Title: IMPACT OF CLOUD COMPUTING ON SME’S SUSTAINABILITY IN BAHRAIN
Category: Research Paper
Sub Category: Dissertation
Subject: Research Methods
References: APA
CHAPTER ONE: INTRODUCTION
1.1 Background:
Cloud computing is considered as one of the best computing paradigms in the field of information technology in recent years by replacing existing computing paradigm which includes grid computing, parallel computing and distributive computing. The additional aided benefits of cloud computing include its capability to allow users to scale up and scale down with minimal engagement with third parties (Alam, 2020) Cloud computing changed the form of business management, especially during the Corona Covid 19 pandemic, where many businesses relied on it in digital transformation. On the other hand, customers’ increased demand for products and electronic shopping imposed on these businesses this transformation. This technology, which allows the owner of the organization to manage his operations, accounts and customers relationships from anywhere or at any time, whether in travel or at home, has greatly affected the continuity of the business. (Singh et al., 2021) Cloud computing emerged with the growth of the internet. It became attractive for the business to eliminate the extra cost for the users and allow them to use the resources better. Despite the advancement in science and technology, cloud computing still has huge opportunities in the IT industry, with cloud computing technology currently in the early stage of development (Zhang, et al., 2010). Ali, (2020) quotes National Institute of Standards and Technology in U.S which provided five characteristics of cloud computing which includes on-demand self-service, broad network access, rapid elasticity and automatic resource optimization which is widely offered by various service models of cloud computing which includes Platform as a services (PaaS), Software as a Services (SaaS), and Cloud Infastructure as a services (CaaS) (Ali, 2020).
Ali, (2020) quotes that Kingdom of Bahrain is commited to mordernize its ICT infastructure and leading by example in the region in its use of cloud computing services. All national data center assets owned by government of Bahrain have adapted the concept of cloud computing and achieved virtualization by connecting its existing network infastructure such as GDN and internet. Thus, under this mandate all government projects must move to cloud as stipulated by the government in Cloudfirst policy. Bahrain in first in GCC to implement cloud first approach and educe cost of governance through ICT, increase security of existing accredited platforms, increase agility in citizen services portals and increase productivity of its staff (Ali, 2020).
Country wide popularity of cloud computing have not only enabled large organization to shift their ICT infrastructure on cloud computing but also attracted SME’s in Bahrain to shift their existing ICT infrastructure on cloud services. Sarwat & Ammar, (2021) findings on Bahrain SME’s suggests that cloud computing offers more stable and customizable infrastructure for firms to expand their business while achieving efficiency in their operations and adding capacity of more value added services (Sarwat & Ammar, 2021) SMEs play a vital role in economies since they are the companies with the greatest capacity for job creation, carry out a high percentage of manufacturing activities, and constitute a basis for expanding industries (Manzoora, et al., 2021). Evidence from Ali, (2020) on implementation of cloud computing in Bahrain suggests that security and reliability directly effects user trust in cloud storage application whereas data location, back-up capability, data recovery transparency indirectly effects user trust through mediating role of security.
Cloud computing adoption is the affordable choice for SMEs because of the greater accessibility, flexibility and data security in disaster recovery, providing enough benefit for the SMEs. In addition, it also provides the SME’s competitive advantage in terms of saving money and provides more focus on the objective and the business process while using the energy (Mohlameane & Ruxwana, 2014). SMEs can avail themselves of the opportunities of cloud computing services, which allow them to compete in the ICT innovative market environment by providing leverage in their business’s success. Some of the benefits of the cloud computing services for the SMEs are the low cost and up to data software solutions, access to the data anytime and anywhere, unlimited storage of the data and flexibility in terms of placing business solutions, high level of security, data protection and the business performance through using data management on cloud (Modisane & Jokonya, 2021).
1.2 Purpose of the Study:
The purpose of the study is to investigate the diffusion of cloud computing adaption amongst SME’s operating in Bahrain. Majority of the academic literature on diffusion of cloud computing emphasizes on large organizations ignoring the fact that SME’s are more progressively utilizing cloud computing. Evidence from Al-Ammary & Saleh, (2021) suggests that cloud computing in SME’s of Bahrain have drastically changed various activities which had subsequently increase SME’s scalability and made virtualization of resources more feasible. Application of key cloud computing platforms which includes Platform as a services (PaaS), Software as a Services (SaaS), and Cloud Infastructure as a services (CaaS) (Ali, 2020). The purpose of the study is to investigate the factors asscoiated with cloud computing application in SME’s and its impact on SME’s sustainability in Bahrain .
1.3 The research problem:
Kreslins, et al., (2018) states that drivers of cloud computing application in SME’s includes technological efficiency, presure from business partners and pressure from competitors are key drivers of cloud computing implementation in SME’s. Modisane & Jokonya, (2021) on the otherhand suggests that cost efficiency, facilation of labor flexibility and imrpovement in communication with vendors and clients are key drivers of cloud computing application in SME’s. Despite the value added benefits of cloud computing whether its PaaS, SaaS or CaaS, Ali, (2020) states that many SME’s in Bahrain are still reluctant to apply this new technology because of its pricing model where high switching cost is percieved as a major hurdle to its implementation. Kreslins, et al., (2018) also states that many SME’s leader percieve threats associated with security, confidentiality, loss of control over data, intellectual property theft and cost of implementation as a major hurdle to cloud computing implementation in Bahrain. AL-Shboul, (2019) also suggests that many SME’s in Bahrain are skeptical about the relative advantage, complexity, value creation, technology readiness, security issues and top management support serving as a major barrier to cloud computing implementation in SME’s. Motivated by the rationale supported by (Kreslins, et al., 2018; Modisane & Jokonya, 2021; Ali, 2020 and AL-Shboul,2019) the study aims to investigate the impact of cloud computing on SME’s sustainability in Bahrain.
1.4 Research Objectives:
The study aims to analyze the impact of cloud computing utility on SME’s sustainability in Bahrain using benefits as a rationale to improve SME’s sustainability. The proposed research aims to achieve following specific objectives through data collection and analysis of primary data gathered using structural questionnaires.
• To what extent cost reduction benefits achieved using cloud computing influences SME’s sustainability.
• To what extent ease of use and scalability benefits achieved using cloud computing influences SME’s sustainability.
• To what extent reliability of information benefits achieved using cloud computing influences SME’s sustainability.
• To what extent sharing and collaboration benefits achieved using cloud computing influences SME’s sustainability.
• To what extent security and privacy of data and intellectual property rights benefits achieved using cloud computing influences SME’s sustainability.
1.5 Research Questions:
The study aims to answer following research questions by conducting a research in Bahrain. These generalizable questions will be answers through data collection from SME’s with the inclusion criteria of using any of the cloud computing system i.e. Platform as a services (PaaS), Software as a Services (SaaS), and Cloud Infrastructure as a services (CaaS)
- What are the key benefits of cloud computing application for SME’s?
- What are primary concerns in managers in context of cloud computing implementation for SME’s?
- What are the key challenges faced by organizational members in implementation of cloud computing technologies with their existing ICT systems?
- What is the impact of implementation of Cloud computing system on organizational sustainability measured using profitability, competitiveness and value creation for customers?
1.6 Significance of the Research:
Implications for Government of Bahrain
Findings of the study poses significant practical implications for government to further decentralize its existing policy of Cloudfirst through its deployment in SME’s. ICT transformation is amongst the top agenda of Bahrain economic 2035 vision. The Vision provided by the Government of Bahrain for the development of the Bahrain Economy has placed a great emphasis on adopting the technological and innovation-based system for the sustainability of the Economy and the business sector. The Vision set by Bahrain’s government for the year 2030 is comprised of the generation of opinion leaders that provides the consultancies for the accomplishment of sustainability, competitiveness, and fairness. The competitiveness in the business environment will be created by the adoption of the latest technology and innovation (Bahrain Economic Vision 2030, 2021). The present research explores the factors that influence the adoption of cloud computing technology in SMEs operating in Bahrain’s working environment. Hence, the present study is an attempt and an effort to help Bahrain’s government achieve their long-term Vision regarding the sustainability and competitiveness of the economy and business sector. This study will serve as the basis of the guidelines for the Government to improve the factors that the present study will highlight so that the hurdles in the way of property of Bahrain’s business sector. Moreover, as the population of the present study is the SMEs working in Bahrain, the results will depict the opinion and the perception of the SMEs operating in Bahrain.
Implications for Macro and Micro Enterprise in Bahrain
Findings of the study poses significant managerial and practical implications for SME’s to revive its sustainable competitive advantage using cloud computing. Using findings, SME’s can be motivated to upgrade their existing ICT infrastructure and benefit from the novel IT-based cloud revolution. (Shatat & Shatat, 2021)
1.7 Definition of the Terms:
Cloud Computing: Cloud computing refers to the use of Internet-based (i.e. Cloud) computer technology for a variety of services (including storage capacity, processing power, business applications or components), characterized as a style of computing where massively scalable IT-enabled capabilities are provided one as a service 1 to multiple customers and are typically billed on a consumption basis.
Small and Medium-Sized Enterprises: The businesses having a maximum of 100 employees or those who having annual turnover less than 3 million BD as per the ministry of industry and commers in Bahrain.
Organizational Sustainability: Sustainable growth encompasses a business model that creates value consistent with the long-term preservation and enhancement of financial, environmental and social capital.
1.9 Structure of the Thesis:
The structure that will be followed in this study is presented as follow:
Chapter one of the studies elaborates the problem statement, objectives, and the questions that will be answered in the study chapter one will shed light on the background of the topic selected in the present study. Moreover, this part will define the terms used in the study and enlist the limitations of the research.
Chapter Two, the literature review, will aim to provide in-depth knowledge and the analysis of various peer reviewed articles and journals published in benefits, challenges and implication of cloud computing on SME’s sustainability. Chapter two will elaborate on the theories and the model that explains the relationship between the dependent and independent variables of the study.
Chapter three of the study will present the road map and comprehensive planning concerning the philosophy approach, design, method that will opt in the study. Moreover, chapter three will explain and define the procedure for the collection of data and how will the data be collected. The details regarding the instrument of the study, target population, and the sample size will also explain in chapter three of the study.
Chapter four of the present study will demonstrate the results and the analysis employed to obtain the results from that data collected from the target population of the study. Chapter four will also present the discussion, agreeableness, and disagreeableness of the present study’s findings with the findings of the past researchers.
Chapter fifth will conclude all the work of the study and based upon the findings of the study, will provide the implications for the future researchers, industry, and the management.
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CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction:
This chapter will analyze the literature on defining the concept of cloud computing and its application and implications on SME’s. Furthermore, this chapter provides theoretical implications to support the preposition of benefits rendered by SME’s using cloud computing using underpinning theories of Technology, organization & environment (TOE), Technology Acceptance Model (TAM2) and Diffusion Theory (DT). Furthermore, this chapter narrates previous studies on benefits rendered by SME’s in the form of cost reduction, ease of use, reliability, sharing & collaboration and security & privacy.
2.2 Organizational Sustainability:
Sustainability have emerged as a popular issue in academic and company boardrooms. Organizational sustainability can be analyzed using design approach which suggests that organizational success depends upon the strategies and purpose which is aligned to its structure and process. Sustainable organization concept suggests that organizations are modifying its purpose and are formulating strategies which emphasizes on its economic success, social justice and ecological health as an integrated set of outcomes (Mohrman & Worley, 2010) Over the last two decades there is an increasing interest in sustainability. In a nutshell, organizations act in a sustainable way when they support three dimensions of triple bottom-line which includes social, economic and environmental dimensions.
