Essential factors in cloud-computing adoption by SMEs

What is it about?

Small and medium-sized enterprises (SMEs) invariably leverage a country’s economy. In this context, information and communication technology (ICT) improvements render cloud computing (CC) both an effective and cost-efficient platform for SMEs. Statistically, multiple factors influence SMEs in their adopting CC. In the subtext of a technology, environment and organization (TEO) framework, the purposefulness of this empirical study has been to identify the most prominent factors in the CC adoption, by SMEs in Pakistan. Data were collected through convenient and quota sampling methods from 103 SMEs. Both multiple regression and confirmatory factor analysis (CFA) were deployed to test the measurement model. The results show that CC adoption by SMEs is positively affected by six cogent factors, namely relative advantage, CC compatibility, managerial support, firm size, competitive pressures and regulatory support. Dynamic complexity seems, however, to have a negative effect on CC adoption by SMEs in Pakistan. Also discussed are the study’s implications for SME managers and researchers.

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