CLOUD COMPUTING ADOPTION IN SMES: AN EMPIRICAL ANALYSIS USING PLS-SEM

Cloud computing offers SMEs affordable and scalable IT solutions, making it a transformative technology for their operations. This study investigates how perceived usefulness, cost efficiency, and security concerns influence cloud adoption in SMEs, with organizational readiness acting as a mediator. Using a quantitative research design, data were collected via a 7-point Likert scale from 209 IT managers, system administrators, and decision-makers in Karachi-based SMEs. Structural Equation Modeling (SEM) via SmartPLS revealed that perceived usefulness and cost efficiency positively impact cloud adoption, while security concerns serve as a deterrent. Organizational readiness significantly mediates these relationships. The findings provide valuable insights for SME decision-makers and policymakers, emphasizing the need for improved IT infrastructure and greater managerial involvement to foster cloud adoption.