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Exploring the Impact ofCloud Computing on Organizational Effectiveness
FawziehMasa'd*
Business College, Jadara University, Jordan
Ahmad Khaleel Abu Haniyi
Department of Tourism and Hotel Sciences, Al-Balqa Applied University, Jordan
Omar WassefHijazeen
Department of MIS, Amman Arab University, Jordan
Abstract
This study aimed at identifying the impact of using cloud computing technologies on
achieving organizational effectiveness. Descriptive approach was adopted for this study. A
random sample was consisted of 237 of the managerial staff who works in threeJordan
Telecom companies (Zain, Orange, and Umniah). SPSSprogram was used in order to get the
statistical analysis of the collected data. The results of the study indicated that there was
statistically significant impact of using the cloud computing technologies on organizational
effectiveness (e.g. achieving goals, productivity, and adapting to work environment).
Keywords: Cloud computing, Organizational effectiveness, Jordan Telecom Companies,
Jordan
1. Introduction
Organizations are seeking always to develop their processes and businessesas a result
of the instability of its surrounding environment. Each organization is trying to own a group
of resources and abilities even it knows very well that these resources and abilities vary in its
specs, which reflect on existence of organization. Cloud computing enables clients to rent IT
infrastructure, platform, and software services in the cloud when needed.Thus, cloud clients
can use their business applications, store data, and make analyses thru the internet on a pay-
per-utilize basis (Al-Musawi et al., 2015).
Cloud computing has brought a paradigm shift with information and communication
technology services, especially with regard to the infrastructure needed for organizations to
run their business. Companies nowadays recognize the advantages and benefits that cloud
computing can offer for their businesses; e.g. reducing the cost of software and hardware,
improving performance of computers and , reducing maintenance matters and, and having
limitless storage capacity. (Boss at al., 2007, Miller, 2009).
Organizational effectiveness is an important matter for all organizations because of
the great development and intense competition for their survival and continuity (Aljawarneh
et al., 2020).Many researchers and interested people have sought to find a theory that
organizations adopt in order to be effective.Organizational effectiveness is concerned with
building external environment resources and challenging the nature of the goals in terms of
* Corresponding author.
E-mail address: fawziehm@Jadara.edu.jo
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formalism and lack thereof(Banyhamdan etal., 2020).Telecom sector is considered to be an
important one in the economy of the Hashemite Kingdom of Jordan and the support it
provides to the national economy. Due to the participatory developments in Telecom sector
and the increasing competition, the business of these organizations has become managed by
giant computer networks that have enabled individuals and companies to do their work in an
extremely efficient manner. Cloud computing helped telecom companies reduce costs and
increase the quality of services provided through which they sought to satisfy the desires of
customers in light of intense competitionin the Jordan telecomsector.
Cloud computing is considered as a method of interacting with customers, and some
organizations that have used it to gain great interest from customers, especially after
technology was used to serve the customer. This matter increased the interaction process
between the customer and the organization itself. However, there are some institutions that
are still unable to use cloud computing to provide faster and high-tech services and
business(Alzoubi et al., 2020). In addition, the difficulty of keeping pace with these
institutions with all the changes and transformations that are escalating forces of change in
many parts of the world, and the problems faced by organizations that stand in front of their
progress as a result of these developments, which requires building a harmonization between
the continuity of organizations and taking into account the requirements of development,
change and pressures, and the internal and external challenges affecting their survival, growth
and ability to continue. (Hosseini et al., 2010)
This study aims to investigate the effects of using cloud computing technologies on
organizational effectiveness represented in achieving targets, productivity, and adapting to
work environment at Jordan telecom companies in Jordan.
2. Literature Review
2.1 Cloud Computing
Cloud computing is a technology that employs the Internet (CentralRemote Servers)
to support and process data and applications for the intended users, whether they are
individuals or companies, as it is provided to them on demand.Cloud computing is one of the
most controversial topics nowadays, as everyone seeks to find a comprehensive meaning for
this loose term. It is a future vision, and even if it carries with it some of the ambiguity of
technology, its safety and usefulness, which made global companies and institutions compete
for using it, as its advantages are numerous and endless.Currently, global Information
Technology(IT) firms such as Microsoft, Google, and more than 31 million developers and
investors around the world are developing cloud technologies and creating a virtual
environment for individuals and institutions to harness the power of flexible, secure,
interactivetechnological environment to a large extent (Alzoubi et al., 2020).
Large companies are using cloud computing technologies which resulted in increasing
their computing resources and reducing their financial and operational expenses (AlSafadi et
al., 2020). It also increased work productivity by more than 51%. Individuals alike with
companies were able to find their own IT systems easily, far from the complexities of servers
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and storage demands many times over, which requires more work, and funding to
continue.(Miller, 2009).They also managed to enhance the processing power and storage
capacity through the fewest number of devices provide significant capabilities in efforts to
manage information technology. It gives everyone free 5 GB to use it for storing all types of
files in the cloud in the cloud. It enables you to access the contents of your computer and
mobile, anywhere and at any time, on any device as you can arrange them in folders and to
have a file on the surface of the office just drag and drop, and you are in the cloud of
information(Aljawarneh et al., 2020).
