The purpose of this paper is to localise cloud based e-HRM adoption model in knowledge base SMEs by using the Technology, Organization and Environment (TOE) framework. While many studies have predominantly looked at cloud computing adoption determinants in general, few is known about specific cloud services such as cloud base e-HRM, which is the main subject of this paper. This study was conducted as a mixed method research. In the qualitative part, based on the TOE framework, a semi-structured interview conducted between 3 domain experts, i.e. the technology, organization, environment domains. In the interviews the questions were whether the determinants are valid in developing countries business ecosystem or not? The interviews continued until heoretical saturation. Then based on the findings of the interview, a questionnaire designed and final users of cloud base e-HRM answered it. There were 168 valid questionaires which were used to examine the fitness of model. The findings indicate that factors such as relative advantage, uncertainty, complexity, compatibility in technology domian, physical location, competitive pressure, industry, market, supplier computing support in environment domain and top management support, organizational readiness, prior technology experience in organization domain were the TOE factors to be significant in cloud based e-HRM adoption model. The findings of this study have important implications to the research community, managers and providers of information and communication technologies (ICT), to have a better road map and strategies for adopting cloud computing.