Abstract

Recent research suggests that there may be other, more granular factors that influence the adoption of innovations like cloud computing by organizations. In the current study, organizational adoption of cloud computing is investigated by examining specific aspects of the classical diffusion theory as they are framed in the context of the information processing paradigm. The authors argue that various aspects of an organization and its respective environment create different information needs and influence the adoption and the diffusion of information technology (IT) innovation. An empirical study is conducted to test the model. The results show that the business process complexity, organizational culture and the compatibility of the current information system all contributes to the organization’s adoption decision. This study serves as a preliminary effort to investigate how the information processing requirement affects firms’ attitude to adopt IT innovation.

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