User acceptance of software as a service: Evidence from customers of China's leading e-commerce company, Alibaba

Highlights

• A systematic model with which to analyze the user acceptance of SaaS is proposed.

• A SaaSQual of operationalizing perceived e-service quality of SaaS is developed.

• Ease of use, security, reliability and responsiveness are 4 dimensions of SaaSQual.

• E-service quality, usefulness and social influence are 3 factors in accepting SaaS.

• Direct and indirect influences in promoting user acceptance of SaaS are tested.

Abstract

This paper proposes a model with which to analyze the user acceptance of Software as a Service (SaaS). To develop this model, empirical surveys were conducted through four rounds of questionnaires obtained from customers of China's leading e-commerce company, Alibaba. Firstly, based on the data from the first three rounds (1399 respondents), a SaaSQual of operationalizing perceived e-service quality of SaaS was developed, and its four dimensions (ease of use, security, reliability and responsiveness) were identified. Secondly, based on the data from the fourth round (1532 respondents), it was found that the level of three user perceptions (e-service quality, usefulness, and social influence) were predictive of the users’ behavioral intention to use SaaS, and their direct and indirect influences were tested. This study recommends engineering improvements to SaaS based upon a better understanding of the level of user acceptance of this service.

Introduction

With the rapid advance in the availability of computer services and the widespread use of standard and open Internet technology, Software as a Service (SaaS) has become a focus for new product development within many IT, Internet and software companies. As defined by Carraro and Chong (2006) of Microsoft Corporation, SaaS is “software deployed as a hosted service and accessed over the Internet.” As a process, SaaS is characterized by the use of servers to host applications that customers access over the Internet. This technology has led to a proliferation of services and applications, almost beyond imagination.

In recent years, there is a growing concern regarding the acceptance of SaaS by users (Benlian et al., 2011, Wu, 2011b, Wu et al., 2011). Researchers have tried to measure customer satisfaction as it relates to the use of SaaS. Much attention has been focused upon trying to objectively measure e-service quality in system and software performance (Benlian et al., 2011). In addition to this objective approach, others have examined social and personal factors within the user population as a determinant of the level of user acceptance of SaaS. This latter approach is evident in the technology acceptance model 2 (TAM2). The underlying objective of this research is to construct a systemic model to analyze user acceptance of SaaS. To do so, this paper employs the classic technology acceptance model (TAM) and its modified versions.

Besides identifying the factors that may influence user acceptance of SaaS, we also pay heed to the mechanisms behind these effects. Few studies have explored these mechanisms in depth. TAM has not been used for determining the mechanisms of user acceptance of SaaS. In particular, how e-service quality and social and personal factors interact with each other is oftentimes neglected by SaaS researchers and the practitioners.

Simply stated, the managers of SaaS service providers need to know how to measure e-service quality of SaaS, what aspects of SaaS service best define its quality, and whether users actually intend to use SaaS service from firms that have the highest level of perceived e-service quality or based upon other social and personal factors.

By examining user acceptance of SaaS systemically, this paper proposes an analytical framework by which to expose the significant factors and their mechanisms of action. The remainder of this paper is organized as follows. In Section 2, issues related to user acceptance of SaaS are discussed. In Section 3, a proposed analytical framework is developed. In Section 4, an empirical methodology is described for the development of SaaSQual and the measurement variables. In Section 5, the results of the empirical study from customers of China's leading e-commerce company, Alibaba, are presented and analyzed. In Section 6, the theoretical and practical implications are discussed, and the limitation and future direction are also given. In section 7, conclusions to be drawn from this research are presented.