The effects of IT capabilities and delivery model on cloud computing success and firm performance for cloud supported processes and operations

Organizations align IT-based capabilities with cloud delivery options to meet performance objectives.Managerial, technical and relational IT capability positively affect cloud success.Cloud success positively affects firm performance.The moderating effect of cloud strategy (public, private and hybrid) was partially significant. Our study examines the effect of relational, managerial and technical IT-based capabilities on cloud computing success; and analyzes how this success impacts firm performance with respect to the processes and operations supported by cloud computing. Additionally, we investigated the complex relationships that exist between IT capabilities and the public, private and hybrid cloud delivery models. Data from a sample of 302 organizations were collected to empirically test our model. The results indicate that a relational IT capability is the most influential factor to facilitate cloud success compared to technical and managerial IT capabilities. Furthermore, an evaluation of the interrelationships indicates that the public and hybrid cloud delivery models may be more dependent on relational IT capabilities for cloud success while the flexibility and agility of the firm's internal IT (technical IT capability) facilitates the public cloud. We discuss how IT-based capabilities may be used to leverage cloud delivery models to positively influence the successful implementation of cloud computing, and ultimately, firm performance for the processes and operations supported by the cloud.

[1]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[2]  Bhavani M. Thuraisingham,et al.  Security Issues for Cloud Computing , 2010, Int. J. Inf. Secur. Priv..

[3]  M. Wade,et al.  Review: the resource-based view and information systems research: review, extension, and suggestions for future research , 2004 .

[4]  Y. Zhuang,et al.  Does Electronic Business Create Value for Firms? an Organizational Innovation Perspective , 2005 .

[5]  Kay M. Nelson,et al.  International Conference on Information Systems ( ICIS ) 1993 THE CONTRIBUTION OF SHARED KNOWLEDGE TO IS GROUP PERFORMANCE , 2017 .

[6]  Lorin M. Hitt,et al.  Productivity, Business Profitability, and Consumer Surplus: Three Different Measures of Information Technology Value , 1996, MIS Q..

[7]  Rex B. Kline,et al.  Principles and Practice of Structural Equation Modeling , 1998 .

[8]  David A. Johnston,et al.  Effects of supplier trust on performance of cooperative supplier relationships , 2004 .

[9]  Banri Asanuma.  Manufacturer-supplier relationships in Japan and the concept of relation-specific skill , 1989 .

[10]  Blake Ives,et al.  In Search of Sustainability: Reaping Long-term Advantage from Investments in Information Technology , 1990, J. Manag. Inf. Syst..

[11]  Fred Niederman,et al.  Information Systems Management Issues for the 1990s , 1991, MIS Q..

[12]  Rajiv Sabherwal,et al.  The Relationship Between Information System Planning Sophistication and Information System Success: An Empirical Assessment* , 1999 .

[13]  Will Venters,et al.  A critical review of cloud computing: researching desires and realities , 2012, J. Inf. Technol..

[14]  Arun Rai,et al.  Research Commentary - Reframing the Dominant Quests of Information Systems Strategy Research for Complex Adaptive Business Systems , 2010, Inf. Syst. Res..

[15]  Guo Chao Alex Peng,et al.  Cloud Erp: A New Dilemma to Modern Organisations? , 2014, J. Comput. Inf. Syst..

[16]  Ephraim R. McLean,et al.  Information Systems Success: The Quest for the Independent Variables , 1992, J. Manag. Inf. Syst..

[17]  R. Reed,et al.  Causal Ambiguity, Barriers to Imitation, and Sustainable Competitive Advantage , 1990 .

[18]  Jeffrey H. Dyer.  Specialized supplier networks as a source of competitive advantage : Evidence from the auto industry , 1996 .

[19]  Michael Hall,et al.  Security and Control in the Cloud , 2010, Inf. Secur. J. A Glob. Perspect..

[20]  Peter G.W. Keen,et al.  Shaping the Future: Business Design Through Information Technology , 1991 .

[21]  Borja Sotomayor,et al.  Virtual Infrastructure Management in Private and Hybrid Clouds , 2009, IEEE Internet Computing.

[22]  Ahmed Shawish,et al.  Cloud Computing: Paradigms and Technologies , 2014 .

[23]  Sang-Hyun Kim,et al.  An Empirical Study on the Influence of Environmental Determinants on the Mobile Cloud Computing Technology Usage and the Moderating Effects of Job Relevance , 2011 .

[24]  Evangelos Katsamakas,et al.  Performance effects of information systems integration: : A system dynamics study in a media firm , 2010, Bus. Process. Manag. J..

[25]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[26]  Radhika Santhanam,et al.  Issues in Linking Information Technology Capability to Firm Performance , 2003, MIS Q..

[27]  Pasi Tyrväinen,et al.  Economic aspects of hybrid cloud infrastructure: User organization perspective , 2011, Information Systems Frontiers.

[28]  Leon A. Kappelman,et al.  A Comprehensive Model for Assessing the Quality and Productivity of the Information Systems Function: Toward a Theory for Information Systems Assessment , 1997 .

