Determinants of Cloud Computing of Supply Chain Management Adoption in SMES with Pilot Project

Objective: This study investigates the determinants influencing cloud computing adoption in Supply Chain Management (SCM) among Small and Medium Enterprises (SMEs) in Indonesia, analyzing technology readiness, organizational readiness, environmental factors, perceived ease of use, and perceived usefulness using an integrated Technology-Organization-Environment (TOE) and Technology Acceptance Model (TAM) framework. Theoretical Framework: The TOE model examines technological, organizational, and environmental influences, while TAM assesses perceived usefulness and ease of use in shaping SMEs’ adoption attitudes and intentions. Method: A quantitative approach is employed, using Structural Equation Modeling (SEM) with SmartPLS to analyze data from 185 SMEs. Additionally, a pilot project develops a cloud-based SCM application for palm sugar SMEs, incorporating GIS-based product distribution mapping, batch barcode generation, and supplier management. Results and Discussion: Technology readiness, perceived ease of use, and perceived usefulness significantly influence SMEs’ cloud-based SCM adoption. Organizational readiness negatively affects perceived usefulness, highlighting the need to manage expectations. Environmental factors do not directly impact adoption but may shape strategic decisions. The developed SCM application improves traceability, supply chain coordination, and real-time operational insights. Research Implications: The study integrates TOE and TAM frameworks to enhance understanding of SME cloud computing adoption. It strongly supports SDG 9: Industry, Innovation, and Infrastructure by fostering SME digitalization, enhancing technological infrastructure, and promoting supply chain innovation to strengthen global competitiveness. Originality/Value: This research advances literature by integrating external and behavioral factors in SCM adoption. The developed cloud-based system demonstrates its role in enhancing SME supply chain efficiency and global competitiveness.