Cloud computing adoption in SMEs: assessing the moderating role of AI on perceived business process performance through D&M model lens

Purpose This research aims to explore how cloud computing impacts the perceived business process performance (PBPP) of small and medium-sized enterprises (SMEs) in Pakistan. Furthermore, it examines the moderating role of artificial intelligence (AI), offering insights into technology-driven efficiency, data-driven decision-making and strategic planning for enhanced operational success. Design/methodology/approach A quantitative approach grounded in the DeLone and McLean Information Success Model was employed. Measurement tools were developed, and data were collected from 412 SMEs using a structured questionnaire. SmartPLS 4.0 software was used to perform a Partial Least Squares Structural Equation Modeling (PLS SEM) analysis to evaluate the proposed relationships. Findings The results reveal that information quality (InfoQ) and service quality (ServQ) of cloud computing significantly enhance PBPP, whereas system quality (SysQ) does not have a meaningful impact. Additionally, the perceived usefulness of AI amplifies the effects of SysQ and InfoQ on PBPP, emphasizing AI’s role in improving SME performance. Originality/value This study addresses a notable gap in literature by examining the specific influence of cloud computing dimensions on business performance outcomes within SMEs. Practical insights suggest that SMEs should prioritize information and ServQ over SysQ to achieve enhanced business efficiency and competitiveness. The research provides valuable guidance for SMEs seeking to integrate cloud computing and AI to optimize their operations.