The dynamic processes of the adoption and use of cloud computing by small, medium enterprises in South Africa

Pekane, Ayanda

The dynamic processes of the adoption and use of cloud computing by small, medium enterprises in South Africa

Thesis / Dissertation

2025

Publisher

University of Cape Town

Department

Department of Information Systems

Faculty

Faculty of Commerce

Abstract

Small and Medium Enterprises are vital contributors to economic development in middle-income countries like South Africa. SMEs adopt and use various information and communication technologies, such as cloud computing. This is to compete in the information age characterised by the rapidly changing environment due to ICTs. Cloud computing is a platform where organisations can access a pool of ICT resources through the Internet. Research of CC focusing on the SME sector is generally limited, particularly in middle-income countries. The factors driving the evolution and advancement of the adoption of CC by SMEs in SA have not been adequately articulated within the existing literature. There is a gap in understanding the dynamic processes involved in SMEs' adoption and use of CC in SA. As a result, this research aimed to investigate these dynamic processes, focusing on three aspects. Firstly, the challenges of SMEs' adoption and use of CC. Secondly, the organisational learning processes that lead to the adoption and use of CC. Lastly, the organisational changes experienced by SMEs when adopting and using CC. This research aims to advance the understanding of the African landscape, providing a potential resource for other countries in similar situations to access and utilise this knowledge. A multi-method strategy (induction, abduction and retroduction) was adopted, with three research strategies used to interrogate the phenomenon. Participatory observations and ethnographic interviews were applied research methods. Findings indicated that there may be a limited view of the challenges of adopting and using CC by SMEs in middle-income countries like SA. The challenges not found in the literature encompassed substandard CC provision and financial constraints. Some challenges included insufficient knowledge and skills and a lack of support. The findings associated with OL indicated that SMEs employed OL mechanisms, such as investigative and inquiring activities, training, collaborative learning, and alliances, for the exploration and exploitation learning processes. SMEs faced resource allocation challenges of concurrently managing exploration and exploitation activities in learning. The findings associated with OC revealed that SMEs experienced distinct adoption phases, encompassing pre-adoption, mid-adoption, and post-adoption phases. The transition from pre-adoption to mid-adoption corresponded with OC in communication channels, business processes, human resource management, and a shift in the learning culture and employee mindset. The transition from mid-adoption to post-adoption corresponded with OC in organisational structure and culture.