an empirical study

Martins, R., Oliveira, T., Thomas, M., & Tomás, S. (2019). Firms’ continuance intention on SaaS use: an empirical study. Information Technology and People, 32(1), 189-216. https://doi.org/10.1108/ITP-01-2018-0027Purpose: Although studies have investigated reasons for software as a service (SaaS) adoption, it is unclear how firm-level SaaS use impacts future SaaS intentions. The purpose of this paper is to propose a theoretical model that integrates the technology-organization-environment framework, institutional theory, diffusion-of-innovation theory and the opportunity-risk framework to analyze the drivers of SaaS use and its continuance intention. Design/methodology/approach: The authors evaluated the direct, moderating and mediating effects of determinants on SaaS continuance intentions using structural equation modeling and data from 301 firms. Findings: Results found that top management support and normative pressures influenced SaaS use. Cost saving and security concerns were direct predictors of perceived opportunities and perceived risks, respectively. Perceived opportunities and risks and actual SaaS use influenced SaaS continuance. Interestingly, perceived opportunities were found to be a negative moderator on the relationship between SaaS use and SaaS continuance. Originality/value: The results reveal insightful and controversial findings for SaaS research.authorsversionpublishe

Assessing software as a service diffusion : from adoption to its continuance intention

A thesis submitted in partial fulfillment of the requirements for the degree of Doctor in Information Management, specialization in Information TechnologiesTechnological progress is enabling firms to acquire software from different architecture environments. One such architecture environment that has produced a considerable impact on the markets is software as a service (SaaS). SaaS focuses on delivering software hosted off-premises and accessed remotely by means of a subscription fee. Recognized by managers and researchers as a promising solution, it is expanding in the software markets. However, SaaS is surrounded by uncertainty as its perceived viability is still questioned. Although this has motivated recent research into the determinants of SaaS, evidence suggests that it is still not enough. Research has much to cover in order to improve our understanding of the SaaS diffusion process. This dissertation investigates the SaaS diffusion process at a firm level by examining the drivers for each stage. Specifically, we analyze the different influences of the determinant factors on SaaS from the intention to adopt, passing through adoption, routinization and use, as well as its continuance intention. Because SaaS is considered a specific form of information systems outsourcing (ISO), in a first phase we assess the determinants in the context of ISO adoption in order to introduce to its investigation. The purpose of this approach is twofold. First, we test the appropriateness of the theoretical framework selected for the study of SaaS through its application in the analyses of ISO. Second, we find factors of ISO that are transferable to the SaaS context. In a second phase, we consider mediator and moderator influences and propose a new approach of applying a well known theoretical framework in the setting of SaaS adoption. This dissertation contributes to scholarship by enhancing current knowledge of why firms adopt and use SaaS. It incorporates seven studies individually separated into chapters. Chapter 2 is a detailed literature review on ISO and SaaS. As mentioned above, SaaS a specific form of outsourcing. Chapter 3 introduces the main theme by evaluating the suitability of the base framework proposed in this work on the study of ISO. Chapters 4 and 5 are extensions of chapter 3, in which comparisons of the determinants for ISO adoption in different business areas are performed. In chapter 6 we assess the determinants of the SaaS diffusion process (i.e. intention, adoption, and routinization). The factors that influence SaaS use and its continuance intention are identified in chapter 7. In chapter 8 we provide a new approach of applying the theoretical framework used in this dissertation in the context of SaaS adoption. This work adopts a positivist epistemological posture. As for the research methodology, a deductive method is used. All studies of this dissertation with the exception of the one presented in chapter 2 are based on the technology-organization-environment (TOE) framework. Additionally, we integrate TOE framework with other theories to enhance the explanatory power of the model. Thus, in chapters 4 and 5 we use diffusion of innovation (DOI) theory; in chapter 6 the institutional theory (INT) is used, in addition to DOI theory; in chapter 7 we include opportunity-risk framework apart from the theories already mentioned. The findings of this dissertation confirm that little research has indeed been performed on SaaS adoption, and more efforts are needed to provide an in-depth understanding of the topic. Through the analysis performed in the ISO context in chapters 3, 4, and 5, the TOE framework suitability as a theoretical basis for the study of SaaS is confirmed. Significant factors of ISO that are transferable for the SaaS context are also found. Relative advantage, complexity, technology competence, top management support, and normative pressures are determinants in the intention to adopt stage. Normative pressures are a constant determinant in the intention, adoption, and routinization stages. Additionally, a total effect (direct effect and indirect effect combined) of cost savings, relative advantage, and top management support is found in the adoption stage of SaaS. A cost savings total effect on the intention to adopt is also found. In terms of the post-adoption stages (i.e. SaaS use to its continuance intention) the findings confirm top management support and normative