BÁO CÁO TÔNG KÉTĐÈ TÀI NGHIÊN cúu KHOA HỌC THAM GIA XÉT GIẢI THƯỞNG “NHÀ NGHIÊN CỨU TRẺ UEH” NĂM 2024 FACTOR IN THE CORPORATE ENVIRONMENT THAT INFLUENCE THE ADOPTION OF CLOUD COMPUTING
Background
The rapid growth of information technology has led to an increasing number of people accessing the internet, creating opportunities for global commerce (Ardiansah et al., 2020) Vietnam is emerging as a promising market for online goods and services due to its swift internet expansion Cloud computing plays a crucial role in this evolution, providing a platform for seamless data exchange and integration across vast distances This technology, particularly exemplified by Cloud Computing Accounting Information Systems, allows for the processing of accounting data without users needing to understand the underlying physical infrastructure (Mihalache, AS., 2011).
Cloud computing technology in Vietnam is still emerging compared to other nations, with IBM Vietnam establishing the country's first cloud computing center in September 2008, showcasing its leadership in this sector This technology is increasingly utilized across various domains, including office administration, human resources, consumer relations, and accounting.
A recent report presented at the "Vietnam IT Overview" conference reveals that only 3% of Vietnamese businesses do not intend to adopt cloud computing, while 25% are exploring the technology without immediate plans for implementation In the next six months, 8% of respondents aim to start using cloud computing, and currently, 39% are actively utilizing it, with an additional 19% having previously used it and intending to continue Notably, the National University of Singapore's 2017 report highlights Vietnam as having the fastest-growing cloud computing sector in Southeast Asia Furthermore, the Asian Cloud Computing Association ranked Vietnam 14th in Asia in 2018, achieving a score of 41.
Cloud Computing Accounting Information solutions enhance efficiency by reducing the need for a large accounting staff, as they provide an integrated online platform for managing complex processes and requests This innovative approach ensures comprehensive cloud service coverage, streamlining operations and improving productivity within the accounting department.
Cloud computing accounting information systems (AIS) offer significant advantages over traditional locally managed systems, including enhanced scalability, improved access to advanced hardware and software, lower capital requirements, superior cost control, and better collaboration with supply chain partners Research indicates that cloud-based AIS provide increased accessibility, real-time collaboration, cost-effectiveness, and powerful data processing capabilities (Asatiani et al., 2019) This technology enables accounting firms and client companies to collaborate more effectively, transforming accounting practices and creating new organizational structures in outsourced settings Small and medium-sized enterprises (SMEs) with limited resources are particularly drawn to cloud solutions for their cost efficiency and flexibility, making them essential for enhancing business competitiveness and productivity In Ho Chi Minh City, over 70 accounting software providers exist; however, local businesses are still in the early stages of adopting online accounting solutions, facing concerns related to privacy, functionality, security, and user-friendliness compared to traditional software.
This study aimed to identify the factors influencing accountants and business managers in Ho Chi Minh City regarding their intention to adopt online accounting software, thereby supporting businesses that provide these services in their decision-making processes.
Research objectives
- Firstly, this paper examines factors impacting the use of cloud computing accounting information systems in SMEs.
- Secondly, to determine the interaction of these factors with the use of cloud computing accounting information systems in SMEs.
- Additionally, it offers helpful suggestions to assist administrators in taking actionable steps to implement AIS.
Research questions
- What factors have an effect on SMEs’ usage of cloud computing accounting information systems?
- How are those factors impact on SMEs' usage of cloud computing accounting information systems?
Research scope
Location Scope
The scope of the research is Ho Chi Minh City, Viet Nam.
Time scope
The research was conducted from December 2023 to February 20234.
Research subjects
The use behavior of cloud computing accounting information systems.
Respondents
Accountants, audits and finance staff at Small and Medium-sized enterprise in Ho Chi Minh City, Viet Nam.
Research method
This study utilizes quantitative research methods to identify a research gap by reviewing previously published articles and proposing a new theoretical research model Data is collected through a convenient sampling approach via a Google Form questionnaire The analysis of this data includes testing the scale and model using PLS-SEM.
THEORETICAL BACKGROUND
The TOE framework
The TOE framework, introduced by Tornatzky and Fleischer in 1990, serves as a crucial model for understanding the adoption of new technologies within organizations This organizational-level theory identifies three key components that influence adoption decisions: the technology context, the organizational context, and the environmental context Research indicates that these three factors collectively impact technological innovation (Baker, 2011).
FIGURE 1: The technology - organization - environment (TOE) framework
The technological context encompasses both the technologies currently utilized by the company and those available in the market but not yet adopted It highlights the internal and external characteristics of innovative technologies and their relevance to the firm's operations (Baker, 2011).
(Tornatzky et al., 1990) These technologies could be either equipment or practice (Alshamaila Ct al., 2013)
The organizational context encompasses the resources and attributes that influence the decision to adopt new practices, as highlighted by Tornatzky et al (1990) Key factors include the connections between employees, communication processes within the firm, the size of the organization, and the availability of slack resources, as noted by Baker (2011).
- The environmental context: The environment in which a business operates can be linked to external factors like the industry, rivals, and the existence of technological service providers (Alshamaila et al., 2013)
The success of technology adoption hinges on the interaction between technology, organization, and environment, as outlined by the TOE framework (Tornatzky et al., 1990) Even if a technology aligns with an organization's goals and capabilities, external factors can impede its adoption Similarly, a lack of necessary tools or knowledge can hinder a company's ability to implement new technology effectively (Mohammed Horani et al., 2023) The TOE framework is well-established in analyzing technological advancements, supported by a robust theoretical foundation and empirical evidence (Oliveira, 2011).
The Technology Acceptance Model (TAM) is a broad framework that does not pinpoint the specific factors influencing the adoption of technology in different contexts Consequently, researchers must incorporate relevant elements that align with the unique circumstances of their studies (Hsu & Lin, 2015).
