Market perception on cloud computing initiatives in organizations: An extended resource-based view

• Published in: Information & management Vol. 51; no. 6; pp. 653 - 669
• Main Authors: Son, Insoo, Lee, Dongwon, Lee, Jae-Nam, Chang, Young Bong
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier B.V 01.09.2014; Elsevier; Elsevier Sequoia S.A
• Subjects: Applied sciences; Cloud computing; Computer science; control theory; systems; Computer systems and distributed systems. User interface; Event study; Exact sciences and technology; Extended resource based view; Firm modelling; Firm performance; Market value; Market value of firm; Operational research and scientific management; Operational research. Management science; Perceptions; Portfolio theory; Securities markets; Software; Studies; Technology innovation; Extended resource based view; Firm performance; Cloud computing; Technology innovation; Event study; Market value of firm; Performance evaluation; Economic value; Methodology; Critical parameter; Empirical method; Innovation; Business model; Stock exchange; Perception; Firm management; Resource management; Stock markets; Firm strategy
• ISSN: 0378-7206; 1872-7530
• DOI: 10.1016/j.im.2014.05.006

This study aims to investigate the economic value of cloud computing from the perspective of the stock market. More specifically, we conceptualize the relationship between the cloud computing initiatives of firms and the market reaction based on resource-based and extended resource-based views. For this study, we analyze 212 firm-level cloud computing announcements between 2006 and 2011 by employing the event study methodology. Our empirical results indicate that the market positively reacts to the cloud computing initiatives of firms. Moreover, the market reactions to cloud computing initiatives depend on three key characteristics of cloud computing, namely, firm-specific, resource-specific, and vendor-specific factors.