Introduction

Literature review

Research hypotheses and model

Research methodology

Results

Discussion

Implications for theory and practice

Conclusion and limitations

References

Abstract

Although cloud computing has a number of benefits, privacy risks play a critical role in organizations’ decisions to switch to cloud services. However, few studies on cloud adoption have investigated effects of both benefits and costs on switching intention. Based on cost-benefit analysis and technology acceptance model, this study develops a research model to investigate how benefits (perceived usefulness and perceived ease of use) and costs (perceived risk and privacy concerns) influence organizations’ switching intention to cloud Enterprise Resource Planning (ERP). The model also accounts for trust and perceived control in the context of cloud computing. Perceived usefulness, perceived ease of use, and privacy concerns significantly affect switching intention. Trust can enhance perceived usefulness and perceived ease of use and reduce perceived risk. Perceived control can also reduce perceived risk and privacy concerns. The findings are useful to understand switching issues from traditional ERP to cloud ERP for both researchers and practitioners.

Introduction

In recent years, cloud computing has become an emerging information technology (IT) development. It provides business products, services, and solutions that are delivered and consumed in real-time over the Internet (Gen 2008). Cloud-based models can be categorized into public, private, and hybrid clouds. In the public cloud model, services and resources are provided by cloud service providers and accessed over the Internet; in the private cloud model, IT resources and services remain within an organization and are accessed via the Intranet. Hybrid clouds mix the models of public and private clouds. Recently, public clouds have received increasing attention in IT industries. As International Data Corporation (IDC) reports, public cloud services reached US$47.4 billion in 2013. Furthermore, the market for cloud services is expected to reach US$107 billion by 2017 (Mishra 2013). Several organizations tend to switch to public cloud systems because of the benefits and useful interfaces of cloud computing (Low et al. 2011). However, the switch from traditional systems to cloud systems is still in the early stages (Park and Ryoo 2013). Accessing to data and services over the Internet increases the chances of compromising security.