Cloud computing services
The National Institute of Standards and Technology (NIST) defines cloud computing as a model that provides convenient, on-demand network access to a shared pool of configurable computing resources, including networks, servers, storage, applications, and services, which can be quickly provisioned and released with minimal management effort or service provider interaction This cloud model encompasses three distinct service models.
Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (laaS).
Software as a Service (SaaS) delivers Internet-based services, such as email and CRM software, allowing users to focus on utilizing the product without the burden of managing software updates or the costs and efforts associated with software licensing maintenance.
Platform as a Service (PaaS) enables customers to deploy applications they have either purchased or developed using the provider's cloud-based programming languages, libraries, services, and tools, all within a robust infrastructure.
2011) In essence, PaaS is similar to SaaS, except it allows users to create software in addition to utilizing it (Goscinski & Brock, 2010)
Infrastructure as a Service (IaaS) allows cloud clients to configure computer systems flexibly, from individual servers to entire clusters, by provisioning hardware resources This model alleviates concerns over hardware expenses, enabling clients to host their own services and software systems, such as firewalls Unlike Platform as a Service (PaaS) and Software as a Service (SaaS), IaaS clients can create and utilize their own software alongside the necessary underlying infrastructure.
In particular, cloud computing provides the following main benefits: (Marston et al., 2011)
Cloud computing lowers the barriers to entry for businesses of all sizes, enabling even small companies to utilize powerful computing resources for complex operations such as business analytics By sharing the costs of expensive technology, these businesses can access capabilities that were once exclusive to large enterprises, fostering significant opportunities for innovation and growth across the entire business landscape.
Cloud computing eliminates the need for significant upfront investments in IT infrastructure, allowing businesses to treat IT as an operational expense This shift leads to faster time-to-market and increased financial flexibility Additionally, the cloud's dynamic capabilities facilitate on-demand resource expansion, enabling organizations to swiftly adapt to changing demands.
- Reduced IT hurdles to innovation: Cloud computing enables companies of all sizes, from startups to Facebook and Youtube, to quickly develop and expand online applications.
- Dynamic scaling depending on demand: Software-driven resource management enables businesses to easily scale up or down computing resources (storage, processing power) in response to changing customer needs.
- Additionally, cloud computing provides services and opens up new application classes that were previously unattainable.
Small and Medium Enterprises (SMEs)
A business is a psychological union of individuals or groups, known as agents, each pursuing their own goals According to the scientific management method, a company consists of two primary participant groups: managers and shareholders, which expands and restricts the organizational structure In reality, businesses include managers, shareholders, and employees, who do not form a homogeneous group Additionally, other stakeholders, such as suppliers, capital sponsors, and customers, play a role in the broader business ecosystem.
Under Vietnamese legislation, SMEs are classified into three categories: micro, small, and medium-sized businesses, as outlined in Article 6 of Decree No 39/2018/ND-CP Micro businesses employ up to 10 people, small businesses have a workforce of up to 50, and medium-sized businesses can have up to 300 employees (Hussain et al., 2021; Xiang et al., 2021).
Vietnam Briefing, 98% of businesses in Vietnam are SMEs, accounting for 40% of the country's GDP and 50% of employment, or 1.2 million jobs, of which 96% are small- or micro-sized.
Small and medium-sized enterprises (SMEs) are crucial to the economy of each country, and in Vietnam, they represent 96.7% of all enterprises, contributing significantly to hardware, technology, legal, and human resources infrastructure In Ho Chi Minh City, SMEs fulfill various essential roles that support the local economy and drive growth.
Small and medium enterprises (SMEs) are vital to the economy, representing a significant majority of all businesses In Ho Chi Minh City, for instance, approximately 264,407 SMEs make up an impressive 97.5% of the total number of enterprises, highlighting their crucial role in the local economic landscape.
- Stabilising the economy - shock absorbers for the economy: in most economies, small and medium-sized enterprises are subcontractors for large enterprises
- Make the economy dynamic: since small and medium-sized enterprises are small, it is easy to regulate (theoretically) operations.
- Create important ancillary industries and services: small and medium-sized enterprises often specialise in producing a few parts that are used to assemble into a finished product.
- A significant contribution to GDP value to the country.
Small and medium-sized enterprises are encountering significant challenges, including a shrinking market (41.2%), excessive inventory levels (30.1%), and increasing input material costs (17.6%) Additionally, they struggle with accessing capital sources (40%), facing high loan interest rates (43%), and navigating complicated and time-consuming loan procedures (38.2%).
Expert analysis reveals that small and medium-sized enterprises (SMEs) have allocated the majority of their resources to initial investments in factories, premises, equipment, and machinery As a result, these businesses often lack the necessary capacity to engage in additional activities.
To alleviate the initial investment burden and enhance production efficiency, businesses urgently require financial support from banks and favorable state policies Additionally, the establishment of specialized service standards, akin to "midwives" for factory models, is essential to enable these enterprises to concentrate on their operations and growth.
From these difficulties, it is almost difficult for SMEs to scale, change equipment, technology, technical improvements and a vicious cycle of difficulties continues to pile up.
To ensure robust growth of small and medium-sized enterprises (SMEs) in the evolving landscape and enhance their contribution to socio-economic development, it is essential to focus on several key strategies.
- Continue to improve the favourable business environment for the creation and operation of small and medium-sized enterprises.
Local authorities must focus on key areas to drive progress, including enhancing transparency and accessibility of information, intensifying administrative reforms, improving civil servant quality, fostering a supportive environment for new businesses, and developing comprehensive infrastructure to support economic growth.
- Complete market policies, support businesses in branding.
