Research Article
Vendor Dependency and the Relationship with Organizational Cloud Computing Expected Performance
1 Kyungpook National University
Published: January 2018 · Vol. 47 No. 5 · pp. 1021-1047
DOI: https://doi.org/10.17287/kmr.2018.47.5.1021
Full Text
Abstract
Cloud computing enables firms to reduce IT investment costs by consolidating IT resources in externally located data centers and allocating only the amount needed, while also offering the advantage of improved operational efficiency through easier data management, maintenance, and repair. However, in such cases, cloud computing inevitably entails high dependence on service providers, given that it requires the use of IT resources from external data centers and that user data stored via networks is managed on central servers. Therefore, dependence on external providers is expected to influence cloud computing implementation. Trust in providers and appropriate organizational support may also affect successful cloud computing implementation and the performance outcomes that firms expect. Accordingly, research is needed on the relationships among provider dependence, successful cloud computing implementation and performance, trust, and organizational support—areas that have not been adequately examined in prior studies. Thus, this study seeks to find the motivation and answers to the main research question: "How does dependence on providers affect successful cloud computing implementation and expected performance?" through empirical analysis. To this end, we proposed provider dependence factors as technological dependence and managerial dependence, examined how these factors affect successful cloud computing implementation, and how successful implementation affects expected outcomes of satisfaction and performance, thereby differentiating this study from prior research. Additionally, we empirically verified the roles of trust in providers and organizational support in the relationships among dependence, successful implementation, and performance. The structural equation modeling analysis of the proposed research model revealed that technological dependence had a positive effect on successful cloud computing implementation. However, managerial dependence did not have a significant effect on successful cloud computing implementation. Furthermore, successful cloud computing implementation was found to positively affect satisfaction and performance. Trust in providers was confirmed to strengthen the relationship between dependence and successful cloud computing implementation, and organizational support was found to strengthen the relationship between successful cloud computing implementation and expected performance outcomes. These findings can provide important theoretical and practical implications at the organizational level for successful cloud computing implementation.
