Skip to main content
Log in

An overview of cloud computing in SMEs

  • Review
  • Published:
Journal of Global Entrepreneurship Research Aims and scope Submit manuscript

Abstract

The emergence of the Web in 1990 gave rise to cloud computing; a disruptive innovation in the bird’s-eye view of information technology. Cloud computing essentially sidesteps the need for capital investments in hardware and expensive information technology, yet has many hurdles to overcome. The purpose of this review is to identify the most discussed topics and relevant theories, while also focusing on the influential factors of cloud adoption in small and medium enterprises. This paper provides an investigation of 25 conference papers, articles, and review papers listed in Scopus and 67 articles from popular publications like Emerald Insight, Elsevier, and Sprouts. Articles are comprehended in three stages: (1) word frequency query, (2) cluster analysis, and (3) narrative review. Thus, the research design cumulatively covers 92 articles and uses two review methods; systematic and narrative. The synthesized outcome of the literature identifies four interrelations of topics; cost-services, adoption-factors, technology-business, and cloud-computing, while pinpointing at “policy” as an outlier. Findings highlight the applicability of influential factors such as “cost” and “flexibility” to multiple benefits of cloud computing, both tangible and intangible. The results encapsulate the synthesis of theoretical models (Technological-Organization-Environment framework and Technology Acceptance Model). Other summarizations are their embedded constructs, impediments, and cloud economics. The roles of other stakeholders enhance cluster-wise e-readiness for all-round benefits. Practitioners can leverage cloud benefits to augment successful adoption and diffusion. Researchers can look forward to addressing gaps in the area of policy, risks, and service models to facilitate the business aspect of cloud technology.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

Data availability

Data sharing does not apply to this article as no datasets were generated or analyzed during the current study. This being a literature review article; all publications that are reviewed are provided in the reference.

Notes

  1. Association of South-East Asian Nations (ASEAN) comprises of 10 nations; Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. ASEAN is a global ICT primarily engaged in producing ICT hardware and ICT service exports.

Abbreviations

ASEAN:

Association of Southeast Asian Nations

CSP:

cloud service provider

DOI:

diffusion of innovation

IaaS:

infrastructure as a service

ICT:

information and communication technology

IDA:

infocomm and development authority

IDT:

innovation diffusion theory

IT:

information technology

ITBB:

Information Technology and Broadcasting Bureau

JI:

Jaccard’s index

NTP:

National Telecom Policy

PaaS:

platform as a service

ROI:

return on investment

SaaS:

software as a service

TAM:

Technology Acceptance Model

TCE:

transaction cost economics

TCO:

total cost of ownership

TOE:

technological organization environment

TPB:

theory of planned behavior

TRA:

theory of reasoned action

SME:

small and medium enterprises

WTP:

willingness to pay

References

  • Agostino, A., Søilen, K. S., & Gerritsen, B. (2013). Cloud solution in business intelligence for SMEs -vendor and customer perspectives. Journal of Intelligence Studies in Business, 3(3), 5–28.

    Article  Google Scholar 

  • Ajzen, I. (1991). The theory of planned behaviour. Organizational Behavior and Human Decision Processes, 50(2), 179–211.

    Article  Google Scholar 

  • Alkhalil, A. (2013). Journal of Information Technology Management A Publication of the Association of Management Cloud Computing : A new phase in information technology management. Journal of Information Technology Management, X, 1, 2013.

    Google Scholar 

  • Alshamaila, Y., Papagiannidis, S., & Li, F. (2013). Cloud computing adoption by SMEs in the northeast of England. Journal of Enterprise Information Management, 26(3), 250–275.

    Article  Google Scholar 

  • Ariwa, E., & Ibe, K. C. (2013). Cloud computing sustainability and business process re-engineering in SMEs: Comparative analysis of UK and Nigeria. In Third International Conference on Innovative Computing Technology (INTECH 2013). London, U.K, August 29–31, 2013, IEEE, 181–183.

