Examining the Impact of Cloud Computing on Organizational

Performance: A Systematic Literature Review

Vincent Donat

1 a

, Christian Haertel

1 b

, Daniel Staegemann

1 c

, Christian Daase

1 d

Matthias Pohl

2 e

, Dirk Dreschel

, Damanpreet Singh Walia

1 f

and Klaus Turowski

1 g

Magdeburg Research and Competence Cluster VLBA, Otto-von-Guericke-University, Magdeburg, Germany

Institute of Data Science, German Aerospace Center (DLR), Jena, Germany

{vincent.donat, christian.haertel, daniel.staegemann, christian.daase, dirk.dreschel, damanpreet.walia,

klaus.turowski}@ovgu.de, matthias.pohl@dlr.de

Keywords:

Cloud Computing, Organizational Performance, Literature Review.

Abstract:

Cloud computing has taken a pivotal role in modern business operations, offering convenient and ﬂexible ac-

cess to IT resources. Accordingly, this study investigates the impact of cloud computing on organizational

performance. A systematic literature review identiﬁed 31 relevant papers. The analysis underscores the di-

verse beneﬁts of cloud computing adoption across various facets, including ﬁnancial and product market per-

formance, organizational agility, productivity, innovation, sustainability, and supply chain performance. This

review further discusses challenges and gaps, highlighting the need for future research in this area.

1 INTRODUCTION

Cloud computing is a model that enables remote and

dynamic access to computing resources such as net-

works, servers, storage, and applications (Mell and

Grance, 2011). The concept of cloud computing has

gained considerable traction in the last two decades,

with companies like Amazon, Microsoft, and Google

launching their own cloud services (Surbiryala and

Rong, 2019). Cloud providers generally offer IT

services through service models like Infrastructure-

as-a-Service (IaaS), Platform-as-a-Service (PaaS), or

Software-as-a-Service (SaaS) (Hentschel and Leyh,

2018), characterized by varying degrees of user con-

trol over IT resources. In addition to these tradi-

tional service models, new and more speciﬁc mod-

els such as Function-as-a-Service (Cloudﬂare, 2024)

or Database-as-a-Service (IBM, 2024) have emerged

over time. Cloud computing continues to grow in im-

portance for the success of organizational operations

and is projected to be a business necessity by 2028

https://orcid.org/0009-0009-8183-5555

https://orcid.org/0009-0001-4904-5643

https://orcid.org/0000-0001-9957-1003

https://orcid.org/0000-0003-4662-7055

https://orcid.org/0000-0002-6241-7675

https://orcid.org/0009-0002-4044-5613

https://orcid.org/0000-0002-4388-8914

(Gartner, 2023a). Already valued at about 590 bil-

lion dollars, the cloud computing market as a whole is

forecasted to more than double in size within the next

eight years (Fortune Business Insights, 2024). Given

the signiﬁcance of cloud computing, it is unsurpris-

ing that numerous studies investigate various aspects

of this paradigm. These studies include examinations

of cloud computing adoption in speciﬁc countries (Al-

shamaila et al., 2013; Kumar et al., 2017) or industries

(Alkhater et al., 2018; Ooi et al., 2018), factors inﬂu-

encing the adoption of cloud computing technologies

(Arvanitis et al., 2017; Makena, 2013; Oliveira et al.,

2014), and existing challenges (Bello et al., 2021;

Tabrizchi and Kuchaki Rafsanjani, 2020). Further-

more, it is crucial to investigate how the proclaimed

advantages (e.g., convenient and ﬂexible access to IT

resources) particularly contribute toward enhancing

business performance, as organizations are unlikely

to shift their business practices and adopt new tech-

nologies if they cannot expect tangible beneﬁts.

Firm performance, closely related to organiza-

tional effectiveness (Richard et al., 2009), can be un-

derstood as the measurement to gauge how well an

organization is achieving its intended objectives (Et-

zioni, 1964). The positive inﬂuence of new IT de-

velopments on the effectiveness of enterprises has al-

ready been investigated and conﬁrmed for concepts

such as big data (M

uller et al., 2018). Therefore,

Donat, V., Haertel, C., Staegemann, D., Daase, C., Pohl, M., Dreschel, D., Walia, D. S. and Turowski, K.

Examining the Impact of Cloud Computing on Organizational Performance: A Systematic Literature Review.

DOI: 10.5220/0013478900003929

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 27th International Conference on Enterprise Information Systems (ICEIS 2025) - Volume 1, pages 375-386

ISBN: 978-989-758-749-8; ISSN: 2184-4992

375

the goal of this research is to examine the beneﬁts

of adopting cloud computing and assess their signiﬁ-

cance in enhancing organizational operations. This is

captured by the following research question (RQ):

RQ: How can cloud computing inﬂuence or-

ganizational performance?

As a result, this article provides value for both

theory and practice. Researchers in the ﬁeld gain an

overview of related works, possible gaps, and chal-

lenges. Practitioners can learn about the beneﬁts of

cloud computing adoption and mediating factors. For

this purpose, a systematic literature review (SLR)

is performed, focusing on empirical studies. The

methodology is detailed after presenting the theoreti-

cal background of cloud computing in the upcoming

section. Subsequently, the ﬁndings of the literature

review are analyzed in Section 4 and summarized in

Section 5. The paper concludes with the limitations

and suggestions for future research directions.