pressures as determinants of SaaS use. SaaS use and perceived opportunities are significant factors for the continuance intention. Moreover, the relationship between SaaS use and continuance intention is moderated by perceived opportunities. Finally, in this research we validate a new conceptual approach for the TOE framework by introducing moderator effects in its application. This investigation fills a crucial research gap by providing a better understanding of the determinants that affect organizational SaaS diffusion, advancing newer paths of approaching a solid theoretical framework.O progresso tecnológico tem possibilitado às empresas a aquisição de software em diferentes ambientes arquitetónicos. Um exemplo de um ambiente distinto de arquitetura tecnológica que tem produzido um impacto considerável no mercado de software é o software as a service (SaaS). O SaaS refere-se a software instalado fora da infraestrutura da empresa, cujo acesso é efetuado remotamente por meio da subscrição do serviço. Reconhecido, quer pelos gestores e investigadores, como uma solução promissora e encontrando-se em fase de expansão nos mercados de software, a sua viabilidade ainda é questionada. Embora esta dúvida tenha motivado a investigação sobre os fatores determinantes do SaaS, evidências sugerem que não é suficiente. Requer-se assim mais investigação para melhorar o nosso entendimento sobre o processo difusão do SaaS. Esta dissertação investiga os fatores determinantes para cada estágio do processo de difusão do SaaS, ao nível de empresa. Especificamente, analisamos as diferentes influências dos fatores determinantes desde a intenção de adotar, passando pela adoção, rotinização e uso, até à intenção de continuidade do SaaS. Porque o SaaS é considerado uma forma específica de outsourcing de sistemas de informação (ISO), numa primeira fase deste estudo avaliamos os fatores determinantes no contexto da adoção do ISO a fim de introduzir esta investigação. Esta abordagem tem dois objetivos: testar a adequação do quadro teórico escolhido para o estudo do SaaS através da sua aplicação no contexto do ISO e obter os fatores que se revelaram significativos no ISO e que podem ser utilizados no contexto do SaaS. Numa segunda fase, consideramos as influências de fatores moderadores e mediadores no estudo da adoção do SaaS e propomos uma nova abordagem para a aplicação do quadro teórico de referência. Sete estudos, separados por capítulos, compilam esta investigação. É nosso objetivo ampliar o conhecimento atual sobre como as empresas adotam e usam o SaaS. Como mencionado, o SaaS é uma forma específica de outsourcing, assim o capítulo 2 é uma revisão detalhada da literatura sobre o ISO e SaaS. O capítulo 3 avalia a adequação do quadro teórico base proposto neste trabalho no âmbito do estudo do ISO. Os capítulos 4 e 5 são extensões do capítulo 3, nos quais são efetuadas análises comparativas dos fatores determinantes para a adoção do ISO entre as diferentes áreas de negócio. No capítulo 6, avaliamos os fatores determinantes do processo de difusão do SaaS (intenção, adoção e rotinização). Os fatores que influenciam o seu uso e continuidade são identificados no capítulo 7. No capítulo 8, apresentamos uma nova abordagem para a aplicação do quadro teórico de referência utilizado nesta dissertação, no contexto da adoção do SaaS. A postura epistemológica adotada é a positivista e utiliza-se o método dedutivo no respeitante à metodologia de pesquisa. Todos os estudos apresentados, com exceção do capítulo 2, são baseados no quadro teórico tecnologia-organização-ambiente (TOE). Adicionalmente, integramos o quadro teórico TOE com outras teorias para aumentar o poder explicativo do modelo. Assim, nos capítulos 4 e 5 utilizamos a teoria difusão da inovação (DOI); No capítulo 6 é utilizada a teoria institucional (INT), em conjunto com a teoria DOI; No capítulo 7, incluímos o quadro teórico oportunidade-risco para além das teorias já mencionadas. Os resultados desta dissertação confirmam que a investigação sobre a adoção do SaaS é escassa e que são necessários mais esforços para conferir uma maior clareza sobre o tema. Da análise realizada no contexto do ISO, nos capítulos 3, 4 e 5, a adequação do quadro teórico TOE como base teórica de referência para o estudo do SaaS é confirmada. Os fatores determinantes para o ISO e que se adequam ao contexto do SaaS também foram identificados. A vantagem relativa, a complexidade, a competência tecnológica, o apoio da gestão de topo e as pressões normativas são determinantes no estágio da intenção de adotar. As pressões normativas são um fator determinante constante, nos estágios da intenção, adoção e rotinização. Além disso, um efeito total (efeito direto e efeito indireto combinado) da redução de custos, vantagem relativa e apoio da gestão de topo é verificado na fase de adoção do SaaS. Um efeito total de redução de custos sobre a intenção de adotar também é detetado. No que diz respeito aos estágios da pós-adoção (uso do SaaS e a intenção de continuidade), os resultados confirmam o apoio da gestão de topo e pressões normativas como determinantes no uso do SaaS. O uso do SaaS e oportunidades percebidas são fatores significativos para a intenção de continuidade. Além disso, a relação entre o uso do SaaS e a intenção de continuidade é moderada pelas oportunidades percebidas. Finalmente, apresentamos e validamos uma nova abordagem do quadro TOE, introduzindo efeitos moderadores na sua aplicação. Esta dissertação preenche uma lacuna crucial na investigação, proporcionando um melhor entendimento dos fatores determinantes que afetam o processo de difusão do SaaS e avançando novos caminhos de abordagem de um quadro teórico de referência. Outsourcing dos sistemas de informação, quadro tecnologia-organização-ambiente (TOE), difusão da inovação, adoção de TI, Software as a Service, pós-adoção, teoria institucional, modelo oportunidade-risco, intenção de continuidade, efeitos moderadores

