Implementing Software as a Service-Based E-Governance Solution: A Network Governance Perspective

The purpose of the study is to investigate the existence of network governance in the software as a service value network. The study analyzes the processes of Software as a Service solution implementation through participatory design methodology. The study followed the participatory design methodology to analyze how the existence of four conditions: uncertain demand with stable supply, customized exchange high in human asset specificity, complex task under intense time pressure and frequent exchange among parties, lead to the emergence of network governance. The study further tries to find out how the social mechanisms for coordination and control emerge through network governance in the context of SaaS value network. The study found that network governance enabled coordination, control and safeguarding through social mechanisms of restricted access, macro cultures, collective sanctions and reputation. The major research implications is that network governance acts as a partial substitute to formal contracts and complements relational governance mechanisms in network product/service chains. The main contribution of the study is to investigate the emergence of network governance in a real life context of the software as a service value network through a case study.