Technological-organisational-environmental determinants of cloud accounting system usage in Indonesian SMEs

Abstract

Background and Purpose: Small and medium-sized enterprises (SMEs) refer to small-scale businesses operated by individuals or business entities. Cloud accounting systems offer a practical solution to improve SME business performance by combining computer technology and internet connectivity, allowing users to access the system anytime and from any location. According to the Technological-Organisational-Environmental (TOE) framework, various factors within technological, organisational, and environmental contexts influence the adoption of cloud accounting systems in SMEs. This study targets SMEs registered with Indonesia’s Ministry of Cooperatives and SMEs, along with members of crowdfunding platforms.Methodology: The study collected 233 samples over a six-month period and employed SEM-PLS analysis, a method that reduces errors across all endogenous latent variables.Findings:The study revealed that technology readiness, representing the technological context, along with all variables within the organisational context, influence SMEs’ adoption of cloud accounting systems. Conversely, security concerns—also part of the technological context—and all variables from the environmental context do not significantly determine SMEs’ use of cloud accounting systems.Contributions: The study broadens the application of the TOE framework within the context of a developing country, specifically Indonesia