Abstract

The latest technology that must be applied to prepare for modernity is based on information technology. This technology is not only used by large companies (enterprises) but can also be utilized by Micro, Small and Medium Enterprises (MSMEs). One of the utilization of technology is cloud computing by Micro and Medium Enterprises (MSMEs) which is increasingly widespread. This is reasonable because cloud computing technology provides benefits with a simpler process and relatively low costs. In line with this, this study aims to determine the factors that influence the adoption of cloud computing in MSMEs. An integrated model was developed based on the Technology, Organization, and Environment (TOE) framework. This research data was obtained through a structured survey questionnaire given to 150 MSME owners/managers in the Soloraya Region. The results obtained through SEM-PLS analysis show that factors such as organizational readiness and competitor pressure have a significant effect on cloud computing adoption in MSMEs in the Soloraya Region. However, factors of relative advantage, complexity, and top management support were found to have no significant effect on cloud computing adoption. This research provides a theoretical contribution to the expansion of the TOE Framework.

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