To enhance land resource management, it is essential to establish clear operational mechanisms that strengthen the supervisory roles of authorities and mass organizations at all levels In terms of labor resources, prioritizing training programs is crucial for improving employee skills and enhancing the management capabilities of enterprise leaders.
Regarding capital sources, creating solutions to expand and improve credit capacity for enterprises through the renewal of credit mechanisms and policies of banking institutions.
To enhance the management and administration capabilities of enterprises, business administrators should focus on acquiring modern and professional management knowledge and skills Additionally, proficiency in foreign languages and applied informatics is essential for effective trade and management of enterprise information systems.
Effective market research and trade promotion are essential for both domestic and export markets For the domestic market, it is crucial to identify products with unique strengths, continually enhance product quality, and diversify offerings to meet consumer demands In contrast, for export markets, businesses should focus on conducting thorough market research, establishing robust distribution channels, and expanding their network of overseas sales agents Additionally, fostering relationships and promoting trade through associations, trade agencies, and participation in international fairs can significantly boost market presence and sales opportunities.
Small and medium-sized enterprises must optimize their workforce by standardizing labor processes and implementing various forms of strength training and retraining Additionally, establishing clear policies that outline employees' rights and responsibilities can help motivate staff and enhance overall productivity within the organization.
- Raising technical and technological levels in the direction of: raising capacity, innovating technical and technological management mechanisms, grasping and mastering technology, producing products with high technology content.
To enhance collaboration and foster joint ventures, businesses should consider outsourcing contracts, engaging subcontractors, or forming associations It is essential to focus on the shared use of infrastructure and other critical resources to ensure seamless operations This approach not only strengthens the ties between the parties involved but also promotes a more effective and cohesive partnership.
Small and medium-sized enterprises (SMEs) are crucial to the economy, providing stability and significantly contributing to national budget revenues They play a vital role in job creation across the country and account for a substantial portion of the country's GDP.
Construct
Relative advantage, as defined by Rogers (2003), refers to the perception of an innovation's superiority over the idea it replaces Innovations that demonstrate clear benefits, particularly in cost-effectiveness or efficacy, are more likely to be adopted, according to Greenhalgh et al (2004) In the context of cloud computing, its relative advantage lies in its potential to reduce costs and increase sales (Zhu et al., 2006a).
Ease of use, as defined by Moore and Benbasat (1991), indicates that a system should require minimal mental or physical effort, contrasting with the complexity that makes technology difficult to understand Research has extensively explored how traditional and entrepreneurial organizations can leverage technological advancements to enhance performance Recent technological developments have significantly increased access to information through wireless technologies, enabling immediate retrieval of corporate and personal data via web-based resources Users of devices like Blackberries, iPhones, and laptops can quickly access information through social networking platforms such as Facebook, MySpace, and Twitter, which companies utilize for transactions, communication, advertising, and establishing credibility.
Compatibility refers to how well a technological innovation aligns with an organization's existing practices, beliefs, and needs (Rogers, 2003) It is essential for technology to integrate seamlessly with current systems, making compatibility a critical consideration during implementation, despite advancements in system compatibility over time (Lian et al., 2014; Premkumar et al., 1997).
A significant barrier to the adoption of technological innovations in businesses is the compatibility of new solutions with existing applications Many cloud service providers utilize proprietary software that may not align with clients' current systems, necessitating adjustments to their infrastructure for effective cloud integration Additionally, users expect new services to be innovative, beneficial, and offer distinct advantages, further complicating the compatibility issue.
Trialability is a key factor in the adoption of new technology, as it allows potential users to experiment with an innovation on a limited basis, leading to a higher acceptance rate (Rogers, 2003) Studies show that the more an innovation is tested, the more likely it is to be adopted, with the possibility of reinvention occurring during this process This means that potential adopters can modify the innovation to better fit their needs, which can accelerate its uptake Additionally, vicarious trial experiences are essential for the acceptance of new inventions, especially among later adopters, while early adopters tend to place a higher value on trialability.
Perceived security refers to a user's belief that cloud computing is risk-free A 2008 IDC poll revealed that 74.6% of businesses identified security as their top concern regarding cloud computing Key security issues, such as data lock-in, confidentiality, and auditability, are significant barriers to the growth of cloud services, as noted by Armbrust et al (2010) With rising risk perceptions related to online applications, security has emerged as the most crucial factor affecting organizations' adoption of internet-related services.
Research indicates that the adoption of technological innovations is significantly influenced by the support and attitudes of upper management towards change Studies show that top management support serves as a crucial link between individual and organizational ICT innovation adoption This support is essential for maintaining the relevance of potential changes, as it involves articulating a clear organizational vision and signaling to employees the importance of new technologies.
2011) Furthermore, owner participation guarantees that adequate funds are set aside for implementing the relevant new technologies (Premkumar & Potter, 1995; Annukka, 2008).
Adoption costs and system maintenance are critical factors for SMEs considering e-commerce or ICT implementation, as the benefits must surpass the associated expenses Malaysian SMEs frequently hesitate to invest in system development and maintenance due to financial constraints Research indicates that cost is a significant barrier to adoption, with financial resources also identified as a challenge to SME growth in digital channels.
In 2011, it was highlighted that small and medium-sized enterprises (SMEs) must accurately evaluate their capabilities to fully leverage IT adoption and avoid underestimating its potential Recognizing IT as a strategic tool is crucial for competing with both peers and larger competitors in the global market Previous studies, including those by Kuan & Chau (2001), Porter & Donthu (2006), Shin (2009), and Taylor & Todd (1995), have identified the perceived burden of cost (PBC) as a significant factor influencing the adoption of new technology, especially during the initial stages of Internet integration PBC can directly affect intentions and behaviors regarding technology acceptance, with Porter & Donthu (2006) specifically identifying cost as a major barrier to technology uptake.
Donthu (2006) discovered that even if perceived value was high due to utility or simplicity of use, a large financial burden had a negative impact on acceptance intention.