[29]  Robert W. Zmud,et al.  Research Commentary: The Organizing Logic for an Enterprise's IT Activities in the Digital Era - A Prognosis of Practice and a Call for Research , 2000, Inf. Syst. Res..

[30]  Noriaki Izumi,et al.  Hybrid Cloud Management: Foundations and Strategies , 2013 .

[31]  Ammar Rashid,et al.  Toward the Trend of Cloud Computing , 2011 .

[32]  Lior Fink,et al.  How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches , 2011, Eur. J. Inf. Syst..

[33]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[34]  Eunil Park,et al.  An Integrated Adoption Model of Mobile Cloud Services: Exploration of Key Determinants and Extension of Technology Acceptance Model , 2014, Telematics Informatics.

[35]  David J. Teece,et al.  Capturing Value from Technological Innovation: Integration, Strategic Partnering, and Licensing Decisions , 1988 .

[36]  Robert E. Hoskisson,et al.  BOARD OF DIRECTOR INVOLVEMENT IN RESTRUCTURING: THE EFFECTS OF BOARD VERSUS MANAGERIAL CONTROLS , 1993 .

[37]  Alok Choudhary,et al.  Risks in Enterprise Cloud Computing: The Perspective of it Experts , 2013, J. Comput. Inf. Syst..

[38]  P. Mell,et al.  The NIST Definition of Cloud Computing , 2011 .

[39]  Theophanis C. Stratopoulos,et al.  Determinants of a sustainable competitive advantage due to an IT-enabled strategy , 2003, J. Strateg. Inf. Syst..

[40]  Noriaki Izumi,et al.  Cloudsourcing: Managing Cloud Adoption , 2011 .

[41]  Robert D. Costigan,et al.  A Multi-Dimensional Study of Trust in Organizations , 1998 .

[42]  Man Zhang,et al.  Unpacking the effect of IT capability on the performance of export‐focused SMEs: a report from China , 2008, Inf. Syst. J..

[43]  Brad Quinn Post,et al.  A Business Case Framework for Group Support Technology , 1992, J. Manag. Inf. Syst..

[44]  Christian Homburg,et al.  Incentivizing CEOs to build customer- and employee-firm relations for higher customer satisfaction and firm value , 2012 .

[45]  Paul Hofmann,et al.  Cloud Computing: The Limits of Public Clouds for Business Applications , 2010, IEEE Internet Computing.

[46]  Peter B. Seddon,et al.  A Partial Test and Development of the DeLone and McLean Model of IS Success , 1994, ICIS.

[47]  B. Uzzi,et al.  Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness , 1997 .

[48]  J. Nunnally.  Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[49]  Wynne W. Chin.  The partial least squares approach for structural equation modeling. , 1998 .

[50]  P. Schoemaker,et al.  Strategic assets and organizational rent , 1993 .

[51]  John M. Ward,et al.  Using resource-based theory to interpret the successful adoption and use of information systems and technology in manufacturing small and medium-sized enterprises , 2003, Eur. J. Inf. Syst..

[52]  Narayan Ramasubbu,et al.  How Information Management Capability Influences Firm Performance , 2011, MIS Q..

[53]  Thiagarajan Ravichandran,et al.  Effect of Information Systems Resources and Capabilities on Firm Performance: A Resource-Based Perspective , 2005, J. Manag. Inf. Syst..

[54]  Gary Anthes,et al.  Security in the cloud , 2010, Commun. ACM.

[55]  P. Ring,et al.  Structuring cooperative relationships between organizations , 1992 .

[56]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[57]  Paul C. Godfrey,et al.  THE PROBLEM OF UNOBSERVABLES IN STRATEGIC MANAGEMENT RESEARCH , 1995 .

[58]  Richard Makadok.  Toward a synthesis of the resource‐based and dynamic‐capability views of rent creation , 2001 .

[59]  Sang-Hyun Kim,et al.  An Empirical Study on Factors Influencing the Assimilation and Expected Benefits of Cloud Computing and the Moderating Effect of Organizational Readiness , 2013 .

[60]  Pei-Fang Hsu,et al.  International Journal of Information Management , 2014 .

[61]  William L. Fuerst,et al.  Information technology and sustained competitive advantage: a resource-based analysis , 1995 .

[62]  Richard P. Bagozzi,et al.  Assessing Construct Validity in Organizational Research , 1991 .

[63]  Hung-Tai Tsou,et al.  Performance effects of IT capability, service process innovation, and the mediating role of customer service , 2012 .

[64]  R. Rumelt.  Towards a Strategic Theory of the Firm , 1984 .

[65]  A. Zaheer,et al.  Does Trust Matter? Exploring the Effectsof Interorganizational and Interpersonaltrust on Performance , 1998 .

[66]  Mohammad Obeidat,et al.  Empirical Analysis for the Factors Affecting the Adoption of Cloud Computing Initiatives by Information Technology Executives , 2012 .

[67]  Kalle Lyytinen,et al.  Modularity, Information Technology Outsourcing Success, and Business Performance , 2010, ICIS.

[68]  Albert L. Lederer,et al.  Rapid business and IT change: drivers for strategic information systems planning? , 2008, Eur. J. Inf. Syst..

