to-business e-commerce adoption: An empirical investigation of business factors," Information Systems Frontiers, Springer, vol. 19(3), pages 645-667, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:74:y:2023:i:c:s0160791x23000891. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.