Managing the ASP process: a resource‐oriented taxonomy

Application service providers (ASPs) represent the new wave of business information technology delivery. However, there is little formal literature that helps us understand the distinctions among different ASP‐client relationships and how they need to be managed. This paper adopts a socio‐technical perspective to distinguish among ASP relationships. This distinction is based on the levels of organizational change that the ASP relationship will evoke. This paper then proposes levels of resource allocation that best “fit” each type of relationship. Three specific resources important to ASP‐client relationships are economic outlays, social networks, and knowledge. The model developed in this paper provides academics and practitioners with a tool with which to diagnose the capabilities of a prospective ASP and a model for making resource allocation decisions once the ASP is selected. It raises empirical questions for researchers with regard to resource allocations that best fit specific levels of organizational change following an ASP adoption.

[1]  S. Ghoshal,et al.  Social Capital, Intellectual Capital, and the Organizational Advantage , 1998 .

[2]  Mark S. Granovetter The Strength of Weak Ties , 1973, American Journal of Sociology.

[3]  S. Ghoshal,et al.  Markets, Firms, and the Process of Economic Development , 1999 .

[4]  Robert P. Bostrom,et al.  MIS Problems and failures: a sociotechnical perspective part I: the cause , 1977 .

[5]  P. Lawrence,et al.  Differentiation and Integration in Complex Organizations , 1967 .

[6]  T. Das,et al.  A Resource-Based Theory of Strategic Alliances , 2000 .

[7]  D. Stark Ambiguous Assets for Uncertain Environments: Heterarchy in Postsocialist Firms , 2009 .

[8]  Richard T. Watson,et al.  Managing the three Levels of Change , 1999, Inf. Syst. Manag..

[9]  Shawn L. Berman,et al.  The Structure of Optimal Trust: Moral and Strategic Implications , 1999 .

[10]  B. Uzzi,et al.  Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness , 1997 .

[11]  F Turisco Evaluating ASP pricing models and contract terms. , 2000, Healthcare financial management : journal of the Healthcare Financial Management Association.

[12]  Jeffrey H. Dyer,et al.  The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage , 1998 .

[13]  Roger Calantone,et al.  A Structural Analysis of the Effectiveness of Buying Firms' Strategies to Improve Supplier Performance , 2000, Decis. Sci..

[14]  Leslie P. Willcocks,et al.  An Empirical Investigation of Information Technology Sourcing Practices: Lessons From Experience , 1998, MIS Q..