Factors that influence the adoption of cloud computing by SMMEs in Gauteng townships in South Africa

Abstract

Background: Recently, there has been a growing emphasis on supporting small, medium, and micro enterprises (SMMEs) operating in township economies. To provide effective support, it is crucial to understand the contextual factors that influence technological advancements and business performance. Aim: This study aimed to investigate the extent to which contextual factors influence the adoption of cloud computing technology in SMMEs located in the townships of Gauteng Province, South Africa. Setting: The study focussed on SMMEs in Gauteng Province’s townships. Methods: The study employed a quantitative research methodology, collecting data from 56 respondents through online and paper-based questionnaires. The hypothesis testing was conducted using multilinear regression analysis. Results: The study revealed that contextual factors have a negligible influence on the adoption of cloud computing by SMMEs in Gauteng townships. Contrary to the initial hypotheses, IT infrastructure, government initiatives, and political stability did not significantly affect cloud adoption. However, electricity supply was found to have a significant negative impact. Conclusion: The study found that contextual factors exert minimal influence on cloud computing adoption. These findings call for a re-evaluation of current support strategies and underscore the need for further research to uncover the nuanced factors affecting cloud computing adoption in similar contexts. Contribution: This study contributes to the broader conceptual frameworks of technology adoption by SMMEs, and can be utilised by various practitioners, including academia, policymakers, SMME owners and managers, and strategic management researchers, to improve growth and sustainability.