Academic journal article Global Business and Management Research: An International Journal

An Empirical Study on the Impact of Information System Quality on Software as a Service

Academic journal article Global Business and Management Research: An International Journal

An Empirical Study on the Impact of Information System Quality on Software as a Service

Article excerpt

Abstract

Purpose: Cloud computing specially on Software as a Service (SaaS) is currently powerful instrument and has attracted substantial attention from industrial, practitioners and academics. This paper aimed to develop an integrated model designed to predict, to examine and to understand information system quality on Software as a Service during the formation of sustainable of continuous intention of customers in cloud computing contexts.

Design/methodology/approach: The participants were from 144 samples, most of respondents were CIOs and CEOs. Structural equation modelling was applied to demonstrate the stability of the proposed model and the results of hypotheses testing.

Findings: The analysis results demonstrated that customers' continuous intention and customers' satisfaction were determined significantly by SaaS Quality. Satisfaction was also the significant motivator of customers' continuous intention.

Research limitations/implications: The differences among various types of SaaS application were not analysed. This study suggests that future studies should extend research including users of various SaaS applications such as office application software, enterprise resource plan, customer relationship management system and so on.

Originality/value: This paper proposed a comprehensive model to synthesize the essence of SaaS quality for explaining customers' satisfaction and customers' continuous intention of SaaS.

Keywords: SaaS Quality, customers' satisfaction, customers' continuous intention

Introduction

Software as a Service (SaaS) is part of cloud computing technology and one of the service type, an innovation of software application based on web 2.0 (Chou & Chou, 2007). Success stories can be seen from leading companies such as SalesForce.com, Amazon's EC2, Google's App Engine, Microsoft CRM, and GoGrid. SaaS application works on cloud servers distributed by SaaS providers. Customers only need to pay based on customer usage or service delivered, it is called on demand purchase model. This model is kind of mode of service utility, customers just subscribe an application, no need to buy the software or develop their own software and hardware such as server. So customers can focus on their main business activities and reduce their cost. SaaS model usage in organization is able to outsource applications for their needs, such as tools (i.e. office software application, antivirus, e-mail, music player) and business applications (i.e. finance or accounting software, human resources management system, customer relationship management, enterprise resource planning). Cost saving is one reason why an organization adopts SaaS application but it is too lack or not sufficient and it needs to explain more about SaaS adoption decision. Furthermore, the behavioural impacts of SaaS adoption are needed to assess and how customers use of SaaS application during and post adoption.

Even though the drivers of success in implementation of SaaS can be reduced, IT and IS cost are elastic in their operation, faster in upgrade, on demand and easy to implement. Service quality is becoming huge issue and is very important. To achieve maximum quality in SaaS, it needs new requirements toward service quality, information quality and system quality, due to SaaS has difference characteristics. For examples, SaaS is requiring and is dependently on internet connection, strong security due to safeguard data and information, 24 hour's service availability and flexibility afforded. Since, customers or users do not have their own software and do not maintain the infrastructure, they only need to pay what they use for SaaS services (pay as you go models). This model gives customers more option to choose the other SaaS providers easily. All these factors present unique challenges to SaaS providers to keep customers' requirements for service to achieve their customers' satisfaction and intent to use. …

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