CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents the theoretical framework and empirical review of the study.

Further it outlines the conceptual framework where the variables under the study are

conceptualized. In addition, the section highlights the research gaps from the reviewed

studies and the conclusion of the study.

2.1 Theory of Reasoned Action

Theory of reasoned action (TRA) posits that individual behavior is driven by behavioral

intentions where behavioral intentions are a function of an individual's attitude toward

the behavior and subjective norms surrounding the performance of the behavior. Attitude

toward the behavior is defined as the individual's positive or negative feelings about

performing a behavior (Fishbone, 1975). It is determined through an assessment of one's

beliefs regarding the consequences arising from a behavior and an evaluation of the

desirability of these consequences.

Formally, overall attitude can be assessed as the sum of the individual consequence and

desirability assessments for all expected consequences of the behavior (Bag, 2003).

Subjective norm is defined as an individual's perception of whether people important to

the individual think the behavior should be performed.

2.2 Technology Acceptance Model

Introduced by Davis in 1989 the Technology Acceptance Model (TAM) is merely an

adaptation of Fishbone and Janzen’s Theory of Reasoned Action (TRA). TAM posits

that perceived usefulness and perceived ease of use determine an individual's intention to
use a system with intention to serve as a mediator of actual system use. Perceived

usefulness is also seen as being directly impacted by perceived ease of use (Wixom,

2005).

Davis defines perceived usefulness as the degree to which a person believes that using a

particular system would enhance his or her job performance; people are more likely to

use an information system that they believe will help them perform their job better. He

further defines perceived ease of use as the degree to which a person believes that using

a particular system would be free of effort. Therefore, even if a system is believed to be

useful by an individual, if the system is too difficult to use, the potentially enhanced

performance benefits to be derived from the system are outweighed by the effort

required of having to use it.

2.3 Theory of Technology, Organization and Environment

The three contexts include technological, organizational and environmental (TOE)

influencing the process by which technological innovations are adopted and

implemented, especially in small businesses.

Technological context refers to internal and external technologies applicable to the firm

(Kuna, 2001). According to Rogers (2003), adopting an innovation is affected by its

perceived characteristics, including relative advantage, compatibility, and complexity

and trial ability. Of these, the relative advantage of the technology has been consistently

identified as one of the most critical adoption factors (Iacovou, 1995; Kuan, 2001).

When perceived benefit is high, there are higher chances that the organization will

allocate more managerial, financial and technological resources to implement the

technological system.
When a firm is characterized as a higher degree of technological opportunism, it is

proactive to innovate itself on a consistent basis. Such firms have the ability, skills and

22 accumulated knowledge to acquire information about technological opportunities and

invest resources (Mishra, 2010). Srinivasan (2002) further identified two components of

technological opportunism – technological-sensing capability (i.e. organizational ability

to acquire knowledge about and understand new technology developments) and

technological-response capability (i.e. organization’s willingness and ability to respond

to the new technologies it senses in its environment that may affect the organization).

However, Chandy (1998) reasoned that an organization with good technology sensing

abilities may not be willing to respond to new technologies as they may cannibalize

existing products, markets and organizational relationships. Yet, an organization must

know how to re-engineer its business strategies to exploit the opportunities or stave off

the threats posed by the new technology.

2.4 Empirical Literature Review

This section has reviewed the methodology used by the previous studies based on the study

variables and reliance on the current study.

2.4.1 The Extent to which Large and small business organizations are using Cloud

Computing

According to Yu et al. (2018), the service providers for Cloud Computing should

improve on the reliability of the Cloud Computing, to expedite the acquisition of Large

and small business organizations . A better reliable cloud would also increase the

chances of sharing and collaborating between the stakeholders and the Large and small

business organizations . Cloud Computing is now the industry's buzzword that Large and
small business organizations are looking into. Even though it is not a completely new

concept to them, it has also become omnipresent in today's digital age due to the

proliferation of the Internet availability, broadband, mobile devices, improved

bandwidth and mobility requirements for all end users.

According to Pakarinen (2017), the objective of this research is to suggest a decision

modelling using potentially All Pairwise Rankings of all possible alternatives to the

variables affecting the implementation of Cloud Computing in Large and small business

organizations . In a nutshell, Cloud Computing is a model where anything is provided as

a service rather than a product, whether it is a software, hardware, or storage capacity.

2.4.2 Evaluation Factors Influencing Decision to Adopt Cloud Computing by Large

and small business organizations

According to Kim et al. (2017), Cloud Computing has risen among corporate sectors and

information technology (IT) professionals as one of the most discussed subjects. Small

and Medium-sized companies (Large and small business organizations ) with low budget

and human resources are among the main organizations that tend to use Cloud

Computing to achieve this technology's advantage. The adoption of Cloud Computing

for Large and small business organizations is influenced by a number of variables.

Before making the choice to embrace cloud-based alternatives, these crucial factors must

be systematically assessed and considered at the forefront before decision making.

The objective of this research is to define these variables and determine the extent to

which they affect Cloud Computing adoption for Large and small business

organizations. The project therefore defines a research model based on the dissemination

of the theory of reasoned action and the structure of technology, organization and
environment. Based on prior study, a research model was created to test the variables

that are comparative, compatibility, safety issues, cost savings, readiness for technology,

and support for top managers, competitive pressure, and regulatory support to the system

(Lian et al., 2014).