The regulatory environment significantly shapes cloud services through the influence of company and government rules Government policies and regulations play a crucial role in driving innovation and its adoption in the cloud computing sector.
The security of a company's data in an external cloud environment is heavily influenced by the existing regulatory framework; inadequate regulations can discourage firms from adopting these services Key regulatory considerations include compliance, indemnity, liability, and data portability, all of which play a crucial role in ensuring data protection and fostering trust in cloud solutions.
LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK
Hypothesis development
The Diffusion of Innovation Theory, developed by Rogers and Shoemaker in 1971 and earlier by Rogers in 1962, serves as a foundational framework for understanding IT adoption This theory analyzes how individuals adopt innovations based on specific attributes of the innovation itself Various models have been employed to explore this phenomenon further.
IT adoption within organizations is influenced by various factors, including external environmental influences, as highlighted by the innovation dissemination approach (Hovav et al., 2004; Dos Sanios and Peffers, 1998; Rogers, 1995) Contingent Models categorize these influences into three main factors: technology, organization, and environment (Premkumar et al., 1997; Tornatzky and Fleischer, 1990) Additionally, some models concentrate exclusively on specific sets of these factors, providing a more focused analysis of adoption dynamics.
Relative advantage refers to the perception of an innovation as superior to its predecessor (Rogers, 2003) In the context of cloud accounting adoption, this concept plays a crucial role, as many SMEs recognize its significance in their IT initiatives Key benefits such as efficiency, accessibility, speed, accuracy, and professionalism contribute to cost savings and enhanced profitability (Martins et al., 2016) Furthermore, the relative advantages of e-commerce, including increased revenue, improved communication among customers, suppliers, and staff, and streamlined order tracking, are pivotal in driving SMEs towards adopting new technologies (Baldwin, A.).
A Lymer and R Johnson, 2000) Relative advantage has a considerable impact on
Vietnamese SMEs show a significant intention to adopt cloud computing accounting software, supported by a p-value of 0.152 (p < 0.05), confirming hypothesis H1 (Hsu & Lin, 2015) The research indicates that firms are more inclined to implement cloud accounting solutions when they recognize benefits such as reduced investment and maintenance costs, improved scalability, flexibility, mobility, and resource sharing These findings align with previous studies conducted by Bhardwaj et al (2010), Benlian & Hess (2011), and Marston et al (2011), reinforcing the importance of understanding cloud computing advantages for successful adoption.
V et al (2022) emphasized the influence of this factor (P= 0.3 81, p = 0.000) Therefore, the research team proposes the following hypothesis:
Hl: Relative advantage is positively associated with SMEs to adopt cloud computing accounting information systems.
Perceived ease of use refers to the extent to which individuals believe that using cloud computing requires minimal effort According to Moore & Benbasat (1991), complexity implies that technology is difficult to comprehend, while ease of use suggests that operating a system demands little mental or physical exertion (Thompson et al., 1991) Research by Hsu & Lin (2015) indicates that trialability has a positive effect on technology adoption in business models, with a beta weight of p = 0.260 (p < 0.01) Additionally, Sulaiman et al (2023) found that ease of use significantly influences adoption, with a beta weight of p = 0.590 (p = 0.000) Based on these findings, we propose the following second research hypothesis.
H2: Ease of use is positively associated with SMEs to adopt cloud computing accounting information systems.
Compatibility, as defined by Rogers (2003), refers to how well a technical breakthrough aligns with existing operational procedures, beliefs, values, prior experiences, and requirements When new technologies are proposed and subsequently rejected, their effectiveness is often compared to past technologies (Toransky & Fleischer, 2003) Research by Brown and Kaewkitipong (2009) and Mndzebele (2013) indicates that organizations are more likely to adopt technology that resonates with their culture and values, particularly when there is minimal resistance from employees The rate of technology diffusion increases with higher compliance to perceived demands However, compatibility issues can hinder the adoption of new technologies, as organizations may need to modify their current operations to fully benefit from these innovations Additionally, a study by Hsu & Lin (2015) highlights that top management support significantly fosters technological innovation, with a beta value of p=0.174 (p < 0.05) This is echoed in recent findings by Chittipaka et al (2022), which show that top management support also greatly influences the adoption of information technology in small and medium-sized enterprises (SMEs) (p=0.211, p=0.000) Thus, the study group proposes the following theory:
H3: Compatibility is positively associated with SMEs to adopt cloud computing accounting information systems.
Trialability refers to the degree to which an innovation can be tested in a limited environment prior to its acceptance or rejection (Karahanna et al., 1999) Innovations that allow for gradual testing tend to be adopted more easily Research on IT adoption shows that while trialability plays a significant role in the acceptance of new technologies, its impact is generally less pronounced than that of relative advantage or compatibility.
(Alshamaila et al., 2013) Internal organisational experts will see cloud computing accounting information system adoption as very beneficial if they can participate in innovative services to some degree.
Ahuja et al., (2016) found that trialability positively influences the adoption of technology in a business model, with a beta weight value of 0.121, p < 0.05 Lee & Yoon,
A 2022 study revealed that the decision to adopt cloud computing is positively influenced by trialability, as indicated by a path coefficient value of beta weight 0.18 and a significance level of p = 0.02, according to data analysis conducted by Ahn.
& Ahn, (2020) also yielded similar results to the two previous studies with a beta weight of 0.298, p=0.000 As a result, this relationship should be retested:
H4: Trialability is positively associated with SMEs to adopt cloud computing accounting information systems
Security is defined as the ability to protect customer information and transaction data during transmission (Hua, 2009; Salisbury et al., 2001) Concerns over security and access challenges lead many users to avoid advanced internet services and abandon websites when prompted for personal information (Shafi, 2002; Benassi, 1999; Green, 1997) Research indicates a positive correlation between trust in security for web transactions and customer attitudes, intentions to purchase, and actual buying behavior (Belkhamza & Wafa, 2009; Hua, 2009; Limthongchai & Speece, 2003; Miyazaki & Fernandez, 2000; Yang & Jun, 2002; Cho et al., 2007; Lu et al., 2003; Luarn & Lin, 2005).