  • Assante, D., Castro, M., Hamburg, I., & Martin, S. (2016). The use of cloud computing in SMEs. Procedia Computer Science, 83, 1207–1212.

    Article  Google Scholar 

  • Awa, H. O., Ojiabo, O. U., & Emecheta, B. C. (2015). Integrating TAM, TPB, and TOE frameworks and expanding their characteristic constructs for e-commerce adoption by SMEs. Journal of Science and Technology Policy Management, 6(1), 76–94.

    Article  Google Scholar 

  • Azam, M. S., & Quaddus, M. (2013). Examining the influence of national culture on adoption and use of information and communication technology: A study from Bangladesh’s SME perspective. The International Technology Management Review, 3(2), 116–126.

    Article  Google Scholar 

  • Bagozzi, R. P., Yi, Y., & Phillips, L. W. (1991). Assessing construct validity in organizational research. Administrative Science Quarterly, 36(3), 421–458.

    Article  Google Scholar 

  • Bieber, K., Grivas, S. G., & Giovanoli, C. (2016). Cloud computing business case framework: Introducing a mixed-model business case framework for small and medium enterprises to determine the value of cloud computing. In Proceedings - 3rd International Conference on Enterprise Systems. Basel, Switzerland, October 14–15, 2015, 161–168.

  • Brender, N., & Markov, I. (2013). Risk perception and risk management in cloud computing: Results from a case study of Swiss companies. International Journal of Information Management, 33(5), 726–733.

    Article  Google Scholar 

  • Cervone, H. F. (2010). An overview of virtual and cloud computing. OCLC Systems & Services: International Digital Library Perspectives, 26(3), 162–165.

    Article  Google Scholar 

  • Chang, V., Walters, R. J., & Wills, G. (2013). The development that leads to the cloud computing business framework. International Journal of Information Management, 33, 524–538.

    Article  Google Scholar 

  • Chong, H.-Y., Wong, J. S., & Wang, X. (2014). An explanatory case study on cloud computing applications in the built environment. Automation in Construction, 44, 152–162.

    Article  Google Scholar 

  • Christensen, C. M., Anthony, S. D., & Roth, E. A. (2004). Seeing what’s next: Using theories of innovation to predict industry change. Harvard Business School Press.

  • Colicchio, C., Giovanoli, C., & Stella, G. G. (2015). A cloud readiness assessment framework for enterprise content management and social software (E-collaboration) in small and medium-sized enterprises. At International Conference on Enterprise Systems (ES). Basel, Switzerland, October 14–15, 2015, 177–183.

  • Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. Management Information Systems Quarterly, 13(3), 319–340.

    Article  Google Scholar 

  • Deniz, A., & Kuyucu, H. (2011). Exploring policy-formulation for SMEs in cloud computing: The case of Turkey. IBIMA Business Review, 890061, 1–13.

    Google Scholar 

  • DePietro, R., Wiarda, E., & Fleischer, M. (1990).The context for change: Organization, technology, and environment. The Process of Technological Innovation, Lexington Books. Lexington, MA, 51-175.

  • Dickerson, M. D., & Gentry, J. W. (1983). Characteristics of adopters and non-adopters of home computers. The Journal of Consumer Research, 10(2), 225–235.

    Article  Google Scholar 

  • Doherty, E., Carcary, M., & Conway, G. (2015). Migrating to the cloud. Journal of Small Business and Enterprise Development, 22(3), 512–527.

    Article  Google Scholar 

  • El Garah, W., Berrado, A., & El Ouarti, N. (2010). Cloud computing adoption in an emerging market. In Business Transformation through Innovation and Knowledge Management: An Academic Perspective - Proceedings of the 14th International Business Information Management Association Conference, IBIMA 2010, 2, 1310–1313.

  • Faasen, J., Seymour, L. F., & Schuler, J. (2013). Enterprise Information Systems of the Future. (G. Poels, Ed.) Lecture Notes in Business Information Processing, Springer,139. Berlin Heidelberg.

  • Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behavior: An introduction to theory and research. Addison-Wesley.