2 THEORETICAL BACKGROUND

The National Institute of Standards and Technology

(NIST) deﬁnes cloud computing as a model that en-

ables ”ubiquitous, convenient, on-demand network

access” (Mell and Grance, 2011) to shared conﬁg-

urable computing resources, which can be acquired

rapidly and decommissioned with limited manage-

ment effort and interaction with the service provider.

The term cloud is commonly used as a metaphor for a

provider offering IT services via the Internet. Toward

this objective, cloud computing has adopted the core

principles from previous leading-edge trends and ap-

proaches such as Application Service Providing and

Grid Computing (Hentschel and Leyh, 2018). A key

fundamental technology for cloud computing is virtu-

alization which allows the consolidation and abstrac-

tion of physical hardware. In the context of cloud

computing, a provider’s offerings are often denoted as

service models, which are mainly differentiated by the

degree of responsibility taken by the service provider

and consumer, respectively. Typical examples are

IaaS, PaaS, and SaaS (Mell and Grance, 2011). While

the latter model allows consumers to use a standard-

ized application running on managed cloud infras-

tructure (Hentschel and Leyh, 2018), IaaS gives users

the responsibility over operating systems, select net-

working components, and storage (Mell and Grance,

2011). Moreover, a cloud can be hosted in different

forms. Here, the NIST mentions private cloud, com-

munity cloud, public cloud, and hybrid cloud. The

chosen deployment model depends on the application

scenario and especially the requirements for scala-

bility, security, and pay-per-use. The cloud charac-

teristics, namely on-demand self-service, broad net-

work access, resource pooling, rapid elasticity, and

measured service (Mell and Grance, 2011) suggest

that cloud can act as the remedy for the storage and

computing bottlenecks caused by the increased dig-

italization of modern society (Hentschel and Leyh,

2018). As a matter of fact, through the various ﬁnan-

cial, operational, and strategic potentials for organiza-

tions, cloud computing has become the backbone of

many enterprises and their IT infrastructure. Accord-

ingly, Gartner classiﬁed the role shift of cloud toward

a ”business disruptor” (Gartner, 2023b). Despite the

also existing risks associated with cloud computing,

such as misuse of data, vendor lock-in (Hentschel and

Leyh, 2018), and potentially high costs, especially

for sophisticated and fully-managed services such as

Google Cloud’s Vertex AI, the spending on cloud ser-

vices has continually grown over the past years (Gart-

ner, 2023b). Accordingly, investigating the concrete

impact of cloud computing on organizational perfor-

mance is necessary to understand and contextualize

these developments.

3 METHODOLOGY

A SLR refers to the systematic, explicit, and re-

producible method for identifying, evaluating, and

synthesizing the existing body of completed and

recorded works by researchers, scholars, and prac-

titioners (Fink, 2010). Hence, it requires a consis-

tently methodical approach (systematic) in the execu-

tion, an explicit description of the process and how

the results were derived to ensure that other individu-

als can achieve the same results with the same proce-

dure (reproducible) (Okoli, 2015). For this purpose,

the guidelines for conducting an SLR of Okoli (2015)

are followed. As captured by the RQ, the objec-

tive is to examine the impact of cloud computing on

ﬁrm performance (identify the purpose). In addition,

the taxonomy presented by Cooper (1988) can fur-

ther categorize the scope of an SLR. Because of this

SLR’s thematic orientation, the focus is on research

outcomes and practices or applications. Addition-

ally, the goal is to summarize the ﬁndings, aligning

with the integration (generalization) category. The

review strives for a neutral representation. Although

there are limitations regarding the scope in terms

of selected databases, an exhaustive coverage is at-

tempted by incorporating citation search and citing all

included papers of the review in the paper (Cooper,

1988). In the analysis, a conceptual organization is

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376

Table 1: Categorization according to the literature review taxonomy by Cooper (1988).

Characteristic Categories

Focus Research outcomes Research methods Theories

Practices or

applications

Goal Integration Criticism

Identiﬁcation of

central issues

Perspective Neutral representation Espousal of position

Coverage Exhaustive

Exhaustive with

selective citation

Representative Central or pivotal

Organization Historical Conceptual Methodological

Audience Specialized scholars General scholars

Practitioners or

policymakers

General public

employed by sorting the discussion based on content

groups. The intended audience comprises specialized

scholars in cloud computing and practitioners inter-

ested in the ﬁeld. The described taxonomy is depicted

in Table 1.

Given the large number of scientiﬁc publications

about cloud computing, it is essential to establish

clear criteria to deﬁne which works are relevant for

answering the RQ. Therefore, inclusion and exclu-

sion criteria have been deﬁned to support the selec-

tion of relevant works (apply practical screen), as can

be seen in Table 2. If a publication meets all inclusion

criteria and none of the exclusion criteria, it will be

considered for closer examination in the next ﬁltering

stage.

Table 2: Inclusion and Exclusion Criteria.

Inclusion Criteria Exclusion Criteria

A paper must either be

published in a confer-

ence proceeding or a

journal.

A paper is a literature

review itself.

