THE PROBLEM. The purpose of this quantitative correlation study was to assess the relationship between different Cloud service levels of effective business innovation for SMEs. In addition, the new knowledge gained from the benefits of Cloud adoption with knowledge sharing would enhance the decision making process for businesses to consider the adoption of Cloud technologies and its disruptive innovation. This study focused on answering two questions: (1) what factors influence the adoption of Cloud computing technology by management and decision makers in firms, and (2) what is the mediating effect of collaboration and organization orientation on the relationship between Cloud computing usage and business disruptiveness innovation. METHOD. Statistical tools analyzed the data collected from the online Qualtrics survey. Data analysis was conducted relative to the research questions and included descriptive statistics, reliability analysis, factor analysis, structural equation modeling, analysis of variance (ANOVA), chi-square test of independence, and multiple regression analysis. RESULTS. These analyses revealed that 97.7% of the variation in the behavioral intent to adopt Cloud technology could be explained by perceived ease of use and perceived usefulness. On the other hand, only 67.8% of the variation in the disruptiveness innovation of the firm could be explained by PaaS and SaaS usages. The results from CFA and the analysis of the structural model were addressed with acceptable results. Furthermore, the mediated effects of collaboration capability and organization orientation on the relationship between Cloud computing usage and business disruptiveness innovation were established. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]