MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 23 NO 1, APRIL 2024

Exploring Factors Influencing the Adoption

of Cloud Accounting Systems in Indonesian Micro
Small and Medium Enterprises: A Unified Theory of
Acceptance and Use of Technology Based Analysis
Devi Permatasari1, Nor Farizal Mohammed2♣ and Nur Aima Shafie2
1
Faculty of Economics, Universitas Islam Sultan Agung, Indonesia
2
Faculty of Accountancy and Accounting Research Institute (HICOE),
Universiti Teknologi MARA, Malaysia

ABSTRACT

In the era of Industry 4.0, rapid technological advancements necessitate

Micro, Small, and Medium Enterprises (MSMEs) to navigate these changes
for business growth adeptly. Cloud accounting technology emerges as a
pivotal tool in this context. Employing the Unified Theory of Acceptance
and Use of Technology (UTAUT), this study explored factors influencing
MSMEs’ intent to adopt cloud accounting, encompassing performance
expectancy, effort expectancy, social influence, facilitating conditions,
price value, and perceived security. The study employed a quantitative
approach, utilizing survey questionnaires distributed among Indonesian
MSME owners. Findings revealed that performance expectancy, effort
expectancy, and facilitating conditions significantly influenced their intent
to use cloud accounting. Contrastingly, social influence, perceived security,
and price value insignificantly impacted MSME owners’ intent to adopt
cloud accounting. Furthermore, the study established a positive relationship
between MSME owners’ intention to use cloud accounting systems and
their actual usage. This actual usage, in turn, positively affected the decision
quality of MSME owners. Consequently, the research supported the idea
that using cloud accounting systems in small businesses helps them make
better decisions about their future, even if some factors did not affect
their intentions. This premise shows how internal and external factors are
connected within the UTAUT framework.

Keywords: Cloud Accounting, UTAUT, Decision Quality, MSMEs.

ARTICLE INFO
Article History:
Received: 06 March 2023
Accepted: 02 February 2024
Available online: 01 April 2024

♣
Nor Farizal Mohammed; Faculty of Accountancy, Universiti Technologi MARA, Puncak Alam
Campus, 42300 Bandar Puncak Alam, Selangor, Malaysia; Email: norfa783@[Link];
Tel:+60132075122
MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 23 NO 1, APRIL 2024

INTRODUCTION

The fourth industrial revolution era has resulted in information technology

developing rapidly and entering all fields, including MSMEs. Even though
MSMEs are classified as micro-scale industries, the role of information
technology is needed in developing these businesses. Micro, Small, and
Medium Enterprises (MSMEs) are small or micro-scale commercial
companies managed by individuals or business units and separated by asset
and income criteria (Wicaksono et al., 2020). MSMEs are a type of business
that is more dominant in Indonesia than large businesses. According to data
from the Ministry of Cooperatives and MSMEs, the number of MSMEs
in Indonesia has increased yearly, from 59.2 million in 2015 to more than
65 million today (Wahyuni, 2018). Besides that, MSMEs in Indonesia
contribute 60% to gross domestic income (GDP) and absorb 97% of the
workforce (Rokhman, 2022). However, of the total MSMEs in Indonesia,
only 30% understand accounting and can make their own financial reports
(Hasanah, 2021). In fact, financial statements are really needed by MSMEs
to plan their finances and are one of the tools used in making financial
decisions for their business. Based on a survey conducted by Rokhman
(2022), as many as 90% of MSMEs still need to understand accounting
records and are worried that they will not survive for long. Therefore, the
empowerment of the MSMEs sector really needs to be increased, and it is
hoped that in the future, millions of MSMEs operating in various sectors
in this country can develop and compete with large companies.

The ability of MSMEs to compete with large companies must be

balanced with the use of information technology and good decision-
making. The existence of information technology enables SMEs to record,
process, and maintain their accounting functions efficiently, accurately, and
in a timely manner (Thottoli & Ahmed, 2022). In addition, information
technology innovation has become one of the main concerns for top
management to increase the value of products and services, penetrate new
markets, and increase profitability (Chege & Wang, 2020). One information
technology innovation that MSMEs can use to improve their performance
is the application of cloud accounting. By embracing the cloud, businesses
can streamline their accounting operations and empower stakeholders to
make informed decisions, irrespective of their physical location.

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Cloud accounting stands as a catalyst, facilitating the development

of businesses for MSME actors. Cloud accounting is the use of the
cloud for online accounting data storage (Senarathna et al., 2018). It is
a technology-based accounting system that streamlines the accounting
process by providing computerized and online accessibility (Yusuf, 2020).
Cloud accounting can also be referred to as online accounting software,
which combines computer technology in a network with internet-based
development that runs programs or applications through internet-connected
devices simultaneously (Darren, 2021). Cloud accounting software leverages
cloud technology for storing accounting information, providing owners
and employees with remote access to pertinent financial data through the
internet (Owolabi & Izang, 2020). It extends beyond mere data storage
as it involves the systematic collection of financial activities, converting
raw data into insightful information for decision-makers, and assuring
data reliability (Sastararuji et al., 2021a). Indeed, cloud accounting offers
various advantages in recording financial transactions and generating
accounting reports, but it also includes functionality for managerial decision-
making that aims to gain a competitive advantage for both large and small
entrepreneurs. Various cloud accounting applications have been developed,
such as QuickBooks, Speedy Books, Xero Accounting, Zoho Books, and
others (Yusuf, 2020). Hence, MSMEs need to adeptly navigate the rapidly
evolving technological landscape to stay competitive in the business realm
and facilitate more efficient business management.

Even though the cloud accounting system has many benefits, MSMEs
in Indonesia are still relatively slow in using the system. This happens
because they find it challenging to use the cloud accounting system; namely,
around 32% of the MSMEs in Indonesia need help entering transaction data,
despite approximately 72% intending to use the system (Hamundu et al.,
2020). There is a lack of empirical evidence in Indonesia that investigates
the factors that motivate the use of cloud accounting. Prior literature
reveals that the use of cloud accounting is influenced by several factors,
both internal and external (Chege & Wang, 2020). Nevertheless, the factors
that apply in the Indonesian market are yet to be determined. Indonesia is
a large country with a high population, and MSMEs have a considerable
potential to grow. Therefore, identifying cloud accounting factors is crucial
for enhancing the business environment. Thus, this study identified internal
and external factors that can influence MSMEs using cloud accounting.

