Search results

The purpose of this paper is to understand the decision process of enterprise software acquisition. The research aims to focus on identifying significant influences on enterprise software acquisition decisions.

As a research model and theoretical background, the organizational buying model (OBB) is proposed for the acquisition of enterprise systems. Influences on enterprise software acquisition decision processes were found by an empirical study carried out from a practitioner's perspective. The study collected data via a mail survey administered to information systems (IS) professionals involved in the acquisition of enterprise software (ES). The survey questionnaire was developed based on a previous research project and a literature review. Organizational buying behavior (OBB) models in the literature served as the basis for the influences included in the survey instrument. Factor analysis was carried out on the survey data to identify the most significant factors/influences.

The following five factors emerged as significant influences on the acquisition decision process of enterprise software: ES strategy and performance; BPR and adaptability; management commitment and user buy‐in; single vendor integrated solution; and consultants, team‐location, and vendor's financing. These factors are discussed and managerial implications are extracted. Conclusions are derived from the study findings and guidelines for further research are suggested.

The present study provides a starting point for further research in understanding a more comprehensive list of influences on enterprise software acquisition. A bigger sample from more industries is required to examine whether the significance of the influences remains stable.

Using OBB models has proven to be useful for organizations in making effective decisions on enterprise software acquisition.

The study aims to explore the impact of tacit knowledge sharing (TKS) factors and its consequences in the form of technological innovation capabilities (TICs) within Pakistani software small–medium enterprises (SSMEs).

Drawing upon the social exchange theory (SET), the study used a quantitative approach and structural equation modeling (SEM) to test hypotheses with 220 valid data collected from 23 Pakistani software SSMEs.

The peer influence (PI) has positive and significant effect on collaborative culture (CC), willingness to share tacit knowledge (WSTK) and TICs. Organizational trust (OT) has a positive and significant impact on CC and TIC. Whereas, CC possessed positive and significant effect on WSTK and insignificant on TIC. Furthermore, WSTK has positive and significant effect on TIC. Finally, WSTK partially mediates the relationship between PI and TIC whereas WSTK fully mediates the relationship between CC and TIC.

The study enriches the research on knowledge sharing and TIC. This research investigates the precursors of tacit knowledge-sharing willingness and their consequences in software SMEs; future studies need to examine tacit knowledge-seeking willingness and its consequences not only in software enterprises but also in other industrial sectors. Besides, it needs to evaluate types of innovative capabilities in software SMEs.

The study suggested that the practitioners need to strengthen TKS in the form employees’ updated skills and expertise which ultimately fosters software enterprise’s innovative capabilities to attain competitive advantages in a specific industry.

This research is one of the few studies to examine the potential antecedents of WSTK and their final effects within software SMEs in the form of TICs. As currently it is observed, an incredible increase of skills oriented innovations in firms particularly in the software domain and IT industry. Therefore, this study emphasizes how PI, OT and WSTK positively affect TIC of Pakistani software SMEs. However, the study could be considered as a guideline for the academia and practitioners who attempt to strengthen the technological innovations capabilities in software SMEs.

With the clarification of three effective methods (share holding, decision participation and promotion of technical grade) to govern R&D teams in software enterprises, the purpose of this paper is to provide an empirical investigation of the application of these methods in Chinese software enterprises.

The research is based on a quantitative approach with 34 items designed in the questionnaire to measure the indicators. All items were rated by respondents on a five‐point Likert‐type scale. In order to testify the validity of the three methods of R&D team governance, a correlation analysis and a linear regression were made to examine the relationship between these methods of R&D team governance and R&D performance.

The evidence shows that decision participation and promotion of technical grades are the two most effective methods to govern R&D teams in Chinese software enterprises, while share holding is not conducive to R&D performance. The share holding level of R&D staffs is fairly low; even “no share.” What is more important is that many software enterprises regard it as a welfare institution but not an incentive method. Therefore, the shareholding mechanism cannot enhance R&D performance. In addition, relevant regulations have not been established completely. There are many deficiencies in the process of intellectual property management of Chinese enterprises. These factors have hindered the effective performance of R&D staff.

The research findings emphasize the importance of governance of R&D teams in the Chinese software industry and highlight the critical issues that need to be addressed in order to enhance the performance of R&D staff.

The concept of R&D team governance is examined and elaborated within the context of China, which points to the need of developing new direction of R&D team management.