Concept of sustainability was first introduced by United Nations World Commission in 1987 where sustainability was defined as an economic model which allows meeting the need of current generation without compromising on the need of future generation. However, the concept of sustainability is a multi-dimensional concept where the economic dimension deals with the organizational attitude to create value for their customers by balancing the cost and revenue in the production and distribution of goods and services. Thus, economic dimension can be measured in terms of financial performance. The social dimension of Triple bottom-line (TBL) deals with the organizational attitude to preserve and develop human social capital of communities within the organization to create value by incorporating aspects of job satisfaction, quality of life, social integration, equality and justice. Lastly, environmental dimension of emphasizes on compatibility between the trend and renewal of resources of nature by manifesting attitude of consumption of natural resources using recycling, reusing and adaption of new models for circular economy (Braccini & Margherita, 2019)
2.3 Cloud Computing:
History of Cloud Computing:
Cloud computing technology is regarded as the most significant improvement after the development and the emergence of the internet. Moreover, cloud computing gives birth to numerous new business models. Cloud computing is the disruptive technology necessary for SMEs’ sustainability (Alsafi & Fan, 2020). The concept of cloud computing was proposed by an MIT professor in 1960 John McCarthy in 1960 who proposed that similar to other utilities such as water and electricity computing can also be sold as a utility. The implementation of cloud computing originated in 1999 when salesforce the most popular CRM application rolled out their first cloud based CRM. In 2002, Amazon emerged as a first vendor who started selling services related to storage and computation. (Srivastava & Khan, 2018).
Definition:
The report presented by Mell & Grance (2011, p83) defined cloud computing as “A model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.”
The concept of cloud computing emerged from the word “cloud” which refers to the collection of water molecules. Similar to clouds, cloud computing is collection of networks which enables users to use modalities boundlessly upon the request instead of setting up their own physical infrastructure for network. This enables users to only pay for the services they had used to shift the workload on cloud instead of computer reducing the requisition of hardware and software requires for the management of data centers Cloud computing comprises of three components which includes (a) Client Computers, (b) distributed servers and (c) data centers. Client computer refers to the end users using cloud computer. Distributed servers refers to the servers located in different region but acts like they are working with each other. Lastly data centers refers to the compilation of servers. (Srivastava & Khan, 2018).
2.4 Adaption of Cloud Computing in SME’s:
The Economic changes post-Covid-19 and the rapid advancement in technology influenced SMEs to adopt cloud computing technology to stay in the market. Those organizations that adapt and cloud computing technologies are operating in the business environment with a different business model that helps them create and sustain a competitive edge (Marcysiak & Pleskacz, 2021). The researchers from the past collectively agreed that cloud computing is not regarded as a trend in the business environment. Rather it has become a tool that assists the organization in sustaining a competitive advantage (Hassan, 2021).
SMEs are responsible for reducing and overcoming the gap in society by eradicating poverty. Hence, it is critical and crucial for enterprises select the right cloud computing model. The cloud computing services have consisted of three models: IaaS, PaaS, and Saas. The IaaS is the applications related to the cloud computing infrastructure services; SaaS is the set of cloud computing applications that provides the software as services, whereas PaaS is a wide range of cloud computing applications that provides Platform as services (Myhre & Aalvik, 2020). Small Medium Enterprises (SMEs) have experienced substantial difficulties and hurdles in realizing the benefits reaped by cloud and its implications on SME performance. There is an ever-growing evidence that SME’s have not utilized it at the desired level of adoption (Suhaimi & Hussin, 2021)
Abdullah et al., (2020) states that use of cloud computing for managing Human resource management system has emerged as a growing phenonmenon in SME’s. SME’s are increasingly utilizing cloud computing services to handle massive datasets and improve HRM practices by storing data at central location which is cloud which enables firm to overcome challenges associated with decision-making, efficiency, scalability and inefficiency in data processing.
2.5 Recent Findings:
Sandu & Gide (2018) explored the factors that influenced the adoption of cloud computing in SMEs in India. The research employed the quantitative method to explore and identify the factors that influence the adoption of cloud computing that helps SMEs’ sustainability. The data was gathered from the 305 respondents who were part of the top management of SMEs. The results from the findings revealed that Cloud computing technologies help SMEs to reduce capital costs. Moreover, the security, cost, and the advantage associated with cloud computing may promote or demote the SMEs to adopt cloud computing. Overall, in the long run, cloud computing technology helps SMEs sustainability.
Albelaihi & Khan (2020) conducted a study to provide insights related to the issues and the benefits of cloud computing technology in the case of SMEs in the context of Saudi Arabia. The research objectives were achieved by conducting semi-structured interviews with the management of SMEs dealing with the information and technology issues of the firms. The findings from the study suggested that the quality of performance of the firm is improved with the help of cloud computing technology. Moreover, the findings revealed that the biggest challenge in cloud computing services is the security and privacy of the firms
Oke et al., (2021) researched the role of cloud computing implementation in the sustainability of small and medium construction enterprises. The study employed the quantitative method, and the questionnaire was used to obtain the data from the 104 professionals related to the construction industry. The gathered data was analyzed by Exploratory factor analysis and Relative importance ranking method. The research findings indicate that the critical success factors concerning cloud computing, such as client acceptance and human satisfaction, led to the organization’s sustainability.
Marcysiak & Pleskacz (2021) have explored the factors that help SMEs sustain in the technologically advanced era. The researchers explore the Polish Economy and identify the factors of cloud computing technology that present significant benefits for SMEs. The study employed the quantitative method, and the data was gathered from the 120 SMEs operating in Poland. The study’s findings revealed that cloud computing technology helps SMEs adapt to the market situation, increase sales revenue cost optimization, boost efficiency, and increase the quality of t6he services or the product of the organization.
Hassan (2021) presented a roadmap for the SMEs to adopt and implement the cloud computing technology in a better way so that it could be able to help the organizations to sustain in a competitive environment. The research used a quantitative method to explore the factors that help implement cloud computing technology in Iraq’s working environment. The sample size was selected as 377, out of which 250 responses were found useable. The gathered data was analyzed by using regression and correlation analyses. The study’s findings imply that the security factors positively influenced the adoption of cloud computing technology in SMEs.
Moreover, complexity, competitive pressure, and human resources are the factors in the implementation of cloud computing technology in SMEs
Alshahrani (2021) explored the relationship between the SME’s decisions regarding the adoption of Cloud computing technologies and its impact on SMEs’ performance and sustainability in Saudi Arabia. The study employed the qualitative method to propose a model that affects the relationship between cloud computing technologies and the performance of SMEs. The systematic review of the past studies revealed that cloud computing technology improved the performance of SMEs in numerous aspects, such as by reducing the cost of capital, providing reliability, collaboration, and sharing of data.
Chetthamrongchai & Jermsittiparsert (2019) studied the relationship between the competitive edge of SMEs, the sustainability of SMEs, and the adoption of cloud computing technology. The study extracted data from the manufacturing sector of Thailand, and 300 questionnaires were circulated to the different textile, electronic, automobile, and agricultural firms. The gathered responses were analyzed by conducting the Confirmatory factor analysis, exploratory factor analysis and validity Analyses in SPSS and Amos. The study findings revealed a significant and positive association between cloud computing technology and the sustainability of SMEs. Furthermore, the results from the study also revealed a relationship between the competitive advantages of SMEs and cloud computing technology.
Yoo & Kim (2018) explored the factors presented in the Environmental, organizational, and technological contexts that create the difference between the providers and the demands of the cloud computing technology. Moreover, the study presented a model that serves as a base for the organizations to decide on the adoption of cloud computing that leads to the organisation’s sustainability. The research employed the qualitative and the Delphi interviewing technique to obtain the opinion of the 20 participants working in Korean companies and having working experience of more than fifteen years. The ten interviews were taken from the cloud computing technology providers, whereas the ten interviews were taken from the demanders of the cloud computing services. Furthermore, the research also employed the Analytical Hierarchical Process to present a holistic model. The study presented a model based upon the dimensions of organization readiness, top management support, Government regulation, Technological Infrastructure, compatibility, related advantages, and competitive pressure. Each dimension was further divided into sub-dimensions such as the cost-benefit, reliability, flexibility, usefulness, integration, customization, ease of use, manageability, the commitment of resources, financial readiness, technological Infrastructure. The study concluded that all the mentioned dimensions and the sub-dimensions influence the adoption of cloud computing technology in the organization that affects the sustainability of the SMEs (Yoo & Kim, 2018).
2.6 Underpinning Theories and Framework:
The TOE framework explained the adoption and implementation of technology in an organization that is beneficial for the sustainability of SMEs. The framework stated that the adoption and implementation of technology in an organization is influenced by the technological context, organizational context, and environmental context. In the technological context, the elements related to the perceived usefulness of technology cost benefits associated with the adoption of technology, security concerns, ease of use, integration, reliability of the technology. The technological context is amalgamated with the organizational context. The financial support, Vision, goals set by the top management, resources, and the IT infrastructure paved the way for the new technology to enter the organization. Moreover, the organizational context, such as the incentives and the visions set by the government related to overall industry or any specific sector, generates the ways for the adoption of technology by the organization working in that particular environment (Yoo & Kim, 2018). For instance, Bahrain’s Government has established a vision to achieve sustainability through the technological innovation and adoption of Modern Technology (Bahrain Economic Vision 2030, 2021).
The Technological Acceptance Model 2 is an extension of the Technological Acceptance Model. The basic phenomenology behind the TAM is the fundamental relationship of attitude towards an object leads to the development of the intentional, and the intentions lead to the development of behavior. The TAM 2 was presented by the researchers Viswanath Venkatesh and Fred D. Davi in 2000. The model explained the relationship between the impression of the technology and its influence on individual behavior regarding the adoption of the technology. The impression of the technology, such as the perception of the usefulness of the technology and the perception regarding the ease of use, formed the attitude of the individual and the organization towards the intentions to adopt the technology. The extended TAM model incorporates the five determinants that influenced the perceived usefulness of the Product. The five determinants are; Quality of output, demonstrability of Results, subjective norms, Job Relevance, and Image. Moreover, the relationship between the determinant of the perceived usefulness, perceived usefulness, ease of use, Adoption behavior is influenced by the moderators’ voluntariness and the experience, concerning the cloud computing technology, the rivalry in the market, and the dynamic changes in the working environment provoking the organization to adopt the cloud computing technology. Hence, it’s the latest norm to adopt cloud computing technology (Venkatesh & Davis, 2000).
Gangwar, Date, & Ramaswamy (2015) researched to establish a link between the Technology, organization, Environment Model, Technological Acceptance model, and the adoption of cloud computing technology. The research identified the determinants that influence the perceived usefulness of cloud computing technology in the Indian context. The data was gathered by employing the quantitative method, and the sample size has consisted of 230 respondents from the Information technology and, manufacturing & finance sectors. The study’s findings revealed variables such as relative advantages (cost, sharing, collaboration, and reliability), compatibility, organizational readiness, complexity, and the management’s commitment explained 62% of the variance in the adoption of the cloud computing technology. (Gangwar, et al., 2015).
The Diffusion theory of innovation explained the mechanism of the adoption of technology, service, or product. The theory was regarded as one of the oldest theories of management science developed in 1962. The diffusion theory of innovation is the diffusion process of technology in five phases; awareness, interest, evaluation, trial, and adoption. The theory emphasizes that the characteristics of the innovation directly influence the adoptions or the rate of diffusion of the technology. The characteristics of cloud computing technology, such as enhancing efficiency through sharing and collaboration, reducing IT capital cost, increasing the scalability, usefulness, and ease of use, increased its rate of diffusion in the industry and SMEs (Choi, et al., 2017).
