The Impact of Cloud Computing Adoption on Firm Performance: The Moderating Role of IT Human Capital

Within the emerging Industry 4.0, Russian enterprises are facing an increased demand to adopt digital technologies. At the same time, cloud computing services are beginning to draw greater attention. Although some researchers have discovered a positive relationship between the integration of new advanced technologies and firm performance, recent evidence suggests that the effect of such technologies on financial performance is still ambiguous and remains a mainly under-examined topic. In addition, prior studies frequently managed to investigate the influence of external factors on the relationship under consideration. However, the moderating role of IT human capital has been scantily explored. Thus, the study aims at estimation of the empirical relationship between cloud computing adoption and Russian SME performance with a focus on the verification of the moderating role of IT human capital. The responses received from SME representatives through a questionnaire were evaluated using the multiplicative interaction model. The regression analysis revealed a positive statistically significant impact of the cloud technology adoption on companies’ cost savings, accounting returns, and market shares. Meanwhile, contrary to expectations, with an increase in the level of IT knowledge and skills of employees, the impact of cloud-based services on cost savings and market share of SMEs becomes weaker. The moderating effect on the relationship between cloud technologies and accounting returns was not supported. These findings extend the existing theoretical knowledge by exploring the synergistic effect of physical and human capital resources on the financial firm performance. They also provide valuable insights for SMEs on how to allocate resources to enhance companies’ performance. Finally, the research area can be developed by investigating the firm performance outcome with other moderating variables or different digital technologies scenarios.