GSR---8.1 Practical Connection Assignment
CHAPTER TWO 13
Literature Review
04/18/2021
Introduction
Cloud computing is taking a central position in many small and medium-sized organizations in Europe after the European Union emphasized improving information and communication technologies. Studies reveal that some small and medium-sized companies opt for other cheaper information communication alternatives due to resource limitations. They may not choose information systems that require a considerable amount of financial resources. A study by (Zissis & Lekkas, 2012) argues that cloud computing involves keeping the infrastructure, data, and applications on the internet to be managed by service providers. The use of cloud computing puts the globe precisely at the fingertips of users. It has elevated competitiveness in the business world and challenges managers to take a strategic move and grab the associated opportunities associated with cloud computing. With its advantages, it is a promising solution for businesses of all sizes. Comment by Brenda Schrantz: Unnecessary word.
Research identifies the key advantages of cloud computing: increased innovation and collaboration, time and cost efficiency, scalability, flexibility, and quick retrieval of data if there is an emergency. Nevertheless, cloud computing is also linked to security and confidentiality matters, compliance challenges, lack of control, and switching costs (Sharma et al., 2017). Over the past few years, cloud computing's adoption has become increasingly significant, considering the internet is one of the most developed infrastructures across the world. Research has also revealed that regardless of the seeming benefits, cloud computing adoption is still unsuccessful in some companies. The potential and benefits of cloud computing are evident, and several empirical studies evidence the progress of adoption in different sectors. This paper analyses existing literature on the aspects that impact cloud computing adoption. Comment by Brenda Schrantz: Sentence fragment
The TOE model will be used as the theoretical framework upon which the hypothesis will be tested.
Purpose of Review
The drive of this review is to get insights into present literature and debates that are relevant to the research topic. It will present the current knowledge that will lead to an understanding of the variables in the research. As a researcher, this review will help build the knowledge base and learn important concepts such as research approaches and methods and experimental techniques. The review will also be resourceful because it teaches the researcher how to apply knowledge in solving real-world problems. By reading existing literature, the researcher will understand the presentation of research findings, making one a better researcher and research writer. Comment by Brenda Schrantz: Series...."research approaches, methods, and experimental techniques."
This review will also enable the researcher to understand the community's position in research and identify gaps related to the research topic. This is like putting together the pieces from different studies to make sense in a general perspective. After putting the pieces together, one can easily see how the bigger piece looks and identify what is missing. This will help the research to note areas that have both been researched in detail and maybe propose that for future researchers. This is not a mere summary of sources. Instead, it allows the researcher to compare sources and critically evaluate them to give meaning to their findings. This will then enable the researcher to integrate the findings into the discussion and incorporate them into the topic's argument. Comment by Brenda Schrantz: Unclear antecedent Comment by Brenda Schrantz: Unclear antecedent Comment by Brenda Schrantz: Unnecessary word Comment by Brenda Schrantz: Unclear antecedent Comment by Brenda Schrantz: Unclear antecedent
Theoretical Framework Comment by Schrantz, Brenda: You may want to bring your section on TOE theory up under this heading and then go into the body of your paper. This heading should be centered.
Cloud computing background Comment by Schrantz, Brenda: This heading should be left justified.
McCarthy first introduced the concept of cloud computing in the 1960s. McCarthy suggests that in the future, a computation may be organized as a public utility. In his book "The Challenge of the computer utility,” published in 1966, Douglas Parkhill explored cloud computing characteristics. According to Douglas, the term cloud was coined from the telecommunications world when telecom companies offered the virtual private network (VPN) and similar services at a lower cost (Parkhil, 1966). The VPN services enabled firms to balance the utility of the overall network. Today, cloud computing covers other networks and servers.
