Cloud computing adoption among small and medium enterprises: An SEM-based empirical study in Multan, Pakistan
Keywords:
Cloud Computing, Pakistan SMEs, Technology Adoption, TAM, UTAUTAbstract
This research explores the key factors that affect cloud computing adoption by small and medium-sized enterprises (SMEs) in Multan, Pakistan, a region underrepresented in existing research. Drawing on the frameworks of UTAUT and TAM this study examines the roles of perceived usefulness, perceived ease of use, social influence, and facilitating conditions in shaping SMEs' cloud adoption behavior. The study gathered responses from 274 decision-makers within SMEs and employed Structural Equation Modeling (SEM) through the Smart-PLS 4 tool to analyze the data. The findings highlight that perceived usefulness, ease of use, and social influence significantly affect both attitudes and behaviors towards cloud computing adoption. Additionally, attitude plays a crucial mediating role in these relationships. The findings of this study enhance current understanding by shedding light on cloud adoption in emerging markets and offers practical recommendations for stakeholders, including policymakers and service providers to foster cloud adoption among SMEs in similar contexts.
References
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211. doi:https://doi.org/10.1016/0749-5978(91)90020-T
Aman, S., Aziz, N., & Abbas, M. (2023). Student satisfaction in higher education: A systematic review examining its impact on institutional growth and comparative dimensions. Journal of AppliedMath, 1(3).
Awais, M., Fatima, T., & Awan, T. M. (2022). Assessing behavioral intentions of solar energy usage through value-belief-norm theory. Management of Environmental Quality: An International Journal, 33(6), 1329-1343. doi:http://doi.org/10.1108/MEQ-09-2021-0227
Awan, A. G., & Hashmi, S. (2014). Marketing practices of small & medium size enterprises: A case study of SME’s in Multan District. European journal of business and innovation research, 2(6), 9-20.
Awan, T. M., & Awais, M. (2023). Post-Pandemic Business Scenario: Outlining HR Challenges in the Tourism Sector. In Human Resource Management in a Post-Epidemic Global Environment (pp. 331-355): Apple Academic Press.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340. doi:https://doi.org/10.2307/249008
Fishbein, M., & Ajzen, I. (1977). Belief, attitude, intention, and behavior: An introduction to theory and research.
Gupta, C., Fernandez-Crehuet, J. M., & Gupta, V. (2022). Measuring impact of cloud computing and knowledge management in software development and innovation. Systems, 10(5), 151. doi:https://doi.org/10.3390/systems10050151
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2-24. doi:https://doi.org/10.1108/EBR-11-2018-0203
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook: Springer Nature.
Hassan, A., Bhatti, S. H., Shujaat, S., & Hwang, Y. (2022). To adopt or not to adopt? The determinants of cloud computing adoption in information technology sector. Decision Analytics Journal, 5, 100138. doi:https://doi.org/10.1016/j.dajour.2022.100138
Hussein, K., Kassim, M., & Ali, M. (2022). Cloud Computing Acceptance in Small and Medium Enterprises (SMEs) in Uganda. Saudian Review of Financial Technology and Management Studies, 2(1), 1-10.
Jeyaraj, A., Dwivedi, Y. K., & Venkatesh, V. (2023). Intention in information systems adoption and use: Current state and research directions. 73, 102680. doi:https://doi.org/10.1016/j.ijinfomgt.2023.102680
Khayer, A., Jahan, N., Hossain, M. N., & Hossain, M. Y. (2021). The adoption of cloud computing in small and medium enterprises: a developing country perspective. VINE Journal of Information and Knowledge Management Systems, 51(1), 64-91. doi:https://doi.org/10.1108/VJIKMS-05-2019-0064
Ma, Y., & Luo, M. (2024). Older people's intention to use medical apps during the COVID-19 pandemic in China: an application of the Unified Theory of Acceptance and Use of Technology (UTAUT) model and the Technology of Acceptance Model (TAM). Ageing & Society, 44(7), 1515-1532. doi:https://doi.org/10.1017/S0144686X22000423
Mohammad, A., & Abbas, Y. (2024). Key Challenges of Cloud Computing Resource Allocation in Small and Medium Enterprises. Digital, 4(2), 372-388. doi:https://doi.org/10.3390/digital4020018
Nosheen, A., Omar, M. A., & Hashim, K. F. (2025). Investigating the Determinants of Cloud Computing-Software as a Service Adoption in Pakistani SMEs from the Perspective of SME Managers. Journal of Advanced Research Design, 127(1), 32-48. doi:https://doi.org/10.37934/ard.127.1.3248
Park, E. S., & Park, M. S. (2020). Factors of the technology acceptance model for construction IT. Applied Sciences, 10(22), 8299. doi:https://doi.org/10.3390/app10228299
Premkumar, G., & Roberts, M. (1999). Adoption of new information technologies in rural small businesses. Omega, 27(4), 467-484. doi:https://doi.org/10.1016/S0305-0483(98)00071-1
Raza, F., Raza, R., Saeed, M., & Arshed, N. (2014). Cloud computing technology adoption challenges and solutions in Pakistan. International Journal, 8.
