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Modeling Intention to Use an Application Service Provider (ASP)

Modeling Intention to Use an Application Service Provider (ASP). Tsipi Heart , Nava Pliskin, Noam Tractinsky Heart , PliskinN, NoamT @bgumail.bgu.ac.il Ben-Gurion University of the Negev. Information Society, February 3, 2004. Topics. Application Service Providers Research Methodology

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Modeling Intention to Use an Application Service Provider (ASP)

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  1. Modeling Intention to Use an Application Service Provider (ASP) Tsipi Heart, Nava Pliskin, Noam Tractinsky Heart, PliskinN, NoamT@bgumail.bgu.ac.il Ben-Gurion University of the Negev Information Society, February 3, 2004

  2. Topics • Application Service Providers • Research Methodology • ASP Drivers and inhibitors • The ASP Intention Model (AIM) • Limitations and discussion

  3. “The hospitality industry is two-three years behind other industries in IT adoption” (Hensdill, 1998, Heart et al., 2001) Research motivation:

  4. Application Service Providers “ASPs are third party service firms which deploy, manage and remotely host software applications through centrally-located services in a rental or lease agreement” (Currie and Seltsikas, 2001, p. 123).

  5. Customer Organizations of ASPs • Access applications and databases residing on ASP servers over networks • Avoid investment in server hardware and software • Pay monthly usage fee Heart, T. and Pliskin, N., 2002, "Renting Restaurant Applications from Application Service Providers", International Journal of Hospitality Information Technology (IJHIT), Vol. 2, No. 2, 45-61.

  6. The Belief at Oracle: in 10 years all business applications will be:“…delivered via the Web as a software service, rather than shipped as a product that customers must implement, manage, and maintain.” (Information Week, 2001).

  7. SMEs -- Candidates for ASP • Need to harness IT to enable growth • Find IT adoption costly and risky (Bennett and Timbrell, 2000) • Do not have the resources internally

  8. Current Forecasts • Currently, according to IDC “Companies spent more than $2.3 billion last year for software delivered as a service, up from $1.8 billion the year before”1. • In 2000, IDC forecasted an ASP market size of $25 billion by 2005 • The market will reach $8 billion by 2007 (Mears, Network World, 22/9/2003) 1http://www.nwfusion.com/news/2003/0922carrspecialfocus.html

  9. Why, actually, ASP adoption is slower then anticipated ???

  10. Preliminary Research in the Israeli Hospitality Industry • One ASP vendor servicing Israeli hotels • Sixteen hotels (out of 257 registered hotels) adopted the “pure” ASP model • Three hotel chains (managing 25 hotels) adopted the “hybrid” ASP model

  11. Current ASP research • Mostly looking at the vendor’s side • No modeling of ASP adoption decision • No emphasis on SMEs

  12. Research Question What are the factors affecting intention to use ASP, as perceived by a top SME decision-maker?

  13. Research Methodology • Exploratory qualitative research: • Field study (the Israeli hospitality industry) • Case studies (two vendors, five customers) • In-depth interviews (four interviewees) • Model formulation based on the literature and findings of the qualitative study • Quantitative survey to test the model (Unit of analysis: top SME decision-maker, sample: Israeli SMEs) • In-depth interviews with ten managers that have responded to the questionnaire, for triangulation purposes

  14. Driving and Inhibiting Factors From the Literature and Qualitative Research

  15. Interviews

  16. Literature

  17. Results of the Preliminary Field Study Cost Analysis for a 300 room hotel with 30 users

  18. Monthly Costs

  19. Bottom Line….

  20. The Suggested Model: ASP Intention Model (AIM)

  21. Hypotheses • [H1] High perceptions of ASP usefulness enhance the intention of the decision maker to use an ASP • [H2] Actual ASP usage is also enhanced by perceived ASP usefulness • [H3] High perception of ease of use enhance the intention of the decision maker to use an ASP • [H4] ASP usefulness is enhanced by perceived ease of use

  22. [H5] A low perception of ASP technology risk decreases perceived overall risk of the ASP • [H6] High perceived trustworthiness of ASP vendor decreases perceptions of overall risk of ASP concept • [H7] Perceived overall risk negatively affects intention to use ASP • [H8] Intention to use ASP enhances actual ASP usage

  23. Done • A questionnaire has been composed reflecting the model constructs • Several (15) responses, so far

  24. Next Steps • Test questionnaire validity (few SMEs) • Finalize questionnaire • Run study • Analyze results (using a valid statistical tool, preferably structural equation modeling (SEM) which requires a large sample)

  25. Limitations and Doubts • Is AIM adequate for assessing intention to adopt technology by a decision-maker in an organization? • Are there other factors affecting the ASP adoption decision in an organization? • About 150 responses are required if SEM is to be used, might need to survey SME managers from other industries • SME definition

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