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These factors can be identified using the Unified Theory of Acceptance and
Use of Technology (UTAUT) model.

According to the UTAUT model developed by Venkatesh (2012), the

intention to use cloud accounting applications in business requires several
considerations, including performance expectancy, effort expectancy, social
influence, facilitating conditions, price value, and perceived security. This
research used the UTAUT method to test intentions to use a cloud accounting
system. Moreover, the intention of MSME top management to utilize a cloud
accounting system translates into its actual implementation and application
in their business operations. Using a cloud accounting system can influence
changes in the attitude of top management in the decision-making process
in MSMEs. Decision quality refers to the extent to which decisions taken
by management or business owners consider relevant information, accurate
analysis, and a deep understanding of the implications of the decision (Al-
Okaily Alghazzawi et al., 2022). High-quality information from an effective
accounting information system enhances management decision-making,
as erroneous choices can lead to severe consequences, limiting the success
and sustainability of SMEs and diminishing their economic impact. (Al-
Hattami, 2022).

Decision quality can be used for daily business management and long-
term strategic decisions (Al-Hattami, 2022). Decision quality is achievable
when the company possesses high-quality financial reports as valuable tools
for informed decision-making (Vanauken et al., 2016). Owolabi and Izang
(2020) highlighted that leveraging a cloud accounting system facilitates
the generation of high-quality financial reports, benefiting MSME owners.
MSMEs enhance their management processes by systematically recording
all operational transactions, leading to better-informed decisions and
improved overall performance.

LITERATURE REVIEW

Cloud Accounting

Cloud accounting is a cloud computing application to process financial

data, namely, moving the installation, processing, and storage of system

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data and accounting services from cloud service providers (Dimitriu &
Matei, 2015). Cloud accounting applications use the internet network to
be flexible and accessed from various devices, anywhere and anytime
(Yau-Yeung et al., 2020). Cloud accounting was created so accountants
could use it as a database and cover all accounting processes on one
platform quickly and cheaply. As a result, when transactions occur, data
can be uploaded immediately, processed, and reconciled by the server, and
structured financial reports can be generated. Thus, accountants no longer
have to do administrative work on accounting processes (Wicaksono et
al., 2020). Cloud vendors provide cloud accounting services by providing
subscription fees and allowing them to use software to access financial
transactions (Dimitriu & Matei, 2015). There are several cloud vendors in
Indonesia, including Accurate, [Link], Xero, FreshBooks, QuickBooks,
Harmony, and others.

There has been an increasing interest in cloud accounting studies

internationally. For example, Wu et al. (2019) discovered that cloud
adoption had a beneficial impact on the value relevance of financial data
for businesses with less information asymmetry. Green & Hales (2020)
address the implications of cloud computing on the design and use of
accounting information systems. They suggested that cloud computing
allows increased flexibility and scalability in accounting information
systems but poses new security and privacy problems. Using evidence
from a Quasi-Natural Experiment, Moffitt et al. (2020) learned that cloud
adoption harms internal controls’ quality but that cloud-specific controls’
deployment mitigates this effect. Further, cloud adoption benefits audit
quality, which is more pronounced for larger organisations and those who
apply cloud-specific controls (Peecher et al., 2021). Additionally, cloud
adoption positively influenced accounting quality, but the effect is more
pronounced for enterprises with poor financial reporting and governance
(Chang, 2021).

The literature on cloud accounting indicates that cloud adoption

has positive and negative implications on many accounting and financial
reporting elements. Future research could further investigate these
consequences and provide recommendations for cloud adoption best
practices in accounting. This follows Haleem (2020) statement that cloud
accounting is part of cloud computing, which is expected to become a system

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used in SMEs because of its extraordinary benefits, including accessibility

anytime and anywhere, integration of different accounting modules, user-
friendly platform-based, and customized reports. Several previous studies
have discussed the benefits of using cloud accounting systems in SMEs
(Hamundu et al. (2020); Al-Okaily, Alkhwaldi, et al. (2022); Tawfik et al.,
(2022); Al-Sharafi et al. (2023)). They consider that using cloud accounting
can develop SME businesses by improving business performance and good
decision-making processes.

The UTAUT Model

UTAUT is a model of technology acceptance and use that combines

the best features of other technology acceptance theories and is considered
proven to be up to 70% more successful in explaining behaviour in
technology use (Sanjaya & Aryanti, 2016). The UTAUT model was
developed by Venkatesh (2012) and consists of seven points that can describe
a person’s behaviour in using technology: performance expectancy, effort
expectancy, social influence, facilitating conditions, price value, hedonic
motivation, and habit. However, this research focused on performance
expectancy, effort expectancy, social influence, facilitating conditions, and
price value.

The first factor in the UTAUT model is performance expectancy,

which shows the level of individuals or users who think that using certain
technologies will provide benefits and advantages (Ikumoro & Jawad,
2019). Performance expectancy is an essential benchmark for influencing
a person’s desire to continue using technology (Chen et al., 2021). Second,
effort expectancy, defined as the ease of use of a system, can reduce efforts
in the form of one’s energy and time spent on activities (Venkatesh, 2012).
Business expectations are defined as the user’s perceived ease of system
use. This convenience will lead to someone believing that the system has
benefits, resulting in a sense of comfort when using it (Chen et al., 2021).
In the description of the UTAUT model, performance expectations refer
to a person’s level of confidence in the assumption that the use of cloud
computing will help top managers improve performance, so performance
expectations and effort expectations in the UTAUT model are seen as the
main determining factors of usage intentions (Haleem, 2020).

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Furthermore, social influence is a social influence that shows an

individual’s perception of something that other people believe in using a
new system (Chen et al., 2021). Social influence refers to how other people
influence one’s behavioural decisions (Kayali & Alaaraj, 2020). Based on
the UTAUT model, performance expectations, effort expectations, and
social influence directly influence behavioral intentions to use technology,
namely the cloud accounting system (Haleem, 2020).

