Understanding the Effects of Alignments between the Depth and Breadth of Cloud Computing Assimilation on Firm Performance: The Role of Organizational Agility

Abstract

The main objective of this research is to generate insights about the effect of the depth and breadth of cloud computing assimilation on firm performance. The authors construct a research model based on several strands of theories to achieve the objective. This study considers two implementation alignment strategies: balanced fit and complementary fit, reflecting strategic choices made by organizations about the importance of the depth and breadth of cloud technology implementation. The model has been tested using a survey of Chinese businesses. The empirical study results show that cloud computing assimilation’s depth and breadth, directly and indirectly, have a substantial positive effect, through organizational agility, on company performance. The depth and breadth of cloud deployment and organizational agility are also positively related. Furthermore, the complementary fit strategy has a major impact, whereas the balanced fit strategy has an insignificant effect on company performance.