Unlocking the road to entrepreneurial success: quality drivers and digital competence in cloud computing adoption

Abstract

Abstract Cloud computing has transformed small and medium-sized enterprises (SMEs) by providing flexible, scalable, and affordable IT solutions. However, adoption decisions are influenced by issues with digital competency, trust, and service quality; therefore, it’s critical to investigate the main factors that support and hinder cloud adoption in SMEs. Based on data from 367 managers in Pakistan, this study employs a hybrid structural equation modelling (SEM) and artificial neural network (ANN) approach to examine the effects of information quality, service quality, and system quality on cloud computing adoption in SMEs. Regulatory support as a mediator, and entrepreneurial digital competency as a moderator. The findings reveal that information quality and service quality significantly impact cloud computing adoption in SMEs, while system quality has an insignificant effect, and that regulatory support mediates these connections to some extent. Furthermore, entrepreneurial digital competency has a negligible effect on system quality but moderates the effects of information quality and service quality on cloud computing adoption. Regulatory support is the most significant predictor, according to ANN data. This study enhances the literature by using a hybrid SEM-ANN approach to investigate nonlinear interactions in SMEs’ adoption of cloud computing, offering fresh perspectives on the moderating role of entrepreneurial digital competency.