Factors Influencing Cloud Computing Adoption Among SMEs: The Jordanian Context

Abstract

Cloud computing technology has proved to be an important technological solution, especially for small and medium- sized businesses (SMEs), by providing many opportunities for companies to enhance their operations, reduce cost, improve scalability and flexibility, and make more efficient use of technology. Despite its benefits, most SMEs are still hesitant about adopting cloud computing. The purpose of this study is to assess the factors that influence cloud computing adoption among SMEs in Jordan. This study does so by developing a research model based on the Technology Organization Environment (TOE) and Diffusion of Innovation (DOI) .These theories overlap in terms of the characteristics that strengthen the explanation of adoption. An online questionnaire was used to collect data from 244 SMEs registered in Jordan. A multiple regression test was implemented to examine the proposed model. The results indicate that seven factors significantly affect cloud computing adoption among SMEs. Among these factors, cost reduction was found to be the strongest predictor, while the weakest predictor was firm size. However, the firm’s scope insignificantly influenced cloud computing adoption among SMEs in Jordan. This finding could provide insights for SMEs decision- makers when it comes to adopting cloud computing. In addition, it provides insights for practitioners in terms of recognizing the important factors that encourage or prevent SMEs from adopting cloud computing.