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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