Journal of Information Technology Services (한국IT서비스학회지)

Korea Society of IT Services (한국IT서비스학회)
권호 표지
DOI QR코드

DOI QR Code

Unveiling the Influence of Corporate Organizational Inertia on Cloud Computing Transition Intentions: An Empirical Inquiry

기업내 조직 관성이 클라우드 컴퓨팅 전환 의도에 미치는 영향에 관한 실증적 연구

  • 강재원 (한국과학기술원 미래전략대학원) ;
  • 이상윤 (한국과학기술원 미래전략대학원)
  • Received : 2024.03.08
  • Accepted : 2024.05.23
  • Published : 2024.06.30
Download PDF
⟨ Previous Next ⟩

Abstract

This study explores the tendency of corporations and organizations to continue with their current processes despite having incentives for better Information Technology (IT) innovation or transition. In this context, the study argues that organizations may struggle with 'outsourcing inertia,' a well-known concept referring to an organization's deficient adaptability to environmental changes, particularly defined here as the organization's slow adaptation to changes in outsourcing levels. To verify this, the study analyzes how key variables identified from existing IT Outsourcing (ITO) decision-making research and recent studies on cloud computing transitions actually affect a firm's transition intentions. In the process, this study investigates the moderating effect of a firm's outsourcing inertia, utilizing the Technology-Organization-Environment (TOE) framework and the Push-Pull-Mooring (PPM) model based on migration theory to propose a research model. The study aims to contribute to finding strategic approaches necessary for facilitating IT innovation and transition by understanding the impact of outsourcing inertia on the decision-making process related to IT outsourcing. It is important to note that the majority of domestic conglomerates own IT subsidiaries, which significantly influence the process of transitioning to cloud computing. Nevertheless, research on the impact of IT subsidiaries on cloud computing transition is relatively scarce. Based on this background, this study proposes that IT subsidiaries within domestic conglomerates can act as a significant mooring factor of organizational inertia in the decision-making process for adopting cloud computing. Through this, the study seeks to provide strategic insights for overcoming organizational inertia faced by IT subsidiaries during the cloud computing transition process.

Keywords

Acknowledgement

이 논문은 교육부와 한국연구재단의 지원을 받아 수행된 연구임(NRF-2022S1A3A2A02089685).

