Cloud accounting adoption in MSMES: A toe framework approach

Iswari, Anak Agung Widya Adi and Suaryana, I Gst. Ngr A and Sudana, I Putu and Ariyanto, Dodik (2025) Cloud accounting adoption in MSMES: A toe framework approach. World Journal of Advanced Research and Reviews, 25 (2). pp. 1630-1649. ISSN 2581-9615

The purpose of this study is to empirically test and explore the relationship between external TOE factors (Technology, Organization, and Environment) with cloud accounting adoption and the post-adoption impact on the performance of Micro, Small and Medium Enterprises (MSMEs) in Denpasar. This study uses PLS-SEM (Partial Least Squares-Structural Equation Modeling) and FsQCA (Fuzzy-set Qualitative Comparative Analysis) methods. The sampling technique used in this study was purposive sampling, with a sample size of 250 MSMEs calculated using the Hair et al formula and not limited to the industrial sector. The results showed that all aspects have a significant influence on the adoption of cloud accounting, in accordance with the referenced TOE model. The use of the FsQCA method shows that organizational readiness, complexity and competitive pressure are core factors in decision making related to cloud accounting adoption, while other aspects such as Relative Advantage, Compatibility, Security Concern, Top Management Support, Coercive pressure and Vendor Support serve as supporting factors. The model in this study proved to be statistically significant and able to explain most of the variations in the data collected.