Analyzing the factors influencing the adoption of cloud computing by SMEs using the SEM approach

Abstract

Cloud computing (CC) represents a third-generation computing platform that offers numerous benefits, including faster data transactions, cost advantages, elasticity, flexibility, and pay-per-use models, among others. However, CC adoption in developing nations, such as Somalia, is impeded by various challenges. This study aims to investigate the factors influencing CC adoption in small to medium-sized enterprises (SMEs) in Somalia. Data was collected from 195 ICT officials and experts in the SME domain in Mogadishu, Somalia, and analyzed using structural equation modeling (SEM). The results revealed that cost savings, firm size, top management support, and regulatory support significantly influence CC adoption in SMEs. Conversely, security concerns and competitive pressure showed no significant relationship with CC adoption. This study contributes to the literature by examining the technology, organization, and environment (TOE) framework in the context of CC adoption and provides valuable insights to inform policymaking and promote CC adoption in developing nations. Nonetheless, the study's limitation lies in its narrow focus on Somalia, and the generalizability of the results to other developing nations may be limited.