Abstract
Software as a Service (SaaS), which offers the possibility to cover both core and non-core business operations of a company, has profoundly transformed traditional outsourcing approaches. As SaaS represents promising solutions for a variety of business processes, it is important to identify a theoretical framework to evaluate SaaS adoption for these two types of operations. We propose an integrative framework to evaluate SaaS adoption by including four perspectives---economic savings, strategic influences, management attitudes toward ownership and vendor's service quality; and formulate hypotheses to predict the difference in SaaS adoption for core and non-core business operations. We validate our framework using data from 269 companies across different industries in Hong Kong. The results support the integrative framework. Perceived cost advantage has a positive influence on SaaS adoption for non-core business operations, whereas a gap in IT capabilities has a positive influence on SaaS adoption for core business operations. Furthermore, perceived service quality has a positive influence, and management attitude toward ownership and control has a negative influence on SaaS adoption for both types of operations.
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