This study proposes hypotheses related to technological factors in the adoption of ERP solutions, utilizing the TOE theoretical framework established by Awa et al (2016) Their research indicates a significant perceived security result with p = 0.349 (p < 0.01) In contrast, Skafi et al (2020) reported a beta weight of 0.621 (p < 0.05), highlighting the importance of security in ERP adoption Therefore, the current research builds upon these findings to propose new hypotheses.
H5: Perceived security is positively associated with SMEs to adopt cloud computing accounting information systems
Top management support plays a crucial role in influencing the allocation of resources for innovation, as highlighted by Alshamaila et al (2013) and Oliveira and Martins (2010) This support reflects the commitment and investment that senior management dedicates to adopting new technologies and innovations (Senyo et al., 2016) Consequently, the degree of support from top management can significantly impact the successful adoption of technological changes (Eder & Igbaria, 2001).
Research consistently demonstrates that top management support significantly influences the adoption of cloud computing in Accounting Information Systems (AIS) Alshamaila et al (2013) highlighted that senior management's commitment enhances the likelihood of adopting new technologies, with all study participants acknowledging the crucial role of decision-maker innovation Ahuja et al (2016) further confirmed this, identifying top management support as a key factor in technological innovation, evidenced by a beta coefficient of 0.202 (p < 0.01) Badi et al (2020) ranked top management support as the third most critical component of innovation, reinforcing its importance (P = 0.212, p = 0.031) Moreover, Shahadat et al (2023) found that in small and medium-sized enterprises (SMEs), top management support significantly affects the adoption of information technology (p = 0.113, p = 0.005) These findings lead us to propose the following theory.
H6: Top management support is positively associated with SMEs to adopt cloud computing accounting information systems
Small and medium-sized enterprises (SMEs) face significant challenges in leveraging information and communication technology (ICT) compared to larger organizations due to limited financial and non-financial resources High initial investments, inadequate IT infrastructure, and a shortage of skilled personnel hinder their ability to adopt ICT effectively (Consoli, 2012) Research by Azam (2015) indicates that the steep costs associated with ICT acquisition impede its usage in SMEs, while Bhardwaj et al (2021) highlight the negative impact of technology implementation costs on these businesses In developing nations, e-commerce applications remain prohibitively expensive for small enterprises (Amornkitvikai et al., 2021), leading to decreased interest among business owners in adopting new technologies Additionally, the relative cost of innovation is particularly burdensome for small farms due to their limited resources, including finances, labor, and materials (Aremu et al., 2021; Azadegan & Teich, 2010).
According to Shahadat et al (2023), their research on the influence of technological, environmental, and organizational factors on technology adoption reveals that perceived cost significantly impacts adoption, with a correlation of p = -0.139 and a p-value of 0.000 Similarly, a subsequent study by Ngah et al supports these findings.
(2021) found that perceived is one of the components effect to innovation, further emphasizing the influence of this factor p = -0.296, p=0.001 Consequently, the study group puls forth the following theory:
H7: Perceived cost is negatively associated with SMEs to adopt cloud computing accounting information systems
The regulatory environment plays a crucial role in shaping the impact of corporate and governmental regulations on cloud services Government policies and laws significantly influence the creation and dissemination of innovation, as highlighted by Nelson and Soete (1988) The strength of the legal framework in a region directly affects the security of a company's data stored and processed in an external cloud environment; a weak legal framework may deter businesses from adopting these services, as noted by Jensen et al.
Proposed model research
This study introduces a three-dimensional model based on the Technology-Organization-Environment (TOE) framework, as established by Tornatzky and Fleischer in 1990 Previous research indicates that the TOE framework is effective in identifying key factors that affect an organization's adoption of new information technology (IT) To better understand the essential elements influencing the adoption of innovative IT, the authors synthesized prior studies and proposed the TOE framework as a comprehensive tool for analysis.
The technology dimension encompasses both internal and external effects of implementing specific information technologies within an organization Research indicates that factors such as relative advantage and ease of use significantly influence the decision to adopt IT solutions (Hsu & Lin, 2015; Sulaiman et al., 2023; Chittipaka et al., 2022; Ghobakhloo et al., 2011; Ramdani et al., 2009) Companies must evaluate whether technological innovations, like cloud computing, can enhance their operations by reducing costs or boosting productivity While cloud computing offers substantial relative advantages, organizations should also consider that initial discomfort with new technologies may hinder employee productivity Moreover, the successful integration of cloud computing with existing systems can enhance its effectiveness and adoption, with compatibility being a crucial factor in previous studies on computer adoption (Alshamaila et al., 2013; Hsu & Lin, 2015).
The adoption of cloud computing in small and medium-sized businesses is still a developing trend, making trialability a crucial factor for effectively integrating cloud computing with accounting information systems Previous studies have also highlighted the significance of trialability in this context, reinforcing its importance in facilitating successful cloud adoption.
Data security remains a significant barrier to the adoption of cloud computing technologies, as highlighted by Ahn & Ahn (2016), Lee & Yoon (2020), and Awa et al (2016) Establishing a secure environment for data integration and sharing is crucial to overcoming this challenge Furthermore, research by Skafi et al (2020) supports the need for enhanced security measures in cloud computing.
The organizational dimension of this study highlights key factors influencing the adoption of cloud computing in small and medium-sized enterprises (SMEs), such as perceived costs and upper management support Successful implementation of cloud technology often requires substantial financial resources, strong human resource backing, and active engagement from top management Prior research, including studies by Lian et al (2014) and Low et al., confirms that support from top managers significantly enhances the likelihood of SMEs adopting cloud computing solutions.
