Management Summary Research Studey “Too much of a good thing? Entrepreneurial orientation and the non-linear governance effects of SaaS platforms”

This study investigates how Software as a Service (SaaS) adoption affects the performance of small and medium-sized enterprises (SMEs) and what role entrepreneurial orientation (EO) plays in governing these platforms. SaaS is conceptualised as a hybrid governance model situated between outsourcing and vertical integration. The research draws on Transaction Cost Theory (TCT) and employs two complementary studies: a PLS-SEM survey of 180 entrepreneurs in the UK and the USA, and a quasi-experimental analysis of 238 European start-ups using Shopify. The findings reveal an inverted U-shaped relationship between SaaS usage intensity (human asset specificity and frequency) and strategic alignment: moderate SaaS integration yields performance benefits, while excessive dependence undermines long-term governance performance. The same non-linear pattern holds for the relationship between strategic alignment and long-term firm performance. Risk-taking strengthens the alignment between human capital and SaaS strategy, while proactiveness enables firms to transform routine SaaS usage into a strategic competitive advantage. For practitioners, the results suggest that SME managers should assess their entrepreneurial orientation before deploying SaaS, maintain a moderate level of strategic reliance on SaaS platforms, and invest in employee training and experimentation with platform functionalities to maximise governance-enabled outcomes.

Target groups of stakeholders: SME managers and owners, IT managers, corporate strategy decision-makers, startup investors, policymakers supporting SME digitalisation

Citation: Ballerini, J., Pino, M., Kudej, M., & Ferraris, A. (2026). Too much of a good thing? Entrepreneurial orientation and the non-linear governance effects of SaaS platforms. International Journal of Entrepreneurial Behavior & Research, 32(11), 164–192. https://doi.org/10.1108/IJEBR-05-2025-0657

Source: https://doi.org/10.1108/IJEBR-05-2025-0657