Cloud resource adaptation: A resource based perspective on value creation for corporate growth

Abstract

Instantaneous access to firms' resources, any-time, any-where dominates contemporary discourse on business systems transformations. The advent of utility computing through cloud based resource development has therefore altered both the perception of IT resources and the expectations of their use in practice. Drawing on the resource based view as a theoretical lens; we examine the nature of unique capacity development in adapting cloud based technologies for corporate growth. Focusing on the experiences of two multinational firms that have recently implemented strategies aimed at integrating and leveraging value from cloud computing, we argue that while cloud computing may improve organizing at systems and operations levels, the development of unique competencies of skills and knowledge acquired through the implementation of cloud is what is likely to lead to the creation and capture of value relevant for competitiveness. Our case evidence suggests that as information management infrastructure gets altered, the cost savings and efficiency gains that result, may lead to sustained corporate growth and stronger external networks. We conclude with some implications for the theory and practice of value creation for corporate growth.