The adoption of cloud computing in small and medium enterprises: a developing country perspective

Abstract

Purpose The purpose of this paper is to examine the determinants of cloud computing adoption in small and medium enterprises (SMEs), further, to measure the effect of cloud computing adoption on cloud-supported firm performance through enhancing organisational agility. Design/methodology/approach The research model is developed by combining two popular theoretical models, namely, the unified theory of acceptance and use of technology (UTAUT) and the technology–organisation–environment (TOE) framework. Data are collected from 372 SMEs to test the model. The strengths of widely used structural equation modelling (SEM) are applied to analyse the data. Findings This study reveals that the significant predictors of cloud computing adoption are performance expectancy; effort expectancy; absorptive capacity; data security and privacy; and perceived trust. Also, cloud computing adoption positively influences firm performance directly and through organisational agility. The results of importance–performance map analysis indicate that effort expectancy falls in the critical zone, which needs to be improved. Originality/value This research is one of few that blends the strengths of UTAUT and TOE framework. The research outcomes yield noteworthy suggestions to cloud providers, managers and government policymakers on ways of motivating the spread of cloud computing in developing countries.