CLOUD IMPLEMENTATION IN EMERGING MARKET BANKS: THE IMPORTANCE OF SERVICE QUALITY
Cloud computing is emerging as key a technology platform for banking operations globally. In Asia, the progress of cloud application is relatively slow. This paper considers the major factors which influence a bank’s decision to contract with a technology service provider to implement a cloud based strategy. This research study identifies the trends in applying cloud computing in global banking with a focus on banks in Thailand. It will analyze the criteria IT executives in banks use to decide on the selection of technology service providers. Banks require the service provider to meet specific requirements for a cloud implementation project in a bank. A survey approach was used to identify the important criteria IT executives in banks use to select an IT technology provider for cloud applications. The sample included 367 bank IT executives and professionals in Thai and international banks based in Bangkok. SEM was used to analyze the data. Interviews were conducted with 21 IT executives for insights into their decision criteria. Service quality which is based on the conventional SERVQUAL indicators strongly influence the decision to choose a technology service provider. This selection is also influenced by the capability of service provider, their technical capability and the cloud application features. There are few studies in the literature on the decision criteria that banks use to select a provider for cloud computing application.
Anderson, J.C. and Gerbing, D.W. (1988), “Structural equation modeling in practice: a review and recommended two-step approach”, Psychological Bulletin, Vol. 103 No. 3, pp. 411-423. DOI: https://doi.org/10.1037/0033-2909.103.3.411
Arbuckle, J.L. and Wothke, W. (1999), “Amos 4.0 user’s guide”, Chicago, IL: SPSS.
Armbrust, M., Fox, A., Griffith, R., Joseph A.D., Katz, R.H., Konwinski, A., ... Zaharia, M. (2009). “Above the clouds: A Berkeley view cloud computing”, Electrical Engineering and Computer Sciences University of California at Berkeley. https://www.eecs.berkeley.edu/Pubs/TechRpts/2009/EECS-2009-28.pdf
Bairi, B. J. and Manohar, M. (2011), “Critical success factors in gaining user customer satisfaction in outsourced IT services”, Journal of Enterprise Information Management, Vol. 24 Issue 6, pp. 475-493. DOI: https://doi.org/10.1108/17410391111166530
Barley, D. (2008), “How to select a trustworthy cloud computing vendor”. http://www.eweek.com/c/a/Cloud-Computing/How-to-Select-a-Trustworthy-Cloud-ComputingVendor
Bagozzi, R.P. and Yi, Y. (1991), “Multitrait-multimethod matrices in consumer research”, Journal of Consumer Research, Vol. 17 No. 4, pp. 426-439. DOI: https://doi.org/10.1086/208568
Bagozzi, R.P. and Yi, Y. (1988), “On the evaluation of structural equation models”, Journal of the Academy of Marketing Science, Vol. 16 No. 1, pp. 74-94. DOI: https://doi.org/10.1007/BF02723327
Bauer, E. and Adams, R. (2014), “Service Quality of Cloud-Based Applications”, John Wiley & Sons, Inc., NJ. DOI: https://doi.org/10.1002/9781118763407
Bollen, K.A. (1989), “Structure equations with latent variables”, John Wiley & Sons, New York, NY. DOI: https://doi.org/10.1002/9781118619179
Bouchenak, S., Chockler, G., Chockler, H., Gheorghe, G., Santos, N. and Alexander Shraer, A. (2013), “Verifying cloud services: Present and future”. http://static.googleusercontent.com/media/research.google.com/th//pubs/archive/40816.pdf DOI: https://doi.org/10.1145/2506164.2506167
Brown, A. (2014), “Six reasons why cloud computing will transform the way banks serve clients and the five hurdles to overcome”, Banking Technology. http://www.bankingtech.com/236322/six-reasons-why-cloud-computing-will-transform-the-waybanks-serve-clients-and-the-five-hurdles-to-overcome/
Byrne, B.M. (2013), Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming, Routledge and Taylor & Francis, New York, NY. DOI: https://doi.org/10.4324/9781410600219
Camarero, C. (2007), “Relationship orientation or service quality? What is the trigger of performance in financial and insurance services?”, International Journal of Bank Marketing, Vol. 25 No. 6, pp. 406-426. DOI: https://doi.org/10.1108/02652320710820354
Capgemini (2012), “Cloud computing in banking: what banks need to know when considering a move to the cloud”. https://www.capgemini.com/wpcontent/uploads/2017/07/Cloud_Computing_in_Banking.pdf
Diamantopoulos, A. and Siguaw (2000), “Introduction LISREL: a guide for the uninitiated”, Sag Publication, London. DOI: https://doi.org/10.4135/9781849209359
Fornell, C. and Larcker, D.F. (1981), “Evaluating structural equation models with unobservable variables and measurement error”, Journal of Marketing Research, Vol. 18 No. 1, pp. 39-50. DOI: https://doi.org/10.1177/002224378101800104
Gebreel A. (2014), “How to build customer confidence in cloud computing”. Http://www.ijetmr.com©International Journal of Engineering Technologies and Management Research  http://www.computerweekly.com/microscope/feature/How-to-build-customer-confidence-incloud-computing
Groenfeldt T. (2014), “Some banks are heading to the cloud, more are planning”, Frobes. http://www.forbes.com/sites/tomgroenfeldt/2014/06/26/some-banks-are-heading-to-the-cloudmore-are-planning-to/#1f03800a5991
Hair, J.F., Black, W.C., Babin, B.J. and Anderson, R.E. (2010), “Multivariate data analysis: a global perspective”, 7th ed., Pearson Prentice-Hall, NJ.
Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. and Tatham, R.L. (2006), Multivariate Data Analysis, Prentice-Hall, Englewood Cliffs, NJ.
Hair, J.F., Anderson, R.E., Tatham, R. and Black, W.C. (1998), Multivariate Data Analysis, 5th ed., Prentice-Hall, Upper Saddle River, NJ.
Hawke, A. and Heffernan, T.W. (2006), “Interpersonal liking in lender customer relationships in the Australian banking sector”, International Journal of Bank Marketing, Vol. 24 No. 3, pp. 140- 157. DOI: https://doi.org/10.1108/02652320610659003
Hu, L.T. and Bentler, P.M. (1999), “Cutoff criteria for fit indices in covariance structure analysis: conventional criteria versus new alternatives”, Structural Equation Modeling: A Multidisciplinary Journal, Vol. 6 No. 1, pp. 1-55. DOI: https://doi.org/10.1080/10705519909540118
IBM (2013), “Cloud computing for banking: Driving business model transformation”, IBM Sales and Distribution. http://www935.ibm.com/services/multimedia/Cloud_Computing_for_Banking__Janvier_2013.pdf
Milbrink, J. (2016), “Steps to success with private cloud computing initiatives”. http://www.presidio.com/content/steps-success-private-cloud-computing-initiatives
Numnonda, T. (2013), “Cloud computing direction in Thailand: Opportunity for IT industry”, IMC Institute. http://www.slideshare.net/imcinstitute/cloud-computing-direction-in-thailandopportunity-for-it-industry
OSF (2016), “Cloud selection implementation”. https://www.osf-global.com/cloud-selectionimplementation
Park, J., Lee, J., Lee, H. and Truex, D. (2012), “Exploring the impact of communication effectiveness on service quality, trust and relationship commitment in it services”, International Journal of Information Management, Vol. 32 No. 5, pp. 459-468. DOI: https://doi.org/10.1016/j.ijinfomgt.2012.02.005
Powers, E. (2014), “Customer Loyalty Problem Solving: A three-level model helps focus improvement efforts”. http://se-partners.com/customer-loyalty-problem-solving/
Setuix (2016), “Ten tips for selection your cloud service vendor”. http://setuix.com/ten-tips-forselecting-your-cloud-service-vendor/
Stratecast (2012), “Tips for choosing a cloud service provider”, http://www935.ibm.com/services/us/leveragingit/SmartCloud_Choosing_a_Provider_IBM.pdf
Tan, C., Benbasat, I. and Cenfetelli, R.T. (2007), “Understanding the antecedents and consequences of e-government service quality: an empirical investigation”, Proceedings of Twenty Eighth International Conference on Information Systems, Montreal.
Tata Consultancy Services (2010), “Cloud computing strategic considerations for banking and financial services institutions”. http://www.tcs.com/SiteCollectionDocuments/White%20Papers/Bfs_whitepaper_CloudComputing-Strategic-Considerations-for-Banking-and-Financial-Institutions-03_2010.pdf
Copyright (c) 2018 Theerawut Monta, Fredric William Swierczek
This work is licensed under a Creative Commons Attribution 4.0 International License.
License and Copyright Agreement
In submitting the manuscript to the journal, the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
- That it is not under consideration for publication elsewhere.
- That its release has been approved by all the author(s) and by the responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
Authors who publish with International Journal of Engineering Technologies and Management Research agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or edit it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
For More info, please visit CopyRight Section