Antecedents of application service continuance: A synthesis of satisfaction and trust

Although ASP (Application Service Provider) has the potential to fundamentally change the manner in which IT services are provided for user firms, current ASPs often fail to provide good results in accumulating and retaining customers. To fill the gap between the expected benefits of application service and its disappointing results in the real world, we present a conceptual model including three quality measures – System Quality, Information Quality, and Service Quality. To extend the horizons of ASP acceptance, this study sharpens the model that these quality measures regulate Satisfaction and Trust, which lead to Continuance Intention. We test the research model and hypotheses through the use of the data from 203 small and medium enterprises with application service experience. Data analysis results using LISREL reveal that Satisfaction and Trust have significant effects on a client firm’s Continuance Intention. Trust is found to be the most salient determinant while previous studies mainly focused on the role of Satisfaction. Furthermore, an empirical support is found for the direct effect of Service Quality on Continuance Intention as well as its mediating effects.

Research highlights► We present a model for anticipating application service continuance. ► Our model synthesizes Satisfaction and Trust based on System, Information, and Service Quality. ► We test the research model on 203 small and medium enterprises with application service experience. ► Satisfaction and Trust have significant effects on a client firm’s Continuance Intention. ► Service Quality has direct and mediating effect on Continuance Intention.