The fourth factor is the facilitating condition, which is the level

of individual comfort in using the system supported by technical and
organisational infrastructure (Tamilmani et al., 2021). Venkatesh (2012)
states that facilitating conditions positively influence the behavioural
intention to use information systems, but not significantly. However,
according to Haleem (2020), behavioral intentions and conditions that
facilitate technology use directly determine the use of technology in an
organization. Finally, price value is a person’s perception of the costs he
incurs when using technology compared to the benefits he derives (Ikumoro
& Jawad, 2019). Price value can also be referred to as how valuable the
technology used is compared to the costs incurred. Consumers are willing to
adopt certain technologies when the perceived benefits are more significant
than the costs incurred (Venkatesh, 2012). Cloud accounting for SMEs can
minimize maintenance costs and other relevant costs related to software and
hardware (Wicaksono et al., 2020). In addition, cloud technology is also
able to provide access to financial information globally; namely, internal
and external company stakeholders can have the right to access financial
information anytime and anywhere (Haleem, 2020).

Perceived Security

Perceived security is the user’s assumption regarding the security of

using technology applications (Wahyuni, 2018). The sense of security felt
by application users will provide confidence in accessing the application.
The level of security in question is the security of all transaction data entered
in the application and other financial information. The UTAUT model
proposes that perceived security affects an individual’s propensity to use
a technology. People are more willing to use technology if they perceive
it to be secure. However, a user is less inclined to use a technology if they
think it to be vulnerable. The technology itself, the environment in which

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it is used, and the person’s prior experience with similar technologies are
some elements that impact perceived security. If a technology has a history
of security flaws or data breaches, people may view it as less secure and be
less willing to utilise it.

Decision Quality

Decision quality is related to the correctness and accuracy of decisions,

which refers to how well the actual results of a decision meet internal
expectations (Hung et al., 2023). Decision-making is one of the essential
things in a business process because mistakes that occur when making
decisions will impact the continuity of business processes (Al-Okaily,
Alkhwaldi et al., 2022). Decision quality measures the extent to which
decision results align with an organization’s expectations (Visinescu et al.,
2017). The quality of the information influences decision quality, so with a
sound system, it is hoped that good quality information will also be obtained
and MSME owners can make appropriate decisions (Al-Hattami, 2022). The
more probable organisation is to employ technology, the more they believe it
will enhance the calibre of their decision-making (Al-Okaily, Alkhwaldi, et
al., 2022). If a technology provides accurate and timely information, people
may assume that it improves the quality of their decision-making and be
more eager to use it (Hung et al., 2023). On the other hand, an organisation
may be less likely to adopt a technology if they believe it will not enhance
the calibre of its decision-making (Al-Okaily, Alghazzawi et al., 2022).

Decision quality can be used for daily business management or long-

term strategic decisions and often has a long-term impact on business
operations, so SMEs must have the right accounting information system that
will become the basis for decision-making (Al-Hattami, 2022). Furthermore,
decision quality among MSMEs refers to an appropriate and effective
decision-making process that contributes to overall business success and
performance, which involves evaluating available information, considering
various alternatives, and choosing the best course of action based on careful
analysis and a clear understanding of potential outcomes and consequences
(Al-Okaily, Alkhwaldi, et al., 2022).

Decision quality in MSMEs contributes to better resource allocation,

operational efficiency, customer satisfaction, and sustainable growth. It

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 EXPLORING FACTORS INFLUENCING THE ADOPTION

can assist MSMEs in facing challenges, taking advantage of opportunities,

and making choices that lead to positive financial and business results (Al-
Hattami, 2022).

Research Framework

MSMEs in Indonesia greatly contribute to the country’s economy,

namely contributing 60% of gross domestic income (GDP) and absorbing
97% of the workforce (Rokhman, 2022). However, most small businesses
have an inherent competitive disadvantage due to their comparative inability
to access and use business information (Wahyuni, 2018). The number of
MSMEs that can produce quality financial reports in Indonesia is still below
50% (Hasanah, 2021). Poor financial information can affect decision quality
because financial planning and other business decisions become inefficient
(Vanauken et al., 2016). Al-Hattami (2022) believes that the advantage
of using a cloud accounting system is that it produces better quality,
more accurate, and reliable information and can be a reflective indicator
of a high-quality accounting system in the cloud. MSMEs need such an
accounting application to obtain business and accounting information.
Cloud accounting is one way to help MSME players apply accounting
information to their businesses (Hamundu et al., 2020). Cloud accounting
is an online accounting information system based on cloud computing
that uses computers or other devices to achieve accounting and financial
analysis functions (Feng, 2016). Cloud accounting has several advantages
in recording financial transactions and producing quality accounting reports
(Owolabi & Izang, 2020). Therefore, a cloud accounting system in MSMEs
can help owners make good and quality business decisions. Despite the
advantages of cloud accounting discussed in the literature, most conjectures
are normative accusations. There has been a lack of empirical evidence as
to the factors of adoption and their related factors to the benefits of cloud
accounting, particularly in decision quality among Indonesian MSMEs.
Indonesia is unique with a large population; thus, MSMEs are critical to
the country’s economic growth.

From the above explanation, two research questions were formed:

To what extent does the UTAUT model (performance expectancy, effort
expectancy, social influence, facilitating conditions, price value, and
perceived security) influence the intention of MSME owners to use a cloud

203
MSMEs can help owners make good and quality business decisions. Despite the advantages of cloud
accounting discussed in the literature, most conjectures are normative accusations. There has been a lack
of empirical evidence as to the factors of adoption and their related factors to the benefits of cloud
accounting, particularly in decision quality among Indonesian MSMEs. Indonesia is unique with a large
MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 23 NO 1, APRIL 2024
population; thus, MSMEs are critical to the country's economic growth.
accounting system? And to what extent is the use of a cloud accounting
From the above explanation, two research questions were formed: To what extent does the UTAUT
system that emerged from top management’s choice to use the system able
model (performance expectancy, effort expectancy, social influence, facilitating conditions, price value,
to improve the quality of MSME business decisions in the future?
and perceived security) influence the intention of MSME owners to use a cloud accounting system? And to
what extent
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Figure 1: Research Model

Figure 1. Research Model

Hypotheses Development

Performance expectancy 8
Performance expectancy is the user’s assumption that cloud accounting
applications have benefits and are comfortable for business development
(Tamilmani et al., 2021). An application is supposed to have benefits for its
users. This includes cloud accounting applications that greatly benefit the
development of MSME businesses, namely being able to record financial
transactions, record data, and produce quality financial reports (Darren,
2021). A high level of performance expectancy indicates that users feel
comfortable with the cloud accounting application and that the application is
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 EXPLORING FACTORS INFLUENCING THE ADOPTION

felt to have benefits for the continuity of their business (Sanjaya & Aryanti,
2016). In addition, performance expectancy in terms of using a cloud
accounting system is where users (MSME owners) believe that using a cloud
accounting system will improve the quality, performance, and efficiency of
their work (Al-Okaily, Alkhwaldi, et al., 2022). Therefore, the user’s belief
in the idea that a cloud accounting system will improve performance will
have an impact on increasing top management’s desire to use the system.

