Unlocking Cloud Computing Services for Malaysian MSMEs: Navigating Opportunities and Overcoming Challenges

Lai Siew Fong (), Lim Wan Leng and Kho Guan Khai
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Lai Siew Fong: Universiti Tunku Abdul Rahman, Faculty of Accountancy and Management
Lim Wan Leng: Universiti Tunku Abdul Rahman, Faculty of Accountancy and Management
Kho Guan Khai: Universiti Tunku Abdul Rahman, Faculty of Accountancy and Management

A chapter in Proceedings of the 12th International Conference on Business, Accounting, Finance and Economics (BAFE 2024), 2025, pp 83-97 from Springer

Abstract: Abstract Micro, Small, and Medium-Sized Enterprises (MSMEs) in Malaysia account for a staggering 97% of all businesses, contributing a sizeable gross domestic product of 38% and providing more than 47% of employment opportunities as of 2022. Yet, 60% of these businesses have not embraced cloud computing in their businesses. Cloud computing is a crucial technological advancement that provides better flexibility, scalability, security, and cost savings. This research distinguishes itself through its comprehensive application of the Technology Organisation Environment (TOE) framework within the context of a developing country, with a specific focus on MSMEs. This study explores opportunities and challenges associated with the low adoption of cloud computing among the MSMEs in Malaysia. It also presents an overview of cloud computing efficiency and effectiveness to MSMEs. The research will utilise a mixed approach employing the use of a survey questionnaire and semi-structured interviews with the senior management from the MSMEs. Data collected is analysed using the SEM-PLS and thematic coding scheme to provide insights from MSMEs toward cloud computing adoption. TOE framework is the focal point, which considers perceived benefits, IT resources, and competitive pressure factors. The findings will offer MSMEs hesitating to integrate cloud computing into their operations a fresh perspective. Cloud service providers and policymakers could also benefit by formulating effective policies and strategies for cloud computing adoption.

Keywords: Micro; Small and Medium-Sized Enterprise (MSMEs); Cloud Computing; TOE Framework (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-666-6_5

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