Hiran (2020) researched to explore the role of the factors of the TOE framework as significant characteristics of innovation for the diffusion of cloud computing technology. The findings of the study indicated that the factors of the TOE model are the significant predictors of the diffusion of cloud computing technology and are regarded As the innovation characteristics of the cloud computing technology that increases or decreases the rate of cloud computing diffusion (Hiran, 2020).
2.7 Benefits of Cloud Computing for SME’s:
2.7.1 Cost Reduction
The weaknesses of conventional servers have been overcome by cloud computing technology’s efficiency, speed, and scalability provision. The researchers Widyastuti & Irwansyah (2017) researched to explore the challenges and the benefits of the cloud computing technology that could help the SMEs adopt the technology. The study used qualitative methods to obtain insights from the seven SMEs operating in Jakarta, Indonesia, and Bandung. The semi-structured interviews were conducted with the top management of the SMEs. The research findings revealed that the most valuable and perceived benefit of the cloud computing technology by the top management of SMEs was the cost-saving feature of cloud computing technology (Widyastuti & Irwansyah, 2017).
Provided the different benefits and the attractiveness of the cloud computing technology, the SMEs are still reluctant to adopt the cloud computing technology. The researchers, Ming, On, Rayner, Guan, & Patricia (2018), conducted a study to explore the factor affecting the adoption of cloud computing technology with the help of a Technological organization Environment framework. The study employed the quantitative method, and the 170 questionnaires were circulated to the SMEs working in the Malaysia region. The results from the research revealed that top management’s support, cost-saving, and technological readiness are the main factors that influenced the adoption of cloud computing technology in Malaysia (Ming, et al., 2018). Numerous researches have been conducted to explore the factor affecting the adoption of cloud computing technology. However, most researchers have provided little insight on the post-adoption effects of cloud computing technology in the case of SMEs. Cloud computing technology fascinates SMEs because it is cost-effective (Hussini, et al., 2018).
ElSayed (2020) researched to explore the benefits associated with the implementation of cloud computing technology by the SMEs operating in Eygpt. The study also highlighted the key challenges associated with the implementation of cloud computing technology. The study employed a mixed-method to achieve its objectives. The interview was conducted by the IT managers of the three international companies operating in Eygpt that helped design the questionnaire. The questionnaire comprised of 11 questions was presented to the 15 employees from different departs of the firms operating in Eygpt. The results from the study revealed that the cost reduction was the prominent benefit of the cloud computing technology that increased the efficiency and the sustainability of the SMEs. The results from the research revealed that in cloud computing, the cost is associated with the peruse. Hence, only operational; costs are incurred, whereas the cloud computing technology has no capital cost (ElSayed, 2020).
Zhang et al., (2021) explored cloud computing technology from the vendor’s perspective. The study used the mixed method to collect that data from the vendors of the cloud computing services. In the first phase, semi-structured interviews were conducted with the sixteen customers and the eight vendors. Each vendor was dealing with the two customers. The coding of the interviews helped in developing the questionnaire. After developing the questionnaire, the recommended list from the Department and the Bureau of industry and information technology of Shandong province 182 vendors of cloud computing technology were selected. The results from the study indicate that the vendors are keen and providing their best to resolve the security and privacy-related concerns of the customers. Moreover, cloud computing capabilities were regarded as significant in predicting the sustainability of the firms and SMEs.
Dincă et al., (2019) conducted a study to identify the factors that influenced the decisions related to the adoption of cloud computing technology in SMEs operating in Cluj and Bucharest cities of Roman. The study employed the quantitative method to achieve its objectives. The data gathered from the 198 Romainain SMEs revealed that the perceived cost benefits related to the cloud computing technology’s implementation help the firm make the cloud computing adoption decisions.
The solution based upon cloud computing technologies benefits the organization in maintaining close contact with the existing customers and establishing healthy and strong relationships with the new customers by investing the lowest possible cost. Baker & Kaur (2020) investigated the extent to which the SMEs working in New Zealand were familiar with the benefits of cloud computing technology, such as the SaaS CRM, which is a cloud-based solution for managing human resources. The study employed the quantitative method, and the data was gathered from the 35 SMEs operating in Southland, New Zealand. The study’s findings revealed that only 10% of the firms working in Southland were using cloud computing solutions. Moreover, the findings revealed that the SMEs using the cloud computing solution favoured the technology based on the perceived usefulness, ease of use, and cost benefits (Baker & Kaur, 2020).
Panfilova et al., (2021), explored the key factors that influence the adoption of the cloud computing solution in the Russian Federation. Moreover, it aimed to provide insights related to the influence of cloud techy ologies on society and social life. Cloud computing technology is beneficial in enhancing the scalability and reliability of the organization. The researchers Ali, Shrestha, Osmanaj, & Muhammed (2020) explored the factors that affect the implementation and adoption of cloud computing technology and the sustainability of government organizations. The study used the quantitative method, and the questionnaire was presented to the IT employees working in 47 government organizations. The responses obtained from the 480 IT employees revealed that cost-effectiveness, security, and level of complexity (ease of use) are significant predictors of cloud computing technology adoption in SMEs (Ali, et al., 2020).
Sultan (2011) examined SMEs in managing cloud computing while addressing the economic and efficiency merit of cloud computing in the UK-based SMEs. The study was conducted using four case studies of SMEs in the UK while considering the flexibility in the usage of cloud computing. The study was conducted on the public cloud service while focusing on the remote supplier to deliver the service to their clients. The study’s outcomes revealed that small and medium enterprises (SMEs) are commercially successful in terms of cloud computing due to their cost structure and flexibility in adoption.
Mikkonen & Khan (2016) studied cloud computing service adoption in the SME sectors. The study employed qualitative approaches while using a convenient sampling method through collecting data from six SMEs in Oulu. The study was conducted using unstructured questions and interviews with the SMEs’ IT professionals. The study’s outcomes revealed that cost-effectiveness, data security, reliability, and scalability of the organizational resource utilization, lowering the technology risk, and effective IT support have a significant role in the adoption of cloud computing in SMEs.
Sultan (2011) examined SMEs in managing cloud computing while addressing the economic and efficiency merit of cloud computing in the UK-based SMEs. The study was conducted using four case studies of SMEs in the UK while considering the flexibility in the usage of cloud computing. The study was conducted on the public cloud service while focusing on the remote supplier to deliver the service to their clients. The study’s outcomes revealed that small and medium enterprises (SMEs) are commercially successful in terms of cloud computing due to their cost structure and flexibility in adoption.
2.7.2 Ease of Use:
In recent ear, cloud computing has emerged as a significant and noteworthy milestone of Information and communication technology.
Kayode et al. (2020) examined the ease of use and the user-friendliness of the cloud computing service in the academic libraries in Nigeria. The study sample comprised 35 librarians, and data were collected from three different universities through a survey questionnaire. The findings revealed that cloud computing services are easy to use and integrate the work using cloud-based services, saving time and flexibility in data loss. (Kayode, et al., 2020).
The revolution of the internet leads to significant changes in the conduct of SMEs. The researchers Herzallah & Mukhtar (2016) conducted research to present a comprehensive analysis on the significance of cloud computing’s role in the sustainability of SMEs. The study examined the role of perceived trust and ease of use on the adoption of Electronic commerce, specifically cloud computing. The quantitative method was employed in the study to achieve its target. The respondents of the study were the managers of SMEs working in Palestine. The gathered data was analyzed through Partial least squares. The research findings revealed that the ease of use, trust, and reliability associated with the technology have a positive influence on the manager’s behavioural intentions to adopt the technology.
Pathan et al. (2017) explored the factors that influence the adoption of cloud computing technology in SMEs working in Pakistan. The study employed the quantitative method to explore the relative advantages such as cost-efficient, convenience, ease of use, reliability, security, privacy, compatibility, and trialability on the adoption of cloud computing technology in Pakistan. The research collected the 103 firms’ data using the convenient and quota sampling method. The results obtained from the Multiple Regression Analysis and the confirmatory factor analysis revealed that the relative advantages significantly affect the adoption of cloud computing technology in Pakistan (Pathan, et al., 2017).
Hababeh, Oluwaseun, & Akkaya (2018) investigated the factors that influence and affect the SMEs working in Jordan to use cloud computing technology. The study used the quantitative method to obtain the responses from 394 enterprises. The study’s findings revealed that the perception regarding the ease of use, security, perceived usefulness, organizational support, self-efficacy affect the adoption and the use of cloud computing technology in Jordan (Hababeh, et al., 2018).
Gamage (2019) conducted a study concerning the factors influencing the adoption of cloud computing technologies in SMEs operating in the working environment of Sir Lanka. The study employed a mixed-method to obtain the data from the SMEs operating in Srilanka. The questionnaire’s development and the instrument’s validity were first tested by conducting the interviews with the Twenty subject specialist. After obtaining the valid instrument., the questionnaire was presented to the 142 SMEs. The gathered data was analyzed through Partial least square, and the obtained results from the survey questionnaire were discussed through the conduction of interviews for the eight subject experts. The fIndings of the study revealed that relative advantages such as ease of use, reliability, collaboration, perceived usefulness, competitive pressure, management’s support, training, and education have a significant impact on the adoption of cloud computing technology in Sirlankain SMEs (Gamage, 2019).
Mwavali (2021) investigated the level of cloud computing adoption in Kenya by exploring the factors that influence the adoption of cloud computing in SMEs working in Kenya. The study used the quantitative method to obtain the responses from the 20 SMEs operating within Naiboi. The results from the research indicated that the adoption of cloud computing technology in Kenya is low; however, the SMEs were influenced by the cloud computing benefits and advantages related to security, ease of use, cost-efficiency, and reliability (Mwavali, 2021).
2.7.3 Reliability:
Cloud computing s considered reliable, cost-effective, and a source that minimizes the efforts and increases organizational efficiency. The numerous cloud computing benefits and advantages, such as expansion opportunities, helping the businesses provide the solution to the customers, global trade, economic growth on the operation and strategic level, make cloud computing technology reliable and significant for the sustainability of the SMEs. (Kandil, et al., 2018).
Concerning the case of SMEs, the pieces of evidence from numerous past researchers regarded flexibility, reliability, and low cost are the most attractive features of cloud computing technology (Anomelechi, et al., 2018)
Sengkhyavong (2019) explores the relationship between the adoption of cloud computing technology and the perceived ease of use, usefulness, reliability, benefits, and security. The research employed the quantitative method, and the data was gathered from the 90 IT managers who deployed the cloud computing technology in their respective organizations. The results derived from the Multiple regression analysis revealed that the perceived benefits, perceived usefulness, and the perceiver ease of use were the significant predictors of the Adoption of cloud computing technology. In contrast, the perceived cost and the perceived reliability were the insignificant predictors of cloud computing technology
Sabahi (2011) studied cloud computing regarding reliability, serviceability, and availability by addressing the challenges of adopting cloud computing. The study used different IT enterprises in optimizing the performance and the cost-effective manager through the application of cloud computing. The study outcomes showed that reliability and availability significantly impact cloud service adoption.
Khayer et al., (2020) conducted research to elaborate and present a map comprised of the significance and the factors influencing the adoption of cloud computing g technology and highlighted the role of cloud computing technology in improving the performance of SMEs. Bangladesh. The data of the study was collected employing the mixed method. In the first phase, a focused group discussion was conducted with the five subject experts to design and amend the questionnaire adopted from the literature. I9n the second phase, the questionnaire was distributed to the 450 employees working in SMEs with prior knowledge of cloud computing technology. The study’s findings indicate the relative advantages concerning reliability, cost-efficiency, convenience were the significant predictor of the adoption of cloud computing technology in Bangladesh. Moreover, the findings of the study revealed that the adoption of cloud computing technology increased the service quality, productivity, performance, reduced the IT cost, increased the efficiency related to the operations and created new opportunities for the business.
