Analysing the role of cloud manufacturing for achieving sustainable business performance in the era of digital economy

Purpose To analyse the factors affecting cloud manufacturing (CM) adoption for achieving the sustainable performance of the firm, the purpose of this study is to propose a conceptual framework that facilitates understanding the effect of identified factors on CM adoption (CMA) and the sustainable business performance (SBP) of the firm. Design/methodology/approach A survey-based quantitative method was adopted to validate the proposed framework, in which 422 valid responses collected from manufacturing micro, small and medium enterprises (MSMEs) of an emerging economy were analysed by using Structural Equation Modelling (SEM). Findings The findings of this study show that technological, organisational, environmental, legal and economic factors positively and significantly influence CMA. However, social factors have shown no significant influence on CMA. Further, the positive and significant impact of CMA on SBP was observed. Practical implications This study’s findings will help organisational decision and policymakers, as well as government authorities, to develop effective CMA policies and strategies, which can further enhance the sustainable performance of the firm. Originality/value Notably, to the best of the authors’ knowledge, this study is among the first to offer a holistic examination of CMA by analysing legal, human and environmental factors along with the economic, social, organisational and technological dimensions and empirically establishing their collective influence on SBP in MSMEs operating within an emerging economy.