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Evaluating the Impact of Cloud Computing on SME Performance: A Systematic Review

Author

Listed:
  • Ayaphila Mkhize

    (Department of Electrical & Electronic Engineering Technology, University of Johannesburg, Johannesburg 2092, South Africa)

  • Katleho D. Mokhothu

    (Department of Electrical & Electronic Engineering Technology, University of Johannesburg, Johannesburg 2092, South Africa)

  • Mukhodeni Tshikhotho

    (Department of Electrical & Electronic Engineering Technology, University of Johannesburg, Johannesburg 2092, South Africa)

  • Bonginkosi A. Thango

    (Department of Electrical & Electronic Engineering Technology, University of Johannesburg, Johannesburg 2092, South Africa)

Abstract

Small and medium-sized enterprises (SMEs) face substantial barriers in accessing reliable and cost-effective IT infrastructure, primarily due to economic constraints and limited technical resources. Hybrid cloud computing solutions, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS), offer potential to overcome these barriers by providing scalable, flexible IT services. This study systematically reviews the impact of cloud computing on SME performance, focusing on key performance metrics such as cost-efficiency, operational reliability, and competitive advantage. A systematic literature review was conducted using the PRISMA 2020 framework. Inclusion criteria included studies published in English from 2014 to 2024, focusing on cloud computing for SMEs and presenting clear analytical frameworks for evaluating performance. Out of an initial pool of 18,570 studies, 90 met the criteria for detailed analysis. Findings show that cloud computing adoption enhances SME performance, with approximately 82% of studies reporting improvements in operational efficiency and 76% noting cost savings. Competitive advantage was identified as a key benefit in 64% of studies, driven by cloud-enabled scalability and access to advanced technology. Key adoption drivers include management support (cited by 68% of studies), service quality (56%), and perceived risks (54%), while barriers such as initial cost concerns and data security risks were also prevalent, affecting 48% and 45% of SMEs, respectively. This review provides strategic insights for SMEs and policymakers, emphasizing the importance of tailored cloud strategies that align with specific operational needs and budget constraints. By addressing key predictors and challenges, this study offers a roadmap for SMEs to leverage cloud computing to improve performance, sustainability, and competitiveness.

Suggested Citation

  • Ayaphila Mkhize & Katleho D. Mokhothu & Mukhodeni Tshikhotho & Bonginkosi A. Thango, 2025. "Evaluating the Impact of Cloud Computing on SME Performance: A Systematic Review," Businesses, MDPI, vol. 5(2), pages 1-56, May.
    • Handle: RePEc:gam:jbusin:v:5:y:2025:i:2:p:23-:d:1664704
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    References listed on IDEAS

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    1. Mpho Kgakatsi & Onthatile P. Galeboe & Kopo K. Molelekwa & Bonginkosi A. Thango, 2024. "The Impact of Big Data on SME Performance: A Systematic Review," Businesses, MDPI, vol. 4(4), pages 1-64, November.
    2. Jayalaxmi P Shetty & Rajesh Panda, 2021. "An overview of cloud computing in SMEs," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 175-188, December.
    3. Muzaffar Asad & Mohammed Ali Bait Ali Sulaiman & Ali Mohsin Salim Ba Awain & Malek Alsoud & Zafrul Allam & Muhammad Uzair Asif, 2024. "Green entrepreneurial leadership, and performance of entrepreneurial firms: does green product innovation mediates?," Cogent Business & Management, Taylor & Francis Journals, vol. 11(1), pages 2355685-235, December.
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    Cited by:

    1. Mitchell Gakii & Prof. Allan Kihara, 2025. "Influence of Information Technology Adoption on the Effectiveness of Strategic Decision-Making in Small and Medium Enterprises in Nairobi County, Kenya," Journal of Entrepreneurship and Project Management, CARI Journals Limited, vol. 10(4), pages 39-59.

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