Riaz, N. (2025). Values and norms as drivers of pro-environmental behavior in tourists: A sustainable tourism perspective. Journal of Management Science (JMAS), 8(2), 494-503. doi:https://doi.org/10.35335/jmas.v8i2.669
Riaz, N., & Awais, M. (2024). Assessing Pro-Environmental Behaviour toward Solar Energy using Norm Activation Model and Social Influence. Educational Research (IJMCER), 6(6), 253-262.
Shah, D., & Syed, A. (2018). Framework for SME sector development in Pakistan. Islamabad: Planning Commission of Pakistan, 1(1), 21-23.
Shetty, J. P., & Panda, R. (2021). An overview of cloud computing in SMEs. Journal of Global Entrepreneurship Research, 11(1), 175-188. doi:https://doi.org/10.1007/s40497-021-00273-2
Shmueli, G., Ray, S., Estrada, J. M. V., & Chatla, S. B. (2016). The elephant in the room: Predictive performance of PLS models. Journal of business Research, 69(10), 4552-4564. doi:https://doi.org/10.1016/j.jbusres.2016.03.049
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: guidelines for using PLSpredict. European journal of marketing, 53(11), 2322-2347. doi:https://doi.org/10.1108/EJM-02-2019-0189
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS quarterly, 425-478. doi:https://doi.org/10.2307/30036540
Waqar, A., Gultom, M. H., Qureshi, A. H., Tanjung, L. E., & Almujibah, H. R. (2023). Complexities to the deployment of cloud computing for sustainability of small construction projects: Evidence from Pakistan. Ain Shams Engineering Journal, 14(12), 102559. doi:https://doi.org/10.1016/j.asej.2023.102559
Widyastuti, D., & Irwansyah, I. (2017). Benefits and challenges of cloud computing technology adoption in small and medium enterprises (SMEs). Bandung Creative Movement (BCM), 4(1).
Wu, W.-W. (2011). Developing an explorative model for SaaS adoption. Expert systems with applications, 38(12), 15057-15064. doi:https://doi.org/10.1016/j.eswa.2011.05.039
Aman, S., Aziz, N., & Abbas, M. (2023). Student satisfaction in higher education: A systematic review examining its impact on institutional growth and comparative dimensions. Journal of AppliedMath, 1(3).
Awais, M., Fatima, T., & Awan, T. M. (2022). Assessing behavioral intentions of solar energy usage through value-belief-norm theory. Management of Environmental Quality: An International Journal, 33(6), 1329-1343. doi:http://doi.org/10.1108/MEQ-09-2021-0227
Awan, A. G., & Hashmi, S. (2014). Marketing practices of small & medium size enterprises: A case study of SME’s in Multan District. European journal of business and innovation research, 2(6), 9-20.
Awan, T. M., & Awais, M. (2023). Post-Pandemic Business Scenario: Outlining HR Challenges in the Tourism Sector. In Human Resource Management in a Post-Epidemic Global Environment (pp. 331-355): Apple Academic Press.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340. doi:https://doi.org/10.2307/249008
Fishbein, M., & Ajzen, I. (1977). Belief, attitude, intention, and behavior: An introduction to theory and research.
Gupta, C., Fernandez-Crehuet, J. M., & Gupta, V. (2022). Measuring impact of cloud computing and knowledge management in software development and innovation. Systems, 10(5), 151. doi:https://doi.org/10.3390/systems10050151
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2-24. doi:https://doi.org/10.1108/EBR-11-2018-0203
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook: Springer Nature.
Hassan, A., Bhatti, S. H., Shujaat, S., & Hwang, Y. (2022). To adopt or not to adopt? The determinants of cloud computing adoption in information technology sector. Decision Analytics Journal, 5, 100138. doi:https://doi.org/10.1016/j.dajour.2022.100138
Hussein, K., Kassim, M., & Ali, M. (2022). Cloud Computing Acceptance in Small and Medium Enterprises (SMEs) in Uganda. Saudian Review of Financial Technology and Management Studies, 2(1), 1-10.
