Cloud computing vision, institutional forces, organizational mindfulness, cloud adoption and

263 Pages·2016·4.61 MB·English

CLOUD COMPUTING VISION, INSTITUTIONAL
FORCES, ORGANIZATIONAL MINDFULNESS, CLOUD
ADOPTION AND PERFORMANCE OF SELECTED
FIRMS IN KENYA

By

OREDO JOHN OTIENO
M.Sc. IT, Strathmore University – 2008
B.Ed, Moi University – 1998

A DOCTORAL THESIS SUBMITTED IN FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
DOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION,
SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI

JANUARY 2016
DECLARATION
I declare that this thesis is my own original work and it has not been submitted for
examination to this or any other university.

Signature: ------------------------------------------- Date: ------------------------
Oredo John Otieno
D80/60320/2010

This thesis has been submitted for examination with our approval as the university
supervisors.

Signature: ----------------------------------------- Date: -----------------------------
Dr. James Njihia
Department of Management Science
School of Business
University of Nairobi

Signature: ----------------------------------------- Date: -----------------------------
Dr. X.N. Iraki
Department of Management Science
School of Business
University of Nairobi

ii
DEDICATION
To my parents who worked tirelessly to ensure I get a decent education. To my wife
Rispa, our children Garfield, Abigail and Joshua for the warmth at home.

iii
ACKNOWLEDGEMENTS

My journey during the doctoral studies period benefited from the generosity of many
people. I am grateful to my supervisors, Dr. James Njihia and Dr. X.N. Iraki, all of
the School of Business, University of Nairobi. They accompanied me in this journey
with patience and were always available to provide guidance and support. A lot of
thanks also go to the panel members during my departmental and open forum
presentations. I am most grateful to Dr. Peterson Magutu and Dr. Cyrus Iraya who
chaired my departmental and open forum presentations respectively. Many thanks are
also due to Prof. Yabs who chaired the doctoral committee that approved my thesis
proposal. The comments and guidance I received from those presentations were useful
in strengthening and grounding of my study. My gratitude also goes to the Prof.
Aduda who chaired the Board of Examiners meeting for my thesis examination.
Thanks to the administrative staff at the Department of Management Science and the
PhD coordination office, Hilda, Nancy and Jane. Your assistance in ensuring that the
presentations’ minutes were signed and availed to me in good time contributed to the
successful completion of my study.

I am also greatly indebted to Felister Kandenye, Dafrose Odoyo and Pauline Amondi
who tirelessly followed up with the respondents to ensure they filled the web based
questionnaire. Despite the fact that you had to call the respondents many times before
they could respond, you never gave up. I would like to appreciate the willingness and
the sacrifice made in terms of time by the ICT managers of various firms who
accepted to participate in the study. My appreciation also goes to my fellow students;
Daniel Muendo, Ibrahim Halkano, Charles Borura, Gabriel Kamau and the other
Kamau for the moral support. I still remember the joke about hired cheering squads
during presentations.

I also take this opportunity to thank my parents, Mr. Joshua Oredo and Mrs. Suslia
Oredo for having to bear with my long absence from our rural home during the time I
was writing this thesis report. I appreciate my wife Rispa for understanding that I
needed to spend more time in the study room than usual and for religiously serving
me Uji whenever I am working from the house. The occasional disturbances from my
children Garfield, Abigail and Joshua provided a necessary breather. Last but not
least, I thank the almighty God for the gift of life, faith, family and health.
iv
“The whole of science is nothing more than an extension of
everyday thinking”
ALBERT EINSTEIN

v
COPYRIGHT

©2015 John Otieno Oredo
P.o. Box 72214-00200
Nairobi.
[email protected]

All rights reserved. No part of this thesis may be reproduced, translated, stored in a
retrieval system, or transmitted, in any form or by any means, electronic, mechanical,
photocopying, microfilming, recording, or otherwise, without written permission from
the author except in brief quotations embodied in reviews, articles and research
papers. For any information required, contact the author.

