Quantifying SWOT analysis for cloud adoption using FAHP-DEMATEL approach: evidence from the manufacturing sector

Abstract

Purpose

This study aims to identify the critical factors (barriers and drivers) influencing the adoption of cloud computing (ACC) in the manufacturing sector in India.

Design/methodology/approach

In this study, a mixed methodology approach is used. Interviews are conducted to investigate factors (drivers and barriers) influencing the ACC, which are further categorized as controllable determinants (weaknesses and strengths) and uncontrollable determinants (threats and opportunities) using a SWOT analysis. Fuzzy analytic hierarchy process (FAHP) has been utilized to highlight the most critical drivers as well as barriers. Finally, decision-making trial and evaluation laboratory (DEMATEL) has been used to find the cause-effect relationships among factors and their influence on the decision of adoption.

Findings

The manufacturing sector is in the digital and value change transformation phase with Industry 4.0, that is, the next industrial revolution. The 24 critical factors influencing ACC are subdivided into strengths, weaknesses, opportunities and threats. The FAHP analysis ranked time to market, competitive advantage, business agility, data confidentiality and lack of government policy standards as the most critical factors. The cause-effect relationships highlight that time to market is the most significant causal factor, and resistance to technology is the least significant effect factor. The results of the study elucidate that the strengths of ACC are appreciably more than its weaknesses.

Research limitations/implications

This study couples the technology acceptance model (TAM) with technology-organization-environment (TOE) framework and adds an economic perspective to examine the significant influences of ACC in the Indian manufacturing sector. Further, it contributes to the knowledge of ACC in general and provides valuable insights into interrelationships among factors influencing the decision and strategies of adoption in particular.

Originality/value

This is the first scholarly work in the Indian manufacturing sector that uses the analysis from SWOT and FAHP approach as a base for identifying cause-effect relationships between the critical factors influencing ACC. Further, based on the extant literature and analysis of this work, an adoption framework has been proposed that justifies that ACC is not just a technological challenge but is also an environmental, economic and organizational challenge that includes organizational issues, costs and need for adequate government policies.

Citation

Sharma, M. and Sehrawat, R. (2020), "Quantifying SWOT analysis for cloud adoption using FAHP-DEMATEL approach: evidence from the manufacturing sector", Journal of Enterprise Information Management, Vol. 33 No. 5, pp. 1111-1152. https://doi.org/10.1108/JEIM-09-2019-0276