By the development of technologies available through the emergence of Web 2.0 and
Web 3.0 and the steady increase in Internet speeds available to users headed many
institutions to provide their applications for use through the Internet in what is known as the
(Cloud computing). This technique allowed its users to have better advantages such as saving
costs or making services available to a larger segment of beneficiaries. (Aljawarneh and Al-
Omari, 2018).
Cloud computingis a technology that depends on transferring and processing the
storage space of the computer to the so-called cloud, which is a server device that is accessed
via the Internet. By this, IT programs are transformed from products to be
services(Greenwood at al., 2011), and the infrastructure of cloud computing depends on
advanced data centers that provide large storage areas. It also provides some programs as
services for users, and it depends on the capabilities provided by technologies web 2.0
(Khajeh-Hosseini et al, 2010).
Nowadays, cloud computing is playing an important role in providing a lot of services
through internet for many organizations. Adoption of cloud computing in Small and Medium
Enterprises (SME’s) as an example can change their current system by providing more
agility, flexibility and productivity. Furthermore, cloud computing helps many companies to
give away the traditional business model, increase the collaboration and enhance IT
capabilities. In addition, companies are trying to increase the use of cloud computing to
develop their performance. (Khayer et al, 2020)
2.2 Organizational Effectiveness
At the beginning of the seventies of the last century, the concept of effectiveness
changed and became known by focusing on the ability of the organization to achieve its goals
of survival to partial standards such as;morale of workers, rate of accidents or work injuries,
rate of absence from work, and rate of job turnover, among other concepts(Al-Bourini et al.,
2020).
To build the organizational effectiveness of any organization, it must be innovative, which is
of utmost importance for the success of the organization. Moreover, organizational
effectiveness is considered an important basis in achieving organizational goals.
Organizations are facing increasing global competition, and these organizations have
no options but to be more effective. Enterprise Resource Planning(ERP) systems provide
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solutions by providing departments with a better understanding and more transparency of all
business processes that occur in the organization, so that they become an indispensable
foundation in organizations at all (Ayyagari, 2010).
The implementation of organizational effectiveness within organizations takes time to
be implemented, and requires a large volume of investment in information technology, and
the process of assessing the effectiveness is very difficult process(Tsai et al, 2010). Many
researchers and theorists of the organization theory did not agree on an appropriatedefinition
through the accumulation of knowledge long-term management of the organization and the
theory did not find a consensus on the nature of organizational effectiveness, although the
organizational effectiveness in general, pledged a recipe desirable and important in
organizations. However, serious attempts have been made to clarify the construction of
agency, whether in theory or experimentally, are still very few, and the only widely accepted
point may be that effectiveness is very important in organizations(Mensah, et al, 2006).
Alshare et al., (2020) defined organizational effectiveness as the ability of an
organization to create acceptable results in fulfilling the demands of groups interested in the
organization. Also, organizational effectiveness is being studied in the contexts of product
development and innovation (Slater et al., 2014)
The goal is the result desired by the person or conception, planning and installation of
the system to achieve the desire of personal or organizational development which is the end
of the supposed point. Goals must be achieved in a specific time by setting deadlines, which
is very similar to the goal or intention, and leads the expected result to a reaction or the end
point is the goal, whether it is a tangible goal or an abstract one that carries an intrinsic
value.Achieving the target entrance to the point of view of the Organization's management,
and understood this approach it is mainly concerned with an angle of output in assessing
organizational effectiveness because it focuses on identifying the stated organizational goals
and then measure the extent of the organization's ability to achieve a satisfactory level of
which this is an input logical because it measures the progress of this organization achieves
its goals (Alwagfi et al., 2020).
Operational goals are indicators to measure effectiveness by observing what the
organization is actually doing (Al-Da’abseh, et al., 2018). Formal goals are often abstract and
incommensurable, while operational goals are often expressed in quantifiable, measurable
form (Mahafzah et al., 2020). Among the most common objectives in measuring the
effectiveness of business organizations are: profitability, growth, rate of return on investment
and the organization's market share(Al-Jawarneh, 2016) which is the multiplicity of
organizational goals and sometimes opposed by measuring the effectiveness of organizations
using a single indicator is considered to be unacceptable(Al-Omari, et al., 2018).The
existence of some goals that are difficult to be measured quantitatively and this leads to the
use of personal and not objective indicators to measure the extent of the organization's ability
to achieve them (Al-Omari, et al., 2020).
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The organization is always seeking to achieve its goals, whether these goals is a profit
or a certain rate of growth and moving organizations to measure their efficiency and
effectiveness in achieving these goals from time to time and this in order to increase the
organizational effectiveness of performance (AljawarnehandAtan, 2018).The difficulty of
finding fixed and accurate measures to determine the standard or model that can be reassured
in assessing the efficiency and effectiveness of the organization, given that each institution
has its own reality, as well as the difficulty of measuring the extent of application of
professional ethics by all parties of the organization.This study tested the following
hypothesis:
H1: There is a statistically significant effect for applying cloud computing on organizational
effectiveness at Jordan Telecom Companies.