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TABLE OF CONTENTS
DECLARATION......................................................................................................... ii
DEDICATION............................................................................................................ iii
ACKNOWLEDGEMENTS ...................................................................................... iv
COPYRIGHT ............................................................................................................. vi
List of Tables ............................................................................................................. xii
List of Figures .............................................................................................................xv
List of Abbreviations and Acronyms ..................................................................... xvi
ABSTRACT ............................................................................................................. xvii
CHAPTER ONE: INTRODUCTION ........................................................................1
1.1 Background of the Study ..................................................................................... 1
1.1.1 Cloud Computing Vision .............................................................................. 3
1.1.2 Institutional Forces........................................................................................ 3
1.1.3 Organizational Mindfulness .......................................................................... 4
1.1.4 Cloud Computing Adoption .......................................................................... 5
1.1.5 Firm Performance ......................................................................................... 6
1.1.6 Financial, ICT and Manufacturing Firms in Kenya ...................................... 7
1.2 Research Problem ................................................................................................ 7
1.3 Research Objectives ........................................................................................... 11
1.4 Value of the Study ............................................................................................. 12
1.5 Structure of the Thesis ....................................................................................... 13
CHAPTER TWO: LITERATURE REVIEW .........................................................15
2.1 Introduction ........................................................................................................ 15
2.2 The Concept of Cloud Computing ..................................................................... 15
2.2.1 The Genesis of Cloud Computing............................................................... 16
2.2.2 Cloud Computing Service Models .............................................................. 17
2.2.3 Cloud Computing Deployment Models ...................................................... 18
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2.2.4 Cloud Computing Consumption Models .................................................... 19
2.2.5 The Benefits of Cloud Computing Adoption .............................................. 20
2.2.6 The Challenges of Cloud Computing Adoption ......................................... 21
2.3 Theories of IT Innovation Adoption .................................................................. 22
2.3.1 The Dominant Paradigm ............................................................................. 22
2.3.2 The Socio-cognitive Perspective ................................................................. 24
2.4 Empirical Literature on IT Innovation Adoption ............................................... 32
2.4.1 Cloud Computing Vision and Cloud Computing Adoption ....................... 32
2.4.2 Institutional Forces and Cloud Computing Adoption ................................. 34
2.4.3 Organizational Mindfulness and Cloud Computing Adoption ................... 35
2.4.4 Cloud Computing Adoption and Firm Performance ................................... 36
2.4.5 Organizational Mindfulness and Firm Performance ................................... 36
2.4.6 The Moderating Effect of Organizational Mindfulness .............................. 37
2.4.7 The Socio-Cognitive Model of Cloud Computing Adoption ..................... 39
2.5 Summary of Literature Review and Knowledge Gaps ...................................... 40
2.6 The Conceptual Framework ............................................................................... 42
2.7 The Research Hypotheses .................................................................................. 43
CHAPTER THREE: RESEARCH METHODOLOGY ........................................45
3.1 Introduction ........................................................................................................ 45
3.2 Philosophical Orientation................................................................................... 45
3.3 Research Design................................................................................................. 46
3.4 Population of the Study ...................................................................................... 46
3.5 Sampling Technique .......................................................................................... 47
3.6 Data Collection .................................................................................................. 47
3.7 Operationalization of Variables ......................................................................... 49
3.8 Data Analysis ..................................................................................................... 51
3.9 Measurement Model Development .................................................................... 52
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3.9.1 Validity ........................................................................................................... 53
3.9.2 Reliability ........................................................................................................ 54
3.10 Structural Model Development and Estimation ............................................... 55
3.11 Testing for Moderation and Mediation ............................................................ 55
3.12 Hypothesis Testing and Data Analysis Procedures ......................................... 56
CHAPTER FOUR: DATA ANALYSIS AND FINDINGS.....................................60
4.1 Introduction ........................................................................................................ 60
4.2 Pilot Study and Instrument Testing.................................................................... 60
4.3 Data Collection and Respondent Characteristics ............................................... 61
4.3.1 Data Collection ........................................................................................... 61
4.3.2 Respondent Characteristics ......................................................................... 62
4.4 Principal Component Analysis, Reliability and Construct Validity .................. 72
4.4.1 Cloud Computing Vision ............................................................................ 73
4.4.2 Institutional Forces...................................................................................... 79
4.4.3 Organizational Mindfulness ........................................................................ 84
4.4.4 Cloud Computing Adoption ........................................................................ 91
4.4.5 Firm Performance ....................................................................................... 93
4.5 Model Assessment ............................................................................................. 95
4.5.1 Measurement Model Assessment ............................................................... 95
4.5.2 Structural Model Estimation and Hypothesis Testing .............................. 110
4.6 Hypotheses Testing .......................................................................................... 119
4.6.1 Cloud Computing Vision and Cloud Computing Adoption ..................... 121
4.6.2 Institutional forces and Cloud Computing Adoption ................................ 121
4.6.3 Organizational Mindfulness and Cloud Computing Adoption ................. 122
4.6.4 Cloud Computing Adoption and Firm Performance ................................. 123
4.6.5 Organizational Mindfulness and Firm Performance ................................. 123
4.6.6 Test for the Interaction Effect of Organizational Mindfulness ................. 124
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CHAPTER FIVE: DISCUSSION OF FINDINGS................................................130
5.1 Introduction ...................................................................................................... 130
5.2 Direct Effect of Cloud Computing Vision on Cloud Computing Adoption .... 130
5.3 Direct Effect of Institutional Forces on Cloud Computing Adoption.............. 133
5.4 Direct Effect of Organizational Mindfulness on Cloud Computing Adoption 136
5.5 Direct Effect of Cloud Computing Adoption on Firm Performance ............... 138
5.6 Direct Effect of Organizational Mindfulness on Firm Performance ............... 139
5.7 The Interaction Effect of Organizational Mindfulness on the Relationship
between Cloud Computing Vision and Cloud Computing Adoption .................... 140
5.8 The Interaction Effect of Organizational Mindfulness on the Relationship
between Institutional Forces and Cloud Computing Adoption.............................. 141
5.9 The Interaction Effect of Organizational Mindfulness on the Relationship
between Cloud Computing Adoption and Firm Performance ............................... 142
CHAPTER SIX: SUMMARY, CONCLUSION AND RECOMMENDATIONS
....................................................................................................................................143
6.1 Introduction ...................................................................................................... 143
6.2 Summary of Findings ....................................................................................... 143
6.3 Conclusion of the Study ................................................................................... 145
6.4 Implications of the Study ................................................................................. 148
6.4.1 Theoretical Contribution ........................................................................... 148
6.4.2 Contribution of the Study to IS Body of Knowledge ............................... 150
6.4.3 Methodological Contribution .................................................................... 150
6.4.4 Implication to Policy Formulation ............................................................ 151
6.4.5 Implications to Management Practice ....................................................... 152
6.5 Limitations of the Study................................................................................... 154
6.6 Suggestions for Future Research ..................................................................... 155
REFERENCES .........................................................................................................158
APPENDIX A: THE QUESTIONNAIRE .............................................................178
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