Service Innovations in Cloud Computing: A Study of Top Management Leadership, Absorptive Capacity, Government Support, and Learning Orientation

Abstract

Cloud computing is gaining in popularity for organizations due to the service innovations it provides including better collaborative functions, increased flexibility, and higher efficiency outcomes. This paper examines cloud computing service innovation using social cognitive theory as the theoretical framework to understand its role in the knowledge economy. A number of hypotheses are derived from the literature review to understand the relationships between top management leadership, absorptive capacity, government support, learning orientation, and attitudes towards cloud computing service innovations. These hypotheses are tested using results from a survey questionnaire sent to managers of information and communications technology organizations in the Queensland region of Australia. The results indicate that top management leadership and absorptive capacity have a positive effect on attitude towards service innovations but a negative relationship exists between government support and performance with service innovation attitudes. Learning orientation was found not to be significant in terms of attitudes towards service innovation. This paper contributes to the literature on the knowledge economy by addressing the need for more emphasis on the process of creating service innovations that generates value in an organizational context. Managerial implications and suggestions for future research are also stated.