Thus, from the arguments above, the current study proposed that:

H1: Performance expectancy has a positive effect on the intention of MSME

owners to use cloud accounting systems.

Effort expectancy
Effort expectancy is an assumption that users have about cloud
accounting applications that are not confusing, clear, and easy for users to
understand and that they feel can make their work easier because they can
be accessed anywhere (Haleem, 2020). Before using an application, usually,
someone will consider the convenience of the application. If it is felt that
the application is easy, clear, and not confusing, interest will appear in using
the application (Wahyuni, 2018; Yusuf, 2020). Cloud accounting presents an
application for storing financial information online to be accessed anytime
and anywhere because you don’t have to install software on your device. In
implementing the use of a cloud accounting system, the effort expectancy
factor represents the user’s expectations in using cloud accounting without
great effort because the application is based on the internet (Al-Okaily,
Alkhwaldi, et al., 2022). In the context of this study, the ease with which
MSMEs owners use the cloud accounting system has a significant effect.
Therefore, the desire of MSME owners to use cloud accounting systems will
increase along with the increasing ease of carrying out accounting practices
and financial transactions via cloud platforms (Al-Okaily, Alkhwaldi, et
al., 2022).

Based on the arguments above, the current study proposed that:

H2: Effort expectancy has a positive effect on the intention of MSME

owners to use cloud accounting systems.

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Social Influence
Social influence can be interpreted as the extent to which an individual
trusts other people who are considered important, so they must participate
in using a new system (Venkatesh, 2012). Haleem (2020) defined social
influence as a person’s perception of the extent to which others have to use
cloud accounting. MSMEs owners will tend to accept a cloud accounting
system if people who are considered important to them use it or using
the system is able to increase their status in the social system (Al-Okaily,
Alkhwaldi, et al., 2022). The high level of social influence on the use of
accounting cloud applications shows that they are interested in implementing
them for their business development (Haleem, 2020). Therefore, users’
(MSMEs owners) desire to use cloud accounting systems will increase
along with increasing levels of social influence.

Hence, the current study proposed that:

H3: Social influence has a positive effect on the intention of MSME owners
to use cloud accounting systems.

Facilitating conditions
Facilitating conditions indicate the extent to which users believe
that technical support for using new technologies is easily accessible and
available to users (Venkatesh, 2012). The facilities the owner provides can be
in the form of equipment, training, technology, and so on (Chen et al., 2021),
because the MSMEs business performance is expected to develop further.
In the context of using cloud accounting systems, facilitating conditions
play an important role in influencing the use of this technology in MSMEs
(Haleem, 2020). If MSME owners are willing to provide facilities in the
process of using a cloud accounting system, then the organization will tend
to use the system to improve its performance (Ikumoro & Jawad, 2019).

Based on the arguments above, the current study proposed that:

H4: Facilitating conditions have a positive effect on the intention of MSME

owners to use cloud accounting systems.

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Price value
Price value is a person’s perception of the costs associated with
acquiring new technology as well as the benefits it will provide. Usually,
the use of new technology will cost a lot of money. Therefore, the benefits
derived from using new technology must also be commensurate with the
costs incurred. According to Venkatesh (2012), the perceived benefits
of using new technology must be greater than the costs incurred so that
consumers show a willingness to use the technology. Chen et al. (2021)
stated that there was a positive influence between price value and the desire
to use new technology. Cloud accounting systems can provide efficiency
benefits in financial management and accounting by significantly reducing
operational costs (Wicaksono et al., 2020). Thus, when the benefits obtained
from using a cloud accounting system are more significant than the costs
incurred, the intention to use the system will increase.

Thus, based on the arguments above, the current study proposed that:

H5: Price value has a positive effect on the intention of MSME owners to
use cloud accounting systems.

Perceived security
Perceived security is the user’s assumption about the security of using
cloud accounting applications. Usually, application users will see the security
of the application especially if the application involves financial data from
a business. Technology involves sensitive and personal data; the security
capacity to ensure the security of transactions is important and directly
determines consumers’ intention to adopt the technology (Ikumoro & Jawad,
2019). Therefore, good security from the cloud accounting application will
make users feel confident in applying it and entering financial data that is
important for their business (Wahyuni, 2018).

Based on the arguments above, the current study proposed that:

H6: Perceived security has a positive effect on the intention of MSME

owners to use cloud accounting systems.

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Cloud accounting
Cloud accounting is an information technology system that helps all
accounting processes on one platform easily and at a low cost and with the
help of an internet network. Cloud accounting provides many advantages
for companies compared to conventional information systems, including
increased real-time data processing capabilities and ease of access (Hung
et al., 2023). The use of information technology systems arises from the
intentions of top management (Ronaghi & Forouharfar, 2020) so the
use of cloud accounting systems in MSME businesses arises from top
management’s desire to use them. Effective use of a cloud accounting system
can produce fast, safe, and real-time financial information (Al-Okaily,
Alkhwaldi, et al., 2022). Therefore, it is hoped that top management’s
intention to use a cloud accounting system will make them apply it in their
business. Based on the statement above, this research proposed that:

H7: The intention of MSME owners to use a cloud accounting system has
a positive effect on the use of the cloud accounting system.