Kandil et al., (2018) conducted a study to explore the significance of trust, reliability, collaboration, management’s support, and other relative advantages of adopting cloud computing technology in Eygpt. The research used the TOE (Technology-Organisation-Environmental) Model and attempted to provide a relationship between the TOE and the adoption of cloud computing technology in SMEs. The study employed the quantitative method, and the questionnaire was presented to the 750 respondents. The data collected from the total 432 useable responses indicated that the reliability and the security of the cloud computing technology influenced the perception regarding the usefulness of the cloud computing technology. Moreover, the relative advantages were found to positively affect the adoption of cloud computing technology in SMEs.
Anomelechi, et al., (2018) conducted a systematic review Analysis to explore the attributes of the cloud computing technology that previous authors regarded as the most attractive adoption of cloud computing in SMEs, that help in the sustainability of the firms. The Findings revealed that flexibility, security, reliability, and cost reduction are the prominent attributes of cloud computing technology for SMEs.
Almarabeh & Majdalawi (2019) regarded cloud computing as a revolution in the internet world and the business world. Cloud computing provides optimal services with minimal cost; hence this innovation is increasing the efficiency of the organizations. The study highlighted some of the benefits and the challenges in adopting cloud computing technology. The scalability, efficiency, sharing and collaboration, availability, easy management and use cost reduction, and reliability are some benefits of cloud computing technology whereas, the trust, surety, privacy, data storage, service standard issues, and connectivity are key challenges of the cloud computing technology.
2.7.4 Sharing & Collaboration:
Myhre & Aalvik (2020) conducted a study to provide insights regarding how the realization of the benefits obtained from cloud computing can help in the adoption of cloud computing technology. Moreover, the research also investigated the relationship bet6ween the realization of cloud computing benefits and its link with the realization of the organizational benefits concerning the effectiveness and the efficiency of the organization. The research employed mixed methods to achieve its objective. The data was gathered in two phases. In the first phase, the data was gathered by circulating the questionnaire to the vendors of cloud computing technology. In the second phase, semi-structured interviews were conducted in identifying the pre-adoption challenges related to the adoption of cloud computing technology. Fourteen questionnaires were provided to the manufacturers of Cloud computing technology, and three interviews were conducted from the chief financial officer, chief executive officer, and marketing manager. The study’s findings revealed that the challenges related to the adoption of cloud computing technologies could be resolved by realizing the benefits of cloud computing. Moreover, the findings revealed accessibility, sharing, traceability, and collaboration are among the list of the major benefits of cloud computing.
The study conducted by Priyadarshinee et al., (2017) examined the factors that are regarded as critical in the adoption of cloud computing technology by SMEs. The researchers stated that cloud computing is essential for the sustainability of SMEs. The past literature helped the researchers identify nine factors consisting of fifty-one subcategories that were deemed significant in predicting and influencing the adoption of cloud computing technology by SMEs. The research employed the quantitative method, and the data was obtained from the 110 organizations working in India. The gathered data was analyzed by using Analytical Hierarchical Process. The results from the analysis revealed confidentiality, Integrity, security, and privacy, sharing, collaboration, and organizational risk are the factors that influence sustainability by affecting the adoption of cloud computing technology in SMEs operating India’s working environment.
Ooi et al. (2018) studied cloud computing in the manufacturing companies in Malaysia while addressing the capacity of the SME in the usage of cloud service and regulating the information technology usage in the companies. The study considered 188 managers of different positions while using the data collection in digitization and automation in operation and production. The findings demonstrated that adoption of cloud computing results in effective collaboration within the SMEs and increases productivity, agility, and flexibility through enhancing the IT capability.
Zabalza et al. (2012) discussed the benefit of the computing service for SMEs. The findings demonstrated that investment in the resource and usage of cloud computing help SMEs share the resources and collaboration between the activities through converting the fixed cost.
Asiaei & Rahim (2019) investigated the relationship between the technology, organizational and environmental context in adopting cloud computing in the SME in Malaysia. The study used a sample of 209 SMEs in Malaysia, and the data were collected using a survey questionnaire. Through the application of SEM, the findings demonstrated that data security and privacy, top management supports, the readiness of the technology, innovativeness, and competitive pressure are the significant factors in cloud computing in SMEs. (Asiaei & Rahim, 2019 ).
Kumar et al. (2017) explored cloud computing suitability for SMEs in India. The study employed 121 manufacturing SMEs from India. The study used factor analysis where the findings demonstrated that cloud computing help SMEs in terms of ease of use, Information, automation, upgrading the IT, flexibility, and control over security and collaboration. (Kumar, et al., 2017 ).
2.7.5 Security & Privacy:
Small and Medium-Sized Enterprises (SME) play a vital role in product development, providing major employments globally being private employers in any country and facing several challenges from the larger corporation in developing their workforce resource management and access to the market. The cloud computing service with the cloud platform solution becomes much important for the SME and is considered a strong driver in the growth of SMEs. Cloud computing provides a competitive advantage for the SME against the corporation because of their sustainability in the solutions recognized as an equalizer for the SME’s in their digital adoption.
The Firms are concerned with the security and privacy in implementing cloud computing technology. The security and privacy of the data could be enhanced by setting the passwords, encryption, and authentication standards for their data (Anomelechi, et al., 2018). Moreover, the researchers Saa et al., (2017), stated in their study that small and medium-sized enterprises could gain maximum benefits from the cloud computing software as numerous security and privacy-related concerns are not applicable in the case of SMEs.
Abdullah et al., (2020), conducted research to highlight the findings of the past researchers regarding the utilization of the cloud computing system for the management of the Human Resource in SMEs, the research employed the qualitative method, and the objectives of the research were achieved by conducting the Systematic Literature Review. Ten articles from 2012-2018 were selected and analyzed. The study’s findings revealed that cost reduction, efficiency, productivity, flexibility are the major advantage of the cloud computing system. Furthermore, the authors from the past identified security and privacy as major barriers to the cloud computing System.
Senarathna et al., (2018) investigated the factors that contribute to cloud computing adoption in SMEs operating in Australia. The research employed the quantitative method in which the data was collected from the 149 SMEs of Australia. The gathered data was analyzed with the help of Regression analysis. The findings from the research revealed 27688% of the variance in SMEs ‘ intention to adopt the cloud computing technology is explained by the Awareness of cloud computing technology. Moreover, the security and privacy of the cloud computing technology also affect the SME’s intentions to adopt the cloud computing technology
Rupra & Omamo (2020), presented a valuable piece of literature by developing a framework based upon the security concern of the SMEs. The research was conducted due to the global outrage of adopting cloud computing technologies by SMEs.The qualitative method was adopted to present a security model for the SMEs. The model presented in the study was built upon the foundation of security index, cloud security Metrics hierarchy, and security management by SMEs.
Skafi et al., (2020) conducted research to provide empirical evidence identifying the key factors that influence the adoption of cloud computing technologies in SMEs operating in the Lebanese market. The research aimed to provide guidance and directions for developing countries, practitioners, and researchers. To achieve the research objectives, the study employed the quantitative method, and the data was gathered from the 139 employees working in the SMEs. The collected data was analyzed with the help of confirmatory factor analysis and logistic Regression Analysis. The research findings revealed that complexity, security, prior organizational knowledge related to the IT and organizational support, specifically the support from the top management of the firm, positively influenced the adoption of the cloud computing technology in SMEs.
Qualitative research was conducted by Nagahawatta et al., (2021) to explore and identify the factors that create hesitation among the SMEs in adopting cloud computing technology. The systemic Review analysis was employed, and extensive literature was extracted to identify the key issues that create hurdles in adopting the cloud computing technologies in SMEs. The research findings revealed that the factors related to security were creating hesitation among the SMEs concerning the adoption of cloud computing technology.
Alsafi & Fan (2020) investigated the challenges that a parent faces in adopting cloud computing technology in the small and medium manufacturing enterprise operating in Saudi Arabia. The research aimed to provide a solution and establish a way for the intervention to address the challenges present in the adoption of cloud computing in SMEs. The study employed the qualitative research method, and the data was collected by conducting 16 interviews with the managers working in the different SMEs of Saudi Arabia. The thematic analysis of the 16 semi-structured interviews revealed that privacy, security, data control, and cost are the potential barriers to adoption of the cloud computing technologies by manufacturing SMEs operating in Saudi Arabia.
The role of the IT manager is critical while making the cloud computing adoption decisions in SMEs. (2018) researched the factors that influence the manager’s decision concerning the adoption of cloud computing technology in SMEs related to e-Commerce operating in Jordan. The study used the qualitative method to collect the data from the 16 IT managers of the SMEs with the help of unstructured interviews. The results derived from the thematic analysis of the interview revealed that cost, security, Ned, and reliability are the major factors that influenced the IT manager’s decisions regarding the adoption of cloud computing technologies in SMEs (Al-Dwairi, et al., 2018).
The adoption of cloud computing by SMEs is the demand of the time in Mauritius, as the Government of Mauritius has set the Economic goals and Vision for 2020. The researchers Domun & Bheemul (2018) explore the factors and the issues affecting the3 adoption of cloud computing technology by SMEs in Mauritius. The research employed the quantitative method, and the data was gathered from the 40 SMEs. The results derived from the study revealed that SMEs are reluctant to adopt cloud computing technology because of the cost, privacy, hijacking, control, and auditing concerns related to cloud computing technology.
Ahmed et al. (2020) presented a comparison between cloud computing technology and the performance of cloud technology. The researchers employed the qualitative research method to present a model that ensures the surety-related concerns of the organizations. The models presented in the study used the technologies of Hadoop, cloudburst, HEP, Dryad, Cap3 that can improve the efficiency of the cloud technology’s performance and resolve the security concern by presenting privacy and data security wall for the organizations (Ahmed, et al., 2020).
Abdullah, Zeebaree, Shukur, & Jacksi (2020), conducted research to highlight the findings of the past researchers regarding the utilization of the cloud computing system for the management of the Human Resource in SMEs, the research employed the qualitative method, and the objectives of the research were achieved by conducting the Systematic Literature Review. Ten articles from 2012-2018 were selected and analyzed. The study’s findings revealed that cost reduction, efficiency, productivity, flexibility are the major advantage of the cloud computing system. Furthermore, the authors from the past identified security and privacy as major.
2.8 Summary of Chapter:
This chapter provides insight on the previous literature published by peer reviewed journals on benefits associated with the application of Cloud computing in SME’s. This chapter provides insight on historical context of the explanatory variables, providing definitions and empirical evidence using evidence published over last decade. Furthermore, this chapter provides insight on theoretical background supporting the linear association between benefits of cloud computing application in SME’s and its implication on firm sustainability.
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Overview:
This chapter of the study provides a clear understanding and roadmap of the research strategy, research design and approach, the conceptual framework explaining the theories and concepts in the model, and the relationship between the variables used in the study. This chapter also provides more understanding of the target population, sampling techniques and the target samples, instrumentation of the questionnaires, data collection method, reliability and validity of the instrument and data analysis techniques, and ethical consideration of the study.
3.2 Research Approach:
The study aimed to investigate the diffusion of cloud computing adaption amongst SMEs operating in Bahrain. The research philosophy aims to provide insight into the system of beliefs and assumptions about knowledge development. Research philosophy can be categorized into numerous categories: pragmatism, positivism, realism, and interpretivism. The proposed study investigates the factors concerning cloud computing adaption’ diffusion in the SMEs to apply the post-positivism research paradigm to understand the polarity of epistemological stances projected to succeed in positivism without any needful objective knowledge (Frey, 2018).