3. Methodology
A descriptive and analytical method will be used with the aim of identifying the level
of cloud computing use and its impact on achieving organizational effectiveness. The study
sample consisted of all administrators and employees at Jordan Telecom Companies (Orange,
Zain, and Umniah) . The sample of the study consisted of 321 employees and questionnaires
were distributed among them. 251 questionnaires retrievedwhile 14 questionnaires not valid
for statistical analysis were excluded, so that the number of questionnaires valid for statistical
analysis was 237.The stability equation of the Cronbach-alpha tool was applied to all areas of
the study and the tool as a whole and Table 1 showing this.
Table 1. Cronbach-alpha coefficient
Domain
Ca
Cloud computing
0.80
Organizational Effectiveness 0.84
Table 1 shows that the stability coefficient for the field of cloud computing was 0.80,
and organizational effectiveness was 0.84, which are high and acceptable values for the study
application purposes.
4. Results
The correlation coefficient of applying cloud computing on organizational
effectiveness was extracted, and Multiple Regression was applied to reveal the effect of
applying cloud computing on organizational effectiveness and results are presented in table 2:
Table 2 Correlation coefficient of the effect of applying cloud computing on organizational
effectiveness
organizational effectiveness
cloud computing
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Correlation
Sig.
Achieving goals
0.73
0.00
productivity
0.71
0.00
Adapt to work environment
0.75
0.00
Table 2 shows that the correlation coefficients between the application of cloud
computing on the organizational effectiveness ranged between 0.71-0.75, which is a positive
relationship, which indicates a positive correlation between the application of cloud
computing and the organizational effectiveness.
Table 3. Multiple Regression analysis to reveal the effect of applying cloud computing on
organizational effectiveness
organizational
effectiveness
cloud computing
β
T P Tolerance VIF F P R R2
D-
W
Achieving
goals 0.328 5.916 0.000 0.446 2.243
166.198 0.00 0.826 0.68 2.22
productivity
0.265
4.804
0.000
0.449
2.226
Adapt to work
environment 0.332 5.562 0.000 0.385 2.599
Table 3 shows that the value of R reached 0.826and the value of R2 was 0.68, which
represents the strength of the relationship between the application of cloud computing on the
organizational effectiveness. There is a statistically significant effect of the independent
variable on the dependent variable, where the value of (F) is(166.198), this indicates the
presence of the impact of the application of cloud computing on organizational effectiveness,
and thereforethe main hypothesis of the study is accepted.
4.1 Results discussion
The study reached a set of important findings and conclusions, which could enrich
and enhance the literature and theories related to the subject of this study. The researchers
hope that the results of this study will lead to a set of important and detailed decisions for
Jordan Telecom Companies.Results showed a statistically significant impact of cloud
computing on the achievement of objectives in Jordan Telecom Companies.The researcher
justifies this for the role of cloud computing with the help of the Telecom companies to reach
the endeavor that it aims and achieve, by finding fixed and accurate metrics and defining the
standard or model to follow in the performance of its work in a manner that ensures the
efficiency and effectiveness of these companies. Based on the reality of Jordan Telecom
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Companiesand their conditions and to increase the effectiveness of the communications
process management within and outside and to improve coordination and alliance between
the various levels of administrative units, it should be noted that cloud computing will help
Telecom companies to obtain the information required to perform its tasks and assisting them
in finding new opportunities on the method of providing accurate information necessary for
managers to take their decisions in a timely manner to give the company a competitive
advantage that enables it to achieve its goals as fully as possible. The result of the current
study agreed with the study of (Alzoubi et al., 2020) which revealed that the effectiveness of
a proposed training program based on participatory cloud computing in enhancing the
technical performance of faculty members. The study found statistically significant
differences between the average degrees of the pre and post applications to test the
achievement of the cognitive aspect of the quality of the technical performance in favor of the
post measurement. Also, the results of this study agreed with the results of Abadi's study
(2009) which showed that the cloud consolidates and aggregates resources. Adopting cloud
computing services can support a decision to change the business model, and the
centralization of information technology resources. There is a need to define an IT
governance arrangement that clearly states on the decision-making privileges of individuals
and entities within the organization.
Results of this study can be summarized as follows:there is a statistically significant impact
of cloud computing on achieving the goals, and productivity in - Jordan Telecom Companies.
Also, the results showed that there is a statistically significant impact of cloud computing on
achieving adaptation to the business environment in this company.In general, the results
showed that there is an impact of applying cloud computing on the organizational
effectiveness of Jordan Telecom Companies.
5. Recommendations
In the light of these results, the researchers recommend the following:The necessity to
contribute to updating each Telecom company's files in all the sites that are synchronized
with other sites.Availability of special files for employees, to enable joint work between
employees.Keeping an additional copy of the files and data approved by each company.
Using various methods to maintain the confidentiality of data, such as encryption and
passwords, and the ability to save and share data and images of the company. Providing
software as a service that is accessed via the web, which guarantees the quality of the
company's software systems.Jordan Telecom companies provide an integrated range of
various high-value services through cloud computing.These companiesshould expand the
geographical coverage of services to reach the largest possible number of users.
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