Organizations worldwide are adopting software as a service (SaaS) applications, where they pay a subscription fee to gain access rather than buying the software. The extant models on software acquisition processes, several of which are based on organizational buying behavior, do not sufficiently explain how SaaS application acquisition decisions are made. This study aims to investigate the acquisition process organizations follow for SaaS software, the changes to the roles of the Chief Information Officer (CIO) and the business user and also looks at the impact of SaaS on the proliferation of unauthorized software systems.

The authors used exploratory research using the grounded theory approach based on 18 in-depth interviews conducted with respondents who have studied with enterprise software delivered on-premise and as SaaS in different roles such as sales, consulting, CIO, information technology (IT) management and product development.

The authors identified a need to classify the SaaS software and developed a framework that uses software specificity and its strategic importance to the organization to classify SaaS applications. The aforementioned framework is used to explain how software evaluation processes have changed for different kinds of SaaS applications. The authors also found that the CIO’s and the business users’ have changed substantially in SaaS application evaluations and found evidence to show that shadow IT will be restricted to some classes of SaaS applications.

By focusing on the changes to the roles and responsibilities of the members of the buying center, this paper provides unique insights into how the acquisition process of SaaS is different from the extant models used to explain enterprise software acquisitions. An understanding of how information search is conducted by the business users will help software vendors to target business users better.

Enterprise systems are commonly implemented by firms through outsourcing arrangements with software vendors. However, deriving benefits from these implementations has proved to be a challenge, and a great deal of variation has been observed in the extent of value generated for client and vendor firms. This research examines the role of co-specialization as a strategy to make the most out of outsourced enterprise systems. The authors develop hypotheses relating resource co-specialization with two indicators of success for implementation of enterprise software: (1) exchange success and (2) firm growth.

The hypotheses are tested using a unique panel data set of 175 firms adopting Advanced Planning and Scheduling (APS) software, a type of enterprise system used for managing manufacturing and logistics. The authors identify organizational factors that support co-specialization and then examine how co-specialization is associated with enterprise software implementation success, controlling for the endogenous choice to co-specialize.

The empirical results suggest that resource co-specialization is positively associated with implementation success and that the two resource co-specialization pathways that are examined complement each other in providing performance benefits.

This paper contributes to the research literature on outsourcing. The study also provides a new empirical test using a unique data set of 175 firms adopting APS Software.

The emergence of the Software-as-a-service (SaaS) licensing model dramatically changes how enterprise software is released. Especially, it is favored by small and medium enterprises (SMEs) because of the cost-friendly feature. In contrast, many large enterprises (LEs) own relatively abundant budgets and prefer the on-premise software to fulfill demands through customization. Considering the differentiated cost-acceptance level among customers, this study aims to address the versioning problem of the enterprise software faced by software firms.

A two-point distribution model is formulated to calculate the maximal profits software firm earned from both LEs and SMEs under three strategies (On-premise, SaaS and Hybrid). Then through profit comparison, this paper obtains the optimal versioning strategy and corresponding feasible conditions. Finally, the optimal solutions are derived concerning social welfare.

A significant finding is that moving to SaaS becomes necessary for the software firms in product releases since the on-premise strategy will not be optimal. Based on this, this paper discovers that when LEs own a cost-acceptance level close to that of SMEs, the hybrid strategy is the only optimal choice. When LEs become less sensitive to costs, the hybrid strategy is suggested if the customization cost falls below the threshold. Otherwise, the SaaS strategy becomes the optimal option. The conclusions explain why some software vendors transit to “cloud companies” thoroughly and provide practical insights for software firms’ future decisions.

To the best of the authors’ knowledge, this paper is the first information economics study to consider consumer cost sensitivity in discussing enterprise software versioning. The differentiated cost-acceptance level is introduced to describe the customer utilities, and the results uncover the necessity of moving to SaaS under diversified customer composition. This work provides significant theoretical value and practical insights.

Enterprise software is a predominant sector in the European software industry. Four of the five largest European software companies are found in this sector. Interestingly, two of these — among them SAP as one of the two global market leaders — are located within the same industrial agglomeration in South-Western Germany. This agglomeration, the SAP cluster, further consists of enterprise software SMEs forming a ‘satellite system’ centred around the large players, which fosters the formation of ‘mutualistic symbiotic’ relationships between large and small firms. At first sight, cluster formation in the context of the enterprise software industry might seem perplexing considering that traditional rationales of agglomeration economies seem obsolete in an environment where advances in communications technology would permit companies to locate in any location within a modern developed economy instead of concentrating in proximity to each other or to major players in the industry. This chapter explores possible explanations of this agglomeration phenomenon based on patterns of competition, collaboration and the formation of social capital between smaller firms and large anchor firms.