The National Institute of Standards and Technology defines cloud computing as the model that allows convenient, easy, and on-demand access to computing resources configured in a shared pool. According to NIST, cloud computing is beneficial because it requires minimal management support and allows users and service providers' interaction. There are numerous other definitions of cloud computing apart from the NIST definition. However, all the definition revolves around cloud computing's main characters such as elasticity, flexibility, on-demand self -service, resource pooling, and broad network access. Comment by Brenda Schrantz: You do not need this word to be a possessive. No apostrophe is needed
Different companies have played a significant part in the advancement of cloud computing. Other firms have also recorded tremendous benefits after adopting cloud computing. For example, Amazon launched the Amazon web services in 2006, and this was a mileage for cloud computing. This launch was a great step for cloud computing and helped it to make better steps. Like any other technology, cloud computing has undergone developments. Experts reveal that a lot has still to be done to address the security and privacy issues that current users raise.
Cloud computing proliferation has attracted researchers who have focused on its adoption on national and global scales. As much as there are many studies on this topic, there are few detailed readings on factors that influence cloud computing adoption, a gap that this research seeks to address. The researcher's review of literature also noted that different adoption networks could be used to understand the adoption process. Different theories can be used based on the specific point of interest the researcher has on cloud computing. However, in summary, studies noted the perceived benefits, top management support, technological readiness, complexity, uncertainty, competition to be significant factors that influence cloud computing. For minor and medium-sized companies, the main factors can be grouped into perceived benefits, organizational support, and external pressure.
Before this study, researchers focused on adopting cloud computing to use it like any other technological solution. However, some studies have shown that the purpose to use cloud computing is not significant in determining if it should be adopted or not. The adopt or not adopt binary measure may also fail to capture aspects such as organizational support that may be necessary to facilitate the adoption process. To address these gaps, the researcher focused on different cloud-based technologies in today' organizations. Comment by Brenda Schrantz: Should be "of using" Comment by Brenda Schrantz: Should be "today's"
Acceptance of cloud computing Comment by Schrantz, Brenda: Heading should be left justified
The acceptance of cloud computing depends on the perception of how it is going to benefit a company. The magnitude and capabilities of cloud computing s among the first considerations when a firm desires to accept cloud computing. In most cases, the efficiency and benefits of cloud computing are subjective. Research has been done to assess the acceptance of cloud computing at an individual and organizational level. Theories including the theory of planned behaviour, the technology acceptance model, the diffusion of innovation, and the task-technology theory have been significant in adopting cloud computing and related technological solutions. Comment by Schrantz, Brenda: Should be are Comment by Brenda Schrantz: Spelling is non-American variant. For consistency, you may want to use "behavior"
Cloud computing can be defined as using remote servers in the storage and processing of data instead of using a personal computer or local server. It involves three architecture levels: software as a service, platform as a service, and infrastructure as a service. Researchers have identified cloud computing benefits at the micro-level that include proper communication and customer service, enhanced data analytics, and increased flexibility of resources. Other researchers have also assessed cloud computing benefits at the macro-level, including collaborative innovation, sustainability, easy data recovery through a backup system, and enhanced communication.
This study proposes the Technological-Organizational-Environmental to understand cloud computing acceptance and adoption, articulating the elements that affect managers and companies to adopt cloud computing. The model is comprised of three aspects as suggested by the model: technological, environmental, and organizational factors that influence the adoption of cloud computing (Gangwar et al., 2015). Each aspect incorporates additional factors that may come into play in the adoption process. The figure below shows the TOE model. Comment by Brenda Schrantz: Check APA format for adding a figure. You have to name figures and provide citation.
Factors that Influence the Adoption of Cloud Computing
Technological factors
The technological factors of the model focus on the perceived technological benefits of cloud computing. These include the performance expectancy, scalability, flexibility, cost-effectiveness, and other technological advantages associated with cloud computing. Firms that understand this technological solution's benefits are more likely to adopt cloud computing than those that do not. Another dimension of technological factors is in terms of the technological readiness of the company. The adoption of cloud computing requires that a company has the required technological infrastructure to accommodate cloud computing. Existing literature cites technological benefits and readiness as a significant determinant of the adoption of cloud computing. Comment by Brenda Schrantz: Sentence fragment
A researcher has measured perceived benefits to be the benefits organizations anticipate when they adopt cloud computing. In a 2015 study, Hassan and Ismail asserted that businesses have improved communication and efficiency through inter-departmental collaboration (2015). They also mentioned cloud computing's ability to help organizations establish a competitive advantage through easy access to information that enhances decision-making and improved customer relationship management. Research also shows that cloud computing reduces IT costs because data management is in the vendor's hands rather than the company. Another study also revealed that the ease of data analysis, customization, and deployment time are some of the perceived benefits that challenge businesses to adopt cloud computing. Based on researchers' benefits and arguments, it is clear that cloud computing has a market advantage for companies that adopt it. This information leads to the first hypothesis; companies consider cloud computing's perceived benefits before adopting it.
