The Impact of Cloud Computing Adoption on Firm Performance Among SMEs in Palestine: A Machine Learning Approach

Abstract

This study seeks to identify the driving factors of cloud computing adoption (CCA) among SMEs, and examines the extent to which CCA shape SME performance. Data was gathered from 212 Halal SMEs in Palestine. This study uses a two-phase investigative method to test the research model through integrating structural equation modeling (SEM) and machine learning. SEM findings show that perceived benefit, facilitating states, server location, perceived cost, upper management support, perceived quality, and cloud providers' support significantly affect CCA. Besides, the article verifies that CCA positively shapes SMEs' performance. Machine learning findings unravel perceived benefit as the strongest determinant of CCA. This study is an initial attempt to develop a conceptual framework that hypothesizes the links between technological-organizational-environmental (TOE) factors and SMEs' intent for CCA in Palestine and provides empirical evidence regarding these links.