Factors affecting the adoption of cloud of things

Vaibhav S. Narwane · Rakesh Dulichand Raut · Bhaskar B. Gardas · Mahesh S. Kavre · Balkrishna Eknath Narkhede

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Technology Adoption and User Behaviour Digital Transformation in Industry ERP Systems Implementation and Impact

Abstract

Purpose The purpose of this study is to determine the significant factors affecting the adoption of Cloud of Things (CoT) by Indian small and medium-sized enterprises, using exploratory and confirmatory factor analysis. Design/methodology/approach Significant factors that impact CoT implementation were identified through a detailed literature survey. A conceptual framework and hypotheses were proposed for linking the significant factors so identified, namely, cost saving, relative advantage, sharing and collaboration, reliability, security and privacy, technical issues and adoption intention. The data were collected from 270 Indian SMEs using an online survey. Structural equation modelling (SEM) was used to test the proposed model. Findings It was observed that factors such as “sharing and collaboration”, “cost saving” and “relative advantage” had a positive influence on CoT adoption. Findings of the study also supported the hypothesis that “security and privacy” were the prime concerns for CoT adoption. Research limitations/implications Sample coverage across different geographical areas with qualitative data can be helpful. The SEM methodology is only capable of verifying linear relationships; to counter this, a hybrid approach with tools such as artificial neural network and multiple linear regression can be used. Practical implications This study intends to guide the managers of SMEs, cloud service providers and regulatory organisations for formulating an effective strategy to adopt CoT. It may be noted that CoT is the prime building block of Industry 4.0 and SMEs will benefit from government support for the same. Originality/value This paper highlights the influence of factors on the adoption intention of CoT with a focus on the SMEs of a developing country like India.

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