Cloud computing technology adoption: an evaluation of key factors in local governments

Purpose The significance of cloud services in information technology (IT) is increasing as a means of achieving enhanced productivity, efficiency and cost reduction. Through cloud-based service, the reliability and scalability of an organization’s systems can be enhanced since organizations such as local governments are able to concentrate on their main business strategies. This research seeks to identify critical factors that may have an impact on the acceptance of cloud-based services, where the organizational context is based on local governments in Australia. Design/methodology/approach To formulate a more comprehensive IT innovation adoption model for cloud technology, factors from the technology-organizational-environment framework, desires framework and diffusion of innovation model were integrated. Data was obtained from 480 IT staff working in 47 local government organizations. Findings The research results show that the factors which had a statistically significant and positive impact on the adoption of cloud-based services in local governments were compatibility, complexity, cost, security concerns, expected benefits and organization size. It is likely that the outcomes from this research will provide insights to any organization seeking to make investment decisions on the adoption of cloud-based services. Research limitations/implications Limitations include generalizability of the findings since the data is restricted to local government areas in Queensland, Australia. Further, the sample mostly included individuals with managerial positions and may not completely capture the cloud adoption factors relevant for front line IT employees. Another limitation is the possible omission of factors that may be relevant but not considered due to the selected theories. Lastly, this research did not differentiate between different types of cloud adoption such as private, public, community and hybrid models that are possible in this context. Originality/value The paper provides a combination framework of cloud-based service adoption based on a literature review on cloud adoption from an IS perspective. It adapts integrated model to establish a more comprehensive innovation adoption framework for cloud technology.