Why do Companies Adopt or Reject SaaS? Looking at the Organizational Aspect

The aim of this paper is to investigate the influence of three organizational factors on the adoption of SaaS in Indonesian companies, namely top management support, organizational readiness, and organizational size. We conducted interviews with 15 case companies. Our results show that top management support has a positive influence on SaaS adoption, while organizational readiness and organizational size have an inverse effect. This is surprising, since it contradicts existing research on IT innovation adoption. We also found that the SaaS awareness level of our interviewees remains low, especially among the non-adopters. These findings have implications for IT service providers that want to formulate strategies to increase the intention to adopt SaaS in Indonesian companies; as well as for IT innovation researchers who have an interest in SaaS adoption in developing countries.