Title: A Comprehensive Risk Based IT Governance Framework for SaaS Adoption in Capital Market

Author (s):: Dutta S.; Jain S.; Mukhopadhyay A.

Journal: Journal of Organizational Computing and Electronic Commerce

Month and Year: November 2024

Abstract: Software as-a-service (SaaS) adoption is essential in regulated industry such as capital market to bring in scalability, required to deal with the fluctuations in trading volumes, and agility, required to stay responsive to changing market conditions. In this context, the study examines the factors that the capital market organization look for in adopting SaaS. Based on the perceived risk theory and prospect theory, we propose a perceived risk based IT governance framework in SaaS adoption decision in capital market. Following a case study-based research methodology, we examined the factors that influence the risk perception of the decision makers about SaaS-based solution in a capital market industry. We found that the decision to opt for SaaS adoption in organization depends on (i) the top management’s consideration for risk preference, problem framing, decision domain, and data security, and (ii) organizational processes in practice such as IT governance archetype and risk management processes. Based on this, we generate a risk score for a capital market firm to weigh potential benefits and risks in adopting SaaS. In this study, we assume that the top management provides guidance toward firm’s risk appetite which is then compared to the generated risk score to decide for SaaS adoption. This study contributes to the technology adoption literature by emphasizing the role of individual risk preferences and problem framing in influencing technology adoption decisions particularly for technologies that pose certain risks. Finally, the study contributes by bringing forth the role of an IT governance framework in assessing SaaS-related risks. © 2024 Taylor & Francis Group, LLC.

Document Type: Article

DOI: https://doi.org/10.1080/10919392.2024.2430061