Decision quality
According to Visinescu et al. (2017), decision quality measures
the extent to which decision-making results align with an organization’s
expectations. Decision quality is influenced by the quality of information
obtained using the system (Al-Okaily, Alkhwaldi et al., 2022). Cloud
accounting systems for MSMEs are expected to provide quality financial
information, such as tax calculations, profit and loss, and other financial
details (Yusuf, 2020). This is the case (Al-Hattami, 2022), which states
that using technology among SMEs must provide benefits, including
increased performance, cost savings, and good decision-making. Al-Okaily,
Alghazzawi, et al. (2022) also stated that the advantage of using a cloud
accounting system is that it produces a quality, reliable, and accurate
information system that can support quality decision-making. Therefore,
using a cloud accounting system can provide benefits for MSME owners,
namely helping the process of making quality decisions regarding financial
information.

Based on the arguments above, this research proposed that:

H8: The use of a cloud accounting system has a positive effect on decision
quality.
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RESEARCH METHOD

Research Design

This empirical study sought to explain the factors that influence

the use of MSMEs cloud accounting in Indonesia. These factors include
performance expectancy, effort expectancy, social influence, facilitating
conditions, and price value. Furthermore, another factor, namely perceived
security, influences the level of security associated with cloud accounting. In
addition, the use of cloud accounting systems within the scope of MSMEs
is expected to provide quality decision-making for their business processes.
This research used primary data and includes the type of explanatory
research that emphasised the relationship between research variables and
tests the hypotheses formulated previously.

Population, Sample, and Sampling Technique

A population is a group of individuals or research objects that have

characteristics or qualities that have been applied. Based on these qualities,
the population can be understood as a group of individuals or objects of
observation with at least one common characteristic. The population in this
study were MSMEs in Indonesia that use cloud accounting. According to
the Central Bureau of Statistics in Indonesia, the total number of MSMEs
in Indonesia by the end of 2022 was 65.4 million and is likely to increase
([Link]). Of the total number of MSMEs, 83.8% (54.8 million)
were digitalizing or utilizing technology to support their business operations
(Indriastuti & Kartika, 2022).

The minimum number of samples in this study was calculated

using the G-Power application because this research was in the multiple
linear regression category, so it used the F-test category. Furthermore,
the minimum sample calculation was calculated based on the number of
predictors, where there were 6 predictors (independent variables) in this
study so that based on calculations on the G-Power system, the required
minimum sample needed for the study was 98 respondents. Then, after
knowing the minimum sample size, the sampling technique in this research
used a random sampling technique, where the sample was chosen randomly
from the total number of MSMEs in Indonesia.

209
tem, the required minimum sample needed for the study was 98 respondents. Then, after knowing the
nimum sample size, the sampling technique in this research used a random sampling technique, where
sample wasMANAGEMENT
chosen randomly from the total number of MSMEs in Indonesia.
AND ACCOUNTING REVIEW, VOLUME 23 NO 1, APRIL 2024

Figure
Figure 2: G-Power
2. G-Power

Measurement Variables

Each variable was outlined in the measurements as follows:

easurement Variables
Table 1: Measurement Variables
Each variable was outlined in the Indicator
Variable measurements as follows:
Scale Reference
Performance • Useful Likert scale (Al-Okaily,
expectancy • Increase Chances 13
of Achieving 1-5 Alkhwaldi, et
Things al., 2022)
• Accomplish things More Quickly
• Increase Productivity
Effort expectancy • Easy to Learn Likert scale (Al-Okaily,
• Clear and Understandable 1-5 Alkhwaldi, et
• Easy to Use al., 2022)
Social influence • The importance of using CA Likert scale (Al-Okaily,
• Influence someone to use CA 1-5 Alkhwaldi, et
• What do people think about al., 2022)
using CA
Facilitating • Use of technology Likert scale (Chen et al.,
condition • Ease of obtaining assistance 1-5 2021)

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 EXPLORING FACTORS INFLUENCING THE ADOPTION

Price value • Reasonably priced Likert scale (Ikumoro &

• Good value for the money 1-5 Jawad, 2019)
• Provide a good value
Perceived security • The ability to verify users’ Likert scale (Kinuthia,
identity 1-5 2015)
• Ensure the security of payment
information
Behavioral • Desire to use Likert scale (Al-Okaily,
intention of cloud • Always try to use 1-5 Alkhwaldi, et
accounting • Continue in the future. al., 2022)
Actual use of • Get help when experiencing Likert scale (Al-Okaily,
cloud accounting difficulties 1-5 Alkhwaldi, et
• Using relevant cloud accounting al., 2022)
applications
• Know how to use the cloud
accounting system
• Using a cloud accounting
system again
• Cloud accounting systems are
very helpful
Decision quality • Cloud accounting helps in Likert scale (Al-Okaily,
identifying work problems 1-5 Alkhwaldi, et
• Cloud accounting helps in al., 2022)
involving other people in
decision making
• Cloud accounting helps in
making more quality decisions
• Cloud accounting helps
in making decisions more
effectively

This research involved MSMEs in Indonesia because MSMEs were

considered businesses that have a high contribution to the economy in
Indonesia by contributing a Gross Domestic Product value of 60.34% over
the past five years (Wiralestari & Riski, 2020). In addition, the number of
MSMEs continued to increase every year, with a gradual increase of at least
2% each year (Hamundu et al., 2020).

Method of Collecting Data

The data for the study was collected using the survey distributed to the
selected MSME respondents in Indonesia who used cloud accounting. To
increase the response rate for the study, the questionnaires were delivered
by hand and collected after one week. Questionnaires were also distributed
via Google Forms to increase the response rate further. The minimum

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MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 23 NO 1, APRIL 2024

number of questionnaires that had to be collected was 98 respondents, but

from the results of the distribution, a total sample of 255 respondents was
obtained from a total of 300 distributed questionnaires, thus resulting in
an 85% response rate.

Analysis Techniques

Data Quality Test

This data quality test was intended to determine the consistency and
accuracy of the data collected from using the instrument.

1. Reliability Test
A reliability test is a tool for determining the dependability of a
questionnaire that serves as an indicator of a variable or construct. A
questionnaire is reliable if one’s answers to the questions are consistent
or stable from time to time. The reliability test was carried out by
calculating Cronbach’s alpha to be greater than 0.70 (Ghozali, 2021).

