Determinants Influencing Cloud Accounting Adoption Among Micro and Small Enterprises

Cloud accounting presents a significant opportunity for Micro and Small Enterprises (MSEs) in Indonesia to enhance financial management efficiency and accuracy. Despite these potential benefits, adoption rates remain notably low. This study aims to investigate the determinants influencing the intention to adopt cloud accounting services among Indonesian MSEs. Utilizing the Technology Organization Environment (TOE) framework, this research employed a quantitative methodology to analyze data collected from 60 MSE owners and staff through a purposive sampling strategy. A questionnaire was administered via Google Forms, and the collected data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The findings reveal that Relative Advantage and Organizational Readiness positively and significantly influence the intention to adopt cloud accounting, while Security Concerns have a significant negative impact. However, the analysis showed no significant influence from Top Management Support, Perceived Knowledge Uncertainty, Mimetic Pressure, and Coercive Pressure. The findings indicate that internal factors and perceived technological benefits play a more significant role in cloud accounting adoption than external pressures or top-management influence. Therefore, promoting cloud accounting should emphasize its value, security, and organizational readiness to enhance adoption among MSEs.