The determinants of using cloud supply chain adoption

Date11 March 2019
Published date11 March 2019
DOIhttps://doi.org/10.1108/IMDS-12-2017-0589
Pages351-366
AuthorChinho Lin,Meichun Lin
Subject MatterInformation & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems
The determinants of using cloud
supply chain adoption
Chinho Lin and Meichun Lin
Department of Industrial and Information Management,
National Cheng Kung University, Tainan, Taiwan
Abstract
Purpose It is necessary to determine the processes affecting cloud computing service applications in
supply chain management (SCM) systems in order to facilitate cloud computing service exchanges and
transmission of data among supply chain members. The paper aims to discuss these issues.
Design/methodology/approach Drawing on the elaboration likelihood model (ELM) and integrating the
commitment trust theory, this paper develops a theoretical model using argument advantage and source
credibility constructs to examine the relationships among perceived usefulness, attitude, trust and usage intention.
Findings The results indicate that both the central route and the peripheral route of the ELM have a
positive influence on perceived usefulness. The argument advantage has a strong influence on perceived
usefulness as compared to source credibility while source credibility has a strong impact on trust.
Furthermore, the perceived usefulness of cloud computing services plays a pivotal role in attitude and
intention, whereas trust has a weak effect on usage intention.
Originality/value The proposed model not only explores the argument that potential user evaluations of
both the advantages of cloud computing services and source credibility influence their affective states, which
in turn affect their usage intention, but it also examines the mediating factors that influence processes related
to cloud SCM acceptance.
Keywords Elaboration likelihood model, Supply chain management, Commitment trust theory,
Cloud computing services
Paper type Research paper
1. Introduction
Despite being in the early stages of adoption, cloud computing services are becoming a
popular choice for businesses because not only do they change the fundamental approach to
information technology (IT), but also provide considerable advantages. These benefits
include accessibility and low cost, innovative services, which enhance the advantages
related to both communication and services (Marston et al., 2011). Prior studies have
repeatedly shown flexibility to be a key factor of effective supply chain management (SCM)
(Skipper and Hanna, 2009). Cloud-oriented services play an important role in enterprise
systems in regard to expanding flexibility and improving productivity (Xu, 2012).
Generally, cloud-based solutions provide organizations with quick, effective ways to
identify and apply external technical solutions intended to improve operational efficiency
(Aral et al., 2010). Cloud computing services have been utilized in a multidimensional way in
various supply chains(Durowoju et al., 2011). They provide high quality on-demand services
and have become more cost effective and technically flexible than traditional solutions
(Stieningerand Nedbal, 2014). Firms within a complex supply chain inthe global marketplace
wishing to retain their competitive advantage must utilize the latest technologies,
methodologies and processes to provide improved services and products (Misra and
Mondal, 2011). internet-based cloud computing technologies can be especially useful because
they provide a dynamic environment in which firms can arrive at the best decisions and
accelerate changes in business processes in terms of managing the supply chain (Wu et al.,
2013). Accordingto the technology acceptance model(TAM) and innovation diffusion theory,
perceivedusefulness and perceivedease of use are the most importantfactors that can be used
to explain IT system adoption (Legris et al., 2003). Bhattacherjee and Sanford (2006) suggest
that perceived use fulness refers to user expectations th at an IT system will benefit their task
Industrial Management & Data
Systems
Vol. 119 No. 2, 2019
pp. 351-366
© Emerald PublishingLimited
0263-5577
DOI 10.1108/IMDS-12-2017-0589
Received 21 December 2017
Revised 27 March 2018
29 May 2018
Accepted 10 July 2018
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0263-5577.htm
351
Cloud supply
chain adoption
performance andthat it will be an important motivation of systemadoption in the workplace.
The advantages of a cloud SCM system, including such things as gains in effectiveness,
flexibilityand productivity, cannot be recognizedif users do not accept the system in the first
place when performing a task. Since cloud SCM adoption may represent a firmspolicyto
achieve performance goals, usersperceptions of the usefulness benefits of cloud SCM and
adoption intention can be important guidance by which managers can understand the
processes influencing its adoption.
Moreover, cloud SCM requires efficient and flexible information exchange among supply
chain partners. The governance of data and applications may depend on the cloud
computing service, where trust in a cloud environment relies heavily on the selected cloud
service institution (Zissis and Lekkas, 2012). Due to its significant role, trust has received
considerable attention in the area of cloud computing services (Pearson and Benameur,
2010; Pranata et al., 2012). In this scenario, cloud service providers must be concerned about
their security standards, system stability, and reputation (Durowoju et al., 2011).
Thus, building a mutual trust relationship between users and a cloud computing service is
considered to play a center role in user behavioral intention (Lin and Chen, 2012). Given this,
argument quality, source credibility, perceived usefulness, attitude and trust are imperative
perceptions in the context of cloud SCM acceptance model.
Furthermore, the degree to which the advantages and disadvantages of cloud computing
innovations are related to how organizational culture, information systems compatibility
and application functionality affect a companys intention to adopt such technologies have
been investigated (Wu et al., 2013; Cegielski et al., 2012). However, these studies did not
explore how external information processes influence perceived usefulness and attitudes
toward cloud SCM services among potential users, nor did they examine how perceived
usefulness, attitudes, and trust are related to cloud SCM usage intention. To deal with these
study gaps, we draw on the elaboration likelihood model (ELM) and integrate the
commitment trust theory (CTT) to propose a model intended to explore these relationships.
Holistically, this study is an attempt to advance the understanding of the intention to
use cloud SCM services by not only exploring the argument that user evaluations of both
the advantages and source credibility of cloud computing services influence their affective
states (i.e. perceived usefulness and trust), which in turn affect their usage intention, but it
also examines the mediating factors that influence processes related to attitude and cloud
SCM intention.
2. Theoretical background and research framework
2.1 Elaboration likelihood model
The ELM is a type of persuasion theory (Petty and Cacioppo, 1986). It proposes two types of
processes: careful, systematic elaboration of the central merits of the arguments of a
message (central route); and simple elaboration and cognitive resource shortcuts and
associations based on peripheral cues (peripheral route). It is similar to TAM, which
indicates the external variables may have an impact on internal beliefs such as usefulness
and attitude that are important factors in explaining acceptance of IT. However, it is unlike
TAM, which does not explain why the alternatives, such as dynamic external variables may
impact the acceptance influence process (Bhattacherjee and Sanford, 2006). ELM studies in
this area have identified two different user information processing routes, argument quality
and source credibility, as the effective basis by which individual perceptions of usefulness
and attitude influence IT adoption (Ho and Bodoff, 2014; Bhattacherjee and Sanford, 2006;
Sussman and Siegal, 2003).
Previous ELM studies have examined how individuals process information in various areas
such as social psychology, marketing, IT and e-commerce (Hur et al., 2017). Zh eng et al. (2018)
used the theory of persuasion to examine the factors th at impact project success likelihood.
352
IMDS
119,2

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