The Risks of Sourcing Software as a Service – An Empirical Analysis of Adopters and Non-Adopters

Software-as-a-Service (SaaS) is said to become an important cornerstone of the Internet of Services. However, while some market research and IT provider firms fervently support this point-of-view, others already conjure up the failure of this on-demand sourcing option due to considerable risks associated with SaaS. Although there is a substantial body of research at the intersection of traditional and on-demand IT outsourcing and risk management, existing research is virtually silent on analyzing the risks of SaaS. This study thus seeks to deepen the understanding of a comprehensive set of risk factors affecting the adoption of SaaS and discriminates between SaaS adopters and non-adopters. Grounded in perceived risk theory, we developed a research model that was analyzed with survey data of 379 firms in Germany. Our analysis revealed that security risk was the dominant factor influencing companies’ overall risk perceptions on SaaS-based sourcing. Moreover, we found significant differences between adopters’ and non-adopters’ perceptions of performance and financial risks. Overall, this study provides relevant findings that potential and actual SaaS clients may use to better assess SaaS-based offerings. For SaaS providers, our study gives important factors to emphasize when offering SaaS services to companies in different stages of the technology adoption lifecycle

The changing rationale for governance choices: early vs. late adopters of global services sourcing

This article studies how the logic of firm governance choices varies as a function of the time of adoption of particular sourcing practices. Using data on the diffusion of global business services sourcing as a management practice from early experiments in the 1980s through 2011, we show that the extent to which governance choices are affected by process commoditization, availability of external service capabilities, and past governance choices depends on whether firms are early or late adopters. Findings inform research on governance choice dynamics specifically in highly diverse and evolving firm populations

We have a platform, but nobody builds on it – what influences Platform-as-a-Service post-adoption?

When higher-level management of a company has strategically decided to adopt Platform-as-a-Service (PaaS) as a Cloud Computing (CC) delivery model, decision-makers at lower hierarchy levels still need to decide whether they want to post-adopt PaaS for building or running an information system (IS) – a decision that numerous companies are currently facing. This research analyzes the influential factors of this managerial post-adoption decision on the IS-level. A survey of 168 business and IT professionals investigated the influential factors of this PaaS post-adoption decision. The results show that decision-makers’ perceptions of risks inhibit post-adoption. Vendor trust and trialability reduce these perceived risks. While competitive pressure increases perceived benefits, it does not significantly influence PaaS post-adoption. Controversially, security and privacy, cost savings, and top management support do not influence post-adoption, as opposed to findings on company-level adoption. Subsamples constructed by the form of post-adoptive use (migration of IS, enhancement of IS, new IS development) exhibit better goodness-of-fit measures than the full sample. Future research should explore this interrelation of the form of post-adoptive use and the post-adoption influence factors

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

A Systematic Literature Review on IT Outsourcing Decision and Future Research Directions

During the recent decades, some academic research on the subject of information technology outsourcing (ITO) decision has appeared in different outlets, which may impede the use of such resources and as a result, repetition of research by various researchers is very likely. The purpose of this paper is then to conduct a systematic literature review (SLR) pertaining to research on ITO decision. Then, this review intends to 1) classify ITO decision literature, 2) provide a list of factors affecting ITO decision, and 3) identify ITO strategies. To this end, 91 ITO articles published between 2000 and 2018 in 51 unique journals were reviewed. The results yielded three kinds of descriptive, relational, and comparative ITO decision studies. The determinants of ITO decisions are classified into technological, organizational, environmental and user adoption factors. Furthermore, the trend of studied ITO strategies in the reviewed literature is analyzed, and future sourcing varietals are proposed. Finally, some insights and future research directions are proposed based on the review results.During the recent decades, some academic research on the subject of information technology outsourcing (ITO) decision has appeared in different outlets, which may impede the use of such resources and as a result, repetition of research by various researchers is very likely. The purpose of this paper is then to conduct a systematic literature review (SLR) pertaining to research on ITO decision. Then, this review intends to 1) classify ITO decision literature, 2) provide a list of factors affecting ITO decision, and 3) identify ITO strategies. To this end, 91 ITO articles published between 2000 and 2018 in 51 unique journals were reviewed. The results yielded three kinds of descriptive, relational, and comparative ITO decision studies. The determinants of ITO decisions are classified into technological, organizational, environmental and user adoption factors. Furthermore, the trend of studied ITO strategies in the reviewed literature is analyzed, and future sourcing varietals are proposed. Finally, some insights and future research directions are proposed based on the review results

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

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

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