• Theerawut Monta PhD (Candidate), School of Management, Asian Institute of Technology, Thailand
  • Dr. Fredric William Swierczek Director of Doctoral Program in Business, Thammasat University, Thailand
Keywords: Cloud Computing, Banks, Decision Criteria, 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.


Download data is not yet available.


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:

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.

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:

Barley, D. (2008), “How to select a trustworthy cloud computing vendor”.

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:

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:

Bauer, E. and Adams, R. (2014), “Service Quality of Cloud-Based Applications”, John Wiley & Sons, Inc., NJ. DOI:

Bollen, K.A. (1989), “Structure equations with latent variables”, John Wiley & Sons, New York, NY. DOI:

Bouchenak, S., Chockler, G., Chockler, H., Gheorghe, G., Santos, N. and Alexander Shraer, A. (2013), “Verifying cloud services: Present and future”. DOI:

Brown, A. (2014), “Six reasons why cloud computing will transform the way banks serve clients and the five hurdles to overcome”, Banking Technology.

Byrne, B.M. (2013), Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming, Routledge and Taylor & Francis, New York, NY. DOI:

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:

Capgemini (2012), “Cloud computing in banking: what banks need to know when considering a move to the cloud”.

Diamantopoulos, A. and Siguaw (2000), “Introduction LISREL: a guide for the uninitiated”, Sag Publication, London. DOI:

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:

Gebreel A. (2014), “How to build customer confidence in cloud computing”. Http://©International Journal of Engineering Technologies and Management Research [99]

Groenfeldt T. (2014), “Some banks are heading to the cloud, more are planning”, Frobes.

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:

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:

IBM (2013), “Cloud computing for banking: Driving business model transformation”, IBM Sales and Distribution.

Milbrink, J. (2016), “Steps to success with private cloud computing initiatives”.

Numnonda, T. (2013), “Cloud computing direction in Thailand: Opportunity for IT industry”, IMC Institute.

OSF (2016), “Cloud selection implementation”.

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:

Powers, E. (2014), “Customer Loyalty Problem Solving: A three-level model helps focus improvement efforts”.

Setuix (2016), “Ten tips for selection your cloud service vendor”.

Stratecast (2012), “Tips for choosing a cloud service provider”,

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”.

How to Cite
Monta, T., & Swierczek, F. W. (2018). CLOUD IMPLEMENTATION IN EMERGING MARKET BANKS: THE IMPORTANCE OF SERVICE QUALITY . International Journal of Engineering Technologies and Management Research, 5(7), 84-99.