  • Gangwar, H., Date, H., & Raoot, A. D. (2014). Review on IT adoption: Insights from recent technologies. Journal of Enterprise Information Management, 27(4), 488–502.

    Article  Google Scholar 

  • Gatignon, H., & Robertson, T. S. (1985). A propositional inventory for new diffusion research. Journal of Consumer Research, 11(March), 849–867.

    Article  Google Scholar 

  • Gerhardter, A., & Ortner, W. (2013). Innovation and future of enterprise information systems. (F. Piazolo & M. Felderer, Eds.) Lecture Notes in Information Systems and Organisation, Springer, 4. Berlin, Heidelberg.

  • Ghobakhloo, M., & Hong Tang, S. (2013). The role of owner/manager in the adoption of electronic commerce in small businesses. Journal of Small Business and Enterprise Development, 20(4), 754–787.

    Article  Google Scholar 

  • Giovannis, A. N., Binioris, S., & Polychronopoulos, G. (2012). An extension of the TAM model with IDT and security/privacy risk in the adoption of internet banking services in Greece. EuroMed Journal of Business, 7(1), 24–53.

    Article  Google Scholar 

  • Gounaris, S., & Koritos, C. (2008). Investigating the drivers of internet banking adoption decision -A comparison of three alternative frameworks. International Journal of Bank Marketing, 26(5), 282–304.

    Article  Google Scholar 

  • Grubisic, I. (2014). ERP in clouds or still below. Journal of Systems and Information Technology, 16(1), 62–76.

    Article  Google Scholar 

  • Gupta, P., Seetharaman, A., & Raj, J. R. (2013). The usage and adoption of cloud computing by small and medium businesses. International Journal of Information Management, 33, 861–874.

    Article  Google Scholar 

  • Gutierrez, A., Boukrami, E., & Lumsden, R. (2015). Technological, organizational, and environmental factors influencing managers’ decision to adopt cloud computing in the UK. Journal of Enterprise Information Management, 28(6), 788–807.

    Article  Google Scholar 

  • Haleem, A., Mannan, B., Luthra, S., Kumar, S., & Khurana, S. (2018). Technology forecasting (TF) and technology assessment (TA) methodologies : A conceptual review. Benchmarking: An International Journal, 26(1), 48–72.

    Article  Google Scholar 

  • Heeks, R. (2002). Information systems and developing countries : Failure, success, and local improvisations. The Information Society, 18, 101–112.

    Article  Google Scholar 

  • Herrera, A., & Janczewski, L. (2014). Issues in the study of organizational resilience in cloud computing environments. Procedia Technology, 16, 32–41.

    Article  Google Scholar 

  • Hsu, P. F., Ray, S., & Li-Hsieh, Y. Y. (2014). Examining cloud computing adoption intention, pricing mechanism, and deployment model. International Journal of Information Management, 34, 474–488.

    Article  Google Scholar 

  • Javalgi, R. R. G., & Todd, P. R. (2011). Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India. Journal of Business Research, 64(9), 1004–1010.

    Article  Google Scholar 

  • Jede, A., & Teuteberg, F. (2015). Integrating cloud computing in supply chain processes. Journal of Enterprise Information Management, 28(6), 872–904.

    Article  Google Scholar 

  • Jede, A., & Teuteberg, F. (2016). Towards cloud-based supply chain processes. The International Journal of Logistics Management, 27(2), 438–462.

    Article  Google Scholar 

  • Kannabiran, G., & Dharmalingam, P. (2012). Enablers and inhibitors of advanced information technologies adoption by SMEs. Journal of Enterprise Information Management, 25(2), 186–209.

    Article  Google Scholar 

  • Karunakaran, S., Krishnaswamy, V., Rangaraja, P., & S. (2015). Business view of cloud. Management Research Review, 38(6), 582–604.

    Article  Google Scholar 

  • Kramer, F. (2014). On the advantages, perils, and pitfalls of using cloud computing and open-source software in small and medium-sized businesses. The case of a german entrepreneurial company. In the 20th Americas Conference on Information Systems, AMCIS 2014. Association for Information Systems, Savannah, 1–12.