Organizational factors Comment by Schrantz, Brenda: Heading should be left justified.
The organizational factors include the employees, management, firm size and structure in determining the possibility of adoption. Most studies that have been sampled cite top management support as an important organizational factor that determines cloud computing adoption. The argument is that in companies with management support and engagement in the adoption, the process is likely to be successful. Other researchers, on the contrary, argue that top management support is not essential in the implementation of cloud computing. However, they cite that top managers must avail the resources required to make cloud computing a reality.
Researchers acknowledge top management support as one of the significant challenges in the adoption of technological solutions. The willingness of top managers to approve the allocation of resources and other forms of support is crucial for implementing change. Studies have argued that top management is expected to ensure they avail resources needed to adopt cloud computing. For a long time, researchers have recognized top management's role in any form of change, whether technological or not. For example, Oliveira (2014) discovered that top management support is a critical factor in adopting cloud computing. Based on these findings, the researcher hypothesized that Top management support influences the implementation of cloud computing.
Environmental factors Comment by Schrantz, Brenda: Heading should be left justified
Businesses operate in a competitive environment and would do anything to stay relevant. Most studies cite competition as an external influence that challenges companies to adopt cloud computing. Other studies also argue that the increase in data breaches has compelled companies to adopt cloud computing to enhance legal compliance. However, a literature review reveals pressure to be the main environmental factor, as companies strive to maintain industry standards. Environmental factors can either act as enables or barriers to the adoption of cloud computing in organizations.
According to a study conducted by Hsu et al., external pressure and competition are the most significant environmental factor that influences cloud computing (2014). The force from competing firms propels managers to implement solutions that will help them gain a competitive advantage and stay on top of the market. Competition in different industries has been revealed to positively influence technological innovation as companies want to maintain their market position and attract the highest number of customers for above-average returns. When an organization sees a competitor obtaining benefits from cloud computing, they are challenged to do so for the same benefits. Comment by Brenda Schrantz: For readability, consider separating these two sentences. End 1st sentence after innovation. Start 2nd sentence with Companies...
The TOE model has been used in many cases to track and understand the adoption of technological solution in firms of all sizes. This research focuses on the TOE model independently, contrary to most studies that combine it with others for deeper assessments. The literature will be reviewed while giving special attention to the three categories of factors as key players in adopting cloud computing. The researcher will then be able to prove or disapprove the hypothesis presented in chapter one of this research. Comment by Brenda Schrantz: Should be "solutions" Comment by Brenda Schrantz: Unnecessary words
Benefits of cloud computing Comment by Schrantz, Brenda: This heading should be centered
Business Efficiency Comment by Schrantz, Brenda: This heading should be left justified
Many studies have investigated the cost-savings perspective on a standardization scale. Three studies focused on how cloud computing can create business efficiency to facilitate efficient processes in business. Literature reveals that cloud computing creates efficiency in cost reduction and variabiliztaion and efficiency in business processes. Comment by Brenda Schrantz: Spelling error
Variabilization and Cost Reduction Comment by Schrantz, Brenda: Is this a level 2 or level 3 heading. Check APA manual p. 49.
A total of five studies revealed that cloud computing is a valuable tool in reducing costs while pursuing business efficiency. Behind many companies, cost-saving is a critical element, and managers strive to conduct operations within the minimum resources possible. Therefore, companies choose to adopt cloud computing so that they would save operational and investment costs. According to Chen et al., the previous financial crises motivated companies to adopt cloud computing (Chen et al., 2016). There are notable changes in IT cost structure, and inadequate funding have made companies want to reduce costs overnight. Some studies also reveal that the cost-benefit extent to other developing countries that may not be able to adopt more expensive technological solutions. Adopting cloud computing implies that some risks will be transferred to the cloud, reducing costs of hardware failure and overhead costs. Through the cost associativity concept, cloud computing performs data retrieval faster. Comment by Brenda Schrantz: Subject-verb agreement problem. Should be "has"
The efficiency of business processes Comment by Schrantz, Brenda: Is this a level 2 or level 3 heading. Check APA format p. 49.
