The adoption of cloud-based Software as a Service (SaaS): a descriptive and empirical study of South African SMEs
Date
2019-10-31
Authors
Maserumule, Mabuke Dorcus
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Abstract
The purpose of this study was to describe the state of cloud-based software (SaaS) adoption among South African SMEs and to investigate the factors affecting their adoption of SaaS solutions. The technological, organisational and environmental (TOE) factors influencing cloud-based software adoption within SMEs were identified through a review of existing TOE literature. In addition, institutional theory and diffusion of innovation theory were also used to underpin the study. A research model hypothesising the outcome of the identified TOE factors on the adoption of cloud-based software was developed and tested. Specifically, factors hypothesised to influence SaaS adoption were compatibility, security concern, top management support and coercive pressures.
This study employed a relational, quantitative research approach. A structured questionnaire was developed and administered as an online survey. Data was collected from a sample of 134 small and medium enterprises (SMEs) that provided usable responses. The collected data was used to firstly describe the state of adoption. Secondly, the extent to which various TOE factors impact on adoption was examined through the use of multiple regression. It was found that compatibility, security concern, top management support and coercive pressures influence adoption while trust, cost, relative advantage, complexity, geographic dispersion, normative and mimetic pressures did not have significant effects. This study adds value to the Information Systems literature as it uses the TOE framework alongside institutional theory and diffusion of innovation theory to explain the adoption of cloud-based software solutions by South African SMEs.
This study provides information on the current state of adoption for cloud-based software within SMEs in South Africa. Organisations can also learn about the factors contributing to this adoption. Organisations can also be informed that for adoption to be successful, technological, organisational and environmental factors must be taken into consideration. Results assist organisations wanting to implement cloud-based software solutions. Specifically, results provide a benchmark for SMEs on where their organisations stand compared to other organisations with regards to SaaS adoption (for example whether they are lagging behind, they are on par, or whether they are innovators). This could inform their IT procurement decisions, e.g. to consider whether cloud-based software solutions are strategic and necessary to keep abreast with peers and competitors.
Description
A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree of Master of Commerce by (MCom) in the field of Information Systems, 2019
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Citation
Maserumule, Mabuke Dorcus (2019) The adoption of cloud-based Software as a Service (SaaS): a descriptive and empirical study of South African SMEs, University of the Witwatersrand, Johannesburg, <http://hdl.handle.net/10539/29811>