Cloud Computing Adoption by Firms in Kenya: the Role of Institutional Forces

Abstract

While there is substantial literature on the adoption of IT innovations based on utility computing, there is a dearth of studies on cloud computing adoption by business organizations. Given that cloud computing adoption has been steadily increasing in Kenya, this study aim to investigate the determinants of cloud computing adoption from an institutional perspective. The relationship between institutional pressures and cloud computing adoption was evaluated and tested using structural equation modelling (PLS SEM). A firm level cross sectional survey was conducted on a sample of 93 firms in the financial, manufacturing, and ICT sectors. The results indicate that coercive and normative pressures have a significant positive relationship with cloud computing adoption. The hypothesis that mimetic pressures have a relationship with cloud computing adoption was not supported. A major implication of this study is that professional and standards bodies do influence technology adoption through normative pressures