On the other hand, the research approach is a plan and a procedure based upon a specific assumption suggesting a precise method for data collection, analysis, and interpretation. The research approach can be categorized into two types: inductive and deductive. The distinction between the two categories includes the reasoning as the inductive approach aims to generate a theory while the deductive approach aims to test an existing theory. The proposed study uses the existing theory of technology, organization & environment (TOE), Technology Acceptance Model (TAM2) and Diffusion Theory (DT) which suggests that the proposed study uses a deductive approach. Using a deductive approach, primary data is usually gathered using a mono methodological survey. There are three main methodological choices: the quantitative research approach, the qualitative research approach, and the mixed research approach (Basias & Pollalis, 2018).
This study has adopted a “quantitative research approach” as it provides objectivity in uncovering the collected data, deducting the theories, explaining the ideas and concepts, and evaluating the findings in a certain way. The past literature establishes that way for the selection of variables and development of hypotheses of the present study. This study has employed “Positivism Research Philosophy”, providing factual knowledge through observations, measurement, and certain beliefs and values (Saunders et al., 2012). Moreover, The Research Onion for the present study is demonstrated below, which suggests that a cross-sectional study will be conducted where primary data will be gathered using questionnaires distributed amongst the SMEs operating in Bahrain.
3.3 Research Design & Instrumentation:
The instrumentation of the study is necessary for collecting data and measuring the dependent and independent variables for the later analysis of the data in the study. The instrumentation of this study comprised a survey questionnaire comprising 30 items for the six variables. The instrumentation of the study’s questionnaire was based on the Likert Scale questionnaire, which comprises ratings 1 to 5 showing strongly disagreed, disagreed, neutral, agreed, and strongly agreed. The instrument developed for the survey is self-generated or adapted and modified from the previous studies by various scholars, as shown in Table 1.
Variable | Statements | Items | Source |
Cost Reduction | 1. Cloud computing requires reduced system administration and operation costs in cloud infrastructure with fewer physical servers. 2. Cloud computing results in labour savings in service request management and fulfilment from automation and standardization. 3. Cloud computing eliminates the traditional data centre and maintenance costs of data warehousing. 4. Pay per use model of Cloud computing provides scalable growth to SMEs. 5. Cloud Computing reduces idle and waiting time; increases flexibility in the testing plan | 5 | (Ebbers, 2018) |
Ease of Use | 1. Using cloud computing, there is strong ease of use and the ability to share information with others. 2. The procedure of using cloud computing is understandable. 3. It is easy for me to learn using cloud computing. 4. It is easy to make use of cloud computing. 5. I feel comfortable because I can freely use cloud resources as I need | 5 | (Mas’adeh, 2016); (Pankowska et al., 2020) |
Reliability | 1. In case of any incompatibility issue, we ask the cloud service provider to recommend integrated services. 2. Cloud services are compatible with the existing technological architecture of our company. 3. There is no difficulty importing applications/ data from cloud services. 4. There is no difficulty exporting applications/ data to cloud services. 5. Using cloud computing improves my work efficiency and my effectiveness | 5 | (Mas’adeh, 2016) and (Kayode et al., 2018) ; (Pankowska et al., 2020) |
Sharing & Collaboration | 1. I believe that cloud computing is essential for facilitating trade systems with our partners. 2. I believe that cloud computing increases our performance by facilitating trade systems with our partners. 3. Using cloud computing, we can access share resources placed on the cloud. 4. Cloud computing promotes collaboration and teamwork within my organization. 5. it is easy to collaborate with cross-functional teams using cloud computing. | 5 | (Mas’adeh, 2016) and (Kayode et al., 2018) |
Security & Privacy | 1. I am sure the data stored in the cloud is private. 2. I believe that no one can view my information or data stored in the cloud without my consent. 3. I believe my information or data in the cloud will not be manipulated or altered. 4. Cloud computing service providers take adequate backup that can be used to recover data. 5. Cloud data is less likely to be affected by malware and ransomware as the service providers have replaced security protocols. | 5 | (Pankowska et al., 2020) |
Sustainability of SMEs | 1. The functionality built in the cloud system meets all the organizational process requirements. 2. Cloud system is well designed to meet the future business needs of our company. 3. Using cloud computing enables me to accomplish my organizational task more quickly. 4. Using cloud computing allows me to increase business productivity. 5. Using cloud computing allows me to manage business operations in an efficient way. | 5 | (Gangwar, 2017) |
3.4 Population and Sampling Techniques:
The current study mainly focuses on primary data collection and convenient sampling. The population was selected, and a quantitative method was designed for data sampling to investigate the impact of factors affecting the sustainability of SMEs in Bahrain.
3.4.1 Population:
Target populations are the set of people or groups having similar characteristics and identified as the intended population of the study from whom data will be collected (Bell et al., 2018). The target population of this study were the Small and Medium-sized Enterprises (SMEs) in Bahrain. The targeted SMEs in different sectors of Bahrain are information technology, financial and banking, hospitality, retail and wholesale, food and beverages and the construction sector. 30% of the GDP and 75% of the employment in Bahrain is provided by the small and medium-sized enterprises operating in Bahrain. According to the statistics, 6,435 small and medium-sized firms collectively operate in Bahrain, as shown in figure 2 (Statista, 2022).
The present study’s sample size was calculated using the calculators for the sample size calculation. The sample size for the present study is n= 387, as shown in Table 2. The sample size has been calculated using the Raosoft sampling calculator, where population size with a margin of error of 5% serves as a rationale for selecting the sample size.
What margin of error can you accept? | 5% |
What confidence level do you need? | 95% |
What is the population size? | 6,435 |
What is the distribution of the response? | 50% |
Your recommended sample size | 387 |
3.4.2 Sampling Techniques:
This study used a quantitative data collecting method for collecting primary data from the n=400 respondents with the inclusion criteria of users of any cloud computing platforms (i.e. IaaS, PaaS, and SaaS) in SMEs in Bahrain using a convenient sampling method. The primary quantitative data were collected using a survey questionnaire designed on Google Form and shared with the n=400 participants using various cloud-related multi-purpose platforms in SMEs across Bahrain. Moreover, this study kept the respondent’s confidentiality by ensuring the privacy of their questionnaire outcomes and will not be shared with a third party.
3.5 Procedure of Gathering & Collecting Data and the Timeframe:
The primary data was collected from the respondents through a survey questionnaire. The questionnaire was shared through email with the respondents, and the data was extracted into MS excel after completing the survey. The timeframe of the study was longitudinal based on the cross-sectional study.
3.6 Analysis Plan:
After collecting the initial screening process and obtaining the useable responses, the statistical software is selected to perform different tests such as reliability, normality, test for descriptive analysis, test correlation analysis, and test for multiple regression. The model below will elaborate the plan for the data analysis.
3.6.1 Phase 1: Reliability Analysis:
Reliability provides stability in the measurement scales by assessing the data differently, including internal consistency, stability, and equivalence. To examine the reliability, Cronbach Alpha is used where the coefficient Alpha demonstrates the reliability of the scales and measures the variables and their outcomes. The Cronbach Alpha having a range of between 0 to 1 is acceptable. The α value closer to 1 indicates that the instrument is highly reliable, whereas the value of α closer to 0 indicates the poor reliability of the instrument; in other words, The Cronbach’s Alpha value, more than 0.7 b, the instrument is considered as highly reliable (Post, 2016).
3.6.2 Phase 3: Descriptive Analysis:
The third phase was related to analyzing the Likert Sale variable and demonstrating each Likert scale item’s percentage, mean, and standard deviation. Descriptive analysis helps determine how many respondents agree or disagree with a specific item. Hence, the descriptive analysis organized and summarized the information extracted from the respondents.
3.6.3 Phase 4: Pearson Correlation Analysis:
validity refers to the measurement and interpretation of the scales used in this study using different indexes. The Correlation Coefficient (r ) value is used to determine the intensity and the nature of the association between variables. The researcher provided the guidelines for analyzing the value of r. If the Correlation Coefficient value is closer to 1, a strong correlation exists between the variables. Suppose the value of the Correlation Coefficient is closer to 0. In that case, the correlation between the variables is regarded as weak. In contrast, if the value of r lies between the range of .3-.7, the correlation between the variable is considered moderate (Post, 2016).
3.6.4 Phase 5: Multiple Regression Model:
The Regression analysis is used to explain how much variance of the independent variable is explained by the independent variables. Regression helps accept and reject the study’s hypothesis and is based on the significant value of the unstandardized beta slope. The researcher decides whether to accept the Alternative hypothesis or the null hypothesis. The Regression equation for the present study is presented below.
γ(SMES)=β (Constant)+ β1 (CR)+ β2 (EOU)+ β3 (REL)+ β4 (SCO)+ β5 (SP)+E
SMES= SME Sustainability
CR= Cost Reduction
ROU= Ease of Use
REL= Reliability
SCO=Sharing & Collaboration
SP=Security & privacy
E= Standard Error
3.7 Conceptual Framework and Hypothesis Development:
1. Cost Reduction in Cloud Computing:
Cloud computing is a collection of networks that enables users to use modalities boundlessly upon request instead of setting up their physical infrastructure for the network. It enables users to only pay for the services they had used to shift the workload to the cloud instead of the computer, reducing the requisition of hardware and software required to manage data centers. The researchers explored the benefits of cloud computing technology that could help SMEs adopt cloud computing technologies technology. It was found that the most valuable and perceived benefit of the cloud computing technology by the top management of SMEs was the cost-saving feature cloud computing technology (Dincă et al., 2019). The cost-effectiveness feature of cloud computing technology fascinates SMEs in adopting this technology. Moreover, numerous studies provided empirical evidence that cost reduction was the major benefit of cloud computing technology that increased SMEs’ efficiency and sustainability (Hussini et al., 2018). Cloud computing is considered reliable, cost-effective, and a source that minimizes the efforts and increases organizational efficiency (Abdullah et al., 2020).
Rayner et al., (2018) revealed that technological readiness, top management support and cost-saving are the main elements impacting cloud computing adoption. Another study by Dincă et al., (2019) also found that the perceived and most valuable benefit of cloud computing by the leading management of SMEs was the cost-reduction element of cloud computing. Accordingly, the hypothesis from the findings postulate as follows:
H1: There is a significant statistical relationship between cost reduction aided by cloud computing and SME sustainability in Bahrain.
2. Ease of Use:
The researchers stated that ease of use and the user-friendliness of cloud computing are included in the list of the factors that influence the decisions regarding the adoption of cloud computing (Khayer et al., 2020). The past literature has provided a holistic impression of cloud computing technology as these services are easy to use. Moreover, the organizations and the users integrate their work using cloud-based services. Hence, cloud computing helps in saving time and has provided great flexibility to the users. Reviewing the past literature revealed that SMEs were influenced by the cloud computing benefits and advantages related to security, ease of use, cost-efficiency, and reliability. Moreover, the related factors influencing the adoption of cloud computing by the SMEs revealed that ease of use, trust, and reliability associated with the Technology positively influences the manager and the top executives’ intentions to adopt the Technology. Furthermore, the managers and IT professionals use cloud computing to increase their employees’ performances; cloud computing provides ease and is reliable (Abdullah et al., 2020).
According to Ali & Mehreen, (2018), the study’s findings revealed that the ease of use related to the Technology has a significantly positive impact on the behavioural intentions of managers regarding the adoption of cloud computing technology. Another study by (Najib & Fahma, 2020) also found that the perception of ease of use and perceived usefulness greatly affects cloud computing adoption. Accordingly, from the above findings, the hypothesis can be postulated as follows:
H2: There is a significant statistical relationship between ease of use aided by cloud computing and SME sustainability.