A paper examines how

cloud computing inﬂu-

ences the performance

of an organization.

A paper’s methodology

is not empirical.

A paper is written in

English or German.

Other literature reviews and non-empirical stud-

ies have been omitted from this review. The ratio-

nale behind this decision lies in the study’s primary

focus on examining the empirically measured bene-

ﬁts of cloud computing adoption. To identify rele-

vant literature, three databases were selected: Scopus,

Springer Link, and IEEE Xplore. This selection was

motivated by the premise of maintaining a manage-

able scope while accessing a broad range of scholarly

sources. For example, Scopus is an abstract database

referencing other full-text repositories. The use of

boolean operators and keywords is essential in nav-

igating the scientiﬁc databases (Okoli, 2015). Table 3

displays the search strings used and the number of ini-

tial results per database (search for literature). Due to

differences in the search functions, the query applied

for Scopus and IEEE Xplore deviates slightly from

the search term used with SpringerLink. For the lat-

ter, the results were further limited to research articles

and conference papers to balance the scope.

The initial keyword search yielded 1394 papers.

Following this, the ﬁltering process according to the

PRISMA guidelines began (Page et al., 2021). First,

any duplicates were removed. For the ﬁrst screening

phase, the titles and abstracts of the publications were

evaluated. Afterward, the set of remaining papers was

skimmed to assess eligibility. Moreover, at the end of

this step, both forward and backward searches were

executed (Webster and Watson, 2002). The added

publications from the citation search and the remain-

ing articles were examined in detail. The described

ﬁltering stages are summarized in Figure 1. In the

end, 31 papers were included, providing the foun-

dation for the extract data step (Okoli, 2015). Only

two publications obtained their knowledge from case

studies. Two other studies utilized secondary data

analysis. The remaining 27 papers relied on infor-

mation gathered from surveys, interviews, and ques-

tionnaires, categorized as primary data analysis in this

paper. The full set of included publications, sorted by

release date, is listed in Tables 4 and 5.

4 ANALYSIS

The next phase of the SLR is synthesizing the in-

sights from the ﬁltered papers (synthesize studies).

The analysis of the articles is structured based on the

aspects connected to organizational performance and

effectiveness. According to Richard et al. (2009), or-

ganizational performance mainly focuses on ﬁnancial

performance, product market performance, and share-

holder return, while organizational effectiveness also

includes internal performance measures (e.g., more

efﬁcient or effective operations). However, as this

distinction is not clear across management research

Examining the Impact of Cloud Computing on Organizational Performance: A Systematic Literature Review

377

Table 3: Initial Results (17th January 2025).

Database Search String Number of Results

Springer Link ”cloud computing” AND (”enterprise performance” OR ”ﬁrm

performance” OR ”business performance” OR ”organisation

performance” OR ”organization performance”)

869

IEEE Xplore |

Scopus

”cloud computing” AND (”enterprise performance” OR ”ﬁrm

performance” OR ”business performance” OR ”organisation

performance” OR ”organization performance” OR ”company

performance” OR ”organizational performance”)

248 | 277

(Richard et al., 2009), both types of performance mea-

sures will be considered.

4.1 Financial Performance

The scope of organizational performance can encom-

pass ﬁnancial performance aspects such as ”proﬁts,

return on assets, return on investment, etc.” (Richard

et al., 2009). Positive aspects in this direction re-

sulting from cloud computing are revealed by multi-

ple studies (Schniederjans and Hales, 2016; Khayer

et al., 2020a; Dong and Salwana, 2022; Mousa

et al., 2024). Chen et al. (2022) and Abdalla et al.

(2024) identiﬁed proﬁtability enhancements, the for-

mer study especially for the manufacturing domain

and smaller ﬁrms. Apart from a better return on

assets and investments, Khayer et al. (2023) high-

light increased revenue, proﬁt margins, and corpo-

rate growth. Schniederjans and Hales (2016), Jones

et al. (2019), Alasady et al. (2023), and Abdalla

et al. (2024) further mention the reduction of (op-

erational) costs, for example by cloud-enabled hu-

man resource management (Abu-Darwish et al., 2022;

Dong and Salwana, 2022). A similar observation

is made for SaaS, a speciﬁc service model (Loukis

et al., 2019). Comparable results originate from a

case study around a cloud manufacturing service plat-

form for small and medium-sized enterprises (SMEs)

where development and production costs were halved

(Song et al., 2014). Finally, another focused investi-

gation found ﬁnancial performance gains in relation

to cloud. Jayeola et al. (2022) suggest that cloud ERP

implementation mediates the positive impact of top

management support on change management on ﬁ-

nancial performance and directly enhances it by im-

proving operational beneﬁts.

4.2 Product Market Performance

According to Richard et al. (2009), shifts to metrics

such as sales and market shares are categorized under

the broader concept of product market performance.

Some studies suggest sales growth through the adop-

tion of cloud computing (Schniederjans and Hales,

2016; Khayer et al., 2023). A reason for this might

be cloud-enabled improvements to product or service

quality as outlined by Jones et al. (2019); Loukis et al.

