Abstract

The formation of clients’satisfaction in software-as-a-service (SaaS) remains unclear. Building on the relational view and outsourcing literature, this study develops a theoretical model to explain the relationships between SaaS satisfaction, relational value, and IS capabilities. Relational values are characterized as task-based value and governance-based value. IS capabilities include IS integration and IS coordination. The proposed model and hypotheses are supported by the empirical data from 255 firms. The results show that clients’satisfaction is influenced by both task-based value and governance-based value, which, in turn, are affected by IS capabilities. Finally, we discuss the implications of our findings.

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