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Chinese Journal of Management Science ›› 2013, Vol. ›› Issue (2): 98-106.

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Research on Service Supply Chain Coordination Based on SaaS Model

LI Xin-ming, LIAO Xiu-wu, LIU Yang   

  1. The School of Management, Xi’an Jiaotong University, The Key Lab of Education for Process Control & Efficiency, Xi’an 710049, China
  • Received:2011-06-13 Revised:2012-07-29 Online:2013-04-30 Published:2013-04-25

Abstract: The free trial is the primary method for marketing generalization in the SaaS model. The coordination problem between an AIP (application infrastructure provider) and an ASP (application service provider) in a SaaS supply chain is investigated, in which the service demand is determined by the application free trial. Under symmetric information, the cost sharing contract is adopted to incent ASP to increase the effort level of free trial. Under asymmetric information, service capacity preorder strategy is used by AIP to avoid the low technical ability ASP’s opportunism behavior, and a combined contract of cost sharing and risk sharing is proposed to incent ASP to increase effort level of free trial and increase service capacity preorder quantity. The results show that the coordination contracts we proposed can realize the optimal free trial effect, optimal supply chain performance, and pareto improvement of supply chain members’ profits. Improving the ASP’s technical ability can make the free trial get a better effect. Through numerical exploration analysis, effectiveness of the model is demonstrated and some managerial insights are obtained.

Key words: SaaS model, free trial, service supply chain, coordination

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