Cloud Computing Adoption and Innovation Performance: The Role of Top Management Support

Abstract

This study examines how cloud computing adoption enhances innovation performance among small and medium-sized enterprises (SMEs) in Pakistan, emphasizing the mediating influence of organizational readiness and the moderating role of top management support. Using data from 400 SMEs analyzed through partial least squares structural equation modeling (PLS-SEM), the findings reveal that cloud computing adoption significantly improves process and product innovation through digital capability building. Top management support strengthens these effects by promoting a risk-tolerant culture and allocating strategic resources. The study contributes empirical evidence to the growing literature on digital transformation in developing economies and offers actionable guidance for SME policymakers and managers seeking to leverage cloud technologies for competitive advantage