An Analytical Framework to Understand the Adoption of Cloud Computing: An Institutional Theory Perspective

Abstract

Cloud computing (CC) offers a new information technology service model for organizations. In spite of its possible benefits, however, it also poses some serious concerns. Why do organizations adopt CC in spite of its potential risks? Based on several core concepts based on institutional theory, we propose an analytical framework to better understand the adoption of CC by organizations. We focus on the concepts of field-level changes, organizational fields, institutional isomorphism, and institutional strategic responses within the context of CC adoption. We identify a number of organizations that form the organizational field and bring about changes (i.e., CC providers, peer organizations, business partners, professional and industry associations, and regulators) that may trigger institutional pressures (i.e., coercive, normative, and mimetic) on the adopting organizations. We conclude by presenting possible strategic responses (i.e., acquiescence, compromise, avoidance, defiance, and manipulation) to address the institutional pressures related to CC adoption.