Abstract

Many applications service providers (ASP) and small and medium enterprises (SME) recognize the benefit of adopting the ASP model. However, the pick-up rate for ASP has not been very encouraging in many countries. To investigate this issue, three major factors that potentially influence ASP adoption was studied: perceived benefits, risk propensity of firm, and computerization level of firm. Based on the results of 48 case studies, a framework of ASP adoption was developed. This framework combines the anticipated impact of the three major factors. Using this framework, recommendations were made to facilitate ASP adoption by SME.

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