An Investigation of the Factors Driving the Adoption of Cloud-Based Human Resource Information Systems by Small- and Medium-Sized Businesses

Abstract

Purpose

The purpose of this study was to develop and empirically examine a model of cloud-based human resource information systems (HRIS) adoption by small businesses based on the technology–organization–environment model (Tornatzky & Fleischer, 1990).

Methodology/approach

This study utilized a survey of 41 small- to medium-sized enterprises in the northeastern United States to examine what HR functions were being supported by cloud-based HRIS and the relationship between three technology factors, three organizational factors, and three environmental factors, and their relationship with the adoption of cloud-based HRIS.

Findings

Findings indicated that small businesses are most likely to implement cloud-based HRIS to support day-to-day HR operations. In addition, the findings indicated that top management support (positive), vendor support (positive), and anticipated growth (negative) were each related to organizational adoption of cloud-based HRIS.

Implications

The study illustrates how the adoption of a cloud-based HRIS is motivated by different factors than those underlying the adoption of other types of information systems. Executives and small business owners will need to adapt their strategy when considering cloud-based HRIS compared to other types of systems.

Social implications

Given that small- to medium-sized organizations are the backbone of most global economies, findings from this study can help support society by helping these businesses better understand how to best consider the factors that will support the implementation of cloud-based HRIS.

Originality/value of the chapter

This chapter represents one of the first to empirically validate a model of the factors affecting adoption of cloud-based HRIS by small businesses.

Citation

Johnson, R.D. and Diman, K. (2017), "An Investigation of the Factors Driving the Adoption of Cloud-Based Human Resource Information Systems by Small- and Medium-Sized Businesses", Bondarouk, T., Ruël, H.J.M. and Parry, E. (Ed.) Electronic HRM in the Smart Era (The Changing Context of Managing People), Emerald Publishing Limited, Leeds, pp. 1-31. https://doi.org/10.1108/978-1-78714-315-920161001