[69]  Lior Fink,et al.  Exploring the perceived business value of the flexibility enabled by information technology infrastructure , 2009, Inf. Manag..

[70]  Gary Garrison,et al.  Success factors for deploying cloud computing , 2012, CACM.

[71]  B. Loganayagi,et al.  Improving Cloud Security through Virtualization , 2011, CSE 2011.

[72]  Thiagarajan Ravichandran,et al.  Quality Management in Systems Development: An Organizational System Perspective , 2000, MIS Q..

[73]  Timothy W. Ruefli,et al.  Schumpeter's ghost: Is hypercompetition making the best of times shorter? , 2005 .

[74]  Eric K. Clemons,et al.  The Impact of Information Technology on the Organization of Economic Activity: The "Move to the Middle" Hypothesis , 1993, J. Manag. Inf. Syst..

[75]  Peter B. Seddon,et al.  A Partial Test and Development of Delone and Mclean's Model of IS Success , 1996, Australas. J. Inf. Syst..

[76]  Kenneth L. Kraemer,et al.  Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value , 2004, MIS Q..

[77]  Terry Anthony Byrd,et al.  An Exploratory Analysis of the Value of the Skills of IT Personnel: Their Relationship to IS Infrastructure and Competitive Advantage , 2001, Decis. Sci..

[78]  Eric K. Clemons,et al.  Sustaining IT Advantage: The Role of Structural Differences , 1991, MIS Q..

[79]  Jeffrey H. Dyer,et al.  The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage , 1998 .

[80]  Varun Grover,et al.  The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions , 1996, J. Manag. Inf. Syst..

[81]  Vijay Gurbaxani,et al.  A process oriented framework for assessing the business value of information technology , 1995, DATB.

[82]  A. Tsui,et al.  Configurational Approaches to Organizational Analysis , 1993 .

[83]  Hyun-Soo Han,et al.  Analyzing the impact of a firm's capability on outsourcing success: A process perspective , 2008, Inf. Manag..

[84]  Anandhi S. Bharadwaj,et al.  A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation , 2000, MIS Q..

[85]  Lawrence Loh,et al.  Diffusion of Information Technology Outsourcing: Influence Sources and the Kodak Effect , 1992, Inf. Syst. Res..

[86]  C. Prahalad,et al.  The Core Competence of the Corporation , 1990 .

[87]  Varun Grover,et al.  Types of Information Technology Capabilities and Their Role in Competitive Advantage: An Empirical Study , 2005, J. Manag. Inf. Syst..

[88]  Rajiv Kohli,et al.  Information Technology Payoff in the Health-Care Industry: A Longitudinal Study , 2000, J. Manag. Inf. Syst..

[89]  Tiago Oliveira,et al.  Assessing the determinants of cloud computing adoption: An analysis of the manufacturing and services sectors , 2014, Inf. Manag..

[90]  Ranjay Gulati,et al.  Interorganizational Trust, Governance Choice, and Exchange Performance , 2008, Organ. Sci..

[91]  Varun Grover,et al.  Strategic Information Systems Revisited: A Study in Sustainability and Performance , 1994, MIS Q..

[92]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[93]  Eric Pardede,et al.  A new model to ensure security in cloud computing services , 2012, J. Serv. Sci. Res..

[94]  Ephraim R. McLean,et al.  The DeLone and McLean Model of Information Systems Success: A Ten-Year Update , 2003, J. Manag. Inf. Syst..

[95]  Peter B. Seddon.  A Respecification and Extension of the DeLone and McLean Model of IS Success , 1997, Inf. Syst. Res..

[96]  N. Venkatraman,et al.  Determinants of Information Technology Outsourcing: A Cross-Sectional Analysis , 2011, J. Manag. Inf. Syst..

[97]  Bernard C. Y. Tan,et al.  A Cross-Cultural Study on Escalation of Commitment Behavior in Software Projects , 2000, MIS Q..

[98]  Ron Sanchez,et al.  Towards the theory and practice of competence-based competion , 1996 .

[99]  Rusli Abdullah,et al.  Towards a Comprehensive Security Framework of Cloud Data Storage Based on Multi Agent System Architecture , 2012, J. Information Security.

[100]  T. C. Powell,et al.  Information technology as competitive advantage: the role of human , 1997 .

[101]  Varun Grover,et al.  Business Value of IT: An Essay on Expanding Research Directions to Keep up with the Times , 2008, J. Assoc. Inf. Syst..

[102]  Robert J. Kauffman,et al.  Discovering Potential and Realizing Value from Information Technology Investments , 2000, J. Manag. Inf. Syst..

[103]  Jae-Nam Lee,et al.  The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success , 2001, Inf. Manag..

[104]  Eric K. Clemons,et al.  Limits to Interfirm Coordination through Information Technology: Results of a Field Study in Consumer Packaged Goods Distribution , 1993, J. Manag. Inf. Syst..

[105]  Victor R. Prybutok,et al.  Information Technology Capability and Firm Performance: Contradictory Findings and Their Possible Causes , 2014, MIS Q..