Cloud Computing, International Entrepreneurship and SMEs

Abstract

Cloud computing strategies allow SMEs to access high-level information and communication technology (ICT) products and services which they may not have been able to afford under previous up-front capital investment ICT expenditure models (Ross 2011; Ross & Blumenstein forthcoming). This research therefore finds that Cloud technologies are underpinning entrepreneurship by lowering the opportunity costs of potential new projects. Cloud technologies further support innovation through enhanced collaboration and foster an international entrepreneurial orientation by allowing SMEs to potentially sell goods and services to a global market. Cloudbased SMEs and start-up firms therefore have the capacity to be ‘born-global’ by their very nature. The Cloud computing paradigm however brings associated threats for SMEs, including potential challenges in adapting to Cloud-based business models and increased competition from globally based competitors. This research therefore suggests that while Cloud technologies offer a potential boon to SME entrepreneurship they are also ushering in a period of rationalisation, as some firms will inevitably fail to successfully adapt to a globally competitive Cloud environment.