Trialability, perceived risk and complexity of understanding as determinants of cloud computing services adoption

Abstract

In 2011 one-third of South African organisations did not intend to adopt cloud computing services because IT decision-maker lacked understanding of the related concepts and benefits (Goldstuck, 2011). This research develops a media-oriented model to examine the adoption of these services in South Africa. The model uses the technology acceptance model (TAM) and innovation diffusion theory (IDT) to develop variables that are considered determinants of adoption including trialability, complexity of understanding, perceived risk, perceived ease of use and perceived usefulness.An electronic survey was sent to 107 IT decision-makers. Over 80% of the respondents were C-suite executives. The Partial Least Squares (PLS) method was chosen to depict and test the proposed model. PLS is superior to normal regression models and is a second generation technique. The data analysis included evaluating and modifying the model, assessing the new measurement model, testing the hypotheses of the model structure and presenting the structural model.The research found that media, experts and word of mouth mitigate perceived risks including bandwidth, connectivity and power. Furthermore, trialability and perceived usefulness were affected by social influence, as well as influencing adoption. The results enable service providers and marketers to develop product roadmaps and pinpoint media messages.