Factors determining the intention to adopt cloud computing by finance companies in Sri Lanka

Abstract

Cloud computing has become the most evolving technological innovation that reduces the processing cost while increasing the availability, flexibility, reliability and processing throughout. Though this is an emerging technology and the rest of the worlds’ finance companies are implementing it, Sri Lanka’s finance companies have not gained the competitive advantage of adopting cloud technology as yet. This study therefore has made significant efforts on analysing what factors determine the intention to adopt cloud computing by the finance companies of Sri Lanka. Selective factors from Innovation Diffusion Theory and Technology-Organization-Environment framework such as relative advantage, compatibility, complexity, trialability, security, top management support and technology readiness were considered. From the total of 45 licensed finance companies in Sri Lanka, 35 companies were targeted to collect primary data. Survey-based questionnaire method was used to collect data. A statistical analysis was carried out using IBM SPSS Statistical Software v.23, and hypotheses were tested based on the results of multiple regression. According to the regression model, it is recognised that relative advantage and compatibility are significant factors which predict the adoption of cloud computing. It has also analyzed the moderating impact on finance resource allocation on the relationship between independent variables (seven factors) and adoption of cloud computing. Findings suggest that financial resource allocation would not have a significant impact on the model’s ability to determine adoption of cloud computing.