An Empirical Study on Cloud Computing Technology on Hotel Industry in Sri Lanka

Abstract

It is an unfortunate truth that hotel industries are sometimes behind the curve when it comes to adopting the latest technology. In the competitive environment of the hotel industry, a sophisticated portfolio of information systems applications and high-quality information technology infrastructure play a key role in hotel performance in the world. The purpose of this research was to explore the impact of Diffusion of Innovation Theory and Technological, Organizational, and Environmental factors and business benefits of cloud computing adoption on the hotel sectors’ competitive capabilities. Previous studies in Asian countries have shown that adoption of cloud computing is significantly beneficial in hotel businesses. Having that this research study sough to explain the impact of cloud computing adoption using security concerns, top management support, cost saving, and competitive pressure relative advantages. The study was conducted among randomly selected 30 star graded hotels in Sri Lanka. Self-administered questionnaires were distributed among managerial and ICT professionals who were capable of making ICT decisions. The results of the data analysis revealed that cloud computing adoption level is still low among star hotels in Sri Lanka and Security Concerns, Top Management Support, Cost Saving, Competitive Pressure, and Relative Advantages are having significant impact on cloud computing adoption in the hotel sector in Sri Lanka.