Cloud Computing Adoption Using TOE Framework for Indonesia’s Micro Small Medium Enterprises

Abstract

Cloud computing is one of the pillars of the Industrial Revolution 4.0. Cloud computing provides ample benefits to companies such as mobility, ease of access, and enable collaboration. Nevertheless, the impact of cloud computing on the micro, small and medium enterprises (MSMEs) is not well established. This research aims to classify the factors affecting the acceptance of cloud computing in Indonesian MSMEs. A total of 135 participants participated in this analysis. The TOE Structure is used in this analysis. Methods of data collection using Google form. The details have been analysed with SPSS and SmartPLS. The findings demonstrated that top management encouragement and relative advantages have a positive impact on the adoption of cloud computing in MSMEs in Indonesia. In order to increase the adoption of cloud-based computing in Indonesia, cloud-based businesses need to concentrate on these two reasons so that MSMEs in Indonesia can embrace more cloud computing. Furthermore, the improvement of cloud computing adoption should come from government policy and incentives. Theoretically, this research helps to establish the TOE framework by providing empirical evidence. This research also explains that the TOE framework can help companies to understand critical domains that impact their businesses and which domain companies should focus.

Analysis of E-Commerce Adoption by SMEs Using the Technology - Organization - Environment (TOE) Model: A Case Study in Karawang, Indonesia

“…Relative advantage can be defined as the extent to which a business views the benefits of using e-commerce [23]. Relative advantege is the level of ecommerce consistency that can provide business benefits, this level of ecommerce consistency is related to innovation, so the extent to which ISSN: 2774-5406 http://ijstm.inarah.co.id innovation can offer many business benefits through increased efficiency [25].…”

“…Security issues involve a security attack on a business that destroys information [25]. Security concerns can be expressed as the level of business confidence in e-commerce services in the protection of company information secrets.…”

“…Business readiness refers to the availability of a company in implementing a technology. The availability includes infrastructure, finance, information technology and human resources [25]. So that organizational readiness is a company's technical readiness to be able to innovate.…”

“…Top management refers to the mindset of top management in supporting related technologies and the breadth of funding for implementation [25]. This support is one of the important aspects in supporting and completing the tools ISSN: 2774-5406 http://ijstm.inarah.co.id needed for new or innovative technologies.…”

“…According to [23] The environmental context relates to the industry or type of business and takes into account competitors, markets, government and external support. 1) Government Support Government support can be defined as initiatives and opportunities from the government to encourage adoption [25].…”