An empirical investigation of organizations’ switching intention to cloud enterprise resource planning: a cost-benefit perspective

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.