References

  1. 권봉주, "공공정보시스템의 민간 클라우드 서비스 전환에 영향을 미치는 요인에 관한 연구", 숭실대학교 대학원 박사학위논문, 2017.
  2. 김수현, "단말기 보조금이 이동통신 서비스 전환의도에 미치는 조절효과", 한국콘텐츠학회논문지, 제14권, 제11호, 2014, 389-397. https://doi.org/10.5392/JKCA.2014.14.11.389
  3. 김응석, "금융 클라우드 서비스 도입 의도에 영향을 미치는 요인에 관한 실증연구", 숭실대학교 대학원 박사학위논문, 2020.
  4. 남상완, "해군 함정 컴퓨팅 시스템의 클라우드 컴퓨팅 시스템으로 전환의도에 영향을 미치는 요인에 관한 연구", 숭실대학교 대학원 박사학위논문, 2019.
  5. 오경상, "블록체인 기반 공급망관리정보시스템으로 의 전환의도에 영향을 미치는 요인- TOE 프레임워크 및 PPM 모델 적용", 건국대학교 대학원 박사학위논문, 2022.
  6. 이기범, 장원중, 조용원, 김광용, "클라우드 컴퓨팅 기반 자치단체 행정정보시스템 이용의도에 영향을 미치는 요인에 관한 연구", 한국IT정책경영학회 논문지, 제10권, 제3호, 2018, 833-840.
  7. 이상신, "석유화학기업 IT서비스의 클라우드 서비스 전환의도에 영향을 미치는 요인에 관한 연구", 숭실대학교 대학원 박사학위논문, 2020.
  8. 이철주, "공공부문 구성원의 정보시스템 수용과 활용에 관한 연구-조직 특성적, 개인행태적, 기술특성적 요인을 통한 실증분석", 고려대학교 대학원 박사학위논문, 2008.
  9. 임성택, 공다영, 심수진, 한영춘, "기업의 클라우드 컴퓨팅 도입 의사결정에 영향을 미치는 요인에 관한 연구", 한국IT서비스학회지, 제11권, 제1호, 2012.
  10. 정원경, "클라우드 기반 전자서명 서비스 도입 의도와 이용에 관한 연구", 한국IT정책경영학회 논문지 '22-14 Vol.14 No.04.
  11. 최병천, "의료기관의 클라우드 정보시스템 전환의도에 관한 실증적 연구: 이주이론을 근간으로", 목포대학교 대학원 박사학위논문, 2020.
  12. Alaghehband, F. K., S. Rivard, S. Wu, and S. Goyette, "An assessment of the use of transaction cost theory in information technology outsourcing", Journal of Strategic Information Systems, Vol.20, 2011, 125-138. https://doi.org/10.1016/j.jsis.2011.04.003
  13. Armbrust, M., A. Fox, R. Griffith, A.D. Joseph, "A view of cloud computing", Communications of the ACM, Vol.53, No.4, 2009, 50-58. https://doi.org/10.1145/1721654.1721672
  14. Baker, J., "The Technology-Organization-Environment Framework", In: Dwivedi, Y., Wade, M., Schneberger, S. (eds), Information Systems Theory, Integrated Series in Information Systems, Vol.28, Springer, New York, NY, 2012.
  15. Bala, H. and V. Venkatesh, "Assimilation of interorganizational business process standards", Information Systems Research, Vol.18, No.3, 2007, 340-362. https://doi.org/10.1287/isre.1070.0134
  16. Bansal, H.S. and S.F. Taylor, "Investigating interactive effects in the theory of planned behavior in a service-provider switching context", Psychology & Marketing, Vol.19, No.5, 2002, 407-425. https://doi.org/10.1002/mar.10017
  17. Bansal, H.S., F.T. Shirley, and Y.M. James, "Migrating to new service providers: Toward a unifying framework of consumers' switching behaviors", Journal of the Academy of Marketing Science, Vol.33, No.1, 2005, 95-115. https://doi.org/10.1177/0092070304267928
  18. Benlian, A. and T. Hess, "Opportunities and risks of software-as-a-service: Findings from a survey of IT executives", Decision Support Systems, Vol.52, No.1, 2011, 232-246. https://doi.org/10.1016/j.dss.2011.07.007
  19. Benlian, A., T. Hess, and P. Buxmann, "Drivers of saas-adoption - An empirical study of different application types", Business & Information Systems Engineering, Vol.1, No.5, 2009, 357-369. https://doi.org/10.1007/s12599-009-0068-x
  20. Berman, S. Kesterson-Townes, L., Marshall, A., and Srivathsa, R, "How cloud computing enables process and business model innovation", Strategy & Leadership, 2012.
  21. Bjorner, N. and K. Jayaraman, "Checking cloud contracts in Microsoft Azure", In R. Natarajan, G. Barua, and M. R. Patra (Eds.), Distributed Computing and Internet Technology (Vol. 8956), 2015, 21-32.
  22. Bougie, R., R. Pieters, and M. Zeelenberg, "Angry customers don't come back, they get back: The experience and behavioral implications of anger and dissatisfaction in failed services", Journal of the Academy of Marketing Science, Vol.31, 2003, 377-393. https://doi.org/10.1177/0092070303254412
  23. Catteddu, D. and G. Hogben, "Cloud computing: Benefits, risks and recommendations for information security", European Network and Information Security Agency (ENISA), 2009, 1-125.
