Exploratory Study to Investigate the Factors Influencing the Adoption of Cloud Computing in Australian Regional Municipal Governments

Abstract

Cloud computing is seen as an increasingly important enabler for 
improving productivity, efficiency and cost reduction. This research aims to 
investigate the potential for value creation for Australian municipal 
governments by identifying factors that are perceived likely to influence the 
adoption of cloud computing. The research model is proposed based on two 
theories derived from the literature: the technology-organization-environment 
(TOE) framework and the diffusion of innovation (DOI) theory. The research 
employed in-depth interviews of Australian councils’ IT managers. The obtained 
results indicate that the critical factors that were identified as playing a 
significant role in Australian regional municipal governments’ adoption of cloud 
services were: relative advantage, compatibility, cost, technology readiness, 
competitive pressure. For practitioners, this research identifies key factors 
for regional municipal governments to make an adoption decision toward cloud 
computing technology. As for academia, this research can be provided as a useful 
reference for future studies in this subject field.