Drivers and inhibitors of SaaS adoption in Korea

The concept of software as a service (SaaS) has received considerable attention in recent years, and an increasing number of countries have consequently promoted the SaaS market. However, those countries without mature SaaS markets have experienced many SaaS-related problems. To facilitate SaaS adoption, we first analyzed Korea's newly established SaaS market. We then employed a method based on the two-factor theory in order to classify the SaaS market into adoption-driving and adoption-inhibiting areas. From the adoption-driving area perspective, the results of the method demonstrate the validity of the consumerization phenomenon and the PEST analysis. Customer factors in the consumerization phenomenon and economic factors in the PEST analysis were the most important drivers of SaaS adoption. From the adoption-inhibiting area perspective, customer factors as well as supplier and environment factors inhibited SaaS adoption; according to the PEST analysis, social, economic and political factors inhibited SaaS adoption. These results have important implications for Asian countries with newly established SaaS markets, including Australia, China and Singapore.

► We employed a method based on two-factor theory to classify the SaaS market into adoption-driving and adoption-inhibiting areas.
► Customer and economic factors were the most important drivers in SaaS adoption.
► Suppliers’ attitude as well as environment factor inhibited SaaS adoption, while according to the PEST analysis, social, economic and political factors inhibited SaaS adoption.
► These results have important implications for Asian countries with newly established SaaS markets, including Australia, China, and Singapore.