Understanding the Success of Software-as-a-Service (SaaS) - The Perspective of Post-Adoption Use

Understanding the antecedents and consequences of trust in an online and on-demand outsourcing context is important. This study explores the effects of service quality on trust, which in turn affects a client firm’s post-adoption use in SaaS. A research model was developed based on the dedication-constraint framework of social exchange theory to measure service quality, trust, and SaaS post-adoption as multiple dimensions. We empirically examined the model by collecting data from 246 firms (key informants) that have adopted SaaS. Results show that while all three dimensions of service quality (client orientation quality, client response quality, environment quality) positively affect trust in service quality, client orientation and environment quality have positively influence on trust in provider. Both types of trust positively influence post-adoption intention. Finally, we discuss the theoretical and practical implications

THE ROLE OF SAAS SERVICE QUALITY FOR CONTINUED SAAS USE: EMPIRICAL INSIGHTS FROM SAAS USING FIRMS

Despite its success in the software industry, Software-as-a-Service (SaaS) still struggles with fulfilling customer expectations regarding service quality. To contain customer churn rates to low levels, SaaS providers have to address their service quality weak spots and find out which factors are crucial for continued SaaS usage. Drawing on previous service quality literature, we develop a Zone-of-Tolerance (ZOT)-based SaaS-QUAL scale and validate it in a model of IS continuance based on two empirical surveys of SaaS using firms. By doing this, we examine the importance of SaaS service quality factors for shaping customer satisfaction and SaaS continuance intentions. Furthermore, we provide insights into what service factors effectively meet or miss SaaS customer expectations. As a practical contribution, we develop and apply a SaaS-QUAL scale that can be used as a diagnostic tool by SaaS providers and users alike. For researchers, we enrich existing research models on IS continuance by integrating a more fine-grained conceptualization of service quality confirmation that provides stronger explanatory power than in previous models

The Role of Confirmation on IS Continuance Intention in the Context of On-Demand Enterprise Systems in the Post-Acceptance Phase

