Small and medium-sized enterprises (SMEs) form the backbone of Malaysia’s economy, making up nearly 90% of businesses and contributing significantly to national development. Despite this, many SMEs face limitations in market expansion and technological capacity, hindering their competitiveness. As Industry 4.0 accelerates global innovation, adopting digital solutions such as cloud computing has become vital for growth and sustainability. However, challenges remain in understanding and implementing this technology. The purpose of this study, therefore, is to explore the key factors influencing Malaysian SMEs’ intention to adopt cloud computing, offering insights to strengthen both business performance and the wider economy.
The quantitative method is adopted by using a self-administrated questionnaire from two main sectors: service and manufacturing. A total of 308 data were collected and analyzed using Statistical Social Science Package (SPSS) to evaluate the demographic data. Structural equation modeling by SmartPLS was used to explain the objectives by measuring the relationship between constructs. SMEs in the Malaysian manufacturing and services sectors were denoted as the unit of analysis for the current research, following the services sector being regarded as one of the significant contributors to SMEs. Similarly, the manufacturing sector is well-known as the second contributor and most oriented field toward Industry 4.0 implementation.
In this study, three key hypotheses are evaluated as per the abovementioned information, whereby they are split into two main sections in line with the underlining problems. They are: the direct relationship between the influencing factors identified; and the mediating role in identifying the factors influencing cloud computing adoption among Malaysian SMEs. The hypotheses are designed for the purpose of assessing the research goals outlined. In all, 12 direct hypotheses were developed, of which 9 were found to be significant based on the path analysis results generated by SmartPLS’ bootstrapping, while other 3 hypotheses were rejected. For segmentation approach of mediation, perceived ease of use and perceived usefulness were used as mediator. The bootstrapping analysis had shown that among all six indirect effects, only two are found to have mediation effect.
This research offers originality by combining two established models – the Technology Acceptance Model (TAM) and the Technology–Organization–Environment (TOE) framework – to provide a comprehensive understanding of cloud computing adoption among SMEs in Malaysia. By incorporating the three contexts of technology, organization and environment, this study goes beyond traditional technology adoption research that often focuses on only one dimension. This study also contributes methodologically through the use of a quantitative design, using a self-administered questionnaire distributed to SMEs across the service and manufacturing sectors, which represent the backbone of Malaysia’s economy. The analysis applied structural equation modeling (SmartPLS) to test direct and indirect hypotheses, with mediation effects examined through perceived usefulness and perceived ease of use. The findings not only extend theoretical knowledge by validating the integration of TAM and TOE in an Industry 4.0 context but also provide practical insights to help SMEs, policymakers and industry players accelerate digital transformation and competitiveness.
