Investigating the factors affecting the adoption of cloud accounting in Saudi Arabia's small and medium-sized enterprises (SMEs)

Abstract

Small and medium-sized businesses (SMEs) can get new insights and comparative advantages from implementing information systems (ISs). This study aims to examine the factors that influence SMEs willingness to use cloud-based accounting. A theoretical framework was developed that incorporates technological and organizational variables from the Technology Organization Environment (TOE) framework as external factors for the Technology Acceptance Model (TAM). Additionally, there were proposed environmental factors that influence the adoption of cloud accounting. A survey was carried out among accountants employed in SMEs in Saudi Arabia. 354 valid responds were collected and analyzed. The data was analyzed with Structural Equation Modeling with the aid of the SmartPLS software. The results indicate that factors such as relative advantage, compatibility, complexity, organizational resources, employee capability, top senior management support, mimetic pressures, normative pressures, perceived usefulness, and perceived ease of use significantly impact the intention to adopt cloud accounting. The model acts as a blueprint for achieving favorable results in business organizations and offers suggestions for successful cloud accounting integration. This study utilizes two information technology (IT) adoption models to improve prediction accuracy, acting as a strategy for leadership to help businesses make well-informed decisions about cloud accounting despite resource constraints and apprehensions about cloud service utilization.

Keywords

• TAM
• TOE
• Cloud Accounting
• SMEs
• Technology adoption
• Saudi Arabia