Understanding the Complex Adoption Behavior of Cloud Services by SMEs Based on Complexity Theory: A Fuzzy Sets Qualitative Comparative Analysis (fsQCA)

Abstract

To survive in a competitive environment, small and medium enterprises (SMEs) have had to adapt to the digital environment in order to adjust to customer needs globally, particularly in the post-COVID-19 world. The advantages of cloud computing (e.g., flexibility, scalability, and low entry cost) provide opportunities for SMEs with a restricted budget and limited resources. To understand how SMEs adopt cloud computing in a complex digital environment, this study examines how antecedents combine with each other to explain the high adoption of cloud computing. From the perspectives of holism and set theory, we draw on complexity and configuration theories, present a conceptual model including seven antecedents based on the technology-organization-environment framework, and conduct an asymmetric fuzzy-set qualitative comparative analysis. Through an empirical study with 123 Chinese companies, we identify nine combinations (configurations) of determinant antecedents that lead to the high adoption of cloud computing. The results show that none of the factors are indispensable to explain a high adoption on their own; instead, they are insufficient but necessary parts of the causal combinations that explain a high adoption. This study contributes to the literature on cloud computing adoption by extending current knowledge on how antecedents combine to increase the adoption and identify specific patterns of SMEs for whom these factors are essential and greatly influence their adoption.