Jeyaraj, A., Dwivedi, Y. K., & Venkatesh, V. (2023). Intention in information systems adoption and use: Current state and research directions. 73, 102680. doi:https://doi.org/10.1016/j.ijinfomgt.2023.102680
Khayer, A., Jahan, N., Hossain, M. N., & Hossain, M. Y. (2021). The adoption of cloud computing in small and medium enterprises: a developing country perspective. VINE Journal of Information and Knowledge Management Systems, 51(1), 64-91. doi:https://doi.org/10.1108/VJIKMS-05-2019-0064
Ma, Y., & Luo, M. (2024). Older people's intention to use medical apps during the COVID-19 pandemic in China: an application of the Unified Theory of Acceptance and Use of Technology (UTAUT) model and the Technology of Acceptance Model (TAM). Ageing & Society, 44(7), 1515-1532. doi:https://doi.org/10.1017/S0144686X22000423
Mohammad, A., & Abbas, Y. (2024). Key Challenges of Cloud Computing Resource Allocation in Small and Medium Enterprises. Digital, 4(2), 372-388. doi:https://doi.org/10.3390/digital4020018
Nosheen, A., Omar, M. A., & Hashim, K. F. (2025). Investigating the Determinants of Cloud Computing-Software as a Service Adoption in Pakistani SMEs from the Perspective of SME Managers. Journal of Advanced Research Design, 127(1), 32-48. doi:https://doi.org/10.37934/ard.127.1.3248
Park, E. S., & Park, M. S. (2020). Factors of the technology acceptance model for construction IT. Applied Sciences, 10(22), 8299. doi:https://doi.org/10.3390/app10228299
Premkumar, G., & Roberts, M. (1999). Adoption of new information technologies in rural small businesses. Omega, 27(4), 467-484. doi:https://doi.org/10.1016/S0305-0483(98)00071-1
Raza, F., Raza, R., Saeed, M., & Arshed, N. (2014). Cloud computing technology adoption challenges and solutions in Pakistan. International Journal, 8.
Riaz, N. (2025). Values and norms as drivers of pro-environmental behavior in tourists: A sustainable tourism perspective. Journal of Management Science (JMAS), 8(2), 494-503. doi:https://doi.org/10.35335/jmas.v8i2.669
Riaz, N., & Awais, M. (2024). Assessing Pro-Environmental Behaviour toward Solar Energy using Norm Activation Model and Social Influence. Educational Research (IJMCER), 6(6), 253-262.
Shah, D., & Syed, A. (2018). Framework for SME sector development in Pakistan. Islamabad: Planning Commission of Pakistan, 1(1), 21-23.
Shetty, J. P., & Panda, R. (2021). An overview of cloud computing in SMEs. Journal of Global Entrepreneurship Research, 11(1), 175-188. doi:https://doi.org/10.1007/s40497-021-00273-2
Shmueli, G., Ray, S., Estrada, J. M. V., & Chatla, S. B. (2016). The elephant in the room: Predictive performance of PLS models. Journal of business Research, 69(10), 4552-4564. doi:https://doi.org/10.1016/j.jbusres.2016.03.049
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: guidelines for using PLSpredict. European journal of marketing, 53(11), 2322-2347. doi:https://doi.org/10.1108/EJM-02-2019-0189
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS quarterly, 425-478. doi:https://doi.org/10.2307/30036540
Waqar, A., Gultom, M. H., Qureshi, A. H., Tanjung, L. E., & Almujibah, H. R. (2023). Complexities to the deployment of cloud computing for sustainability of small construction projects: Evidence from Pakistan. Ain Shams Engineering Journal, 14(12), 102559. doi:https://doi.org/10.1016/j.asej.2023.102559
Widyastuti, D., & Irwansyah, I. (2017). Benefits and challenges of cloud computing technology adoption in small and medium enterprises (SMEs). Bandung Creative Movement (BCM), 4(1).
Wu, W.-W. (2011). Developing an explorative model for SaaS adoption. Expert systems with applications, 38(12), 15057-15064. doi:https://doi.org/10.1016/j.eswa.2011.05.039
Downloads
Published
2025-07-29
How to Cite
Bibi, N. ., Seher, P. ., & Aslam, A. (2025). Cloud computing adoption among small and medium enterprises: An SEM-based empirical study in Multan, Pakistan . Journal of Management Science (JMAS), 8(3), 584–593. Retrieved from https://www.exsys.iocspublisher.org/index.php/JMAS/article/view/711
Issue
Section
Articles