  24. Cooper, R.B., "The inertial impact of culture on IT implementation", Information Management, Vol.27, No.1, 1994, 17-31. https://doi.org/10.1016/0378-7206(94)90099-X
  25. Davis, G.B. and M.H. Olson, Management information systems: Conceptual foundations, structure, and development, McGraw-Hill, 1984.
  26. El-Gazzar, R., E. Hustad, and D.H. Olsen, "An institutional lens on cloud computing adoption: A study of institutional factors and adoption strategies", In Proceedings of the 25th European Conference on Information Systems, 2017.
  27. Ferguson, D. and N.C. Hill, "The State of U.S. EDI: 1988", EDI Forum, Vol.1, No.1, 1989, 21-29.
  28. Fornell, C. and D.F. Larcker, "Evaluating structural equation models with unobservable variables and measurement error", Journal of Marketing Research, Vol.18, No.1, 1981, 39-50. https://doi.org/10.1177/002224378101800104
  29. Furneaux, B. and M. Wade, "The end of the information system life: A model of is discontinuance", The Data Base for Advances in Information Systems, Vol.41, No.2, 2010, 45-69. https://doi.org/10.1145/1795377.1795381
  30. Gilbert, C.G., "Unbundling the structure of inertia: resource versus routine rigidity", The Academy of Management Journal, Vol.48, No.5, 2005, 741-763. https://doi.org/10.5465/amj.2005.18803920
  31. Grossman, S. and O. Hart, "The costs and benefits of ownership: A theory of vertical and lateral integration", The Journal of Political Economy, Vol.94, No.4, 1986, 691-719. https://doi.org/10.1086/261404
  32. Gupta, A. and E. Rogers, "Internal marketing: integrating R&D and marketing within the organization", The Journal of Service Marketing, Vol.5, No.2, 1991, 55-68. https://doi.org/10.1108/08876049110035558
  33. Haag, S., "Organizational inertia as barrier to firms' it adoption - multidimensional scale development and validation", Twentieth Americas Conference on Information Systems, Savannah, 2014.
  34. Hair, J.F., C.M. Ringle, and M. Sarstedt, "Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance", Long Range Planning, Vol.46, No.1-2, 2013, 1-12. https://doi.org/10.1016/j.lrp.2013.01.001
  35. Hannan, M.T. and J. Freeman, "Structural inertia and organizational change", American Sociological Review, Vol.49, 1984, 149-164. https://doi.org/10.2307/2095567
  36. Harman, H.H., Modern factor analysis, University of Chicago press, 1976.
  37. Henseler, J., C.M. Ringle, and M. Sarstedt, "A new criterion for assessing discriminant validity in variance-based structural equation modeling", Journal of the Academy of Marketing Science, Vol.43, 2015, 115-135. https://doi.org/10.1007/s11747-014-0403-8
  38. Holloway, M., M. Dickhaus, R. Hans, B. Emondts, A. Rizk, and R. Steinmetz, "Cloud adoption in the spotlight - Empirical insights from German IT experts", In Proceedings of the 23th Americas Conference on Information Systems, 2017.
  39. Hou, A.C.Y., R.A. Chen, and C.C. Shang, "The post adoption switching of social network service: A Human Migratory Model", Proceeding of PACIS, 2012.
  40. Hsieh, J.K., Y.C. Hsieh, H.C. Chiu, and Y.C. Feng, "Post-adoption switching behavior for online service substitutes: A perspective of the push-pull-mooring framework", Computer in Human Behavior, Vol.28, No.5, 2012, 1912-1920. https://doi.org/10.1016/j.chb.2012.05.010
  41. Huff, J.O., A.S. Huff, and H. Thomas, "Strategic renewal and the interaction of cumulative stress and inertia", Strategic Management Journal, Vol.13, No.S1, 1992, 55-75. https://doi.org/10.1002/smj.4250131006
  42. Jones, M.A., D.L. Mothersbaugh, and S.E. Beatty, "Switching barriers and repurchase intentions in services", Journal of Retailing, Vol.76, No.2, 2000, 259-277. https://doi.org/10.1016/S0022-4359(00)00024-5
