Exploring success factors for application service provider based information systems

Abstract

Recently ASP (Application Service Provider), a new rental-based enterprise software business, has become a viable option. Although ASP has the potential to fundamentally change the manner in which IT services are provided for user firms, current ASPs often fail to show robust records in accumulating and maintaining customers. In order to fill the gap between the expected benefits of application service and its disappointing results in the real world, therefore, this dissertation attempts to explore the main success factors for ASP based information systems on the basis of past IS success models. Two hundred and three samples were collected from small and medium enterprises with ASP service experiences. Data analysis using LISREL shows that seven IS success factors - System Quality, Information Quality, Service Quality, Intention to Use, User Satisfaction, Individual Benefit, Organizational Benefit and an additional factor, Trust, have good fit with data gathered. These factors, except for System Quality, show significant coefficients and explanatory power. Furthermore, it is found that both Service Quality and Information Quality are significant for fostering User Satisfaction, Trust, and Intention to Use. In an extended research, this dissertation investigates the key antecedents influencing ASP client’s continuance intention. The results show that trust is found to be a major determinant of the continuance intention to use the application service. In contrast, satisfaction has significant effects on continuance intention, but its effect is rather limited. This study may be used as a stepping stone for further empirical research on ASP performance management and enlarge our understandings about the determinants of continued use of ASP based IS.