(2019), and Khayer et al. (2023). In the case of

Loukis et al. (2019), this ﬁnding constitutes the result

of SaaS-infused innovations. Moreover, the increase

in product sales is often accompanied by better mar-

ket shares (Khayer et al., 2023). Speciﬁcally, ﬁrms in

the service industry and companies of larger scale see

greater increases in market value (Chen et al., 2022).

4.3 Internal Performance

The majority of reviewed publications identify perfor-

mance improvements through cloud computing adop-

tion that cannot be attributed to ﬁnancial or prod-

uct performance. Instead, the performance gains ad-

dress internal outcomes which, in turn, ultimately

contribute to enhanced ﬁrm outcomes.

4.3.1 Flexibility and Organizational Agility

A signiﬁcant number of papers underline the positive

inﬂuence of cloud computing on organizational ﬂex-

ibility or agility, for example Bruque-C

amara et al.

(2016); Alasady et al. (2023); Khayer et al. (2023),

and Syairudin and Nabila (2024). In the context of

cloud, both are broad constructs that can be inter-

preted manifold and relate to ﬂexibility in payment

(pay-per-use) (Khayer et al., 2020a; Yao and Azma,

2022), the easy scalability of IT resources (Khayer

et al., 2020a; Zou and Jian, 2022), ﬂexibility in hu-

man resources (Jones et al., 2019; Liu and Darbandi,

2022), strategic agility (Mousa et al., 2024), and ag-

ile organization forms (Willcocks et al., 2013). This

can extend to customer agility, too (Liu et al., 2018).

Khayer et al. (2021) highlights that factors like ﬁrm

size, age, and industry do not massively affect per-

formance improvements through enhanced organiza-

tional agility. Next to tactical agility and strategic

beneﬁts such as device and location independence,

ﬂexible work practice advancements are also found in

the literature (Jones et al., 2019). This further plays a

role in the investigation of Islam and Naseem (2023),

ICEIS 2025 - 27th International Conference on Enterprise Information Systems

378

Figure 1: Search process, according to PRISMA guidelines (Page et al., 2021).

where the impact of Industry 4.0 tools (AI, big data,

cloud computing, IoT) on organizational performance

is examined. The results indicate that especially AI

and cloud computing enhance organizational perfor-

mance, with agility and remote work serving as me-

diators. A related concept is organizational mindful-

ness, referring to an organization’s ﬂexibility and re-

liability in enacting organizational routines (McAvoy

et al., 2013). Findings imply that adopting cloud com-

puting fosters organizational mindfulness, which in

turn positively impacts ﬁrm performance (Oredo and

Dennehy, 2023).

4.3.2 Human Resources and Productivity

Under this category, the articles that observed perfor-

mance enhancements related to an organization’s per-

sonnel are discussed. As improvements in this area

can be tightly connected to the broader concept of

productivity, papers focusing on this aspect are also

included here. Furthermore, ﬂexibility, which was

discussed in the previous subsection, is potentially

tied to human resources (HR) and productivity, too.

As cloud computing facilitates access to sophisticated

and scalable IT resources, outsourcing IT infrastruc-

ture allows ﬁrms to focus on core business activities

(Gupta et al., 2020; Khayer et al., 2020b,a; Mousa

et al., 2024), which could help with boosting eco-

nomic efﬁciency and productivity. An improvement

in productivity through cloud computing adoption is

also found by Syairudin and Nabila (2024). Likewise,

Yao and Azma (2022) detected that cloud availability

and payment ﬂexibility positively impact human re-

source productivity. As a matter of fact, cloud com-

puting can improve productivity both directly and in-

directly by enabling other technologies (e.g., machine

learning, big data) (Katz et al., 2024). While the for-

mer is more prominent in smaller ﬁrms, larger enter-

prises are better able to utilize the indirect beneﬁts.

A case study from manufacturing showcased several

beneﬁts of cloud-based services such as enabling fast

searches for resources and reliable partners, customiz-

ing and optimizing business processes, and evaluating

partners, ultimately contributing to a reduction of the

development cycle (Song et al., 2014). Additionally,

SaaS solutions were found to be beneﬁcial in increas-

ing the quality of the electronic support of operations

and processes (Loukis et al., 2019).

Cloud computing signiﬁcantly improves human

resources and support systems (Dong and Salwana,

2022; Sawangwong and Chaopaisarn, 2023). The lit-

erature mentions enhanced talent management and

Examining the Impact of Cloud Computing on Organizational Performance: A Systematic Literature Review

379

Table 4: Overview of selected papers, part 1.

Title Reference Method Source Document

Type

Cloud Computing as Innovation: Studying

Diffusion

(Willcocks et al.,

2013)

Primary Data Anal-

ysis

Springer

Link

Conference

Paper

Common engines of cloud manufacturing ser-

vice platform for SMEs

(Song et al., 2014) Case Study Springer

Link

Journal Pa-

per

Cloud computing, Web 2.0, and operational

performance

(Bruque C

amara

et al., 2015)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Supply chain integration through community

cloud: Effects on operational performance

(Bruque-C

amara

et al., 2016)

Primary Data Anal-

ysis

Forward

Journal Pa-

per

Cloud computing and its impact on economic

and environmental performance: A transaction

cost economics perspective

(Schniederjans and

Hales, 2016)