  43. Jones, M.A., D.L. Mothersbaugh, and S.E. Beatty, "Why customers stay: Measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes", Journal of Business Research, Vol.55, No.6, 2002, 441-450. https://doi.org/10.1016/S0148-2963(00)00168-5
  44. Kim, S. and G. Garrison, "Understanding users' behaviors regarding supply chain technology: Determinants impacting the adoption and implementation of RFID technology in South Korea", International Journal of Information Management, Vol.30, No. 5, 2010, 388-398. https://doi.org/10.1016/j.ijinfomgt.2010.02.008
  45. Kuan, K.K.Y. and P.Y.K. Chau, "A perception-based model for EDI adoption in small business using a technology-organization-environment framework", Information and Management, Vol.38, No.8, 2001, 507-512. https://doi.org/10.1016/S0378-7206(01)00073-8
  46. Lacity, M.C. and R.A. Hirschheim, "The information systems outsourcing bandwagon", Sloan Management Review, Vol.35, No.1, 1993, 73-86.
  47. Lee, E.S., "A theory of migration", Demography, Vol.3, No.1, 1966, 47-57. https://doi.org/10.2307/2060063
  48. Lee, J.C. and J. Wang, "From offline to online: understanding users' switching intentions from traditional wealth management services to mobile wealth management applications", International Journal of Bank Marketing, Vol.41, No.2, 2022, 369-394. https://doi.org/10.1108/IJBM-08-2022-0345
  49. Liang, H, N. Saraf, Q. Hu, and Y. Xue, "Assimilation of enterprise systems: The effect of institutional pressures and the mediating role of top management", MIS Quarterly, Vol. 31, No. 1, March 2007, 59-87. https://doi.org/10.2307/25148781
  50. Lim, J.S. and J.I. Oh, "A study on the effect of the introduction characteristics of cloud computing services on the performance expectancy and the intention to Use: From the perspective of the innovation diffusion theory", Asia Pacific Journal of Information Systems, Vol.22, No.3, 2012, 99-124.
  51. Lippert, S.K. and C. Govindarajulu, "Technological, organizational, and environmental antecedents to web services adoption", Communications of the IIMA, Vol.6, No.1, 2006, 14.
  52. Longino, C.F., The Forest and the Trees: Micro-Level Consideration in the Study of Geography Mobility in Old Age, London: Billhaven, 1992.
  53. Mol, M.J. and M. Kotabe, "Overcoming inertia: Drivers of the outsourcing process", Elsevier Long Range Planning, Vol.44, 2011.
  54. Moon, B., "Paradigms in migration research: Exploring 'moorings' as a schema", Progress in Human Geography, Vol.19, No.4, 504-524, 1995. https://doi.org/10.1177/030913259501900404
  55. Moore, G.C. and I. Benbasat, "Development of an instrument to measure the perceptions of adopting an information technology innovation", Information System Research, Vol.2, No.3, 1991, 192-222. https://doi.org/10.1287/isre.2.3.192
  56. Parasuraman, A., L.L. Berry, and V.A. Zeithaml, "SERVQUAL: A multiple item scale for measuring customer perceptions of service quality", J Retailing, 1988, 64, 12-40.
  57. Parthasarathy, M. and A. Bhattacherjee, "Understanding post-adoption behavior in the context of online services", Information Systems Research, Vol.9, No.4, 1998, 362-379. https://doi.org/10.1287/isre.9.4.362
  58. Ping, R.A., "The effects of satisfaction and structural constraints on retailer exiting, voice, loyalty, opportunism, and neglect", Journal of Retailing, Vol.69, No.3, 1993, 320-352. https://doi.org/10.1016/0022-4359(93)90010-G
  59. Podsakoff, P.M. and D.W. Organ, "Self-reports in organizational research: Problems and prospects", Journal of Management, Vol.12, No.4, 1986, 531-544. https://doi.org/10.1177/014920638601200408
  60. Polites, G.L. and E. Karahanna, "Shackled to the status quo: The inhibiting effects of incumbent system habit, switching costs, and inertia on new system acceptance", MIS Quarterly, Vol.36, No.1, 2012, 21-42. https://doi.org/10.25300/MISQ/2012/36.1.02