In 2011, Gangwar et al highlighted that pricing is a crucial factor for businesses adopting cloud computing technology, especially for SMEs with limited budgets This financial consideration is essential for effective IT expenditure Furthermore, findings from previous studies (Awa et al., 2016; Skafi et al., 2020) support this perspective.
Environmental factors play a crucial role in the adoption of new technologies, particularly cloud computing, as existing laws and regulations can either encourage or hinder implementation Government policies are instrumental in shaping companies' decisions to embrace innovative solutions Research indicates that regulatory support has a positive effect on the adoption of new technologies (Pudjianto et al., 2011; Chittipaka et al., 2022).
According to the talks above, this study takes into account eight variables:
Research process
This research is structured in three stages Initially, the authors identify research gaps by reviewing existing studies on AIS acceptance and utilization, along with recent findings on AIS adoption From this analysis, a research model and hypotheses are developed The questionnaire design is based on established measurement scales from prior studies and is translated into Vietnamese for better respondent comprehension A qualitative research method is then employed to refine the questionnaire In the second stage, pilot testing assesses the reliability of the scales, allowing for necessary adjustments and improvements based on feedback regarding the questionnaire's wording Finally, the main study is conducted by collecting survey data, with the PLS-SEM technique utilized to test the proposed research model.
Measurement Item
Quantitative analysis is utilized in this study to empirically explore the connections outlined in the conceptual framework The author details the empirical investigation process, covering variable measurement, data collection, and analysis methods A questionnaire was developed to collect empirical data, utilizing measurement scale items from previous research The survey included closed-ended questions using a five-point Likert scale, where 1 represents "strongly disagree" and 5 indicates "strongly agree" (Joshi et al., 2015).
This construct is measured by three-item scale which modified from author Moore
RAI: Using cloud computing reduces costs (e.g., customer service, procurement, human resources, IT training, investment and administration management)
RA2: Using cloud computing saves time (e.g., customer support, employee and supplier management).
RA3: Using cloud computing increases my productivity.
The author modified four-item scale from Moore & Benbasat, 1991 to measure this variable
EOU1: Learning to operate cloud computing is easy for me.
EOU2: I believe that it is easy to get a cloud computing to do what I want it to do.
EOU3: My interaction with cloud computing is clear and understandable.
EOU4: Overall, I believe that cloud computing are easy to use.
This study adopted a three-item scale by Moore & Benbasat, 1991 to measure Compatibility
CT1: Using cloud computing is compatible with all aspects of my work.
CT2: I think that using cloud computing fits well with the way I like to work.
CT3: Using cloud computing fits into my work style.
Trialability is measured by three-item scale modified from Moore & Benbasat, 1991
TL1: I've had a great deal of opportunity to try various cloud computing.
TL2: Before deciding whether to use any cloud computing, I was able to properly try them out.
TL3: I was permitted to use a cloud service on a trial basis long enough to see what it could do.
Perceived security is modified from CheUappa & Pavlou, 2002 to measure
PSI: I believe that my work will not be manipulated by unauthorized persons when using cloud computing.
PS2: I believe that cloud computing will not expose my work to unauthorized persons.
PS3: I believe that cloud computing providers and their personnel are careful to comply with relevant laws and regulations.
PS4: I believe that cloud computing provide reliable data recover}' to keep my business running well.
The author referred to four-item scale from Soliman & Janz, 2004 to measure Top management support
TMS1: Our top management is likely to invest funds in adoption of cloud computing.
TMS2: Our top management is willing to take risks involved in the adoption of cloud computing.
TMS3: Our top management is likely to be interested in adopting the cloud computing business-to-business transactions in order to gain competitive advantage.
TMS4: Our top management is likely to consider the adoption of cloud computing business-to-business applications as strategically important.
Perceived cost is referred to fourth-item sccde introduced by Ghobakhloo & Tang, 2013
PCI: I think the cost of adoption of cloud computing accounting information systems is high for our company.
PC2: The amount of money and time of training for adoption of cloud computing accounting information systems applications is high for our company.
PC3: The costs of integration of adoption of cloud computing accounting information systems with existing information systems infrastructure is high.
PC4: The maintenance and support cost for adoption of cloud computing accounting information systems applications are high for our company.
Perceived cost is referred to fourth-item scale introduced by Zhu et al., 2003
REI: Government provides incentives to adopt cloud computing.
RE2: Government procurement policies mandated the use of cloud computing.
RE3: Business law supports cloud computing.
RE4: There is adequate legal protection for customer or supplier transactions using cloud computing.
Cloud computing is referred to three-item scale introduced by Lu & Yeh (1998); Taylor & Todd (1995)
CPI: The company intends to use cloud computing services.
CP2: Our company is willing to adopt cloud computing services.
CP3: It is worth using cloud services in our company.
Constructs Number of Sources measurement items
Ease of use 4 Moore & Benbasat, 1991
Regulatory Environment 4 Zhu et al., 2003
Cloud computing Accounting Information Security
Minimum sample requirements
Hair et al (2014) suggest that the minimum sample size required for a causal scale construct should be at least ten times the number of observed variables associated with that construct Alternatively, the sample size can also be determined by multiplying ten by the number of influence paths directed toward the construct, ensuring that the scale structure with the most connections is adequately represented.
Based on data processing experience and research from Vietnam and around the world, the minimum sample size for effective SmartPLS analysis should exceed 100, with an optimal range between 150 and 250 or more.
Data collection
The authors translated the survey into Vietnamese to maintain validity and contextual relevance for the Vietnamese respondents Conducted on an online platform, the survey allows participants to complete it at their convenience, accommodating their work schedules Online surveys offer numerous benefits, such as accessibility from any location, reduced costs, and quicker response times.