Primary Data Anal-

ysis

Backward

Journal Pa-

per

Understanding the effect of cloud computing

on organizational agility: An empirical exam-

ination

(Liu et al., 2018) Primary Data Anal-

ysis

Backward

Journal Pa-

per

Risks and rewards of cloud computing in the

UK public sector: A reﬂection on three Orga-

nizational case studies

(Jones et al., 2019) Case Study Springer

Link

Journal Pa-

per

Determinants of software-as-a-service beneﬁts

and impact on ﬁrm performance

(Loukis et al.,

2019)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Cloud computing adoption and its impact on

SMEs’ performance for cloud supported oper-

ations: A dual-stage analytical approach

(Khayer et al.,

2020a)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Examining the impact of Cloud ERP on sus-

tainable performance: A dynamic capability

view

(Gupta et al., 2020) Primary Data Anal-

ysis

Backward

Journal Pa-

per

Lean Production implementation, Cloud-

Supported Logistics and Supply Chain Inte-

gration: interrelationships and effects on busi-

ness performance

(Novais et al.,

2020)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Understanding cloud computing success and

its impact on ﬁrm performance: an integrated

approach

(Khayer et al.,

2020b)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

The adoption of cloud computing in small and

medium enterprises: a developing country per-

spective

(Khayer et al.,

2021)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Assessing the impact of cloud-based services

on the talent management of employees

(Liu and Darbandi,

2022)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Estimating the impact of cloud computing on

ﬁrm performance: An empirical investigation

of listed ﬁrms

(Chen et al., 2022) Secondary Data

Analysis

Backward

Journal Pa-

per

Do cloud-based enterprise resource planning

systems affect the productivity of human re-

sources in the COVID-19 era?

(Yao and Azma,

2022)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

enhanced HR efﬁciency via increased ﬂexibility,

timeliness, availability, lower costs, and ease of

use (Liu and Darbandi, 2022). According to Abu-

Darwish et al. (2022), the impact of talent man-

agement on competitive advantage is mediated by

cloud computing. Additionally, cloud-based human

resource management results in positive effects on

ﬁnancial performance (Dong and Salwana, 2022).

Apart from better team performance, expert cloud

systems also support employee creativity through ef-

fective quality management, HR management, job

management, and robust, ﬂexible, and scalable IT re-

sources (Zou and Jian, 2022).

4.3.3 Innovation

Four papers identify advantages in innovation through

the adoption of cloud computing (Khayer et al.,

2020a), for example, by enabling experimentation

with lower risk and costs (Mousa et al., 2024). In

addition to operational beneﬁts, Loukis et al. (2019)

state improvements that include rapid and low-cost

electronic enablement of innovations in a ﬁrm’s pro-

cesses, products, and services. Nevertheless, the

study focuses on the SaaS service model and men-

tions that operational beneﬁts are shown to have a

greater impact on ﬁrm performance than innovational

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380

Table 5: Overview of selected papers, part 2.

Title Reference Method Source Document

Type

Does cloud computing improve team perfor-

mance and employees’ creativity?

(Zou and Jian,

2022)

Primary Data Anal-

ysis

Forward

Journal Pa-

per

The impact of cloud-based human resource

and supply chain management systems on the

performance of multinational organizations

(Dong and Sal-

wana, 2022)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

The mediating role of cloud computing in the

relationship between talent management and

competitive advantages

(Abu-Darwish

et al., 2022)

Primary Data Anal-

ysis

Backward

Journal Pa-

per

The Nexus between Top Management Support

on Change Management, Cloud ERP Imple-

mentation, and Performance of SMEs

(Jayeola et al.,

2022)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Exploring the Role of Organizational Mind-

fulness on Cloud Computing and Firm Perfor-

mance: The Case of Kenyan Organizations

(Oredo and Den-

nehy, 2023)

Primary Data Anal-

ysis

Springer

Link

Journal Pa-

per

Mediating role of cloud of things in improving

performance of small and medium enterprises

in the Indian context

(Narwane et al.,

2023)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Nexus between Iraqi SMEs cloud comput-

ing adoption intention and ﬁrm performance:

moderating role of risk factors

(Alasady et al.,

2023)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Role of Industry 4.0 tools in organizational

performance of the IT sector

(Islam and Naseem,

2023)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

The impact of applying knowledge in the tech-

nological pillars of Industry 4.0 on supply

chain performance

(Sawangwong and

Chaopaisarn, 2023)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Understanding the Effects of Alignments be-

tween the Depth and Breadth of Cloud Com-

puting Assimilation on Firm Performance:

The Role of Organizational Agility

(Khayer et al.,

2023)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

Cloud Computing and ﬁrm performance: a

SEM microdata analysis for Israeli ﬁrms

(Katz et al., 2024) Secondary Data

Analysis

Scopus Journal Pa-

per

Development Model of Cloud Computing

Adoption for Industrial 4.0 Implementation

Strategy for Improve MSMEs Performance

(Syairudin and

Nabila, 2024)

Primary Data Anal-

ysis

Scopus Conference

Paper

Enhancing Efﬁciency: The Impact of Cloud

Computing Adoption on Small and Medium

Enterprises Performance

(Abdalla et al.,

2024)

Primary Data Anal-

ysis

Scopus Journal Pa-

per

The Impact of Cloud Computing Adoption on

Firm Performance Among SMEs in Palestine

(Mousa et al., 2024) Primary Data Anal-

ysis

Scopus Journal Pa-

per

The impact of cloud computing on supply

chain performance: the mediating role of

knowledge sharing in utilities and energy sec-

tors

(Fraihat et al.,

2024)

Primary Data Anal-

ysis

Forward

Journal Pa-

per

advantages. Willcocks et al. (2013) identiﬁed three

types of innovations enabled by cloud computing:

IT operational innovations, business process innova-

tions, and market innovations, ultimately leading to

more agile and innovative organizational forms.

