Software as a Service Adoption in Micro, Small and Medium Enterprise in Indonesia: Examining the Environmental Factors

This research aims to identify factors affecting adoption of Software as a Service (SaaS) in Micro, Small and Medium Enterprises (MSME). The combination of technological organization environment (TOE) framework, institutional theory (INT), and diffusion of innovation (DOI theory) were used as the basis of environment factors that influence adoption of SaaS. Data were collected from 136 owners or directors of MSMEs around Indonesia representing MSMEs with diverse backgrounds. Through the use of PLS-SEM, this research confirms environmental factors affecting MSMEs in adopting SaaS technology. Furthermore, this research also discusses the influence of environmental factors in different organizational scales of MSMEs (micro, small, and medium).