  61. Ravenstein, E.G., "The laws of migration", Journal of the Statistical Society of London, Vol.48, No.2, 1885, 167-235. https://doi.org/10.2307/2979181
  62. Rim, S.T., D.Y. Kong, S.J. Shim, and Y.C. Han, "A study on the significant factors affecting the adoption of enterprise cloud computing", Journal of the Korea Society of IT Services, Vol.11, No.1, 2012, 173-196. https://doi.org/10.9716/KITS.2012.11.1.173
  63. Rogers, E.M. and F. Shoemaker, Communication of Innovations, New York: The Free Press, 1971.
  64. Rogers, E.M., Diffusion of Innovations, 4th ed., The Free Press, New York, 1995.
  65. Rogers, E.M., Diffusion of Innovations, 5th edition, The Free Press, New York, 2003.
  66. Rumelt, R.P., "Inertia and Transformation", in Resources in an Evolutionary Perspective: Towards a Synthesis of Evolutionary and Resource-Based Approaches to Strategy, C. A. Montgomery (ed.) Norwell: Klumer Academic Publishers, 1995, 101-132.
  67. Saya, S., L.G. Pee, and A. Kankanhalli, "The impact of institutional influences on perceived technological characteristics and real options in cloud computing adoption", Proceedings of the 31st, 2010.
  68. Schneider, S. and A. Sunyaev, "Determinant factors of cloud-sourcing decisions: Reflecting on the IT outsourcing literature in the era of cloud computing", Journal of Information Technology, 2016, 31.
  69. Smyth, P., Cloud Computing - A Strategy Guide for Board Level Executives, Kynetix Technology Group, 2009.
  70. Straub, E., "Understanding technology adoption: Theory and future directions for informal learning", Review of Educational Research, Vol.79, No.2, 2009, 625-649. https://doi.org/10.3102/0034654308325896
  71. Tornatzky, L.G. and K.J. Klein, "Innovation characteristics and innovation adoption-implementation: A meta-analysis of findings", IEEE Transaction on Engineering Management, Vol.29, No.1, 1982, 28-45. https://doi.org/10.1109/TEM.1982.6447463
  72. Tornatzky, L.G. and M. Fleischer, The Processes of Technological Innovation, Lexington Books, Lexington, MA, 1990.
  73. Wang, T., C.P. Deng, and T.S.H. Teo, "Appropriating IT outsourcing for IT alignment: An adaptive structuration theory perspective, Technological Forecasting & Social Change, 192, 2023.
  74. Whitten, D., and R.L. Wakefield, "Measuring switching costs in IT outsourcing services", The Journal of Strategic Information Systems, Vol.15, No.3, 2006, 219-248. https://doi.org/10.1016/j.jsis.2005.11.002
  75. Wulf, F., M. Westner, and S. Strahringer, "Cloud computing adoption: A literature review on what is new and what still needs to be addressed", Communications of the Association for Information Systems, 2020.
  76. Zeelenberg, M. and R. Pieters, "Beyond valence in customer dissatisfaction: A review and new findings on behavioral responses to regret and disappointment in failed services", Journal of business Research, Vol.57, No.4, 2004, 445-455. https://doi.org/10.1016/S0148-2963(02)00278-3
  77. Zhen, J., C. Caol. H. Qiul, and Z. Xie, "Impact of organizational inertia on organizational agility: The role of IT ambidexterity", Information Technology and Management, Vol.22, 2021, 53-65. https://doi.org/10.1007/s10799-021-00324-w
  78. Zhu, K. and K.L. Kraemer, "Post-adoption variations in usage and value of e-business by organization: Cross-country evidence from the retail industry", Information System Research, Vol.16, No.1, 2005, 61-64. https://doi.org/10.1287/isre.1050.0045
  79. Zhu, K., S. Dong, S.X. Xu, and K.L. Kraemer, "Innovation diffusion in global contexts: Determinants of post-adoption digital transformation of European companies", European Journal of Information Systems, Vol.15, No.6, 2006, 601-616.  https://doi.org/10.1057/palgrave.ejis.3000650