3. Reliability:
Previous studies suggest that reliability is an antecedent of cloud computing, having significant practical implications for organizations. Sengkhyavong’s (2019) findings show that reliability is a strongly correlated and significant predictor of cloud computing adaption amongst SMEs. Sabahi’s (2011) findings suggest that cloud application services like SaaS provide reliable solutions to firms by streamlining their IT infrastructure, providing several value-added benefits. Khayer et al. (2020) also conducted studies to investigate the role of reliability in cloud computing, which suggests that the reliability of cloud computing has a direct and indirect relationship with service quality, productivity, performance, and reduction in IT cost increasing the efficiency amongst SME’s. In a nutshell, evidence from previous studies validates the importance of reliability. Thus, the study aims to investigate its role in SME sustainability.
Khayer et al. (2020) claimed that the perceived ease, benefits, and usefulness significantly impacted cloud computing adoption. At the same time, perceived reliability was an insignificant predictor of the adoption of cloud computing technology. Another study by (Singh & Mansotra, 2019) also claimed that the availability and reliability significantly influence the adoption of cloud computing technology in SMEs. Accordingly, from these findings, the hypothesis can be formulated as:
H3: There is a significant statistical relationship between reliability aided by cloud computing and SME sustainability in Bahrain
4. Sharing and Collaboration:
The past literature has demonstrated that the investment of the users (SMEs) in cloud computing helps them share the resources and collaboration between the activities. Numerous researchers stated that traceability, accessibility, sharing, confidentiality, integrity, security, and collaboration are among the major benefits of cloud computing that fascinate the SMEs to adopt the Technology (Elebute, 2018). Cloud computing technology is considered a demand of the 21st century. It helps increase performance, service quality, productivity, efficiency, and reduced IT cost. The organization became more focused on the operations and created new opportunities for the growth and sustainability of the business; hence cloud computing was deemed reliable by the professionals. The prominent features of cloud computing are flexibility, security, reliability, and cost reduction. In a nutshell, evidence from previous studies suggests sharing and collaboration to be the essential aspect of cloud computing applications across SMEs (Shetty & Panda, 2021).
According to Lu et al., (2021), collaboration and sharing are significant elements that greatly impact the sustainability of cloud computing technology in SMEs. Another study by Narwane et al., (2019) also claimed that sharing and collaboration are vital drivers that impact SMEs’ adoption cloud of things (CoT). Accordingly, the hypothesis from previous findings can be formulated as:
H4: Bahrain has a significant statistical relationship between sharing and collaboration aided by cloud computing and SME sustainability.
Security and Privacy:
Concerning the security and privacy of the data, the literature has presented the two opinions or schools of thought. The first school of thought advocates that the users’ data is secure with the cloud computing services providers and the privacy of the users will never be breached by the cloud computing services providers (Skafi et al., 2020). The second school of thought states that as the user’s data is with the cloud computing service providers, the user’s data can not be secure in cloud computing. However, the researchers stated that the small and medium-sized enterprises could benefit from the cloud computing technology, as many of the security and privacy issues were not applied to the SMEs. Many past researchers regarded security and privacy as major barriers to cloud computing technologies (Abdullah et al., 2020). SMEs’ security and privacy-related concerns make them hesitant to adopt cloud computing technology.
According to the study by Lutfi et al. (2022), privacy, security and complexity positively impact cloud computing adoption in the sustainability of SMEs. Another study by Skafi et al., (2020) indicated that technological security and safety and other organizational factors are positively associated with adopting cloud computing technological services. Accordingly, the previous studies formulate the hypothesis as follows:
H5: Bahrain has a significant statistical relationship between security and privacy aided by cloud computing and SME sustainability.
CHAPTER FOUR: DATA ANALYSIS, FINDINGS & DISCUSSION
4.1 Introduction:
Chapter four of the present study presents the description of findings reported after gathering primary data using questionnaires. Data gathered from questionnaires were analyzed using Statistical Package for Social Sciences (SPSS) and have been analyzed to test the proposed research hypothesis. This chapter will provide insight on discussion based upon the statistical evidence providing rationale for the acceptance and rejection of hypothesis. Lastly, this chapter presents summary of hypothesis testing.
4.2 Reliability Test:
The Reliability analysis was performed to investigate whether the instrument of the present study was reliable and had consistency. The coefficient of reliability is termed Cronbach’s Alpha; the value of Cronbach’s Alpha is used to interpret whether the study instrument is reliable. The value of Cronbach’s Alpha ranged between 0-and 1. The α value closer to 1 indicates that the instrument is highly relatable, whereas the value of α closer to 0 indicates the poor reliability of the instrument (Post, 2016). The table below summarizes the Cronbach’s Alpha value for each variable of the present study. For all the variables of the present study, the value of Cronbach’s alpha was found to approach 1. Hence, the instrument of the present study is deemed highly reliable.
Reliability Analysis
Variable | Cronbach’s Alpha | Number of Items | Interpretation |
SME Sustainability | 0.769 | 5 | Highly Reliable |
Cost Reduction | 0.743 | 5 | Highly Reliable |
Ease of Use | 0.802 | 5 | Highly Reliable |
Reliability | 0.747 | 5 | Highly Reliable |
Sharing and Collaborations | 0.865 | 5 | Highly Reliable |
Security and Privacy | 0.853 | 5 | Highly Reliable |
Overall Reliability | 0.912 | 30 | Highly Reliable |
The above table 4.1 suggests that SME’s sustainability which measures the dependent variable reported Cronbach’s alpha value of α=0.76 which is greater than 0.7 as value of alpha is closer to the value of 1 suggesting highly reliable instrument with good internal consistency in mean. Independent variable 1 which is cost reduction reported Cronbach’s alpha value of α=0.74 which is greater than 0.7 as value of alpha is closer to the value of 1 suggesting highly reliable instrument with good internal consistency in mean. Independent variable 2 which is ease of use reported Cronbach’s alpha value of α=0.80 which is greater than 0.7 as value of alpha is closer to the value of 1 suggesting highly reliable instrument with good internal consistency in mean. Independent variable 3 which is reliability of cloud computing reported Cronbach’s alpha value of α=0.74 which is greater than 0.7 as value of alpha is closer to the value of 1 suggesting highly reliable instrument with good internal consistency in mean. Independent variable 4 which is sharing and collaboration aided by cloud computing usage reported Cronbach’s alpha value of α=0.86 which is greater than 0.7 as value of alpha is closer to the value of 1 suggesting highly reliable instrument with good internal consistency in mean. Independent variable 5 which is security and primary reported Cronbach’s alpha value of α=0.853 which is greater than 0.7 as value of alpha is closer to the value of 1 suggesting highly reliable instrument with good internal consistency in mean. In a nutshell, the overall reliability reported for the instrument with 30 items on a Likert Scale reported Cronbach’s alpha value of α=0.912 which suggest high internal consistency and balanced scale for measurements of each variable.
4.3 Response Rate:
Total set of three hundred and ninety-one questionnaires were distributed amongst the sample respondents of employees working in various SME’s across Bahrain, out of which four responses were discarded as they reported missing responses achieving the total response rate of 98% to achieve the sample size selected by the author. Upon completion of the of the sample size. The link was frozen as user could no longer submit any other responses.
4.4 Demographic Analysis:
The demographic analysis was performed to extract information regarding the demographic characteristics of respondents. Demographic analysis provides insight on the demographic profile of respondents which includes gender, education, nationality, age group, number of employees, capital, sector, and company origin.
Out of the total sample of 387 responses, 206 (53.7%) respondents were male whereas remaining 181 (46.8%) of the respondents were females.
Respondents from different education background were targeted in the survey as 50 (12.9%) of the respondents had highest academic qualification of high school, 35(9%) of the respondents had highest qualification of Diploma, 117 (30.2%) of the respondents had highest qualification of under graduate, 63 (16.3%) had highest qualification of post graduate and master’s degree, (55) 14.2% respondents had PhD degree and remaining (67) 17.3% had other qualifications like ACCA, CFA and others.
Respondents from various nationalities were targeted in the survey as 251 (64.9%) respondents targeted in the survey were Bahraini nationals whereas remaining 136 (35.1%) of the respondents targeted in the survey were non-Bahrainis.
Respondents from various age groups were targeted in the survey, as 65 (16.8%) of the respondents targeted in the survey were less than 20 years old, 77 (19.9%) of the respondents targeted in the survey were from the age bracket of 21 to 30 years of age, 67 (17.3%) of the respondents targeted in the survey belonged from the age group of 31 to 40 years of age bracket, 91 (23.5%) of the respondents belonged from the age bracket of 41 to 50 years of age and remaining 87 (22.5%) of the respondents were from age bracket higher than 50 years of age.
Respondents of the study were asked about the number of employees employed within their respective organization as 58 (15%) of the respondents reported having less than 5 employees. 109 (28.2%) of the respondents reported having 5 to 10 employees, 47 (12.1%) reported having 11 to 50 employees, 96 (24.8) of the respondents reported having 51 to 100 employees. Lastly, 77 (19.9%) of the respondents reported having more than 100 employees employed by their respective organization.
Respondents of the study were asked about the capital of the organization where 84 (21.7%) of the respondents reported having capital of their organization less than 5000BD, 85 (22%) of the respondents reported having capital of their organization between 5000BD to 10,000 BD. 40 (10.3%) of the respondents reported having capital between 10,000 BD to 50,000 BD. 45 (11.6%) of the respondents reported having capital between 50,000 BD to 100,000 BD. 61 (15.8%) of the respondents reported having capital of between 100,000 BD to 1 million BD whereas remaining 72 (18.6%) of the respondents reported having capital of more than 1 million BD as showed in figure below.
The study respondents were asked to report the sector of their organization where there are working. It was discovered that the majority of the respondents, 44 (11.4%), were employed in an organization related to the Information Technology sector. 53 (13.7%) of the respondents were employed in the organization related to the Financial and banking sector, 38 (9.8%) respondents were from the Hospitality sector, 40 (10.3%) of the respondents targeted in the survey reported to be belonging from retail sector, 29 (7.5%) of the respondents reported to be belonging from wholesale sector, 45 (11.6%) of the respondents belonged to Food and beverages sector, 65 (16.8%) of the respondents belonged from the construction sector whereas remaining 73 (18.9%) of the respondents belonged from other sector as showed in figure below.
Respondents of the study were enquired about the history of original of their respective organizations. 97 (25.1 %) of the respondents reported origin of their respective organization from last 5 years, 85 (22%) of the respondents reported origin of their respective organization from 6 to 10 years, 94 (24.3%) of the respondents reported origin of their respective organization from 11 to 15 years. Lastly, 111 (28.7%) reporting having origin of their respective organization from more than 15 years.
4.5 Descriptive Analysis:
Items 1 which emphasizes on the reduction of administrative cost reported neutral response as 60.5% were neutral that cloud computing reduces administration cost with the (mean of µ=3.5 and standard deviation SD=0.72). Items 2 which emphasizes on automation of service request reported response of agree as 68.5% agree that cloud computing automates service request with the (mean of µ=4.2 and standard deviation SD=0.52). Items 3 which emphasizes on cost reduction of the traditional data centre reported response of strongly agree as 60.5% strongly agree that cloud computing reduces traditional data centre cost with the (mean of µ=4.2 and standard deviation SD=0.95). Items 4 which emphasizes on cost reduction aided by pay per usage cloud services model reported response of agree as 68.5% agree that cloud computing aided by pay per usage cloud services model reduces cost with the (mean of µ=4.0 and standard deviation SD=0.68). Items 5 which emphasizes on cost reduction aided idle and waiting times reported response of strongly agree as 53 % agree that cloud computing cost reduction aided idle and waiting times with the (mean of µ=4.3 and standard deviation SD=0.83).
