abstract

Small and Medium Enterprises (SMEs) are pivotal to India's economic growth, contributing significantly to employment, innovation, and GDP (Ministry of Micro, Small & Medium Enterprises, 2020). Cloud computing offers SMEs scalable, cost-effective solutions for data storage, management, and operational efficiency. Despite its potential benefits, the adoption of cloud computing among Indian SMEs remains varied due to factors such as cost concerns, security issues, and lack of technical expertise (Kumar & Singh, 2019). This study employs a mixed-methods approach to investigate the factors influencing cloud computing adoption in Indian SMEs and its subsequent impact on organizational performance. Data were collected from 150 SMEs across major industrial hubs in India through structured questionnaires and in-depth interviews. The study examines key factors such as perceived benefits, security concerns, cost implications, and technical readiness. Findings reveal that perceived benefits, including cost savings and scalability, significantly drive cloud adoption, while security concerns and cost implications act as barriers. Additionally, cloud computing adoption positively correlates with enhanced organizational performance, manifested in increased productivity, operational efficiency, and innovation. The study highlights the necessity for targeted strategies to mitigate barriers and promote cloud adoption among SMEs. Recommendations include enhancing cybersecurity measures, providing financial incentives, and fostering technical training programs. This research contributes to the existing literature by providing empirical evidence on the determinants and impacts of cloud computing adoption in Indian SMEs, offering practical insights for policymakers and business leaders aiming to leverage cloud technologies for sustained growth.