Human Systems Management 36 (2017) 261–275 DOI 10.3233/HSM-17133 IOS Press 261 Essential factors in cloud-computing adoption by SMEs Zulfiqar Hussain Pathan a,c,∗ , Zeng Jianqiu a , Umair Akram a , Zahid Latif a , Muhammad Kaleem Khan a and M. Zahid Tunio b a School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China b School of Software Engineering, Beijing University of Posts and Telecommunications, Beijing, China c Mehran University Institute of Science Technology and Development (MU-ISTD), Mehran University of Engineering and Technology, Jamshoro, Pakistan Abstract. Small and medium-sized enterprises (SMEs) invariably leverage a country’s economy. In this context, informa- tion and communication technology (ICT) improvements render cloud computing (CC) both an effective and cost-efficient platform for SMEs. Statistically, multiple factors influence SMEs in their adopting CC. In the subtext of a technology, environ- ment and organization (TEO) framework, the purposefulness of this empirical study has been to identify the most prominent factors in the CC adoption, by SMEs in Pakistan. Data were collected through convenient and quota sampling methods from 103 SMEs. Both multiple regression and confirmatory factor analysis (CFA) were deployed to test the measurement model. The results show that CC adoption by SMEs is positively affected by six cogent factors, namely relative advantage, CC compatibility, managerial support, firm size, competitive pressures and regulatory support. Dynamic complexity seems, however, to have a negative effect on CC adoption by SMEs in Pakistan. Also discussed are the study’s implications for SME managers and researchers. Keywords: Adoption, cloud-computing, SMEs, technology, environment and organization (TEO) framework, Pakistan Zulfiqar Hussain Pathan is a Ph.D. candidate at School of Eco- nomics and Management, Beijing University of Posts and Telecom- munications, Beijing, China. Before commencing his Doctoral research, he worked at Mehran University of Engineering & Technology. He holds post-graduation in Technol- ogy Innovation Management. He has attended international confer- ences and published research arti- cles. His Current areas of interest includes, Technology Management in SMEs, Entrepreneurship and Web-Based business applica- tions. ∗ Corresponding author: Zulfiqar Hussain Pathan, School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China. Tel.: +86 15624962430; E-mail: zulfi2k3bcs@yahoo.com. Professor Zeng Jianqiu obtained his Ph.D. degree from Cambridge Uni- versity, UK. He is a professor and a doctoral advisor in the School of Eco- nomics and Management of BUPT and also the Director of Informa- tion Economy and Competitiveness Research Center. Umair Akram is a Ph.D. candidate at School of Economics and Manage- ment, Beijing University of Posts and Telecommunications, Beijing, China. Before commencing his Doctoral research, he worked as a Lecturer of marketing management at Insti- tute of Business and Management Sciences, UAF, Pakistan. He holds post-graduation in Business Admin- istration specialized in Marketing. He is the author of several publi- cations including China Economic Review, International Journal of Con- flict Management, Chinese Management Studies, Human Systems Management and international conference proceedings. He is 0167-2533/17/$35.00 © 2017 – IOS Press and the authors. All rights reserved