Strategic drivers and barriers to cloud computing adoption: A digital transformation perspective of MSMEs

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Abstract

In an era where digital transformation increasingly defines business sustainability, micro, small, and medium enterprises (MSMEs) face critical decisions in adapting to emerging technologies. This study focuses on the strategic adoption of cloud computing among MSMEs in Nueva Ecija, highlighting the drivers, barriers, and organizational dynamics that influence technology integration. Anchored in the principles of strategic alignment and digital readiness, and informed by digital transformation frameworks, such as Adama and Okeke (2024), the research utilizes a descriptive quantitative design to gather insights from 51 participating enterprises across varied sectors. The findings reveal a growing recognition of cloud computing’s potential in enhancing operational efficiency, cost management, and market competitiveness. However, this shift is tempered by challenges in leadership engagement, resource availability, and data security awareness. As cloud technology becomes central to enterprise strategy, the study emphasizes the need for targeted training, regulatory clarity, financial access, and cross-sector collaboration. These insights serve not only as a guide for MSMEs navigating the complexities of digital transformation, but also as a foundation for future strategic research in business technology adoption, particularly in developing regional economies.

Keywords: Cloud Computing, Strategic Adoption, MSMEs, Digital Transformation, Organizational Readiness, Competitive Strategy, Technology Integration

Authors’ individual contribution: Conceptualization — I.F.P.; Methodology — I.F.P. and J.A.D.L.C.; Investigation — I.F.P., J.A.D.L.C., and B.C.B.; Data Curation — I.F.P.; Resources — J.A.D.L.C. and B.C.B.; Writing — Original Draft — I.F.P.; Writing — Review & Editing — I.F.P., J.A.D.L.C., B.C.B., and A.R.S.; Supervision — J.A.D.L.C.; Project Administration — I.F.P. and J.A.D.L.C.; Funding Acquisition — I.F.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H32, L21, L26, L86, M10, M15, O33

Received: 11.07.2025
Revised: 20.11.2025; 08.12.2025; 26.01.2026
Accepted: 23.02.2026
Published online: 25.02.2026

How to cite this paper: De La Cruz, J. A., Pascua, I. F., Bondoc, B. C., & Santos, A. R. (2026). Strategic drivers and barriers to cloud computing adoption: A digital transformation perspective of MSMEs. Corporate and Business Strategy Review, 7(2), 25–35. https://doi.org/10.22495/cbsrv7i2art3