2.4.3 The Challenges faced by Large and small business organizations in Adopting
Cloud Computing
According to Bhushan (2017), the challenges of Cloud Computing have always been

there. Companies are becoming progressively conscious of the company value which

Cloud Computing brings towards a cloud transformation. A seamless transition involves

a comprehensive understanding of both the benefits and the challenges involved.

As with any fresh technology, Cloud Computing adoption is also not unproblematic.

Cloud Computing’s primary challenge is how it addresses businesses ' safety and

privacy issues regarding adopting it. The fact that the precious company information is

located outside the corporate firewall raises severe issues that need attention (Miles et

al., 2016).

According to Loukis (2015), Hacking and multiple cloud infrastructure attacks would

affect multiple clients even if they attack only one site. The use of safety apps, encrypted

file systems, data loss software, and purchase of safety hardware to monitor uncommon

conduct across servers can mitigate these hazards.

Because of the on-demand design of the services, it is hard to evaluate the expenses

associated. Unless the vendor does have some good and similar benchmarks to offer,

then it will be very difficult to budget and assess the cost. Businesses should have a real
leverage to migrate into and out of a cloud and switch suppliers wherever they want, and

thus no lock-in period should take place (Gupta, 2017).

2.4.4 Developing an easy to use framework for the adoption of Cloud Computing

According to Yousaf et al. (2017), cloud players have become essential to organizations.

By constructing flexible and agile business systems such as customer relationship

management systems, storage systems, complicated process automation, and leveraging

online social media and mobile technologies.

Companies think this can assist them to react quicker than traditional deployments to

rapidly evolving client requirements. Cloud implementation challenges, possibilities and

success rates of IT feasibility and success factors in the market can deploy their apps in

the cloud, to assess and record the cloud adoption stories of success, hazards and

obstacles. This assessment can also provide definitive guidance for assessing the

advantages and disadvantages of cloud vendors for cloud partnerships (Rittinghouse,

2016d).

2.5 Conceptual Review

According to Jennings (2015), Cloud Computing is an elastic execution environment of

resources involving multiple stakeholders and providing a metered service at multiple

granularities for a specified level of quality of service. Cloud is a type of parallel and

distributed system consisting of collection of interconnected and virtualized computers

that are dynamically provisioned and present as one or more unified computing resource
in light of administration level understandings established through negotiation between

services

Cloud is made out of five fundamental attributes, three main service models and four

deployment models. These essential elements include: On-request self-administration,

whereby a customer can unilaterally request for provision of computing services such as

storage as needed without need for human interaction. Broad network access which

offers the computing capabilities over the network and are accessible through standard

methods that promote use over a variety of platforms including mobile. Rapid elasticity

where the capabilities are released to scale rapidly without and within to match the given

demand (Vance et al., 2019).

Cloud Computing is being seen as the next utility for change, and the striking likenesses

between the present advancement of Cloud Computing and the improvement of

conventional utilities during the Industrial Revolution is a concern within the Industrial

age and companies to create their own power by the use of water and coal nevertheless,

in the current age, companies are drawing power from a central source (Mosco, 2015).

According to Trivedi (2017), it can be put away and verify tremendous measures of

information that is available just by approved applications and clients. It may very well

be bolstered by a cloud supplier that sets up a stage that incorporates the OS, Apache,

MySQL database, Perl, Python, and PHP with the capacity to scale consequently

because of changing burdens and space to stack different applications locally available.

Cloud Computing can have the capacity to utilize applications on the Internet that store

and secure information while giving an administration anything including email, deals

power mechanization, ERP and expense planning. It can likewise be utilizing a capacity
cloud to hold application, business, and individual information in the framework to keep

records for future reference (Rossiter, 2016).

The study aimed at covering the gaps on challenges faced by Large and small business

organizations whose reports were on the limitation of lack of policies, poor network,

high cost of infrastructure, technical issues, poor network coverage, uncontrolled cyber-

attacks and lack of expertise to provide training on the same.

2.6 Conceptual Framework

independent variables and dependent variables, and how they related to form the study.

It is out of this framework that the researcher came up with ideas and knowledge that

form the adoption of Cloud Computing used by Large and small business organizations

in Kiambu County.
Technology

The available technology determines the capabilities that can be adopted by the Large

and small business organizations in Kiambu County. The most required was the

availability of Internet services with which the Large and small business organizations

can access the cloud facilities. The challenges faced were all considered in terms of

usage.

Organization

On the other hand, the organization was to be the main determinant of the adoption of

Cloud Computing. If the size of the SME is less than 20 employees, then the
organization may decide not to implement any Cloud Computing functionalities to the

business processes. Also the availability of competent ICT technicians and trainers was

to influence the ease of adopting Cloud Computing.

Environment

The environment was the external factor which dictates the usability of the Cloud

Computing facilities. If the target scope of the organization is minute, then the adoption

of decisions may be postponed to a later date since there is no economic advantage due

to lack of economy of scale.