4.3.4 Sustainability

The importance of sustainability has been widely ac-

knowledged in today’s society. The impact of cloud

computing on organizations’ environmental perfor-

mance has been examined in two of the analyzed

studies. Cloud computing reduces energy consump-

tion, the use of hazardous materials, and waste gen-

eration. It also enhances environmental manage-

ment through real-time data and efﬁcient resource

utilization (Schniederjans and Hales, 2016). Simi-

larly, Gupta et al. (2020) show that cloud ERP sys-

tems improve environmental performance by reduc-

ing processing time and resource wastage. Apart from

the ecological pillar, the sustainability concept further

consists of social aspects. On this note, Gupta et al.

(2020) also found social performance beneﬁts from

improved social networking. The study also ﬁnds

that ﬁrm size has a limited effect on social perfor-

Examining the Impact of Cloud Computing on Organizational Performance: A Systematic Literature Review

381

mance and that the type of cloud service and offer-

ing does not impact sustainable performance. From

the economic perspective, sustainability also includes

risk management to mitigate the effects of disruptive

events. On this note, strategic beneﬁts of cloud en-

compass increased resilience and in case of outages,

tactical advantages such as improved business conti-

nuity and disaster recovery (Jones et al., 2019).

4.3.5 Supply Chain Performance

Numerous studies have investigated the effect of

cloud computing speciﬁcally on supply chain perfor-

mance improvements. Fraihat et al. (2024) ﬁnd a

strong relationship between cloud computing adop-

tion and supply chain performance, highlighting ben-

eﬁts such as enhanced visibility, coordination, data

transfer, decision-making, and efﬁciency. Moreover,

cloud computing fosters a culture of knowledge shar-

ing which constitutes a signiﬁcant mediator in the re-

lationship to supply chain performance (Fraihat et al.,

2024). Amongst others, improved knowledge sharing

is also identiﬁed as a beneﬁt in the study of Sawang-

wong and Chaopaisarn (2023), where the impact of

Industry 4.0 technologies, including cloud comput-

ing on supply chain performance is analyzed. Fur-

thermore, cloud-based supply chain management pos-

itively impacts marketing and collaborative perfor-

mance (Dong and Salwana, 2022).

Cloud-supported logistics enhance lean produc-

tion, which then positively affects business perfor-

mance more than lean production alone (Novais et al.,

2020). Additionally, cloud-supported logistics im-

prove supply chain integration capabilities, such as

physical, information, and ﬁnancial ﬂow integration,

which also positively impacts business performance

(Novais et al., 2020). This observation also holds

true according to Bruque C

amara et al. (2015), where

the ﬁndings show that cloud computing facilitates

effective and quick supply chain integration, lead-

ing to improved efﬁciency, better supplier-customer

interaction, and shortened lead times. Cloud com-

puting improves operational performance only when

it enhances supply chain integration. A subsequent

study conﬁrms the beneﬁcial impact on the integra-

tion of informational and physical ﬂows in the supply

chain for a speciﬁc cloud deployment model. Com-

munity cloud computing mainly enhances inventory

management, real-time data sharing, and coordina-

tion between supply chain partners, leading to bet-

ter operational performance (Bruque-C

amara et al.,

2016). A similar conclusion is made by Narwane

et al. (2023), who particularly explore the mediat-

ing role of Cloud of Things (CoT) on performance.

The ﬁndings indicate that CoT increases information

transparency within the supply chain and leverages

big data analytics to enhance performance. CoT adop-

tion also boosts operational performance, including

quality control, smart equipment maintenance, and

process monitoring.

5 DISCUSSION

After extracting and analyzing the beneﬁts of cloud

computing in improving organizational performance

from the literature, this section is dedicated to the

summary and discussion of the obtained results. In

the ﬁrst subsection, additional emphasis is placed on

the research context and methodologies in the re-

viewed papers.

5.1 Research Context and

Methodologies

The vast majority of papers utilized interviews, sur-

veys, and questionnaires to gather data regarding the

effects of cloud computing adoption (primary data

analysis). Regarding the target group of respondents,

almost half of the 27 studies in this category ex-

plicitly focus on SMEs (e.g., Khayer et al. (2020b)).

Other speciﬁc domains are the private health sector

(Abu-Darwish et al., 2022), ﬁnance (Zou and Jian,

2022), manufacturing (Jayeola et al., 2022), logis-

tics (Novais et al., 2020), and the utilities and en-

ergy sector (Fraihat et al., 2024). Dong and Sal-

wana (2022) address multinational organizations. In

terms of respondent target group, Schniederjans and

Hales (2016) mention IT and supply chain profes-

sionals, while Willcocks et al. (2013) queried busi-

ness and IT executives as well as technology vendors.