The findings of a comparative analysis between the SAP cluster environment and two categories of controls (firms in other agglomerated environments and those unaffected by agglomeration effects within Germany) show that SAP cluster SMEs might simultaneously benefit from heightened intensity of competition and a more pronounced inclination towards collaboration. Moreover, the role of social capital derived from SAP as anchor firm clearly differentiates SAP cluster participants from firms located within other environments.

This study aims to explore the process of open source software (OSS) adoption in small- and medium-sized enterprises (SMEs), and more specifically open source enterprise resource planning (ERP) as a “mission critical” OSS application in manufacturing. It also addresses the fundamental issue of ERP risk management that shapes this process.

The approach is done through an interpretive case study of a small Canadian manufacturer that has adopted an open source ERP system.

Interpreted in the light of the IT risk management, OSS and packaged application adoption literatures, results indicate that the small manufacturer successfully managed the adoption process in a rather intuitive manner, based on one guiding principle and nine practices. In analyzing the data, diffusion of innovation theory appeared to fit rather well with the situation observed and to offer rich insights to explain the mission-critical OSS adoption process.

A single case study of successful IT adoption should be eventually counterbalanced by future cases considered to be partial or total failures, using a wider multiple case study approach for comparative purposes. And this should include alternative theoretical interpretations and more detailed empirical work on the extent to which the distinctive features of OSS make its adoption more or less risk-laden. This initial effort should also be followed by further research on mission-critical OSS adoption in contexts other than SMEs (e.g. healthcare organizations) and other than ERP (e.g. customer-relationship management).

This research confirms that open source is a credible alternative for SMEs that decide willingly or under external pressure to adopt a mission-critical system such as ERP. Moreover, it suggests that a high level of formalization is not always necessary.

The authors argue that rich insights into the dynamics of the mission-critical OSS adoption process can be obtained by framing this process within an IT risk management context.

Enterprise portal is a type of new information system that can help companies and their employees to manage, share, and use previously disparate information. There are more than 60 vendors that are offering corporate portal solutions. With so many vendors, selecting the right one can be a difficult task. The primary objective of this research is to identify and evaluate the functions and features in enterprise portal products. In particular, this study develops a simplified model that can be used for identifying and classifying the functions and features in corporate portal software. The results of this study may be useful to information technology managers, educators, and students involved in knowledge management, business intelligence, information systems resources management, and data management. System developers, software engineers, project managers, financial managers, and data architects can use the functions and features identified in this study as benchmarking tools for evaluating portals capabilities.

With the rapid development of cloud computing, most software firms face the significant choice of whether they should change the versioning strategy of enterprise software from releasing the on-premise version to the software-as-a-service (SaaS) version. Data being generated and hosted on SaaS vendors' servers brings multiple effects. It enables customers to enjoy the flexibility of accessing data and using the software remotely, named the “portability” effect. However, on the other hand, the cumulative data resources on the cloud also provide a clear target for external attacks, leading to the concern of information security. Considering these, the authors hope to offer insights for software firms by exploring the strategy selection problem.

Taking the portability effect and security risks of the SaaS licensing model into account, the authors develop a two-period model to figure out the market segmentation and identify the feasible conditions for employing three alternative strategies. Comparative statics analyses are conducted to explore the influencing mechanism of exogenous factors on strategy selection. The authors also discuss the strategy selection in the presence of the network effect and the security loss faced by users of on-premise software.

One significant finding is that the on-premise strategy can be excluded when the potential loss from security risks is small. Under this circumstance, the dual version strategy is optimal provided that the increase of customer valuation caused by portability effect is below a threshold. Otherwise, the SaaS strategy generates the highest profit. When the potential loss from security risks turns large, the on-premise strategy, the dual version strategy and the SaaS strategy are the optimal options in order as the portability effect on customer valuation gets stronger.

Previous literature has insufficiently addressed the versioning issue of enterprise software. In this paper, the distinctive features of the SaaS model are considered, and differentiated results compared with previous work are obtained. The research results provide guidelines for software firms in deciding their product releases in the future.