Adoption of cloud computingin emerging countries:the role of the absorptive capacity

Abstract

This paper aims to develop a theoretical framework that explains the cloud computing(CC) adoption decision in emerging countries. It emphasizes the specific role of technolog-ical absorptive capacity especially if CC is adopted to boost innovation. Our examinationof absorptive capacity is in line with Todorova and Durisin (2007) who propose a frame-work linking the contributions of Cohen and Levinthal (1989) and Zahra and George(2002). To test our theoretical claims, we estimate two models predicting the probabilitiesof adopting CC, and of adopting CC for innovative aims. We include in our model variablesfor the firm’s competitive pressure and external environment, perceived technological im-pacts, and technological absorptive capacity. We also include control variables such as firmage and size, and sector of activity. We employ a bivariate probit model to explain the de-terminants of the decision to adopt CC, and an ordered probit model with sample selectionin order to understand the determinant of adoption for innovation. Our data are from aquestionnaire administered face-to-face to a random sample of 350 Tunisian firms. Ourempirical findings confirm our theoretical claims and show that perception of the technol-ogy is a key factor in CC adoption (for general purposes), and that absorptive capacity isfundamental for adoption of CC for innovation. We show also that competitive pressure isan important explanatory factor: the more competitors that adopt a technology, the morelikely the firm will adopt it.