Proceedings of the 7th World Conference on Social Sciences and Humanities
Year: 2024
DOI:
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Cloud Accounting System Usage: TOE Framework Perspective of Indonesian SMEs
Devi Permatasari, Nor Farizal Mohammed, Nur Aima Shafie
ABSTRACT:
Small and medium-sized enterprises (SMEs) are micro-scale commercial businesses managed by individuals or business units. Cloud accounting systems can be a viable solution to enhance the business performance of SMEs as they integrate computer technology with the internet, enabling users to access the system anywhere and anytime. The Technological-Organisational-Environmental (TOE) framework outlines that several factors, including the technological, organisational, and environmental contexts, can influence the level of adoption of cloud accounting systems by SMEs. This research focuses on SMEs registered with the Ministry of Cooperatives and SMEs of the Republic of Indonesia who are members of crowdfunding companies. The research obtained 233 samples over six months and used SEM-PLS analysis, a technique that minimises errors in all endogenous latent variables. The study found that technology readiness, which is a technological context, as well as all variables from the organisational context, can affect SMEs’ use of cloud accounting systems. In contrast, security concern variables are part of the technological context, and all variables in the environmental context are not significant determinants for SMEs to use cloud accounting systems. The study extends the TOE framework application in the developing country context, Indonesia.
keywords: Small and medium-sized enterprises, Technological-Organisational-Environmental Framwork, Cloud Accounting