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Research Paper | Management | Kenya | Volume 6 Issue 10, October 2017

Effect of Cost Consideration on Organizations Adoption of Cloud Technology by International Non-Govermental Organizations in Kenya

David Aliata | Godfrey Makau ^[3] | Kamau Mwangi

Abstract: The purpose of this research was to investigate the effect of cost consideration on organizations adoption of cloud technology. Four objectives informed this study, Hardware cost, Software cost, IT staff cost and Operating cost and their effect on organizations adoption of cloud technology. One theory formed the foundation of this study, Unified Theory of Acceptance and Use of Technology (UTAUT). The research design employed in this study was descriptive in nature. Descriptive studies describe characteristics associated with the subject population. This method was chosen since it assisted in securing both qualitative and quantitative information from the respondents. The target population of the study was organizations listed by the NGO coordination board of Kenya. Thirty international non-profit organizations were surveyed. Focus was all persons in charge of ICT departments such as Chief Technical Officers (CTO), Chief Information Officers or IT Managers. The study used questionnaires to collect data. The instrument was subjected to validity and reliability tests where cost consideration attained 0.773, cloud reliability had 0.793, cloud security had 0.712 and cloud flexibility had 0.754. The analysis of data was both descriptive and inferential in nature. The study obtained a response rate of 58 % and therefore met the required threshold. The correlational test results showed that cloud computing flexibility had the best correlation with adoption of cloud technology (r=0.676). In the model summary, the value of R square was 0.702, the value of adjusted R square was 0.593 and the value of standard error of the estimate was 0.151. The positivity and significance of all values showed that the model summary was also significant and therefore gave a logical support to the study model. Cloud computing flexibility is the best construct of predicting the adoption of cloud technology. Factor extraction for cost consideration yielded higher loadings of between 0.671 and 0.819 with acceptable Cronbachs alpha values giving an indication that the variables used for the variable represent a complete structure measure of adoption of cloud technology. Factor extraction for security effectiveness consideration had a higher loading of between 0.706 and 0.837 with acceptable Cronbachs alpha values giving an indication that the variables used for security effectiveness consideration represent a complete structure measuring for the adoption of cloud technology. Factor extraction for cloud reliability yielded higher loadings of between 0.780 and 0.915 with acceptable Cronbachs alpha values giving an indication that the variables used for the dependent and independent variables represent a complete structure measuring these constructs. Factor extraction was conducted and the factors used had higher loadings between 0.631 and 0.913 with acceptable Cronbachs alpha values giving an indication that the variables used for the dependent and independent variables also represent a complete structure measuring these constructs. This study concluded that cost consideration, cloud computing reliability, cloud computing security and cloud-computing flexibility are important variables that inform the adoption of cloud technology. The study recommends that since cloud computing flexibility is the most important predictor of adoption of computing technology, organizations should benefit from the computing diversity of needs that arises from the reference to computing flexibility. This way organizations will gain from the availability, affordability and high efficiency computing for demanding applications in use.

Keywords: Hardware cost, Software cost, IT staff cost, operating cost, Cost consideration, Adoption of Cloud Technology, International, Non-Governmental Organizations and Kenya

Edition: Volume 6 Issue 10, October 2017,

Pages: 1246 - 1250

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