2. Validity Check
This test is intended to measure whether or not a questionnaire is valid
for measuring a construct (Ghozali, 2021). The validity test was carried
out by testing the homogeneity of the data with a correlational test
between the scores of each item and the total score of each variable.

Descriptive Statistics

Descriptive statistics are used to describe the variables in the study.

Descriptive statistics provide an overview of the data seen from the average
value, standard deviation, minimum value, and maximum value of the
variables studied.

Analysis Method

SEM-PLS was used to analyse the data for the study. SEM-PLS
application is used to examine the effect of the independent variables on the
dependent variable and to test for the hypotheses. This analysis will produce
evidence of the influence of performance expectancy, effort expectancy,
social influence, facilitating conditions, price value, and perceived security
on MSMEs in Indonesia using cloud accounting systems. In addition, this
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 EXPLORING FACTORS INFLUENCING THE ADOPTION

study also examined the effects of using cloud accounting systems on

decision quality in business processes in MSMEs.

RESEARCH RESULTS AND DISCUSSION

Description of Respondents

Respondents in this study were MSMEs in Indonesia. Data was

obtained by distributing questionnaires directly to MSME actors and online
via the Google form. Questionnaires were distributed in 300 copies, but
only 255 (85%) were returned and could be used as data in this study.
Another 45 (15%) incomplete questionnaires were excluded from the final
usable sample.

Table 2: Respondent Demographics

Information
Age:
0-20 years 4
21-25 years 53
26-30 years 58
31-35 years 62
36 years and over 78
Level of education:
Senior high school 43
Diploma 35
Bachelor 150
Master 27
Types of MSMEs:
Food 98
Fashion 73
Agribusiness 8
Drink 34
Other 42
Firm Size:
1-3 years 48
4-6 years 85
7-10 years 63
10 years and over 59

Based on the Respondent Demographic Table, it can be seen that the

majority of respondents were over 36 years old with the dominant education
level being a bachelor’s degree. This indicated that most respondents were of
mature age and could understand and accept current technological advances.

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MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 23 NO 1, APRIL 2024

Furthermore, most respondents had businesses operating in the food and

fashion sectors, meaning they had to record all types of production and
sales transactions so that their business continued to run well. If we look
at the age of most businesses, which is 4-6 years, it can be said that the
respondent’s business had started to develop and was no longer a startup.

Data Quality Test

The data quality test in this study used convergent validity,

discriminant validity, and Cronbach’s alpha. Based on Table 3, convergent
validity showed that the loading factor value was > 0.7 and the CR value
was > 0.7. Furthermore, in Table 4, Discriminant Validity, it could be seen
that the Heterotrait-Monotrait Ratio (HTMT) value < 0.85, and in Table 5, it
showed the Cronbach alpha value > 0.7. Figure 3 is the measurement model.
Therefore, the measurement was reliable and valid based on the three tables.

Figure 3: Measurement Model

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 EXPLORING FACTORS INFLUENCING THE ADOPTION

Table 3: Convergent Validity

Variable Loading CR
Performance Expectancy X1.1 0.906 0.933
X1.2 0.926
X1.3 0.881
X1.4 0.809
Effort Expectancy X2.1 0.832 0.935
X2.2 0.936
X2.3 0.957
Social Influence X3.1 0.830 0.892
X3.2 0.984
X3.3 0.742
Facilitating Condition X4.1 0.867 0.882
X4.2 0.909
Price Value X5.1 0.888 0.933
X5.2 0.922
X5.3 0.911
Perceived Security X6.1 0.973 0.947
X6.2 0.923
Behavioral Intention of cloud accounting Y1.1 0.881 0.920
Y1.2 0.880
Y1.3 0.911
Actual use of cloud accounting Y2.1 0.852 0.926
Y2.2 0.892
Y2.3 0.886
Y2.4 0.786
Y2.5 0.803
Decision quality Y3.1 0.868 0.915
Y3.2 0.866
Y3.3 0.866
Y3.4 0.815

Table 4: Discriminant Validity

Variable 1 2 3 4 5 6 7 8 9
1. Actual use of cloud
accounting
2. Behavioral intention of cloud
0.592
accounting
3. Decision quality 0.631 0.456
4. Effort Expectancy 0.110 0.161 0.067
5. Facilitating conditions 0.126 0.155 0.063 0.189
6. Performance Expectancy 0.132 0.247 0.269 0.033 0.082
7. Perceived security 0.034 0.078 0.085 0.168 0.059 0.083
8. Price Value 0.064 0.137 0.052 0.052 0.101 0.126 0.099
9. Social influence 0.069 0.055 0.065 0.088 0.061 0.072 0.128 0.066

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Table 5: Cronbach Alpha

Variable Cronbach’s Alpha
Actual use of cloud accounting 0.899
Behavioral intention of cloud accounting 0.870
Decision Quality 0.877
Effort expectancy 0.906
Facilitating condition 0.734
Performance expectancy 0.905
Perceived security 0.894
Price value 0.893
Social influence 0.870

Descriptive Statistics

Based on Table 6, descriptive statistics showed that the actual average

value for all variables in this study exceeded the average theoretical value.
This illustrated that the respondent’s assessment of all questions related
to this research was high. The actual value calculation results were taken
from the results of descriptive statistical tests from the SPSS 22 program.
Meanwhile, the theoretical value calculation results were calculated from
the number of questions per variable multiplied by the number of range
points on the scale used.

