Abstract: This study aims to investigate factors propel use of software as a
service in public sector organisation. Therefore, an amalgamated information
system (IS) model was developed using TOE framework that underpinned
technological, organisational and environmental factors. In addition to that the
moderating role of compatibility was tested between intention to adopt software
as a service and actual use of software. Structural equation modelling (SEM)
approach was used for inferential analysis. Results indicate that altogether
technology competency, top management support, awareness, coercive
pressure, normative pressure and mimetic pressure explained substantial
variance in intention to adopt software as a service. Effect size analysis (f2)
revealed that awareness and technology competency were the most influential
factors in determining employee intention to adopt software as a service.
Finally, it is suggested that managers and policy makers should focus on
awareness and compatibility in order to enhance the actual use of software in
organisation.