Arbeitspapier

Organizational Barriers to Transforming Large Finance Corporations: Cloud Adoption and the Importance of Technological Architecture

This paper studies the impact of technological architecture around data storage and processing on the performance of large financial corporations after being exposed to more stringent data privacy regulations. A modular approach to cloud adoption – which reflects in the lack of data interoperability and reliance on microservices architecture – significantly constrains corporations' ability to adapt after the GDPR became enforceable. We hypothesize that a modular approach to cloud adoption leads to uncontrolled scaling and data silos that hinder coordination and regulatory compliance. Using a difference-in-differences regression design, we find that establishment revenues lower by 30% among corporations substantially exposed to GDPR. Other corporations do not experience similar losses. We also find evidence consistent with theory using two alternative measures based on cloud vendor configurations.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 10142

Klassifikation
Wirtschaft
Thema
technological architecture
cloud computing
ecosystem
GDPR
organisation design

Ereignis
Geistige Schöpfung
(wer)
Cao, Sam Ruiqing
Iansiti, Marco
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2023

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Cao, Sam Ruiqing
  • Iansiti, Marco
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2023

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