Understanding the Mediation Effect of Cloud Computing Adoption in Indian Organization

Abstract

The aim of this paper is to measure the business performance by taking Cloud computing adoption as a mediating variable in Indian industries. A conceptual model is framed using the concept of a TAM-TOE framework which is combined with some new constructs of ‘Risk'. Partial and full mediation are used from the umbrella concept of SEM (Structural Equation Modelling) to test the hypotheses. The study identified that Technological variables ‘Technology Innovation (TI)' and ‘Usage of Technology (UT)' positively mediates the relationship, Organizational variable ‘Industry Usage (IU)' negatively mediates the relationship and Environmental variables ‘Management Style (MS)' positively mediates the relationship whereas ‘Trust (T)' has no mediation effect. The ‘Risk' factors ‘Risk Analysis (RA)' positively influences the mediation process and ‘Perceived IT Security Risk (PITR)' has no mediation effect on the dependent variable ‘Business performance (BP)'. The findings of the study have some important implications. As the constructs ‘Risk (Perceived IT Security Risk)' and ‘Trust' have no mediation effect, it implies industries do not give importance on these factors while adopting Cloud computing. Hence, risk and trust resulted as the barriers for technology adoption, and organizations should verify these criteria during Cloud computing adoption of a better performance in the business. The study tests indirect effect and direct effect on business performance considering Cloud computing adoption as the mediating variable.