Dual decision-making with discontinuance and acceptance of information technology: the case of cloud computing

Abstract

The purpose of this paper is to investigate organizational information technology (IT) deployment from a dual decision-making perspective. This study builds on rational choice theory to characterize how the costs and values of incumbent IT and those of the corresponding new cloud computing influence a company's dual decision of discontinuance and acceptance. This study chooses cloud computing as the research context, since it is one of the most well-accepted ITs in current practice. By using survey methodology, the data were collected from organizations around the world. Our hypotheses were examined via multimethod analyses, including the partial least squares, the multinomial log it regression and the analysis of variance. This research reveals that organizations often follow the dual decision-making process in IT deployment regarding a non-cloud, hybrid structure and full-cloud considers incumbent IT discontinuance and new cloud computing acceptance. These results indicate that organizations may embrace cloud computing because of its perceived high system compatibility and low support costs. Meanwhile, security threats remain the primary obstacles to conducting business in the cloud. Previous studies mainly focus on a single aspect and do not reveal the intricacies of the interactions between the reduction of incumbent IT and the addition of new IT. To address this gap in the body of knowledge, our study proposes a dual decision model based on a dialectical understanding of new and incumbent IT mechanisms instead of a singular IT acceptance model.