Table 6: Descriptive Statistic

Theoretical Real
Variable
Range Mean Range Mean
Performance expectancy 4-20 12 4-20 18.36
Effort expectancy 3-15 9 5-15 12.66
Social influence 3-15 9 6-15 14.01
Facilitating condition 2-10 6 4-10 8.67
Price value 3-15 9 3-15 9.85
Perceived security 2-10 6 2-10 7.00
Behavioral intention of cloud accounting 3-15 9 4-15 11.45
Actual use of cloud accounting 5-25 15 8-25 20.11
Decision Quality 4-20 12 5-20 16.84

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 EXPLORING FACTORS INFLUENCING THE ADOPTION

SEM-PLS Analysis Test

The path diagram below is the result of the SEM-PLS analysis test
to explain and determine the effect of performance expectancy, effort
expectancy, social influence, facilitating conditions, price value, and
perceived security variables on the use of cloud accounting. In addition,
the results of this analysis test explained the effect of cloud accounting on
decision quality. Based on the results of the path diagram, it could be seen
that the variables social influence, price value, and perceived security had
a T-statistic value of less than 1.645. This indicated that these variables
had no effect on cloud accounting variables. Meanwhile, the performance
expectancy, effort expectancy, and facilitating conditions variable had a
T-statistic value of more than 1.645, indicating that this variable had an
effect on cloud accounting variables. Furthermore, the results of this analysis
test showed that the T-statistic value for the cloud accounting variable was
greater than 1.645, thus explaining that cloud accounting had an effect on
the actual use of cloud accounting systems. Furthermore, the actual use of
cloud accounting variable also had a T-statistic value of more than 1,645,
which meant that using a cloud accounting system in MSME businesses
can improve the quality of their business decision making.

Figure 4: Structural Model

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Table 6: Hypothesis Testing

Std Std P
Hypothesis Relationship T-Value F2 VIF Decision
Beta Dev values
H1 Performance 0.211 0.060 3.490 0.000 0.049 1.020 Supported
Expectancy → Cloud
Accounting
H2 Effort Expectancy → 0.177 0.078 2.274 0.012 0.034 1.053 Supported
Cloud Accounting
H3 Social Influence → -0.063 0.082 0.764 0.222 0.040 1.007 Not
Cloud Accounting supported
H4 Facilitating Conditions 0.148 0.059 2.522 0.006 0.024 1.033 Supported
→ Cloud Accounting
H5 Price Value → Cloud 0.111 0.070 1.579 0.057 0.041 1.019 Not
Accounting supported
H6 Perceived Security → 0.075 0.074 1.012 0.156 0.060 1.040 Not
Cloud Accounting supported
H7 Cloud Accounting → 0.530 0.064 8.331 0.000 0.391 1.000 Supported
Actual Use of Cloud
Accounting
H8 Actual Use of Cloud 0.570 0.069 8.312 0.000 0.482 1.000 Supported
Accounting →
Decision Quality

The influence of the independent variable on the dependent variable

in this studywas also seen from the p-value and beta. Based on the results
of the SEM-PLS analysis test in Table 6, it can be seen that the p-values for
the variables social influence, price value, and perceived security exceeded
0.05. This indicated that these variables had no significant effect on cloud
accounting variables. While the performance expectancy, effort expectancy,
and facilitating conditions variable hada p-value less than 0.05 with a beta
value indicating a positive number, it can be concluded that the variable
had a significant positive effect on cloud accounting variables. Furthermore,
the cloud accounting variable also had a significant positive effect on the
actual use of cloud accounting variables. This can be seen from the p-value
of 0.000 < 0.05, with the beta value indicating a positive number. Besides
that, the actual use of the cloud accounting variable also had a positive
effect on the decision quality variable because it had a p-value of less than
0.05, with the beta value showing a positive number.

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DISCUSSION

Effect of Performance Expectancy on Behavioral Intention of

Cloud Accounting

Based on the results of the SEM-PLS analysis test, it can be seen that
the statistical results showed that the performance expectancy variable had
a positive effect on the desire of MSME players to use cloud accounting.
The results of this research align with Sanjaya & Aryanti (2016) and
Chen et al. (2021) that high-performance expectations indicated that users
feel comfortable with cloud accounting applications because they benefit
business continuity. There is a sense of trust emerging from users that
using a cloud accounting system can improve the performance, quality and
efficiency of their business work (Al-Okaily, Alkhwaldi et al., 2022). Apart
from that, the cloud accounting system can provide benefits to its users,
namely assisting in recording all financial transactions in real-time (Yusuf,
2020). This will strengthen the confidence of MSME owners to use a cloud
accounting system in their business activities.

Effect of Effort Expectancy on Behavioral Intention of Cloud

Accounting

The results of the SEM-PLS analysis test to test the influence between
effort expectancy and the desire to use a cloud accounting system were
supported because the statistical results showed a T-statistic value of more
than 1.645 and a p-value of less than 0.05. This means that MSME owners
felt that the cloud accounting system provides comfort and convenience
in using it. Cloud accounting systems make it easier for users to record
financial records and all types of transactions in business online anywhere
and anytime (Hamundu et al., 2020). This explains that users’ desire to use a
cloud accounting system will increase along with the increasing convenience
obtained from using the system. Chen et al. (2021) also found that there
was a correlation between effort expectancy and system use.

Effect of Social Influence on Behavioral Intention of Cloud

Accounting

The results of the SEM-PLS analysis test showed that social influence
had no effect on the intention of MSME owners to use a cloud accounting
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system. Currently, the use of cloud accounting has become a trend in carrying
out financial records in the business world (Sastararuji et al., 2021a). They
feel that the use of cloud accounting is essential for the development of
their business, so there is no need for influence from other parties to use the
system. This is reinforced by the results of the respondents’ answers, where
they felt familiar with the use of technology and are used to using it. The
results of this research are in line with research by Al-Azawei and Alowayr
(2020) that social influence does not influence consumers to use information
technology, but is not in line with research conducted by (Tamilmani et al.,
2021) and (Al-Okaily, Alkhwaldi, et al., 2022) that social influence has an
influence on the intention of cloud accounting applications usage.

Effect of Facilitating Conditions on Behavioral Intention of

Cloud Accounting

The statistical results of the SEM-PLS analysis test for the influence
of facilitating conditions on the intention to use a cloud accounting system
were supported because the T-statistic value was more than 1.645 and
the p-value is less than 0.05. Facilitating conditions refer to the training,
facilities, and support provided by the vendor in using the system. The
excellent support provided in using the system makes new users of the
cloud accounting system highly desire to use the system. Moreover, cloud
accounting systems have many benefits for business continuity (Darren,
2021). The results of this research are supported by research conducted by
Ikumoro & Jawad (2019) and Chen et al. (2021), which stated that there
was a significant influence between facilitating conditions and the desire
to use a cloud accounting system.

