The Effect of Status Quo Bias on Cloud System Adoption

Abstract

The cloud-based environment has been viewed as an elastic alternative to hosting information systems. Although a lot of attention is paid in cloud system applications, organizations in business are still skeptical of adopting cloud framework. The purpose of this study is to investigate the determinants on firms' reactions toward cloud systems adoption from status quo bias perspective. By using cloud enterprise resource planning (ERP) as a research target, data were collected from the leading manufacturing firms in Taiwan. The results indicate that institutional pressures, switching benefits, and switching costs have significant influence on perceived value. Switching benefits and switching costs are key determinants of perceived risk. Perceived value contributes towards organizational adoption intentions, while perceived risk has significant influence on organizational resistance. The findings provide a foundation for understanding the possible determinants of cloud systems adoption as well as valuable implications for organizations seeking to utilize cloud-based framework.

• cloud ERP
• cloud computing
• IS adoption
• status quo bias
• organizational resistance