Items 1 which emphasizes on ease of use aided by using and sharing information reported neutral response where majority responses 65.1% were neutral with the (mean of µ=3.5 and standard deviation SD=0.86). Items 2 which emphasizes on ease of use of cloud computing procedure reported agree response where majority responses 43.2% agree with the (mean of µ=3.8 and standard deviation SD=1.01). Items 3 which emphasizes on ease of use of cloud computing learning reported neutral response where majority responses 41.6% were neutral with the (mean of µ=3.8 and standard deviation SD=0.83). Items 4 which emphasizes on ease of use of cloud reported strongly agree response where majority responses 37.2.% strongly agree with the (mean of µ=3.9 and standard deviation SD=0.87). Items 5 which emphasizes on ease of use of using cloud resources agree response where majority responses 26.6.% agree with the (mean of µ=3.3and standard deviation SD=1.11).
Item 1 which measures the reliability of cloud computing based upon integrated service solution reported agree from 38.8% which is majority of respondents with the (mean of µ=3.8 and standard deviation SD=0.82). Item 2 which measures the reliability of cloud computing in term of compatibility with existing IT infrastructure reported strongly agree from 35.7% which is majority of respondents with the (mean of µ=4.01 and standard deviation SD=0.86). Item 3 which measures the reliability of cloud computing in term of importing application data reported strongly agree from 36.7% which is majority of respondents with the (mean of µ=3.6 and standard deviation SD=1.18). Item 4 which measures the reliability of cloud computing in term of exporting application data reported agree from 47.8% which is majority of respondents with the (mean of µ=3.9 and standard deviation SD=0.73). Item 5 which measures the reliability of cloud computing in term of improving work efficiency reported strongly agree from 40.1% which is majority of respondents with the (mean of µ=4.1 and standard deviation SD=0.84).
Item 1 which measures sharing and collaboration facilities of cloud computing with business partner reported 38.5% neutral response from majority of respondents with the (mean of µ=3.7 and standard deviation SD=1.08). Item 2 which measures sharing and collaboration facilities of cloud computing aids performance of business partner reported 50.6% agree response from majority of respondents with the (mean of µ=3.9 and standard deviation SD=0.71). Item 3 which measures sharing and collaboration facilities of cloud computing using access to shared resources reported 37.2% strongly agree response from majority of respondents with the (mean of µ=4 and standard deviation SD=0.85). Item 4 which measures sharing and collaboration facilities of cloud computing to promote collaboration and teamwork reported 37.2% strongly agree response from majority of respondents with the (mean of µ=3.8 and standard deviation SD=1.01). Item 5 which measures sharing and collaboration facilities of cloud computing to promote collaboration with cross functional teams reported 44.2% agree response from majority of respondents with the (mean of µ=3.8 and standard deviation SD=0.88).
Item 1 measures the security and privacy of data where majority of respondents which is 32.6% agree with the (mean of µ=3.8 and standard deviation SD=0.95). Item 2 measures the security and privacy of data in terms of getting user consent where majority of respondents which is 36.7% were neutral with the (mean of µ=3.8 and standard deviation SD=1.01). Item 3 measures the security and privacy of data in terms of getting manipulated or altered where majority of respondents which is 40.8.% were agree with the (mean of µ=3.9 and standard deviation SD=0.75). Item 4 measures the security and privacy of data in terms of getting manipulated or altered where majority of respondents which is 40.8.% were agree with the (mean of µ=3.9 and standard deviation SD=0.75). Item 5 measures the security and privacy of data in malware threat where majority of respondents which is 42.9.% were strongly agree with the (mean of µ=4.01 and standard deviation SD=0.95).
4.6 Correlation Analysis:
The Correlation Coefficient (r) value is used to determine the intensity and the nature of association that existed between variables. The researcher Post (2016) provided the guidelines for analyzing the value of r. If the Correlation Coefficient value is closer to 1, a strong correlation exists between the variables. Suppose the value of the Correlation Coefficient is closer to 0. In that case, the correlation between the variables is regarded as weak. In contrast, if the value of r lies between the range of 03 to 0.7, the correlation between the variable is considered moderate.
Concerning the present research, the results from the correlation analysis indicated that significant and positive correlation between all the variables of the present study. Cost reduction reported moderate reliability with SME sustainability with the correlation coefficient of r=0.49, Ease of Use reported moderate reliability with SME sustainability with the correlation coefficient of r=0.46, Reliability reported moderate reliability with SME sustainability with the correlation coefficient of r=0.49. Sharing and collaboration reported moderate reliability with SME sustainability with the correlation coefficient of r=0.45 and lastly, security and privacy reported moderate reliability with SME sustainability with the correlation coefficient of r=0.45,
4.7 Regression Analysis:
The Regression analysis was performed to examine the relationship between the sustainability of SMEs and different factors of cloud computing, such as sharing and collaboration, security and privacy, Ease of Use, Reliability, and cost reduction. The results demonstrated in the model summary table revealed a coefficient of determination R2=.52, indicating that 52% of the variance in the sustainability of SMEs is explained using drivers of cloud computing which includes cost reduction, ease of use, reliability, sharing & collaboration and security & privacy.
Moreover, the Model summary table revealed a ΔF= 101.705, p<0.05, and the Durbin Watson DW=2.380., indicating that the model of the present study is valid for further analysis. The Model summary and Anova tables are presented below.
The results demonstrated in the coefficient table shows that cost reduction with the p value of 0.00 less than 0.05 which is significance level of interval is a significant predictor of SME sustainability with the Beta value of 0.274. Table shows that Ease of Use with the p value of 0.00 less than 0.05 which is significance level of interval is a significant predictor of SME sustainability with the Beta value of 0.293. Reliability with the p value of 0.00 less than 0.05 which is significance level of interval is a significant predictor of SME sustainability with the Beta value of 0.210. Sharing and Collaboration with the p value of 0.01 less than 0.05 which is significance level of interval is a significant predictor of SME sustainability with the Beta value of 0.115. Lastly, security and privacy is a with the p value of 0.11 greater than 0.05 which is significance level of interval is not a significant predictor of SME sustainability.
4.8 Discussion and Hypothesis Testing:
Null Hypothesis for H1 is accepted which suggested significant statistical relationship between cost reduction and SME sustainability in Bahrain. The correlation analysis finding provided evidence for the moderate and positive association. Moreover, the results from the Multiple Regression Analysis also provided empirical evidence supporting the cost reduction benefit of cloud computing and its influence in predicting the sustainability of SMEs in Bahrain. The findings of the present study are aligned with the past literature that has provided the empirical evidence for the cost reduction benefit of predicting the sustainability of SMEs (Sultan, 2011; Mikkonen & Khan; 2016; Hussini et al., 2018; Dincă et al., 2019; El-Sayed, 2020; Zhang et al., 2021; Baker & Kaur, 2020; Panfilova et al., 2021). Cloud computing provides major benefits in terms of saving the cost of their users for acquiring and maintaining the cloud computing resources such as system, staff, network, database and electricity. Hence, the users, which are the firms, can focus on the firm’s development and sustainability. Furthermore, the flexibility of SMEs toward cloud computing helped them become commercially and establish a cost-effective structure (Panfilova et al., 2021).
Null hypothesis for H2 accepted which suggested significant statistical relationship between ease of use and SME sustainability in Bahrain. The correlation analysis finding provided evidence for the moderate and positive linear association. Moreover, the results from the Multiple Regression Analysis also provided empirical evidence supporting the ease of use aided by cloud computing in predicting the sustainability of SMEs in Bahrain. Findings of the study validates previously gathered empirical evidence from (Kayode et al. 2020; Herzallah & Mukhtar 2016; Pathan et al. 2017; Hababeh, Oluwaseun, & Akkaya 2018; Gamage, 2019; Mwavali 2021)
Null hypothesis for H3 accepted which suggested significant statistical relationship between reliability and SME sustainability in Bahrain. The finding from correlation analysis indicated that it provided evidence for the strong and positive association; Moreover, the results from the Multiple Regression Analysis also provided empirical evidence supporting the reliability of cloud computing and its impact on the sustainability of SMEs. The empirical evidence found in the current study is aligned with the past literature where the researchers emphasized the reliability function of the cloud computing and the benefits of the reliability provided by the cloud computing for the sustainability of SMEs (Sabahi, 2011; Kandil et al., 2018; Anomelechi et al., 2018; Almarabeh & Majdalawi, 2019; Khayer et al., 2020). Cloud computing technology is considered a demand of the 21st century; it helps increase performance, service quality, productivity, and efficiency and reduces IT costs. The organization became more focused on the operations and created new opportunities for the growth and sustainability of the business; hence cloud computing was deemed reliable by the professionals. The prominent features of cloud computing are flexibility, security, reliability, and cost reduction.
Null hypothesis for H4 accepted which suggested significant statistical relationship between sharing & collaboration and SME sustainability in Bahrain. The correlation and multiple regression analyses were performed to find the statistical association between the Sharing & Collaboration and SMEs’ Sustainability. The correlation analysis provided evidence for a positive and moderate association. However, the Multi Regression Analysis results support the presence of a relationship between the Sharing & Collaboration and the Sustainability of SMEs. The findings of the present study related to the sharing & collaboration function of cloud computing and its impact on the sustainability of SMEs are not supported by the previous studies as the past researchers rigorously supported the role of cloud computing technology in developing a shared and collaborative environment in the organization (Zabalza et al., 2012; Priyadarshinee et al., 2017; Kumar et al.,2017; Ooi et al.,2018; Myhre & Aalvik, 2020).
Null hypothesis for H4 rejected which suggested significant statistical relationship between security & privacy and SME sustainability in Bahrain. The results derived from the correlation analysis indicated that a moderate and direct relationship existed between the Security & Privacy of cloud computing and SME sustainability. Further, the evidence is drawn from the Multiple Regression Analysis does not compliment the findings of the correlation analysis. It revealed the security & privacy benefit of cloud computing is not a significant predictor of the sustainability of SMEs in Bahrain. The past literature presents the opinion of the numerous academic researchers and the professionals who perceive that the data stored in clouds are more secure and the users of the cloud computing services are provided with the utmost privacy (Senarathna et al., 2018; Abdullah et al., 2020; Rupra & Omamo,2020; Skafi et al.,2020; Nagahawatta et al., 2021). The security and privacy of the user’s data are regarded as a major concern of the cloud computing technology users and affect the SME’s intentions to adopt the cloud computing technology. Many cloud computing service providers are skeptical and never provide their users’ data to anyone at any cost (Apple, 2021).
Study Hypothesis | Correlation Coefficient | P Value | Beta Value | Interpretation |
H1: There is a significant statistical relationship between cost reduction aided by cloud computing and SME sustainability in Bahrain. | .494 | .000 | .225 | Accepted |
H2: There is a significant statistical relationship between ease of use aided by cloud computing and SME sustainability. | .460 | .000 | .274 | Accepted |
H3: There is a significant statistical relationship between reliability aided by cloud computing and SME sustainability in Bahrain | .496 | .000 | .293 | Accepted |
H4: Bahrain has a significant statistical relationship between sharing and collaboration aided by cloud computing and SME sustainability. | .451 | .001 | .210 | Accepted |
H5: Bahrain has a significant statistical relationship between security and privacy aided by cloud computing and SME sustainability. | .452 | .114 | .115 | Not Accepted |
4.9 Summary of the Findings:
Chapter 4 presents the findings and interpretation of quantitative research techniques applied on a data gathered using questionnaires. Reliability test for the instrument for all the variables used in the survey indicates high internal consistency. Response rate provides insight on responses gathered whereas respondents profile has been analyzed using demographic analysis. Descriptive statistics of items has been conducted to investigate the skewness of responses. Lastly, inferential statistics in the form of correlation and regression analysis has been used to test the proposed research hypothesis which suggests that null hypothesis for H1, H2, H3 and H4 has been accepted and rejected for H5.
