Cloud Computing Adoption Determinants: an Analysis of Australian SMEs

In Australia, there is an emerging tendency among SMEs towards the adoption of cloud computing. However, there are limited studies investigating the factors that influence cloud computing adoption within Australian SMEs. To fill the research vacuum, we developed a research model based on the diffusion of innovation theory (DOI), the technology-organisation-environment (TOE) framework, and our prior exploratory study to investigate the determinants that influence the adoption of cloud computing. An organizational-level survey was conducted across Australia to collect data from technology decision makers in SMEs. Data collected from 203 firms are used to test the related hypotheses. This study contributes a statistically validated model of the influential determinants of cloud computing adoption. Data analysis indicates that Technological Factors (cost savings, relative advantages, compatibility, and trialability), Organizational Factors (firm size, top management support, innovativeness of the firm, and IS knowledge), and Environmental Factors (market scope and external computing support) were found to be determinants of the adoption of cloud computing services. Benefits of the findings are twofold. First, they provide knowledge about cloud computing determinants in the Australian marketplace. Second, they provide policy planners and SMEs' decision makers with insights and directions for successful adoption of cloud computing technology.