THE ADOPTION OF SOFTWARE-AS- SERVICE: AN INDONESIAN CASE STUDY

Abstract

The goal of this study is to discover the technological, organizational, and environmental determinants for Software as a Service (SaaS) adoption in Indonesian companies. The technologicalorganizational-environmental (TOE) framework was adopted as a primary theoretical lens, combined with five innovation characteristics of Diffusion of Innovation (DOI) theory, which incorporated in technological context of the framework. We used a questionnaire to collect data from 147 of Indonesian companies. A logistic regression was carried out to test our hypotheses. The results confirmed that compatibility, observability, market competition, and government have positive relationship with SaaS adoption in Indonesian, while complexity found to be the negative determinant to its adoption. We also found that the organizational context of TOE framework did not contribute to the prediction of SaaS adoption in Indonesian companies. The findings offer valuable insights for researchers of SaaS and innovation adoption, for Indonesian policy makers that want to encourage SaaS adoption, as well as for SaaS vendors that want to develop strategies to persuade companies in Indonesia to adopt SaaS.