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS
5.1 Introduction:
The objective of the study was to investigate the factors influencing cloud computing adaption in Small medium enterprise in Bahrain. Furthermore, the study shows that factors influencing cloud computing adaption in SME’s includes cost reduction, ease of use, reliability, sharing & collaboration, and security & privacy. This chapter presents conclusion, recommendations, limitations and implications for future researchers.
5.2 Conclusion:
SME’s plays an essential role in economic development of countries in not only providing employement opportunities for the masses but also results in increase in the productivity. Evidence from Bahrain SME’s suggests that SME’s are looking for efficiency, facilation of labor flexibility and imrpovement in communication, as a result they resort for emerging technologies in persuit of competitive advantage. Many SME’s in Bahrain are still reluctant to apply this new technology because of its pricing model where high switching cost is percieved as a major hurdle to its implementation. Cloud computing is a developing technology that can revolutionize the delivery and application of Information Technology. The companies can successfully adopt cloud computing by increasing cloud computing service advantages. The research on the adoption of Cloud Computing in Small and Medium Enterprises is very little, and the evidence indicates that the adaption of Cloud Computing is very slow. A research gap is also found in investigating the implementation of cloud computing in SMEs.
Chapter one highlights the broad problem area faced by SME’s in Bahrain serving as a rationale for research to investigate the impact of cloud computing on SME’s sustainability. Chapter two highlights the concept of Organization sustainability, cloud computing and adaption of cloud computing in SME’s. Furthermore, chapter two highlights drivers of cloud computing in SME’s which suggests that cost reduction, ease of use, reliability, sharing & collaboration, and security & privacy are essential drivers for cloud computing implementation in SME’s. Furthermore, Chapter two presents empirical evidence from the previous literature serving as a rationale for the development of independent variable. Chapter three highlights the research methodology which suggests provides insight on research approach, research strategy and design adapted by the researcher providing rationale for the selection of quantitative research methods where primary data has been gathered using questionnaire as an instrumentation. The research instrumentation rationale for measurement on a Likert scale has been highlighted along with information and population and sampling selected by the researcher. Data gathered from questionnaires has been analyzed in SPSS for reliability, descriptive statistics, correlation analysis and multiple regression analysis.
Chapter Four presents the findings chapter which provides insight on statistical testing and interpretation of the statistical testing. Demographics of respondents has been analyzed and promoted pie charts for gender, qualification, nationality, age group, capital and sector from which the research evidence has been gathered for statistical testing. Reliability analyses suggests that all variable items reported high internal consistency whereas the questionnaire instrument reported overall reliability of 0.912 suggesting high internal consistency. Evidence from correlation tests suggests all variables reported moderate level of correlation with SME sustainability. Evidence from the multiple regression analysis reveals that cost reduction has significant statistical relationship with the value of r=0.494, p value=0.00 and β=0.225 which suggests that null hypothesis for H1 has been accepted. Evidence from the multiple regression analysis reveals that ease of use aided by cloud computing has significant statistical relationship with the value of r=0.460, p value=0.00 and β=0.274 which suggests that null hypothesis for H2 has been accepted. Evidence from the multiple regression analysis reveals that reliability aided by cloud computing has significant statistical relationship with the value of r=0.496, p value=0.00 and β=0.293 which suggests that null hypothesis for H3 has been accepted. Evidence from the multiple regression analysis reveals that sharing and collaboration aided by cloud computing has significant statistical relationship with the value of r=0.451, p value=0.00 and β=0.210 which suggests that null hypothesis for H3 has been accepted. Lastly, null hypothesis for H5 has been rejected as findings shows that security and privacy have no statistically significant relationship with SME’s sustainability.
5.3 Recommendations:
Based on the findings and conclusion of the present research, the following recommendations are formed to assist in adopting and promoting Cloud Computing in Small and Medium Enterprises in Bahrain (Kreslins, Novik, & Vasiljeva, 2018).
• The promotion targets of Cloud Computing should be changed from the Information Technology sector to the company’s management sector. Using managerial courses, conferences, and seminars, education activities should be enhanced to promote could solutions. Clear regulations and guidelines should be delivered and provided to SMEs (Kreslins, Novik, & Vasiljeva, 2018).
• The information strategists and managers should take into account the characteristics of the technologies, particularly the aspects of the ease of use and security in cloud computing. For instance, the mitigating and dealing strategies of risk management and security issues in cloud computing can enhance the implementation of cloud computing.
• It is necessary to recognize the aspects, for instance, privacy and security of data, consistency of services that assist Bahrain cloud services suppliers and policymakers of technology build clarifications and plans that meet the requirements of SMEs in Bahrain.
• SMEs should be provided with access to mountable technologies, which could efficiently provide services and products delivered by the large companies in the past, pulling down the competitive ground (Skafi, Yunis, & Zekri, 2020).
5.4 Research Implications:
5.4.1 Implications for managers and Directors
Findings poses significant implications for managers to maximize the experiences of cloud computing users and its utilities. Compatibility can be increased, and inefficiencies and errors can be declined by considering the technology task’s suitability. Moreover, the policymakers should identify the variations in services and business models in the cloud, the variations in the cloud services consumers, and cloud financial system complexities. Cloud strategies should be effective to implement holistic picture of firm infrastructure, regulatory and legal issues, economic, supply chain, human resources, and financial management within the enterprise. Managers must provide resources at their disposal to their organizations to deal with issues like software and hardware integration. Managers must put funds at disposal for investment in IT infrastructure pre requisite to reap benefits associated with cloud computing. The assistance from the top management is challenging in terms of innovation, and its role in supporting cloud computing plays a major part in the adoption of cloud computing, such as the interest of management to utilize services of cloud computing in their operations and the need for the cloud computing services in the SMEs. Top management approval is enough economic investment; competencies in technology and human resources are crucial to enable the decision-makers to make important decisions for the organization and know the benefits of these innovations and how they built affordability.
The management needs to recognize the need for resources to accept technology and ensure the assets’ availability to grow their usage. The usage of various kinds of technology in the enterprise thus gives large variability in the real measure. Willingness to accept technology is important to identify innovation in a company, and it is considered more influential as an inhibitor or facilitator. The more reliable companies in the technology and their willingness towards its adoption are generally recognized as highly assimilated in digital processes. Furthermore, they are recognized as the better adoption of innovativeness in terms of technology. Therefore, these firms can get greater advantages. Contrary, this lack of assistance from the management would create hindrances in the adoption of cloud computing. In addition, perceived benefits can also promote cloud computing implementation in SMEs (Hassan, Nasir, Khairudin, & Adon, 2017).
Small and medium enterprises can adopt cloud computing to improve the performance of their businesses; however, they can face challenges in using information systems in SMEs, which affect the decisions of policymakers to use the technology and adopt information technology in SMEs. The resistances identified by Ahn & Ahn (2020) suggest that the unavailability of skilled labor, high costs, and security risks are major issues the enterprises face while adopting CC services. Due to such risk factors, SMEs hesitate to implement cloud computing in their companies. Moreover, the competitive pressure, compatibility, business size, cost, and employees’ expertise are also some of the main factors to recognize before adopting cloud computing. An inappropriate culture of the organization, trail ability, regulatory environment, vendor lock-in, and relative advantages can also influence CC adoption (Ahn & Ahn, 2020).
Rana, Barnard et al. (2019) identified the absence of information and unavailability of time to examine the options. Furthermore, lack of access to software, hardware, and computers, inappropriate methodologies, and inadequate information about e-commerce. The absence of IT workers’ rank can lead to financial barriers that ultimately affect the adoption of cloud computing in SMEs. The challenges in retaining and finding competent and skilled persons with proper knowledge and abilities and the risk of indulgence in the enterprise’s particular knowledge. These challenges negatively influence the decision-making powers of the policymakers and decision-makers, preventing them from implementing innovative activities. In addition to this, the external environmental aspects such as the global economy, strong competition, low labor prices, regional agreements, power of customers, and variation in the market also affect information technology adoption. The organizational factors such as management support, nature of employees, and financial resources, while the technological factors include a speedy drop in technology cost and e-commerce barriers (Rana et al., 2019).
5.4.2 Implications for SME Development Authority in Bahrain:
The adoption of cloud computing also needs a change of perception regarding information and communication technology, and there is a need to adopt and recognize it as a service. The sustainability development for adopting Cloud computing should rely on carefully examining potential consumers’ preferences. Hence, the customer’s willingness evaluation is essential for the adoption (Pańkowska, Pyszny, & Strzelecki, 2020)
Widyastuti & Irwansyah (2017) explained that the improvement of SMEs is predicted by the use of cloud type that gives advantages as projected. Hence, the services are monitored by the management. Through this control, the company makes decisions to make alterations in the services provided by a specific service when they acknowledge fewer advantages to the organization (Widyastuti & Irwansyah, 2017)
Apart from this, SMEs should be aware of the significance of the factors related to organization and technology for the implementation of cloud computing. Moreover, the factors associated with the environment are also essential to consider. The environmental factors include regulatory support and competitive pressure. The competitive pressure factor can influence the adoption of Cloud computing services. The protection of data policies in cloud computing is needed and should be regulated. Further, cloud computing services usage in the SMEs should have a clear vision, and there should be adequate skills to adopt cloud computing services. The assurance of the usage of Information Technology is needed to assist the operation of the SMEs and ensure the availability of quality infrastructure in implementation. The policies related to the regulation of cloud computing services and the existence of regulations and laws, and recognition of their efficiency are essential to the authorities in promoting cloud computing. In addition, making sure that the present laws are appropriate to guard cloud computing users and the business laws supporting or whether the government gives the incentive to encourage using these services (Sandu & Gide, 2018). The authorities can support the SMEs by revising the laws associated with policy review and data protection and giving incentives to adopt cloud commuting successfully (Kreslins, Novik, & Vasiljeva, 2018).
To adopt cloud computing services, it is important to regenerate the culture of SMEs. SMEs should be more flexible and responsive toward the adoption of CC. Moreover, the organization’s culture should be easy to accept, open, and shared in terms of the operations of the company’s directions. The SMEs should be prepared for learning if the community of practice is formed to make a free environment for the discussion related to cloud computing. Cloud computing is a new concept, so it is necessary for the SMEs in Bahrain to adopt and experience these services; however, before implanting CC, it is essential to know how it will be suitable for the organization and ensure its requirement to minimize its effect through trial and error procedures before its actual usage. The suppliers of cloud computing resources have the responsibility to be flexible to the possibility of inaccuracies before implementing the services (Ahn & Ahn, 2020).
5.5 Limitations:
Despite, the study achieved its objectives, but this study is subject to certain limitations in terms of sampling technique, methodological choices and timeframe. Firstly, the study incorporated sample from few organizations only which does not represent the entire SME sector of Bahrain. Secondly, this study lacks qualitative analysis from IT managers who can provide significant insight on cloud computing utility. Hence, this area can be further explored by the future researchers. Lastly, the study was conducted in a very short time duration which can affected the quality of data collection.
5.6 Future Research Contribution:
Findings of the study poses significant implication for future researcher to investigate the impact of cloud computing on various aspects of SME performance in Bahrain which can be financial and non-financial performance. Future researchers, can take modular approach to investigate the benefits reaped by SME’s in terms of various cloud-based solutions which includes Platform as a services (PaaS), Software as a Services (SaaS), and Cloud Infastructure as a services (CaaS).
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Appendix: Questionnaire
SECTION A : Demographic Information
Please choose the appropriate box.
SECTION B: Cloud Computing:
Using a rating scale of 1 to 5, please choose the number that indicates your level of disagreement /agreement with the following statements.