| Fluctuations in the United States (U.S.) economy have compelled many small and medium size enterprises (SMEs) in the U.S. to seek new ways to improve and restructure their technology infrastructure. The problem addressed in this study is the lack of sufficient evidence demonstrating the value of cloud adoption as a proxy to IT flexibility and IT effectiveness within small and medium size enterprises (SMEs). The purpose of this quantitative non-experimental correlational study was to construct an empirical model to measure the relationship between three dimensions of IT flexibility, specific to cloud computing: connectivity, modularity, and compatibility, and IT effectiveness within a representative sample of SMEs. A Web-based survey instrument from prior research was used in this study. A total of 144 participants in this study included IT executives at SMEs drawn from various U.S. industries, that have implemented cloud computing. The study approach was non-experimental correlational and quantitative. Pearson's correlation and multiple regression analyses were used to examine the relationship among IT flexibility dimensions, specific to cloud computing (connectivity, modularity, and compatibility), and IT effectiveness within SMEs. Pearson correlation results suggested that all three dimensions of IT flexibility (connectivity, modularity, and compatibility), specific to cloud computing, significantly correlated with IT effectiveness. Linear regression results revealed that the connectivity dimension of IT flexibility, specific to cloud computing, significantly predicted IT effectiveness (B = .28, beta = .38, t = 4.95, p < .001), the modularity dimension of IT flexibility, specific to cloud computing, significantly predicted IT effectiveness (B = .44, beta = .52, t = 7.24, p < .001), the compatibility dimension of IT flexibility, specific to cloud computing, significantly predicted IT effectiveness (B = .23, beta = .28, t = 3.49, p = .001), and the combination of three dimensions of IT flexibility, specific to cloud computing, significantly predicted IT effectiveness within small and medium size enterprises, R2 = .31, F(3, 140) = 21.03, p < .001, in which the modularity dimension was the best predictor, and the compatibility dimension did not significantly contribute to the prediction of IT effectiveness. Recommendations for future studies include conducting specific research on SMEs adopting on-premise private cloud architecture, and research in the same topic in developing countries. |