Effect of Price Value on Behavioral Intention of Cloud

Accounting

The results of the SEM-PLS analysis test on the influence of price

value on the intention of MSME owners to use a cloud accounting system
were not supported. In general, MSME owners believed that using a cloud
accounting system requires a lot of costs, but this aligns with the many
benefits obtained from using the system (Venkatesh, 2012). However, the
results of this research stated that there was no influence between the costs
incurred for using the cloud accounting system and the user’s (MSME

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 EXPLORING FACTORS INFLUENCING THE ADOPTION

owner) desire to use the system. This was due to competitive pressure
from competitors, which means companies must have innovations in the
form of information technology to be able to compete (Tawfik et al., 2022)
so that MSME owners do not see the costs of using a cloud accounting
system if they are going to use it. Judging from the number of respondents,
the majority were bachelors degree holders, who can be said to be highly
educated people, so they will be willing to incur costs to get the benefits
of using a cloud accounting system for business development. The results
of this research are not in line with study conducted by Sanjaya & Aryanti
(2016) and Chen et al. (2021) that price value significantly influenced the
intention to use a cloud accounting system.

Effect of Perceived Security on Behavioral Intention of Cloud

Accounting

The results of the SEM-PLS analysis test in this research stated that
perceived security had no effect on the intention of MSME owners to use
a cloud accounting system. Perceived security is not part of the UTAUT
theory but is an important factor that can influence the use of the new system
(Al-Okaily, Alkhwaldi, et al., 2022). The use of cloud accounting systems
has now become a trend in the business world (Sastararuji et al., 2021b). In
addition, having vendors assist in the process of using the system has resulted
in MSME owners not paying attention to security because they have handed
over the entire process of using the cloud accounting system to the vendor.
The results of this research are in accordance with research conducted by
Tawfik et al.,(2022) that showed that perceived security did not significantly
influence top management’s desire to use a cloud accounting system.

Effect of Behavioral Intention of Cloud Accounting on Actual

Use of Cloud Accounting

The results of the SEM-PLS analysis test in this research stated that
the behavioral intention of cloud accounting variable positively affected
the actual use of cloud accounting. Ronaghi & Forouharfar (2020) showed
that there was a relationship between user intentions and behavior in using
information technology systems. This indicated that the greater intention of
users (MSME owners) to use a cloud accounting system will cause them to
use it in their business activities. This was reinforced by the high level of

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respondents’ answers regarding the level of desire of users (MSME owners)

to use the cloud accounting system for business continuity, which gave rise
to behavior to actually use the system in their business. The results of this
research are supported by research Al-Okaily, Alkhwaldi, et al. (2022) that
the behavioral intentions of cloud accounting system users increases the
actual use of cloud accounting systems.

Effect of Actual Use of Cloud Accounting on Decision Quality

The analysis test results showed that the use of a cloud accounting
system can influence the decision quality that will be produced by top
management. Using cloud accounting systems is one way for MSME
owners to make quality business decisions. This is because a good cloud
accounting system is able to produce financial information that can help
in financial planning, such as calculating taxes, profit and loss, and future
business developments (Yusuf, 2020). Therefore, the information produced
by using a cloud accounting system can be considered for MSME owners
to make quality decisions. According to research conducted by Al-Okaily,
Alkhwaldi, et al. (2022), a cloud accounting system in an organization can
help business owners make decisions for future business development.

CONCLUSION

This research examined the influence of factors contained in the UTAUT

Theory, namely performance expectancy, effort expectancy, social influence,
facilitating conditions, price value, as well as other factors outside the
UTAUT Theory, namely perceived security on the desire of MSME owners
to use a cloud accounting system in MSMEs. Additionally, the influence
of intentions to use cloud accounting systems on the actual use of cloud
accounting systems was also tested. Furthermore, this research also tested
the influence of the actual use of cloud accounting on decision quality.

The PLS-SEM analysis found that social influence, price value, and
perceived security did not significantly impact MSME owners’ intention to
use cloud accounting systems. Conversely, performance expectancy, effort
expectancy, and facilitating conditions are influential factors in fostering the
desire to adopt cloud accounting systems. Additionally, the study revealed

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 EXPLORING FACTORS INFLUENCING THE ADOPTION

a positive association between MSME owners’ inclination to use cloud

accounting systems, the actual utilization of such systems, and the resulting
positive effect on decision quality. Among the eight hypotheses tested, only
Hypotheses 3, 5, and 6 were rejected, indicating a nuanced relationship
between various factors and adopting cloud accounting systems in MSMEs.
The use of cloud accounting systems has become a trend (Sastararuji et al.,
2021), and the majority of users need help from system vendors to operate
them (Kinuthia, 2015). The emphasis appears to shift from the complexities
of system usage to the perceived benefits, positioning cloud accounting as
a valuable tool for informed business decision-making (Hung et al., 2023).
Furthermore, the study emphasized the positive impact of actual cloud
accounting system use on the decision-making quality of MSME owners,
reinforcing the significance of technology adoption for business continuity.
Indeed, this study has extended the UTAUT perspective regarding cloud
accounting adoption in MSMEs in Indonesia.

The implication of this research is for the software house or the

information technology to focus on reducing the price of the cloud accounting
for the MSMEs in Indonesia. Indonesia has a large market of MSMEs that
cloud accounting providers can penetrate; with the economies of scale,
cloud accounting providers must consider reducing the application cost.
Another implication is while the price of cloud accounting is recommended
to be reduced, the decision quality produced based on the extracted report
from cloud accounting must not be sacrificed. The finding from this study
supports this conjecture. The output from cloud accounting must lead to
the correct business managers’ decisions. The MSMEs in Indonesia are less
concerned about other factors regarding cloud accounting.

This study has limitations, namely the questionnaires being distributed

online so researchers were less able to explain precisely the question items
that respondents feel they do not understand. Additionally, it is suggested
that future studies explore more the elements that affect the use of the cloud
accounting system, for instance, as seen from the Technology-Organization-
Environment and Technology Acceptance Model framework.

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ACKNOWLEDGEMENT

The authors would like to thank the Accounting Research Institute (HICOE)
and Ministry of Higher Education, grant code: 100-TNCPI 5/3/DDJ(ARI)
16/6/2 (004/2023) for providing the necessary financial assistance for this
study.

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