The survey targeted individuals working in the accounting, auditing, and financial sectors in Ho Chi Minh City, inviting them to respond to questions about job performance and the use of information systems in their work environment A total of 276 responses were collected; however, 26 were excluded due to being from non-working individuals or lacking sufficient data, resulting in a final sample size of 250 This adjustment aimed to ensure the quality and clarity of the survey results, allowing for a more accurate representation of the research model components based on respondents' subjective experiences By refining the data, potential biases in the collection process were minimized, leading to more reliable insights into work-related stress and its impact on job performance.
Data analysis method
The author utilized structural equation modeling with partial least squares (PLS-SEM) to evaluate the proposed model, a method widely adopted in management and marketing research for its capability to estimate complex statistical models The assessment of the measurement model includes consistency reliability, construct validity, and indicator reliability, with strict adherence to the requirements for each indicator.
- The outer loadings of indicators should over 0.7
- Cronbach's alpha should be at least 0.6
- The average variance extracted (AVE) should exceed 0.5
The author assesses the model's variance inflation factor (VIF), ensuring it remains at 5 or below Subsequently, a bootstrapping method involving 5,000 samples is applied to verify the accuracy of the Partial Least Squares (PLS) estimates.
Descriptive statistics
A total of 276 interviews were conducted, resulting in careful examination of the responses received After thorough analysis, 26 responses were eliminated due to missing data or identical answers across all questions Participants who had never participated in livestream purchasing were also excluded Ultimately, 250 valid responses were collected for a comprehensive data analysis.
3 Job experience Less than 5 years 184 73.6%
5 Annual revenue under 50 billion VND 112 44.8% between 50 and 100 billion VND 96 38.4% between 100 and 200 billion VND 40 16%
6 Number of 10-100 109 43.6% employees in the industries 100-200 94 37.6%
The study involved 250 participants, with 46.4% being male and 53.6% female A significant majority, 78.8%, were under 30 years old, indicating a strong interest in cloud computing accounting information systems among younger individuals Additionally, over half of the participants (73.6%) had less than 5 years of work experience, while only 5.6% had over 10 years of experience.
A significant portion of participants in a study on cloud computing and accounting information systems are employed in finance-related businesses, with 42.8% (107 respondents) working in this sector, while 30.4% (76 participants) are in financial institutions and service businesses The remaining respondents are engaged in manufacturing, agriculture, forestry, and fisheries Regarding annual revenue, 34.8% of small and medium-sized enterprises in Ho Chi Minh City reported revenues of less than 50 billion VND, while 38.3% indicated revenues between 50 and 100 billion VND, and 16% reported revenues between 100 and 200 billion VND; 2% were uncertain about their revenue Additionally, nearly half of the participants (109) noted that their businesses employ between 10 and 100 individuals, followed by 37.6% (94 participants) with 100 to 200 employees, and 18.8% having 200 to 300 employees, aligning with the typical workforce size of small and medium enterprises.
Evaluation of Measurement Model
We used a reliability test to assess the survey results' stability Fornell and Larcker
In their 1981 study, it was determined that all factor loadings must exceed 0.7, and subsequent analysis revealed that all items met this criterion Consequently, these items were included in further research The reliability of each construct was assessed using Cronbach's alpha, which exceeded the minimum threshold of 0.6, as noted by Hoang Trong & Chu Nguyen Mong Ngoc (2018), and composite reliability (CR) values, which also surpassed the required 0.7, according to Hair et al (2022) The test results confirmed that every variable met these reliability standards, leading to the acceptance of construct reliability.
TABLE 4.2 Loadings, AVE, and reliability results
A validity test aims to assess the accuracy of what is being measured, ensuring the reliability of research findings that concentrate on the study subject It encompasses two key components: discriminant validity, which evaluates the distinctiveness of constructs, and convergent validity, which examines the degree to which different measures of the same construct correlate.
Convergence validity is used to evaluate the consistency within the plane, measured by the average variation of potential variables relative to observed variables, known as the Average Variance Extracted (AVE) As shown in Table 4.2, each distributed variable has an AVE value ranging from 0.581 to 0.716, all exceeding the threshold of 0.5 Therefore, it can be concluded that the sample data meets the requirements for convergence validity.
Discriminant validity assesses the correlations between variables that are expected to be unrelated, as outlined by Fornell and Larcker (1981) through the AVE square index This method involves comparing the correlation coefficients of a latent variable with other latent variables against the square root of the Average Variance Extracted (AVE) of the observed variable scale used for measurement Discriminant validity is confirmed when the square root of the AVE exceeds the other correlation coefficients As shown in Table 4.3, the AVE square root values along the diagonal significantly surpass the corresponding values in the same column, indicating that each variable can be distinctly identified from the others, thereby validating the discriminant validity of the constructs in this study.
CP CT EOU PC PS RA RE TL TMS
The testing results indicated that both the convergent and discriminant validity of our measurement model were satisfactory, leading us to proceed with the evaluation of the structural model.
Evaluation of Structural Model
We assessed the structural model using several established criteria, including multicollinearity, the coefficient of determination, adjusted R², effect size (f²), and the statistical significance and relevance of the path coefficients.
Multicollinearity occurs when independent variables exhibit a strong correlation, complicating the fitting and interpretation of regression models This condition makes it challenging to determine the individual influence of each variable on the dependent variable In Partial Least Squares Structural Equation Modeling (PLS SEM), the variance inflation factor (VIF) is commonly used to assess multicollinearity, with a VIF value of less than 5 indicating an acceptable level According to Hair et al (2017), the validity of study hypotheses remains intact despite multicollinearity, as demonstrated by the VIF values of all constructs in Table 4.4 being below 5.
