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

Authors

  • Devi Permatasari Faculty of Economics, Universitas Islam Sultan Agung, Jawa Tengah 50112, Indonesia.
  • Nor Farizal Mohammed Faculty of Accountancy and Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia.
  • Nur Aima Shafie Faculty of Accountancy and Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia.
  • María-Elena Sánchez-del-Río-Vázquez Faculty of Economic and Business Sciences, University of Seville, 41004 Sevilla, Spain.

DOI:

https://doi.org/10.24200/jonus.vol10iss2pp566-589

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.

Keywords: Small and medium-sized enterprises (SMEs), technological-organisational-environmental framework, cloud accounting.

Author Biographies

  • Devi Permatasari, Faculty of Economics, Universitas Islam Sultan Agung, Jawa Tengah 50112, Indonesia.

    Devi Permatasari, S.E., M.Si., Ak., CA, is a lecturer at Universitas Islam Sultan Agung (UNISSULA). She earned Sarjana Ekonomi and Magister Sains degrees from Universitas Diponegoro, Semarang. She is a certified Accountant (Ak), Chartered Accountant (CA), and member of ISEI. Her research includes transfer pricing, accounting conservatism, tax willingness, and greenhouse gas reporting.

  • Nor Farizal Mohammed, Faculty of Accountancy and Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia.

    Associate Professor Dr. Nor Farizal Binti Mohammed is a lecturer at the Faculty of Accountancy, UiTM. She holds a PhD from La Trobe University, Australia, and an MSc in Accounting from De Montfort University, UK. She is a Chartered Accountant (MIA) and ACCA member with expertise in financial reporting and governance. Her research covers accounting regulation, sustainability, and Maqasid Shariah-based value creation.

  • Nur Aima Shafie, Faculty of Accountancy and Accounting Research Institute, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia.

    Nur Aima Shafie is a fellow at Accounting Research Institute, Universiti Teknologi MARA, Shah Alam. She also is a senior lecturer at Faculty of Accountancy of the same university. She holds PhD in Accounting specializing in financial criminology from Universiti Teknologi MARA, Malaysia. Her research interest span corporate governance, financial reporting, risk management and social enterprise.

  • María-Elena Sánchez-del-Río-Vázquez, Faculty of Economic and Business Sciences, University of Seville, 41004 Sevilla, Spain.

    María-Elena Sánchez-del-Río-Vázquez is a Professor at the University of Seville. She holds a PhD in Business Administration and Management with “Cum Laude” distinction. She has authored 14 book chapters, six books, and 15 journal articles indexed in JCR and SCOPUS. Her research focuses on market orientation, social value, loyalty, internal marketing, and sustainability.

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Published

2025-07-31

Issue

Vol. 10 No. 2: Journal of Nusantara Studies(JONUS)

Section

Articles

How to Cite

Technological-organisational-environmental determinants of cloud accounting system usage in Indonesian SMEs. (2025). Journal of Nusantara Studies (JONUS), 10(2), 566-589. https://doi.org/10.24200/jonus.vol10iss2pp566-589