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The Pinnacle Research Journal of Scientific and Management Sciences

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An Empirical Framework for Evaluating Determinants of Cloud Computing Integration in SMEs Using SEM: A Study in Multan, Pakistan

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Dr. Aiko Sato 1 , Dr. Kenji Watanabe 1 ,
4 School of Information Science Osaka University, Pakistan
4 Department of Data Engineering Tohoku University, Pakistan

Abstract

Cloud computing has emerged as a transformative technological paradigm enabling small and medium enterprises (SMEs) to enhance operational efficiency, scalability, and innovation capacity. However, despite its potential, the adoption and integration of cloud computing among SMEs remain uneven, particularly in developing regions such as Pakistan. This study develops and empirically validates a Structural Equation Modeling (SEM)-based framework to evaluate the determinants influencing cloud computing integration in SMEs in Multan, Pakistan. Grounded in established theoretical models such as the Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB), and Value-Belief-Norm (VBN) theory, the study examines key constructs including perceived usefulness, perceived ease of use, organizational readiness, environmental pressure, and behavioral intention. Data collected from SME managers and IT decision-makers were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that perceived usefulness, organizational capability, and external environmental factors significantly influence adoption intention, while perceived ease of use indirectly affects integration through behavioral intention. The study contributes a validated empirical framework tailored to developing economies and offers practical insights for policymakers and SME stakeholders to enhance digital transformation initiatives.

Keywords

Cloud Computing, SMEs, Structural Equation Modeling, Technology Adoption

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