TABLE 4.4 Collinearity Statistic (VIF) results
CP CT EOU PC PS RA RE TL TMS
R2 values range from 0 to 1, indicating a percentage from 0% to 100%, where an R2 of 100% signifies that changes in the independent variables completely account for changes in the dependent variable According to Hair et al (2014), the minimum acceptable R2 level should exceed 0.10 (10%) Additionally, the adjusted R-squared offers a refined assessment of R-squared by considering the impact of additional independent variables that may skew the results, enhancing the accuracy and reliability of the measurements.
Table 4.5 displays the R2 adjusted values, which demonstrate the high predictive potential of the model AIS 74,8%
Effect size (f2) is the coefficient that evaluates the influence of independent variables on a dependent variable, categorizing values as weak (below 0.02), moderate (0.02 to 0.35), or strong (over 0.35), as outlined by Hair et al (2014) The table below presents the effect size f2 values for the constructs in this research.
The findings reveal that CT, EOU, PS, RA, RE, TL, and TMS significantly moderate CB, exhibiting effect size f2 values of 0.077, 0.027, 0.020, 0.055, 0.035, 0.090, and 0.021, respectively In contrast, the analysis indicates that PC has a negligible impact on CP, with an effect size f2 value of only 0.017, which is below the threshold of 0.02.
CP CT EOU PC PS RA RE TL TMS CP
4.3.4 Path coefficients and hypothesis testing
After confirming construct validity and reliability, bootstrapping was utilized to evaluate the significance of the association, employing 5,000 bootstrap samples based on the original sample size.
FIGURE 4: PLS results for research model
The data indicates that TL, RA, and CT are the two variables that significantly enhance CP, exhibiting path coefficients of 0.232, 0.203, and 0.200, respectively, with p-values less than 0.01 Consequently, we affirm hypotheses H1, H3, and H4.
The path coefficients for the variables RE, TMS, EOU, and PS are 0.146, 0.126, 0.118, and 0.106, respectively, with p-values less than 0.05 This demonstrates a positive influence of these variables on the dependent variable CP Consequently, we confirm the validity of hypotheses H2, H5, H6, and H.
Finally, hypothesis H7 states that PC has a negative impact on the dependent variable CP The results support this hypothesis with a path coefficient of -0.093 and a p-value < 0.05.
TABLE 4.7 Summary of hypotheses testing
Discussion
This study investigates the critical factors that affect the adoption of cloud computing for accounting information systems (AIS) among small and medium-sized enterprises (SMEs) in Ho Chi Minh City By employing the Technology-Organization-Environment (TOE) framework, the research aims to provide insights into the motivations and challenges faced by SMEs in integrating cloud solutions into their accounting practices.
In the Environment (TOE) framework, the authors explore various influences on technology adoption, highlighting key technological factors like perceived relative advantage, ease of use, compatibility, trialability, and perceived security They also examine organizational elements such as top management support and perceived costs, alongside environmental factors, including the significance of regulatory support.
The research team confirmed that all proposed factors significantly influence the dependent variable, with trialability being particularly impactful on the adoption of cloud computing in small and medium enterprises in Ho Chi Minh City, evidenced by a path coefficient of 0.232 and p = 0.000 This finding aligns with previous studies by Ahuja et al (2016), Ahn & Ahn (2020), and Lee & Yoon (2022), which also identified a significant positive effect of trialability on technology adoption and innovation.
The variable relative advantage significantly impacts the adoption of cloud computing in Accounting Information Systems (AIS) among small and medium enterprises in Ho Chi Minh City, evidenced by a path coefficient of 0.203 and a p-value of 0.006 This finding aligns with previous studies by Hsu & Lin (2015) and Chittipaka et al (2022), which also demonstrate that relative advantage positively influences technology adoption.
The study reveals that the integration of cloud computing into Accounting Information Systems (AIS) within small and medium-sized enterprises (SMEs) in Ho Chi Minh City is significantly influenced by compatibility, with a statistical significance of p = 0 This finding aligns with previous research by Hsu & Lin (2015) and Chittipaka et al (2022), which also concluded that greater compatibility enhances the likelihood of technology adoption in businesses.
Regulatory support significantly influences the adoption of cloud computing in Accounting Information Systems (AIS) among SMEs in Ho Chi Minh City (HCM) This finding aligns with the research conducted by Pudjianto, Boni, et al (2011) and Chittipaka et al (2022), which also reported a p-value of less than 0.05.
The results indicate that top management support (TMS) significantly influences the adoption of cloud computing, demonstrating a positive impact This is evidenced by a path coefficient of 0.125 and a p-value of less than 0.05, aligning with the findings of Ahuja et al (2016), Badi et al (2020), and Shahadat et al (2023), which emphasize the importance of senior management's interest and investment in technology and innovation.
The study reveals that the Ease of Use (EOU) positively influences the adoption of cloud computing, indicating that systems requiring minimal mental or physical effort are more readily accepted In contrast, complexity, which refers to the challenges of understanding technology, can hinder adoption With a path coefficient of 0.117 and a significance level of p < 0.01, these findings align with previous research by Hsu & Lin (2015) and Sulaiman et al (2023).
Our study demonstrates a positive relationship between perceived security and the adoption of cloud computing, aligning with findings from previous research by Awa et al (2016) and Skafi et al (2020).
Furthermore, Perceived cost negatively influences to use of cloud computing AIS in HCM city SMEs, which is also confirmed by Awa el al., (2016), Skafi et al., (2020).
Hsu & Lin, 2015 Sulaiman et al., 2023
Hsu & Lin 2015 Chittipaka et al., 2022
Ahuja et al 2016 Ahn & Ahn 2020 Lee & Yoon, 2022
Awa et al., 2016 Skafi et al., 2020
H6 TMS -> CP Ahuja et al 2016 0.202 CP Shahadat et al., 2023 -0.139 0.000 -0.091 0.039
H8 RE -> CP Pudjianto, Boni, et al., 0.143