Furthermore, not all articles investigated the impact

on organizational performance through cloud com-

puting in general. Two studies included cloud under

the umbrella of Industry 4.0 technologies (Islam and

Naseem, 2023; Sawangwong and Chaopaisarn, 2023).

Loukis et al. (2019) concentrated on the service model

SaaS while Bruque-C

amara et al. (2016) emphasized

the community cloud. Other research was limited to

speciﬁc cloud technologies such as cloud-based sup-

ply chain management (Dong and Salwana, 2022)

and HR (Dong and Salwana, 2022; Zou and Jian,

2022), cloud ERP (Gupta et al., 2020; Jayeola et al.,

2022), and CoT (Narwane et al., 2023). Notably, one

study particularly surveyed ﬁrms that are using Al-

ibaba cloud services (Liu et al., 2018).

25 of the 27 studies captured under primary data

analysis explicitly limited their investigation to a spe-

ciﬁc region. Among these, most of the papers focus

ICEIS 2025 - 27th International Conference on Enterprise Information Systems

382

on countries on the Asian continent (19). While a

wide variety of countries are covered, China has the

most mentions here (5). Only one research consists

of respondents from Africa (Kenya) (Oredo and Den-

nehy, 2023). Dong and Salwana (2022) addressed

a multi-national population whereas Willcocks et al.

(2013) do not speciﬁc any regional restrictions. How-

ever, unexpectedly, very few of the reviewed pa-

pers focussed their examinations on the European (5,

Dutch and Spain) and the North American market

(only 1 (Schniederjans and Hales, 2016)). Moreover,

the number of respondents is generally high but varies

drastically between the articles. The minimum num-

ber of samples can be found in the Chinese bank-

centered study of Zou and Jian (2022) (50), the max-

imum is present in the investigation of Alasady et al.

(2023) (396) that explore the effect of cloud comput-

ing in Iraqi SMEs. Most studies boast respondents

in the range of 201-250 (median: 247), resulting in

a mean value of 236 (standard deviation: 103.77).

For the data analysis of the responses, almost all

researchers applied Structural Equation Modeling in

some form.

Two studies utilized a case study approach to ex-

amine the impact of cloud computing on organiza-

tional performance. Song et al. (2014) perform this

while designing and developing a prototype cloud

manufacturing service platform for SMEs. The case

study of Jones et al. (2019) explores the implementa-

tion of cloud computing within three UK local gov-

ernment authorities through observation and inter-

views with key organizational ﬁgures. This is the only

article that examines the utilization of cloud comput-

ing in the public sector. The two remaining articles

are categorized under secondary data analysis, refer-

ring to studies that did not perform the original data

collection themselves. Chen et al. (2022) focus on

worldwide listed ﬁrms that adopted cloud services

between 2010 and 2016. Data were gathered from

client announcements on the S&P’s Capital IQ Plat-

form, supplemented by information from company

websites, technical reports, and news media. Firms

that adopted cloud services (treatment group) were

compared with a matched set of ﬁrms that did not

adopt cloud services (control group) to control for po-

tential confounding factors. Katz et al. (2024) exam-

ine the economic effects of cloud computing on Is-

raeli ﬁrms. Here, data were collected by the Central

Bureau of Statistics of Israel, which conducted sur-

veys on ICT use and cyber protection in business dur-

ing 2020, resulting in a sample size of approximately

2,000 ﬁrms from various sectors.

5.2 Results

The SLR showed that the impact of cloud comput-

ing on organizational performance is multifaceted.

This section seeks to answer the RQ by summariz-

ing the most important aspects of the identiﬁed stud-

ies. First of all, ﬁnancial performance gains through

cloud computing adoption were detected in the form

of increasing revenues and proﬁtability (Khayer et al.,

2023), and better return on assets and investments

(Schniederjans and Hales, 2016; Khayer et al., 2020a;

Dong and Salwana, 2022; Mousa et al., 2024). Ad-

ditionally, the reduction of costs was highlighted on

multiple occasions (Schniederjans and Hales, 2016;

Jones et al., 2019; Abu-Darwish et al., 2022; Dong

and Salwana, 2022; Alasady et al., 2023; Abdalla

et al., 2024). Nevertheless, while cloud computing

can reduce investment costs and capital commitment

regarding the IT infrastructure (Hentschel and Leyh,

2018), it should be noted that the use of cloud ser-

vices is not necessarily cheap, especially for more so-

phisticated tools (e.g., in machine learning). Hence,

the selection of a cloud-based solution should always

be carefully evaluated based on appropriate criteria

(Hentschel and Leyh, 2018).

Cloud computing adoption can positively inﬂu-

ence aspects related to product market performance.