The other stream of studies focused on how cloud computing makes business processes more efficient. The studies reveal that cloud computing is a more efficient technical infrastructure. Less time is used to carry out business processes than the tie it takes to operate in traditional IT models. A study conducted in 2011 revealed that in colleges and other learning institutions, cloud computing adoption had enhanced efficiency in business processes. While it is initially adopted to facilitate students' learning, school managers reveal that it enhances students' studies' flexibility and independence. In rural areas, students may have to spend a long time communing school for classes. With cloud computing, learners can engage teachers regardless of the physical barriers. A study conducted by Kuo in 2011 reveals that in healthcare, cloud computing is used to enhance health care delivery by availing accurate data promptly.
Business Effectiveness Comment by Schrantz, Brenda: This heading should be left justified.
The literature available addressed business effectiveness in three aspects: collaboration, business integration, and core competencies. The three factors have been revealed to make operations effective and more tailored to business needs.
Collaboration Comment by Schrantz, Brenda: I’m thinking you want this to be a level 3 heading which means it should also be in bold.
A study by Low et al. revealed that collaboration in businesses enhance innovation and increases productivity. Businesses that adopt cloud computing can connect employees to create and share knowledge that stimulates innovation. For large businesses, cloud computing applications are a better alternative because they do not require huge investments. Before the invention of cloud computing, information was available in central processes, and a hectic structure had to be followed before junior employees had access to data. Today, cloud computing has enabled easier access to information by seamlessly making data available to all the authorized organizational members. Today, collaboration is more complex, and participants must engage in real-time, something that has been made possible through cloud computing. According to Sun (2013), Cloud computing is a powerful tool that cuts across all industries. It offers a high degree of collaboration by enhancing transparency and data sharing. According to Sun, small enterprises are no longer limited by limited resources because cloud computing requires little investments. Comment by Brenda Schrantz: Subject-verb agreement. Should be enhances Comment by Brenda Schrantz: Should be investment
Business Integration Comment by Schrantz, Brenda: I’m thinking you want this as a level 3 heading which means it needs to be in bold. See APA manual p. 48
According to Chen &Liou(2012), cloud computing accelerates IT commoditization and streamlines operations and service delivery in different sectors. This has shifted the focus of business from operational maintenance to enhanced service delivery. Cloud computing has posed a dynamic infrastructure that hits many applications and can minimize maintenance costs by eliminating many support barriers. The standardized IT landscape has made it possible to integrate business processes through the common infrastructure and virtualization. The flexibility that comes with cloud computing is one that companies leverage every day to increase service delivery. With cloud computing, there are no boundaries to sharing IT resources. It has facilitated easy access and allocation of resources with less strain. Further studies suggest that the cloud industry is inspired by the need to overcome standardization barriers. Studies reveal that the ability of cloud computing to integrate operations technically enhance business effectiveness. Comment by Brenda Schrantz: Unclear antecedent Comment by Brenda Schrantz: Subject-verb agreement problem. Should be "enhances"
Core competencies Comment by Schrantz, Brenda: Level 3 heading???
