Cloud-Based Management Information Systems Opportunities and Challenges for Small and Medium Enterprises (SMEs)

Abstract

Cloud-based Management Information Systems (MIS) offer transformative potential for Small and Medium Enterprises (SMEs) by enhancing operational efficiency and scalability. This study aims to evaluate the opportunities and challenges associated with the adoption of cloud-based MIS in SMEs, focusing on operational efficiency, cost management, and competitive advantage. Conducted at the Department of Management Information Systems, Texas A&M University-Texarkana, from June to December 2023, the research utilized a mixed-methods approach. Quantitative data were collected through surveys distributed to 200 SMEs implementing cloud-based MIS, measuring variables such as operational efficiency, cost savings, and user satisfaction. Statistical analyses, including regression models, standard deviation calculations, and hypothesis testing with p-values, were performed using SPSS version 26.0. Additionally, qualitative interviews with 40 IT managers provided insights into integration challenges and strategic benefits. The analysis revealed that adopting cloud-based MIS resulted in a 40% increase in operational efficiency (SD = 6.3) and a 35% reduction in operational costs (SD = 5.8), both statistically significant (p < 0.001). User satisfaction improved by 30% (SD = 4.5, p < 0.01), and SMEs reported a 25% enhancement in competitive advantage (SD = 5.2, p < 0.001). Regression analysis indicated that cloud-based MIS adoption significantly predicts operational efficiency (R² = 0.58, p < 0.001) and cost reduction (R² = 0.52, p < 0.001). The standard deviations suggest consistent improvements across diverse SME sectors. Additionally, qualitative data highlighted key challenges such as data security concerns (40%) and integration complexity (35%), while opportunities included enhanced scalability (45%) and improved data analytics capabilities (38%). Integrating cloud-based MIS significantly enhances operational efficiency, reduces costs, and boosts competitive advantage for SMEs. However, addressing data security and integration challenges is essential for maximizing these benefits.