  • Kshetri, N. (2015). Institutional and economic factors affecting the development of the Chinese cloud computing industry and market. Telecommunications Policy, 40(2), 116–129.

    Google Scholar 

  • Li, M., Yu, Y., Zhao, J. L., & Li, X. (2012). Drivers for strategic choice of cloud computing as online service in SMEs. In ICIS-RP, Orlando, 1–11.

  • Li, M., Zhao, D., & Yu, Y. (2015). TOE drivers for cloud transformation: Direct or trust-mediated. Asia Pacific Journal of Marketing and Logistics, 27(2), 226–248.

    Article  Google Scholar 

  • Lian, J. W., Yen, D. C., & Wang, Y. T. (2014). An exploratory study to understand the critical factors affecting the decision to adopt cloud computing in Taiwan hospital. International Journal of Information Management, 34, 28–36.

    Article  Google Scholar 

  • Lonea, A. M., Popescu, D. E., & Proştean, O. (2012). The overall process taken by enterprises to manage IaaS cloud services. In Proceedings of the 6th European Conference on Information Management and Evaluation. Cork, Ireland, September 13-14, 2012, 168–177.

  • Low, C., Chen, Y., & Wu, M. (2011). Understanding the determinants of cloud computing adoption. Industrial Management & Data Systems, 111(9), 1006–1023.

    Article  Google Scholar 

  • Marian, M., & Hamburg, I. (2013). Co-operative e-learning approach based on cloud computing. In Proceedings of the IASTED International Conference. Innsbruck, Austria, February, 13–15, 2013, Web-based Education, 838–843.

  • Mell, P., & Grance, T. (2010).The NIST definition of cloud computing, available at www. newinnovationsguide.com/NIST_Cloud_Definition.pdf.

  • Misra, S. C., & Mondal, A. (2011). Identification of a company’s suitability for the adoption of cloud computing and modeling its corresponding return on investment. Mathematical and Computer Modelling, 53, 504–522.

    Article  Google Scholar 

  • Moore, G. C., & Benbasat, I. (1991). Development of an instrument to measure the perceptions of adopting an information technology innovation. Information Systems Research, 2(3), 192–222.

    Article  Google Scholar 

  • Morgan-Thomas, A. (2015). Rethinking technology in the SME context : Affordances, practices, and ICTs. International Small Business Journal, 34(8), 1122–1136.

    Article  Google Scholar 

  • Muhic, M., & Johansson, B. (2014). Cloud sourcing – Next generation outsourcing ? Procedia Technology, 16, 553–561.

    Article  Google Scholar 

  • Oliveira, T., & Martins, M. F. (2010). Industrial Management & Data Systems Understanding e-business adoption across industries in European countries. Industrial Management & Data Systems, 110(3), 1337–1354.

    Article  Google Scholar 

  • Ostlund, L. E. (1974). Perceived innovation attributes as predictors of innovativeness. The Journal of Consumer Research, 1(2), 23–29.

    Article  Google Scholar 

  • Porter, M. E. (1980). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.

    Google Scholar 

  • Prasad, A., Green, P., & Heales, J. (2014). On governance structures for the cloud computing services and assessing their effectiveness. International Journal of Accounting Information Systems, 15(4), 335–356.

    Article  Google Scholar 

  • Priyadarshinee, P., Raut, R. D., Kumar, M., & Kamble, S. S. (2017). A cloud computing adoption in Indian SMEs: Scale development and validation approach. The Journal of High Technology Management Research, 289(2), 221–245.

    Article  Google Scholar 

  • Raut, R. D., Gardas, B. B., Narkhede, B. E., & Narwane, V. S. (2019). To investigate the determinants of cloud computing adoption in the manufacturing micro, small, and medium enterprises. Benchmarking: An International Journal, 26(3), 990–1019.