Effectiveness can be defined as the degree to which a business achieves its goals. Talent management has been a significant issued for HR professionals for a long time. With cloud computing, it is easy to overcome the challenges of talent management. This is possible due to the timeliness, accessibility, ease of use, integration, and affordability of cloud computing (Aljabre, 2012). As companies need changes, cloud computing dynamics also change to meet those needs. Since it requires fewer resources, cloud computing frees up some resources to channel to other more important issues. Studies put forty arguments that cloud vendors provide infrastructure and platforms whereby important business processes are prioritized. For government organizations, it has been easy to manage documents and other useful data resources. It has also been easy to avail and retrieves the data based on demand. Therefore, cloud computing can address significant barriers that existed in the aspect of core competencies. Comment by Brenda Schrantz: Unclear antecedent
Business transformation Comment by Schrantz, Brenda: Should be left justified
The literature that addressed business transformation focused on service-oriented architecture and relieving businesses from technological constraints to address loosely ted serviced during the pre-cloud computing era. A study by Kambil revealed that cloud computing services allow firms to explore new ways of doing things and generating more revenue. For example, Amazon Web Services helped to tap new markets and generated more revenue for the company. Cloud computing also has agile capabilities because it supports the consolidation of IT resources. Cloud computing is a flexible, agile, and scalable infrastructure that creates common visions for the business. It also enables extensive partner collaboration that extends beyond organizational boundaries. Some authors termed cloud computing as a network of knowledge that allows people to come together virtually and make critical decisions that push businesses' agenda forward. Comment by Brenda Schrantz: Should be agendas
Conclusion
The existing literature depicts cloud computing as an essential and beneficial technological solution, especially in the 21st century. However, the body of literature also hints that cloud computing users are concerned about security, privacy, and other business concerns even as they continue to adopt cloud solutions. It is clear that researchers have done a great job in providing this base of literature and have contributed to addressing some of the challenges exhibited in cloud computing adoption. After reviewing existing literature, the researcher noted little research on enablers and barriers to adoption in small and medium-sized enterprises. Also, prior studies focused on the use of cloud computing. Therefore, the research will eek t-test here hypothesis put forth by existing literature; perceived benefits as determinants of adoption, top management support as a significant factor, and external pressure as a determinant of adoption. Future researchers should also seek to assess how organizations are addressing the barriers to adoption. Comment by Brenda Schrantz: Unnecessary word Comment by Schrantz, Brenda: ???
References
Aljabre, A. (2012). Cloud computing for increased business value. International Journal of Business and social science, 3(1). Comment by Brenda Schrantz: Check APA format p. 317. These should be in italics. Check capitalization of Journal Title
Chen, M., & Liou, Y., (2012). Analyzing the impact of virtualization on IT infrastructure using the ITIL framework. Advances in Information Sciences and Service Sciences, 4(9), 98-106. Comment by Brenda Schrantz: Need to correct APA format...issue throughout reference list.
Chen, T., Chuang, T. T., & Nakatani, K. (2016). The perceived business benefit of cloud computing: An exploratory study: Journal of International Technology and Information Management, 25(4), 7.
Gangwar, H., Date, H., & Ramaswamy, R. (2015). Understanding determinants of cloud computing adoption using an integrated TAM-TOE model. Journal of enterprise information management.
Hassan, H., & Ismail, N.A. (2015). Cloud computing: Use and impact of technology. Paper presented at the 5th International Conference on Computing and Informatics (ICOCI) 2015, Istanbul, Turkey. Comment by Brenda Schrantz: Check APA format for conference papers on p. 332
Hsu, P. F., Ray, S., & Li-Hsieh, Y. Y. (2014). Examining cloud computing adoption intention, pricing mechanism, and deployment model. International Journal of Information Management, 34(4), 474-488.
Kambil, A. (2009). Ahead in the clouds. Journal of Business Strategy, 30(4), 58-59.
Kuo, A. (2011). Opportunities and challenges of cloud computing to improve health care services. Journal of Medical Internet Research, 13(3), e67.
Li, X., Wang, Y., & Chen, X. (2012). Cold chain logistics system based on cloud computing. Concurrency and Computation: Practice & Experience, 24(17), 2138-2150.
Oliveira, T., Thomas, M., & Espadanal, M. (2014). Assessing the determinants of cloud computing adoption: An analysis of the manufacturing and services sectors. Information & Management, 51(5), 497-510.
Sharma, P. K., Kaushik, P. S., Agarwal, P., Jain, P., Agarwal, S., & Dixit, K. (2017, October). Issues and challenges of data security in a cloud computing environment. In 2017 IEEE 8th Annual Ubiquitous Computing, Electronics and Mobile Communication Conference (UEMCON) (pp. 560-566). IEEE.
Zissis, D., & Lekkas, D. (2012). Addressing cloud computing security issues. Future Generation computer systems, 28(3), 583-592.