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Abstract
Application Service Providers (ASPs) have emerged in the outsourcing scene as an attractive, low-cost business technology option for small and medium size firms. However, the available research from the user's perspective deals mostly with large enterprises rather than small businesses. This study analyses the effects of ASP variables on customer satisfaction and training effectiveness of small businesses. In turn, the relationships between customer satisfaction and both educational effectiveness and business performance are examined. The results show that when customer firms perceive a high level of service at a reasonable fee, they have a high level of satisfaction with the service provider. Security and risk factors are becoming important to customer firms of ASPs. Customer satisfaction is found to be significantly related to organizational performance. Also, training effectiveness contributes to organizational performance by impacting customer service. The results of the study would help practitioners and researchers better understand small enterprises as ASP customers.
