DETERMINANTS OF CLOUD ADOPTION IN SMES: A PLS-SEM APPROACH

Abstract

Cloud computing has emerged as a transformative technology offering cost efficiency, scalability, and flexibility, yet its adoption among small and medium-sized enterprises (SMEs) remains uneven. This study investigates the determinants influencing cloud computing adoption in SMEs using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. Drawing on technology adoption theories, the research model incorporates factors such as perceived usefulness, ease of use, cost-effectiveness, security concerns, top management support, and external pressure. Survey data collected from SMEs were analyzed to assess both the measurement and structural models. The results reveal that perceived usefulness, management support, and external pressure significantly drive adoption, while concerns regarding cost and security act as barriers. The findings provide empirical evidence that strategic, technological, and organizational factors jointly shape adoption decisions. This study contributes to the literature by offering a comprehensive model of SME cloud adoption and provides practical insights for policymakers, vendors, and SME managers to enhance cloud adoption strategies.