Reconceptualizing DOI Attributes as Cognitive Mediators in Cloud ERP Adoption: Evidence from Indonesian MSMEs

Cloud-based Enterprise Resource Planning (ERP) systems offer significant opportunities for Micro, Small, and Medium Enterprises (MSMEs) to improve operational integration, information visibility, and decision-making capabilities. However, cloud ERP adoption among MSMEs remains limited, particularly in emerging economies. Existing studies predominantly examine Technology–Organization–Environment (TOE) and Diffusion of Innovation (DOI) factors as parallel determinants of adoption intention, providing limited understanding of how contextual conditions are translated into innovation perceptions. Addressing this gap, this study develops a perception-mediated TOE–DOI framework and reconceptualizes DOI attributes, namely Relative Advantage and Complexity, as cognitive mediating mechanisms rather than direct antecedents of cloud ERP adoption intention. Data were collected from 391 Indonesian MSMEs and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) and Importance–Performance Map Analysis (IPMA). The results indicate that ICT Skill significantly influences Relative Advantage and adoption intention, while Regulatory Environment significantly affects both Relative Advantage and Complexity. Organizational Culture significantly influences Complexity but does not affect Relative Advantage. Furthermore, Relative Advantage and Complexity significantly influence adoption intention and mediate several relationships between TOE-related factors and cloud ERP adoption intention. These findings demonstrate that contextual conditions influence adoption decisions primarily through innovation-related perceptions rather than through direct effects alone. This study contributes to the cloud ERP literature by extending conventional TOE–DOI applications through the conceptualization of DOI attributes as cognitive transmission mechanisms. IPMA results identify ICT Skill as the most important yet lowest-performing construct, highlighting a critical capability gap among Indonesian MSMEs. The findings provide practical insights for policymakers, MSME development agencies, and technology providers seeking to accelerate digital transformation through cloud ERP adoption.