The research project examines expectations as well as organizational and technological cognitive beliefs influencing a company’s intention to continue using on-demand enterprise systems in the post-acceptance phase. Expectation-confirmation theory from behavior literature is integrated with Delone & McLean’s model of IS success to theorize a model of IS continuance on company level. The decision making process to continue using an information system in small and middle enterprises as main target customer group of cloud-based enterprise systems is modeled by re-introducing the attitude construct from adoption literature. Additionally, post-purchase expectations are included as influence factor of attitude and intention in the continuance context. To prevent cloud-washing, attention is drawn to the substantive differences between service and application quality of on-demand enterprise systems

Understanding the determinants affecting the continuance intention to use cloud computing

Cloud computing has been progressively implemented in the organizations. The purpose of the paper is to understand the fundamental factors influencing the senior manager’s continuance intention to use cloud computing in organizations. A conceptual framework was developed by using the Technology Acceptance Model (TAM) as a base theoretical model. A questionnaire was used to collect the data from several companies in IT, manufacturing, finance, pharmaceutical and retail sectors in India. The data analysis was done using structural equation modeling technique. Perceived usefulness and perceived ubiquity are identified as important factors that affect continuance intention to use cloud computing. In addition, perceived ease of use is found having indirect influence through perceived usefulness. The validated model can be used as a framework for managers to ensure successful implementation of cloud computing. The study extended TAM by incorporating additional variables like perceived ubiquity, perceived costs and perceived risks to explore the determinants of continued intention to use cloud computing

Understanding Clients’ Intentions to Explore Software-as-a-Service (SaaS) Features: A Social Capital Theory Perspective

The pervasive post-adoption of on-demand software-as-a-service (SaaS) products via the Internet has provided clients with sufficient convenience and functional flexibility to rent and build the multifunctional services they require. Prior research has called for a deeper understanding of how client firms encourage the exploration of SaaS applications in the workplace. However, exploring the best service combinations depends on the clients’ socially related motivation. Hence, we draw on social capital theory in this study to examine clients’ intentions to explore new SaaS service features. We use service quality to complement structural capital as an indicator, as it is more suitable for assessing the service structure of systems. Drawing on a sample of 246 employees in the IT service departments of small- and medium-sized companies in Taiwan, we generate the following empirical results. First, most of the main effect paths only show significant positive signs for the effect of relational capital on the intention to explore, and the effect of environmental quality on social capital is not supported. Second, we rebuild the mediation model to test the non-supported hypotheses and find that relational capital partially mediates the relationship between service quality and the intention to explore. The theoretical and practical implications of these findings are discusse

The Focal Determinants of Service Fairness and Service Recovery Satisfaction in Cloud Computing

The purpose of this study is to analyze the implications of service fairness on satisfaction recovery in business relationships. Adopting a service fairness perspective on cloud computing business directs suppliers’ focus in business relationships towards engaging with their customers’ service recovery satisfaction. In the article it is demonstrated that a service fairness perspective is multi-dimensional (structural and social), enabling the creation of recovery satisfaction, which enhances continued usage of cloud computing system. This perspective enables marketers to better understand how to develop and extend structural and social service fairness through equally service delivery and fair treatment relevant to their businesses

Should We Stay or Should We Go? Analyzing Continuance of Cloud Enterprise Systems

As cloud computing has become a mature technology that companies across all industries have adopted, cloud service providers have increasingly begun to turn their attention to retaining their customers. However, little research has investigated the antecedents of service continuance in an organizational context. To address this gap in research, we carried out a quantitative empirical study. We developed a conceptual model that builds on previous research on organizational level continuance. We tested this model using survey data gathered from decision makers of companies that have adopted cloud enterprise systems. We analyzed the data using PLS. The results show that socio-organizational and technology-related factors can be used to predict continuance intention of cloud computing use. Besides cloud-specific findings, the study also enhances knowledge in organizational-level system continuance and its connection to IS success

Integrating Service Fairness Into The Post-Acceptance Model Of Is Continuance In Cloud Computing

This study integrates service fairness into a post-acceptance model of information system continuance. This study added constructs based on Greenberg’s (1993) four-component taxonomy of organizational justice. The research model seeks to be useful in predicting satisfaction, which enhances continued usage of an IS. The results show that perceived usefulness and satisfaction influence continuance intention, as the post-acceptance model predicts. Three of the four distinct service fairness dimensions, systemic, configural and interpersonal fairness, significantly enhanced satisfaction. However, the relationship between informational fairness and satisfaction was negative and significant