Cost and Service Capability Considerations on the Intention to Adopt Application Service Provision Services

Author(s):  
Yurong Yao ◽  
Denis M.S. Lee ◽  
Yang W. Lee

The Application Service Provision (ASP) model offers a new form of IS/IT resource management option for which the vendor remotely provides the usage of applications over a network. Currently, the ASP industry appears to be more vendor-driven. But without a good understanding of how the ASP offerings might appeal to prospective customers, the industry might not survive. This study investigates empirically the intention to adopt an ASP service from the customers’ perspective, using survey data collected from a national sample of IS/IT executives. Based on the Transaction Cost Theory (Williamson, 1979, 1985) and service capability, a causal model is developed to examine the effects of perceived cost savings and service capability, as well as their antecedent factors, on the intention to adopt an ASP service. The results show a dominant effect of cost savings consideration on ASP adoption intention.

2010 ◽  
Vol 21 (3) ◽  
pp. 90-113 ◽  
Author(s):  
Yurong Yao ◽  
Denis M. Lee ◽  
Yang W. Lee

The Application Service Provision (ASP) model offers a new form of IS/IT resource management option for which the vendor remotely provides the usage of applications over a network. Currently, the ASP industry appears to be more vendor-driven. But without a good understanding of how the ASP offerings might appeal to prospective customers, the industry might not survive. This study investigates empirically the intention to adopt an ASP service from the customers’ perspective, using survey data collected from a national sample of IS/IT executives. Based on the Transaction Cost Theory (Williamson, 1979, 1985) and service capability, a causal model is developed to examine the effects of perceived cost savings and service capability, as well as their antecedent factors, on the intention to adopt an ASP service. The results show a dominant effect of cost savings consideration on ASP adoption intention.


2020 ◽  
pp. 089011712094431
Author(s):  
Jillian K. Kwong ◽  
Ignacio Cruz ◽  
Sheila T. Murphy

Purpose: To determine the relative impact of framing on employee intention to adopt wearable technology (eg, Fitbits) at work. Setting and Design: Posttest only online experiment utilizing a 2 (framing: organizational efficiency vs individual health) × 2 (financial incentive: absent vs present) between-subjects design. Participants: Participants (N = 310) were 18 years or older, currently employed, and residing in the United States. Measures: Unified Theory of Acceptance and Use of Technology (UTAUT) subscale on behavioral intent (modified for wearable technology). Analysis: Chi-square and between-subjects analysis of variance. Results: Participants receiving the organizational efficiency frame ( M = 3.97) expressed significantly lower intention to adopt a wearable compared to the individual health frame ( M = 4.37), F 2,308 = 3.99, P = .047. Financial incentives had a positive effect on adoption intention ( M = 4.39 with incentive, M = 3.95 no incentive), F 2,308 = 4.46, P = .036. The main effects of frame and incentive were additive, with participants in the individual health with incentive condition (n = 78, M = 4.60) expressing the highest intention to adopt and organizational efficiency without incentive expressing the lowest adoption intention (n = 77, M = 3.80; P = .03). Conclusions: Messaging emphasizing individual health benefits plus financial incentives might prove most successful when encouraging adoption of wearables at work.


2016 ◽  
Vol 12 (7) ◽  
pp. 151 ◽  
Author(s):  
Zuhra Junaida Binti Ir Mohamad Husny ◽  
Muhammad Zaly Shah Bin Mohammed Hussein ◽  
Mohd Iskandar Bin Illyas Tan

This study was aim to understand the influence of adoption factors on the intention of adopting an innovation (Halal Logistics) among Malaysian Halal SMEs. This research employed a quantitative research design using survey research method. Four objectives were established. The first is to formulate a model that identifies the influence of adoption factors on innovation (Halal Logistics) adoption intention among Malaysian Halal SMEs. This was achieved through literature reviews and preliminary study. Five halal compliant logistics service providers (LSPs) were contacted through phone and email correspondences. Seven research hypotheses were derived and seven factors that influenced the innovation (Halal Logistics) adoption intention were identified: the presence of familiarity with innovation, status characteristics, position in social network as internal factors as well as benefit, geographical setting, societal culture and political condition as external factors. The second objective is to develop an instrument that can be used to measure the influence of adoption factors on adoption intention among Halal SMEs.


2019 ◽  
Vol 15 (29) ◽  
pp. 1-23
Author(s):  
Abhishek Tandon ◽  
Himanshu Sharma ◽  
Anu G. Aggarwal

