Development Model of Cloud Computing Adoption for Industrial 4.0 Implementation Strategy for Improve MSMEs Performance

Sepuluh Nopember Institute of Technology, Industrial and Systems Engineering Department, 60111 Surabaya, Indonesia

^* Corresponding author: bambangsyairudin@gmail.com

Abstract

Presently, the adoption of digital technology among Indonesian MSMEs is rather minimal, standing at around 12.5%. A cloud computing service provides SMEs with an inexpensive option by offering self-service, broad network access, flexibility, resource sharing, and pay-as-you-go, all of which can enhance corporate performance. The realization of the cloud computing adoption strategy requires a comprehensive model to achieve its values. This study aims to explore the beliefs and intents of MSMEs regarding the factors that influence the adoption of cloud computing. Additionally, it seeks to examine the correlation between cloud computing usage and business performance. This study used a random sampling technique of 60 MSMEs data from questionnaires analysed using the PLSSEM method. The results of the hypothesis test indicate that factors such as knowledge acquisition and sharing, perceived usefulness, ease of use, risk, and cost do not have a significant impact on behavioural intention. Meanwhile, behavioural intention significantly affects cloud computing adoption, affecting performance by improving productivity and flexibility. The implication of the results can be a recommendation for increasing the implementation of cloud computing adoption in MSMEs.