    Article  Google Scholar 

  • Ren, L., Zhang, L., Tao, F., Zhao, C., Chai, X., & Zhao, X. (2013). Cloud manufacturing: From concept to practice. Enterprise Information Systems, 9(2), 186–209.

    Article  Google Scholar 

  • Rogers, E. M. (1983). Diffusion of innovation. The Free Press.

  • Rogers, E. M. (1995). Diffusion of innovations (4th ed.). The Free Press.

  • Ross, P. K., & Blumenstein, M. (2013). Cloud computing: The nexus of strategy and technology. Journal of Business Strategy, 34(4), 39–47.

    Article  Google Scholar 

  • Ross, P. K., & Blumenstein, M. (2015). Cloud computing as a facilitator of SME entrepreneurship. Technology Analysis & Strategic Management, 27(1), 87–101.

    Article  Google Scholar 

  • Schniederjans, D. G., & Hales, D. N. (2016). Cloud computing and its impact on economic and environmental performance: A transaction cost economics perspective. Decision Support Systems, 86, 73–82.

    Article  Google Scholar 

  • Scott, M., & Watson, R. (2012). The value of Green IT: A theoretical framework and exploratory assessment of cloud computing. In the Proceedings of the 25th Bled eConference. Bled, Slovenia, June 17-20, 2012, Paper 30, 294–308.

  • Shetty, J. P., & Panda, R. (2020). A multidimensional framework for cloud adoption of SMEs in India. International Journal of Indian Culture and Business Management, 20(2), 210–233.

    Article  Google Scholar 

  • Singh Kalsi, N., & Kiran, R. (2013). E-governance success factors. International Journal of Public Sector Management, 26(4), 320–336.

    Article  Google Scholar 

  • Singh, V., & Singh, G. (2018). Citizen centric assessment framework for e-governance services quality. International Journal of Business Information Systems, 27(1), 1–20.

    Article  Google Scholar 

  • Sinha, I., & Sharma, M. K. (2015). Cloud computing in small and medium-sized enterprises: An architectural model. International Journal of Enterprise Network Management, 6(3), 185.

    Article  Google Scholar 

  • Snowden, S., Spafford, J., Michaelides, R., & Hopkins, J. (2006). Technology acceptance and m-commerce in an operational environment. Journal of Enterprise Information Management, 19(2), 525–539.

    Article  Google Scholar 

  • Sokal, R. R., & Rohlf, F. J. (2017). The comparison of dendrograms by objective methods. Taxon 11. International Association for Plant Taxonomy (IAPT), 11(2), 33–40.

    Google Scholar 

  • Soon, J. N. P., Mahmood, A. K., Yin, C. P., Wan, W. S., Yuen, P. K., & Heng, L. E. (2014). IaaS cloud optimization during economic turbulence for Malaysia small and medium enterprises. International Journal of Business Information Systems, 16(2), 196.

    Article  Google Scholar 

  • Srinuan, C. (2017) ‘Willingness to pay for cloud computing service of SME in Thailand’, Paper presented at 3rd International Conference on Information Management, IEEE, Chengdu, China, April, 21–23, 2017, 21–25.

  • Subrahmanya, M. H. B. (2007). Development strategies for Indian SMEs: Promoting linkages with global transnational corporations. Management Research News, 30(10), 762–774.

    Article  Google Scholar 

  • Subramanian, N., Abdulrahman, M. D., & Zhou, X. (2014). Integration of logistics and cloud computing service providers: Cost and green benefits in the Chinese context. Transportation Research Part E: Logistics and Transportation Review, 70, 86–98.

    Article  Google Scholar 

  • Sultan, N. A. (2011). Reaching for the “cloud”: How SMEs can manage. International Journal of Information Management, 31(3), 272–278.

    Article  Google Scholar 

  • Sultan, N. (2013). Cloud computing: A democratizing force? International Journal of Information Management, 33(5), 813–815.

    Article  Google Scholar 

  • Sultan, N. (2014). Making use of cloud computing for healthcare provision: Opportunities and challenges. International Journal of Information Management, 34(2), 177–184.

