Cloud Technology-Based Business Innovation in Encouraging MSME Efficiency and Scalability

Abstract

Cloud computing-based digital transformation provides strategic opportunities for Micro, Small, and Medium Enterprises (MSMEs) to enhance operational efficiency and expand business scale. This study systematically examines how cloud innovation drives efficiency and scalability of MSMEs through a literature review of scientific publications. Findings indicate that cloud adoption enables cost savings on infrastructure, faster workflows, and greater adaptability to market dynamics. Moreover, cloud-based solutions support MSMEs in accessing advanced technologies without large capital investments. Nevertheless, several challenges remain, including low digital literacy, security concerns, and uneven infrastructure readiness, which hinder broad adoption. Addressing these barriers requires inclusive policies, capacity-building initiatives, and collaboration among government, private sector, and educational institutions. With comprehensive stakeholder support, cloud computing can serve as a foundation for innovation, competitiveness, and empowerment of MSMEs in the digital economy era. This research contributes theoretically and practically to the formulation of sustainable digitalization strategies that strengthen MSMEs’ role in national and global economic growth.