This includes sales growth (Schniederjans and Hales,

2016; Khayer et al., 2023), better product or service

quality (Jones et al., 2019; Loukis et al., 2019; Khayer

et al., 2023), and enhanced market shares (Khayer

et al., 2023) and value (Chen et al., 2022). Apart

from this, the majority of ﬁndings rather indicate in-

ternal performance improvements through the cloud,

which in turn can then contribute to general organi-

zational performance boosts. For example, organiza-

tional agility is signiﬁcantly improved, making com-

panies more ﬂexible (Liu et al., 2018; Alasady et al.,

2023; Oredo and Dennehy, 2023) and enhancing op-

erational and customer agility (Liu et al., 2018). This

increased agility boosts ﬁrm performance (Khayer

et al., 2023, 2021), playing a mediating role between

cloud computing and organizational performance (Is-

lam and Naseem, 2023). According to the fundamen-

tal literature, this is directly tied to the cloud com-

puting characteristics (Mell and Grance, 2011) which

allow ﬂexible and demand-oriented scaling of IT in-

frastructure with reduced administration and mainte-

nance effort (Hentschel and Leyh, 2018).

HR involves the factor of ﬂexibility as well, fa-

cilitated by the location-independent access to com-

puting resources (Hentschel and Leyh, 2018) which

can result in HR productivity improvements (Yao and

Azma, 2022). Additionally, outsourcing IT infras-

Examining the Impact of Cloud Computing on Organizational Performance: A Systematic Literature Review

383

tructure to cloud providers allows ﬁrms to focus on

core business activities (Gupta et al., 2020; Khayer

et al., 2020b,a; Mousa et al., 2024), boosting general

productivity directly or indirectly by enabling tech-

nologies like big data and machine learning (Katz

et al., 2024). Furthermore, the use of cloud com-

puting can provide beneﬁts in innovation (Willcocks

et al., 2013; Loukis et al., 2019; Khayer et al., 2020a;

Mousa et al., 2024), since advanced technologies have

become accessible, allowing for competitive advan-

tages and the development of new business areas

(Hentschel and Leyh, 2018). Consequently, the time-

to-market for innovations can be reduced.

Cloud computing’s positive impact on sustainabil-

ity is proclaimed by leading to more efﬁcient resource

consumption, lower waste, and better environmental

management (Schniederjans and Hales, 2016; Gupta

et al., 2020). While this is plausible on an orga-

nizational level, and cloud computing facilitates ac-

cess to intelligent technologies that can support sus-

tainability matters in various facets, it remains ques-

tionable whether cloud computing can be regarded

as ecologically beneﬁcial on a global scale. Despite

the improvements to resource utilization through the

abstraction of hardware via virtualization, the enor-

mous data centers of cloud providers require signif-

icant environmental resources (e.g., electricity, cool-

ing) (Katal et al., 2023). This is further aggravated

by the general tendency of the increased need for pro-

cessing capacity due to the emergence of technologies

such as AI.

Finally, cloud computing offers beneﬁts for the

supply chain. It improves supply chain integration

(Novais et al., 2020; Bruque C

amara et al., 2015;

Bruque-C

amara et al., 2016), which enhances oper-

ational performance. Overall supply chain perfor-

mance can be boosted through improved visibility,

communication across the network (Fraihat et al.,

2024), and increased efﬁciency (Sawangwong and

Chaopaisarn, 2023). In manufacturing, better partner

evaluation, resource allocation, and production efﬁ-

ciency are noted (Song et al., 2014). Apart from all

the positive effects of cloud computing adoption, po-

tential risks should be investigated as well. This dis-

cussion already brought up possible issues regarding

cost and sustainability. Additionally, Yao and Azma

(2022) raise concerns about cloud privacy and secu-

rity. Thus, in the past, policies, laws, or a lack of trust

in the public cloud have led to companies adopting a

private or hybrid cloud strategy (Hentschel and Leyh,

2018). Another drawback constitutes the danger of

vendor lock-in effects.

6 CONCLUSION

Cloud computing has attracted considerable interest,

bringing attention to the question of how cloud com-

puting adoption can inﬂuence organizational perfor-

mance. By conducting an SLR, 31 empirical stud-

ies investigating this relationship have been iden-

tiﬁed and analyzed to provide an answer to this

query. While cloud computing can improve ﬁnan-

cial and product market performance, most of the ex-

tracted beneﬁts relate to internal performance mea-

sures, namely organizational agility, productivity, in-

novation, sustainability, and supply chain perfor-

mance, which in turn will impact ﬁrm outcomes. Sur-

prisingly, only a minority of studies focussed on cloud

computing adoption in Europe and North America.

Furthermore, while numerous articles concentrated

on SMEs, merely one paper considered the public

sector. These observations offer substantial capabil-

ities for future research. To strengthen the obtained

results, the inclusion of additional databases could

yield a broader range of relevant studies. Moreover,

this study primarily focused on the improvements

that cloud computing brings to organizational perfor-

mance. However, potential drawbacks and challenges

should not be overlooked. For example, factors such

as the costs of cloud computing, failed implementa-

tion strategies, the impact on the environment on a

global level, security concerns, and compliance is-

sues were not investigated. A balanced examination

that also considers these detriments would provide a

more holistic understanding of the impact of cloud

computing on organizations. On this note, conduct-

ing more case studies on cloud computing adoption

could provide detailed, contextualized examples of

cloud computing implementation and its effects. Case

studies can offer insights into speciﬁc organizational

contexts, revealing practical challenges and strategies

that may not be captured in broader surveys or sec-

ondary data analyses.

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