    Article  Google Scholar 

  • Swanson, E. B. (1994). Information systems innovation among organizations. Management Science, 40(9), 1069–1092.

    Article  Google Scholar 

  • Tan, P. N., Steinbach, M., & Kumar, V. (2005). Introduction to data mining. Addison-Wesley.

  • Tarhini, A., Yunis, M., & El-Kassar, A. N. (2018). Innovative sustainable methodology for managing in-house software development in SMEs. Benchmarking: An International Journal, 25(3), 1085–1103.

    Article  Google Scholar 

  • Tornatsky, L., & Fleischer, M. (1990). The process of technology innovation, Lexington Books.Lexington, MA.

  • Vasiljeva, T., Shaikhulina, S., & Kreslins, K. (2017). Cloud computing: Business perspectives, benefits, and challenges for small and medium enterprises (case of Latvia). Procedia Engineering, 178, 443–451.

    Article  Google Scholar 

  • Vidalis, S., & Angelopoulou, O. (2013). Deception and maneuver warfare utilizing cloud resources. Information Security Journal: A Global Perspective, 22(4), 151–158.

    Google Scholar 

  • Vidhyalakshmi, R., & Kumar, V. (2016). Determinants of cloud computing adoption by SMEs. International Journal of Business Information Systems, 22(3), 375–395.

    Google Scholar 

  • Vu, K. M. (2017). ICT diffusion and production in ASEAN countries: Patterns, performance, and policy directions. Telecommunications Policy, 41(10), 962–977.

    Article  Google Scholar 

  • Wach, K. (2020). A typology of small business growth modelling : A critical literature review. Entrepreneurial Business and Economics Review, 8(1), 159–184.

    Article  Google Scholar 

  • Walterbusch, M., Martens, B., & Teuteberg, F. (2013). Evaluating cloud computing services from a total cost of ownership perspective. Management Research Review, 36(6), 613–638.

    Article  Google Scholar 

  • Wang, F. K., & He, W. (2014). Service strategies of small cloud service providers: A case study of a small cloud service provider and its clients in Taiwan. International Journal of Information Management, 34, 406–415.

    Article  Google Scholar 

  • Wonglimpiyarat, J. (2014). Innovative policies to support technology and ICT development. Government Information Quarterly, 31(3), 466–475.

    Article  Google Scholar 

  • Xu, Z. (2018). Small and medium enterprises innovation management system based on clustering algorithm. Wireless Personal Communications, 102(4), 2885–2896.

    Article  Google Scholar 

  • Yan, H., Hua, Q., Wang, Y., Wei, W., & Imran, M. (2017). Cloud robotics in smart manufacturing environments: Challenges and countermeasures. Computers and Electrical Engineering, 63, 56–65.

    Article  Google Scholar 

  • Yang, H., & Tate, M. (2012). A descriptive literature review and classification of cloud computing research. Communications of the Association for Information Systems, 31, 35–60.

    Article  Google Scholar 

  • Zhu, K., Kraemer, K. L., Xu, S., & Dedrick, J. (2004). Information technology payoff in E-business environments: An international perspective on value creation of E-business in the financial services industry. Journal of Management Information Systems, 21(1), 17–54.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Contributions

In this review, the authors have taken stock of the most discussed topics and identified relevant theories for cloud adoption. The study has a 2-fold goal; one is to guide the cash-strapped SME towards advancement, through information technology and the other to contribute to the research knowledge bank. JPS carried out the research as her ongoing doctoral thesis under the close supervision of her supervisor and co-author, RP. Both authors read and approved the manuscript.

Corresponding author

Correspondence to Jayalaxmi P Shetty.

Ethics declarations

Competing interests

The authors declare no competing interests.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Shetty, J.P., Panda, R. An overview of cloud computing in SMEs. J Glob Entrepr Res 11, 175–188 (2021). https://doi.org/10.1007/s40497-021-00273-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s40497-021-00273-2

Keywords

Navigation