The Impacts of Cloud Computing Adoption on Organizational Performance Among Malaysian Wholesale and Retail SMES

Abstract

This study investigates the impacts of cloud computing adoption on the organizational performance of small and medium enterprises (SMEs) in the wholesale and retail sectors in Malaysia. Grounded in the Technology-Organization-Environment (TOE) framework, the research examines six critical factors: relative advantage, compatibility, top management support, IT competence, competitive pressure, and trading partner influence. A quantitative, cross-sectional research design was employed, collecting data from 399 registered SMEs via a purposive sampling technique. Multiple regression analysis in SPSS was utilized to analyze the data. The results indicate that all six TOE factors have a statistically significant positive relationship with organizational performance. The overall model is highly significant (F = 23.45, p < 0.001) and explains 56.2% of the variance in organizational performance (R2 = 0.562). Technological factors, particularly relative advantage (β = 0.28), and organizational readiness, specifically IT competence (β = 0.21), emerged as the strongest predictors. Conversely, environmental factors such as competitive pressure (β = 0.12) had a lesser impact, suggesting that internal readiness and technology-driven benefits are the primary catalysts of digital success. These findings provide a strategic roadmap for policymakers, cloud service providers, and SME managers to promote digital transformation and long-term competitiveness in developing markets