Abstract/Summary

This research aims to comprehensively examine the adoption of cloud accounting information systems (cloud-AIS) within the context of Micro, Small, and Medium Enterprises (MSMEs) in Saudi Arabia at the firm-level. The research is driven by four primary objectives: (1) To develop a conceptual framework that integrates factors influencing cloud-AIS adoption and assesses its effect on business performance; (2) To identify and analyse the internal and external factors affecting cloud-AIS adoption; (3) To evaluate the direct impact of cloud-AIS adoption on the performance of MSMEs using both financial and non-financial metrics; and (4) To examine the mediating role of accounting information quality in the relationship between cloud-AIS adoption and business performance. This study conducts a systematic literature review synthesising insights from 60 studies on electronic-AIS adoption and integrating multiple theoretical frameworks. It proposes the Customer-Organisation-Technology-Environment (COTE) framework which was empirically tested using a quantitative research methodology. Primary data were collected from 336 online survey responses from MSMEs across Saudi Arabia and analysed using the advanced Partial Least Squares - Structural Equation Modelling (PLS-SEM) technique, providing insight into adoption dynamics. Technological and environmental factors were found to significantly influence cloudAIS adoption, whereas organisational factors were insignificant. Notably, customer factors significantly negatively affect adoption, indicating potential resistance. Furthermore, the adoption of cloud-AIS was found to enhance the quality of accounting information among Saudi MSMEs. These results emphasise the importance of highquality accounting information for strategic decision-making and operational efficiency. However, the direct impact of cloud-AIS on business performance was found to be insignificant, thereby supporting the IT productivity paradox. Thus, the quality of accounting information fully mediates the relationship between cloud-AIS adoption and business performance, emphasising the importance of high-quality, reliable and timely financial data in leveraging the benefits of cloud-AIS. This research makes a significant contribution to the existing body of knowledge and offering theoretical and methodological insights. Furthermore, the findings have practical and theoretical implications for MSME owners, policymakers, technology providers and scholars.