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Software as a Service Value and Firm Performance 
- a literature review synthesis in Small and Medium Enterprises (SMEs) - 
Jorge C. Rodrigues 
Pedro Ruivo 
Tiago Oliveira 
Troia, 16.10.2014
started from Software as a Service 
from information technologies (IT) and information systems (IS) 
To Date most of research on Cloud Computing or SaaS focused on [ Lin A, Chen NC (2012); Oliveira T, 
Thomas M, EspadanalM (2014); Misra SC, MondalA (2011); Gupta P, SeetharamanA, Raj JR (2013) ] 
Impact from SaaS in Firm Performance, especially in the Small and Medium enterprises (SMEs) segment, is still a very limited 
area of research. And most of the research in Medium-Large organizations Performance impact from IT/IS ismainly based on 
Earnings/“Stock market valuation” variable measurement [ Dewan S, Ren F (2011); Beheshti HM, Beheshti CM (2010); Hendricks 
KB, Singhal VR, Stratman JK (2006); Guido Schryen (2013) ] 
and also which are the major theories used to explain this, as Literature 
reviews to support research of this subject were unknown at time of this review 
this is a synthesis of the most relevant publications about these subjects, 
, where a total of 32 articles from 30 journals and 2 conferences were reviewed
Total of 32 articles reviewed: 30 journal articles. 2 conference proceedings. 
Major subject #Articles Year range 
IT / IS impact in Firm Performance 13 1995 – 2013 
Cloud Computing and Value/Performance/ROI 11 2010 – 2013 
ENTERprise Systems Software impact in Firm Performance 8 2010 – 2013 
Theories 
Agency theory 
Benefits realization 
Competitive strategy 
Delone and McLean 
Diffusion of Innovation (DOI) 
Dynamic Capabilities 
Economic theory of production 
IT productivity paradox 
Natural resource-based 
Organizational information processing 
Resource Based View (RBV) 
Schumpeterian innovation 
Strategic management 
Systems Theory 
Theory of strategic netwoks 
TOE 
Transaction cost economics 
Value chain analysis 
Value-Focused Thinking (VFT) approach 
92% and…Cloud Computing articles 
are mostly NOT supported by 
Theories
Total of 32 articles reviewed: 30 journal articles. 2 conference proceedings. 
Benefits and Advantages of Cloud Computing 
FINANCIAL Cost Effectiveness 
Cost Reduction 
ROI 
Pay-as-you-go Cost structure 
SaaS reduces repair costs of application-based construction and maintenance 
No upfront capital investments needed for hardware resources 
Lower cost of entry to enhanced applications 
FUNCTIONAL Computational power 
Easier for enterprises to scale their services 
Controlled Interface 
Addressability and Traceability 
Ease of use & convenience 
Flexibility 
Location Independence 
Ubiquitous Access 
Rapid elasticity 
Security & privacy 
Virtual Business Environments 
INNOVATIONS and NEW SERVICES Lower IT barriers to innovation 
Possibility of new classes of applications and Services not possible before 
OTHER Instrument for sustainable improvements in the IT landscape supporting SMEs business 
Sourcing Independence
limited use of theories 
are recent 
• this is not a Comprehensive nor Detailed Review (…but only part of further research work…) 
• we recommend further research on some of the questions raised from this Review, such as: 
1. are SaaS business applications a valuable IT resource to increase an SME Performance ? 
2. which are the specific performance indicators impacted by SaaS business applications in a SME 
and 
3. how can the value of a SaaS business application be assessed
SaaS 
Value
THANK YOU !

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SaaS impact in SMEs performance CENTERIS 2014 Article_DO NOT REFER WO AUTHORIZATION

  • 1. Software as a Service Value and Firm Performance - a literature review synthesis in Small and Medium Enterprises (SMEs) - Jorge C. Rodrigues Pedro Ruivo Tiago Oliveira Troia, 16.10.2014
  • 2. started from Software as a Service from information technologies (IT) and information systems (IS) To Date most of research on Cloud Computing or SaaS focused on [ Lin A, Chen NC (2012); Oliveira T, Thomas M, EspadanalM (2014); Misra SC, MondalA (2011); Gupta P, SeetharamanA, Raj JR (2013) ] Impact from SaaS in Firm Performance, especially in the Small and Medium enterprises (SMEs) segment, is still a very limited area of research. And most of the research in Medium-Large organizations Performance impact from IT/IS ismainly based on Earnings/“Stock market valuation” variable measurement [ Dewan S, Ren F (2011); Beheshti HM, Beheshti CM (2010); Hendricks KB, Singhal VR, Stratman JK (2006); Guido Schryen (2013) ] and also which are the major theories used to explain this, as Literature reviews to support research of this subject were unknown at time of this review this is a synthesis of the most relevant publications about these subjects, , where a total of 32 articles from 30 journals and 2 conferences were reviewed
  • 3. Total of 32 articles reviewed: 30 journal articles. 2 conference proceedings. Major subject #Articles Year range IT / IS impact in Firm Performance 13 1995 – 2013 Cloud Computing and Value/Performance/ROI 11 2010 – 2013 ENTERprise Systems Software impact in Firm Performance 8 2010 – 2013 Theories Agency theory Benefits realization Competitive strategy Delone and McLean Diffusion of Innovation (DOI) Dynamic Capabilities Economic theory of production IT productivity paradox Natural resource-based Organizational information processing Resource Based View (RBV) Schumpeterian innovation Strategic management Systems Theory Theory of strategic netwoks TOE Transaction cost economics Value chain analysis Value-Focused Thinking (VFT) approach 92% and…Cloud Computing articles are mostly NOT supported by Theories
  • 4. Total of 32 articles reviewed: 30 journal articles. 2 conference proceedings. Benefits and Advantages of Cloud Computing FINANCIAL Cost Effectiveness Cost Reduction ROI Pay-as-you-go Cost structure SaaS reduces repair costs of application-based construction and maintenance No upfront capital investments needed for hardware resources Lower cost of entry to enhanced applications FUNCTIONAL Computational power Easier for enterprises to scale their services Controlled Interface Addressability and Traceability Ease of use & convenience Flexibility Location Independence Ubiquitous Access Rapid elasticity Security & privacy Virtual Business Environments INNOVATIONS and NEW SERVICES Lower IT barriers to innovation Possibility of new classes of applications and Services not possible before OTHER Instrument for sustainable improvements in the IT landscape supporting SMEs business Sourcing Independence
  • 5. limited use of theories are recent • this is not a Comprehensive nor Detailed Review (…but only part of further research work…) • we recommend further research on some of the questions raised from this Review, such as: 1. are SaaS business applications a valuable IT resource to increase an SME Performance ? 2. which are the specific performance indicators impacted by SaaS business applications in a SME and 3. how can the value of a SaaS business application be assessed
  • 7.