Introduction: The present research was conducted at the University of Delhi in 2018. Problem: With the increase in usage of internet technology through wireless devices, the relevance of m-commerce has amplified. In a developing country like India, the rural and urban population is not equally divided on the use of m-commerce and this demands a detailed study regarding this problem.  Objective: The study aims to determine the factors that influence the m-commerce adoption intention of customers and how the effect varies over rural and urban populations. Methodology: This study combines the TAM and UTAUT model to consider the determinants as perceived ease of use, perceived usefulness, perceived risk, perceived cost, social interaction, and facilitating conditions, taking the endogenous variable as intention to adopt m-commerce.     Results: The results of PLS-SEM accepted the hypotheses underlying the model and also validated the moderating role played by a respondent’s locality over the intention to adopt m-commerce. Conclusion: The proposed model was validated by using PLS-SEM approach on a sample size of 200 collected from the urban and rural areas of Delhi NCR. Moreover, the moderating effect of a respondent’s locality was observed over adoption intention. Originality: With the advancement in technological infrastructure and improvement in mobile data facilities, customers have shown enthusiasm towards making online transactions using their phones. The advantage of mobile commerce over computer based electronic commerce is its mobility. Extant research has shown interest in studying the adoption intention of mobile commerce, based on determinants from the TAM or UTAUT model or their combinations. This study combines both models to choose the determinants of mobile adoption intention.  Limitation: Further studies can be conducted by considering other combinations of determinants and extending the model to incorporate the loyalty measures.


Author(s):  
S. Wesner ◽  
B. Serhan ◽  
T. Dimitrakos ◽  
D. Mac Randal ◽  
P. Ritrovato ◽  
...  

Author(s):  
Matthew W. Guah ◽  
Wendy L. Currie

The Application Service Provision (ASP) business model offers a pragmatic adoption path for inter-organizations in the Internet Age. Given this pragmatic adoption path, academics are beginning to question the following: Where are enterprises adopting ASP technology first? Why are they choosing these areas? Where will they apply the evolving Web services technology next? This chapter’s primary purposes are to point out a number of issues that concern management of inter-organizations of the Internet Age and to explore the impact of ASP on such organizations. It will examine the strategies that will enable inter-organizations to better manage ASP resources for competitive advantage. While the phenomenon of ASP is still in an embryonic stage, we draw from seminal works of IS pioneers like Markus, Porter, Checkland, Maslow, and others. Their intellectual contributions, plus findings from research work at Brunel University, provide a framework for discussion. By shedding light on patterns of ASP’s trajectory, drivers, benefits, and risks, the chapter will help managers and academics to reflect on determining where ASP—and associated technologies—might be deployed and define a broad implementation program to exploit the potential of the ASP business model. The chapter seeks to find if Web services architectures are distinctively able to enhance the flexible coordination of business processes, which span various enterprises and rely on inter-organization information systems in the Internet Age.


Author(s):  
Matthew W. Guah ◽  
Wendy L. Currie

Several historical shifts in information systems (IS) involved strategies from a mainframe to a client server, and now to application service provision (ASP) for intelligent enterprises. Just as the steam, electric, and gasoline engines became the driving forces behind the industrial revolution of the early 1900s, so the Internet and high-speed telecommunications infrastructure are making ASP a reality today. The current problem with the ASP model involves redefining success in the business environment of the 21st century. Central to this discussion is the idea of adding value at each stage of the IS life cycle. The challenge for business professionals is to find ways to improve business processes by using Web services. It took mainframe computers a decade or two to become central to most firms. When IBM marketed its first mainframe computer, it estimated that 20 of these machines would fulfil the world’s need for computation! Minicomputers moved into companies and schools a little faster than mainframes, but at considerably less costs. When the first computers were applied to business problems in the 1950s, there were so few users that they had almost total influence over their systems. That situation changed during the 1960s and 1970s as the number of users grew. During the 1980s the situation became even tighter when a new player entered the picture—the enterprise (McLeord, 1993). In the 21st century, information systems are developed in an enterprise environment (see Diagram 1). Beniger (1986) puts forth a seemingly influential argument that the origin of the information society may be found in the advancing industrialisation of the late nineteenth century. The Internet is simply a global network of networks that has become a necessity in the way people in enterprises access information, communicate with others, and do business in the 21st century. The initial stage of e-commerce ensured that all large enterprises have computer-to-computer connections with their suppliers via electronic data interchange (EDI), thereby facilitating orders completed by the click of a mouse. Unfortunately, most small companies still cannot afford such direct connections. ASPs ensure access to this service costing little, and usually having a standard PC is sufficient to enter this marketplace. The emergence of the ASP model suggested an answer to prevailing question: Why should small businesses and non-IT organisations spend substantial resources on continuously upgrading their IT? Many scholars believed that outsourcing might be the solution to information needs for 21st century enterprises (Hagel, 2002; Kern, Lacity & Willcocks, 2002; Kakabadse & Kakabadse, 2002). In particular, the emergence of the ASP model provided a viable strategy to surmount the economic obstacles and facilitate various EPR systems adoption (Guah & Currie, 2004). Application service provision— or application service provider—represents a business model of supplying and consuming software-based services over computer networks. An ASP assumes responsibility of buying, hosting, and maintaining a software application on its own facilities; publishes its user interfaces over the networks; and provides its clients with shared access to the published interfaces. The customer only has to subscribe and receive the application services through an Internet or dedicated intranet connection as an alternative to hosting the same application in-house (Guah & Currie, 2004). ASP is an IT-enabled change, a different and recent form of organisational change, evidenced by the specific information systems area (Orlikowski & Tyre, 1994). ASP has its foundations in the organisational behaviour and analysis area (Kern et al., 2002).


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