When Reflection Hurts: The Effect of Cognitive Processing Types on Organizational Adaptation to Discontinuous Change

2023 | Organization Science | Citations: 1

Authors: Alves, Marlon Fernandes Rodrigues; Vastola, Vincenzo; Vasconcelos Ribeiro Galina, Simone; Zollo, Maurizio

Abstract: Technological breakthroughs, institutional disruptions, and natural disasters of ... Expand

Abstract: Technological breakthroughs, institutional disruptions, and natural disasters often alter the course of organizations and entire industries. Such discontinuous changes threaten organizations’ survival by affecting the value of the knowledge accumulated in routines and capabilities. Although it is widely acknowledged that managerial cognition is a critical antecedent of organizational responses to discontinuous change, the role of type 1 (intuitive) and type 2 (reflective) processing in the adaptation of shared patterns of behavior, that is, routines, remains understudied. Drawing on dual-process theory, we propose that particular features of type 1 processing render this approach superior to type 2 processing, especially in highly ambiguous environments in which information is limited and difficult to verify. We tested our hypotheses in a longitudinal experiment linking individual-level factors with organizational-level practices of routine adaptation. Experienced managers, paired in 80 groups, developed routines in a first round of a simulation game; in a second round, we then introduced a discontinuous change making previous routines obsolete in order to observe how they adapted. The data show that priming type 1 processing facilitates organizational adaptation more than type 2 processing by providing faster, more routinized, efficiently coordinated, and optimal responses. In addition, type 1 appears to be more functional in highly ambiguous environments, whereas type 1 and type 2 processes yield similar levels of performance under low levels of ambiguity. Overall, our study advances the understanding of the nondeliberative dimension of organizational adaptation to discontinuous change.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: This work was supported by Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (Finance Code 001).Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1517. Collapse

Topics: decision making strategic management innovation management problem solving task productivity

Methods: experiment longitudinal research parametric test ANOVA statistical hypothesis test

Theories: dual-system theory dynamic capabilities theory

Equity Crowdfunding and Access to Capital for User Entrepreneurs: Evidence from a Randomized Field Experiment

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Bapna, Sofia; Ganco, Martin

Abstract: We examine whether equity crowdfunding democratizes access to funding for nontr ... Expand

Abstract: We examine whether equity crowdfunding democratizes access to funding for nontraditional user entrepreneurs. User entrepreneurs start by creating a product to serve their own unmet needs with no expectations of monetary profit, then later decide to commercialize the product through entrepreneurship. In contrast, traditional (producer) entrepreneurs take a more profit-driven path to entrepreneurship and start by identifying an opportunity that has commercial potential. Through a randomized field experiment, we randomly reveal to some investors that a firm producing a product used by musicians is founded by a musician and conceal this founder-related information from other investors. Revealing the information suggests that the firm is a user innovator firm and concealing it suggests that the firm is a traditional producer firm. We find that investors are significantly more interested in the traditional producer firm. Through an additional field experiment, we identify that the bias against user entrepreneurs is statistical (based on a response to limited information) rather than taste based (based on an idiosyncratic dislike). Our findings suggest that user entrepreneurs can mitigate investor bias by displaying signals of quality such as those regarding firm growth and broad product appeal. Collapse

Topics: electronic mail crowdfunding crowdsourcing logistics management entrepreneurship

Methods: experiment survey expert panel regression analysis method field experiment

All External Reference Prices Are Not the Same: How Magnitude, Source, and Fairness Shape Payment for Digital Goods

2023 | Information Systems Research | Citations: 0

Authors: Bassellier, Geneviève; Ramaprasad, Jui

Abstract: External reference prices (ERPs) are recognized to influence consumers’ payment ... Expand

Abstract: External reference prices (ERPs) are recognized to influence consumers’ payment for physical goods. We examine the role of ERPs in a digital goods context, emphasizing the importance of disentangling the effects of two components of ERPs: the magnitude and the source. We first examine the impact of the price magnitude and then investigate how the impact of ERP magnitude is moderated by its source―the specific context in which the reference price is set—and by its perceived fairness. Using a laboratory experiment with 471 participants, we first establish that as an ERP increases, payment for digital songs also increases. Furthermore, the source of the ERP motivates payment differently. Indeed, consumers’ willingness to pay is more strongly influenced by a price recommended by the site than by information on the price paid by others. Last, we show that the perceived fairness of the ERP matters. Results indicate that when the ERP is perceived to be high, the marginal effect of an increase in ERP on payment is smaller than when it is perceived to be fair. We contribute to the understanding of the effect of ERPs in digital context, where the source of an ERP can be varied, and perception of fairness can be heterogenous across consumers. This has implications for the design of digital platforms seeking to sell digital goods using a flexible pricing scheme. History: Anandasivam Gopal, Senior Editor; Sunil Wattal, Associate Editor. Funding: This work was supported by the Social Science and Humanities Research Council of Canada [Insight Development Grant 430-2017-01055]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2023.1206. Collapse

Topics: enterprise resource planning digital good website price management digital platform

Methods: experiment Student's t-test survey regression analysis method laboratory experiment

Theories: behavioral economics

Expl(AI)ned: The Impact of Explainable Artificial Intelligence on Users’ Information Processing

2023 | Information Systems Research | Citations: 0

Authors: Bauer, Kevin; von Zahn, Moritz; Hinz, Oliver

Abstract: Because of a growing number of initiatives and regulations, predictions of moder ... Expand

Abstract: Because of a growing number of initiatives and regulations, predictions of modern artificial intelligence (AI) systems increasingly come with explanations about why they behave the way they do. In this paper, we explore the impact of feature-based explanations on users’ information processing. We designed two complementary empirical studies where participants either made incentivized decisions on their own, with the aid of opaque predictions, or with explained predictions. In Study 1, laypeople engaged in the deliberately abstract investment game task. In Study 2, experts from the real estate industry estimated listing prices for real German apartments. Our results indicate that the provision of feature-based explanations paves the way for AI systems to reshape users’ sense making of information and understanding of the world around them. Specifically, explanations change users’ situational weighting of available information and evoke mental model adjustments. Crucially, mental model adjustments are subject to the confirmation bias so that misconceptions can persist and even accumulate, possibly leading to suboptimal or biased decisions. Additionally, mental model adjustments create spillover effects that alter user behavior in related yet disparate domains. Overall, this paper provides important insights into potential downstream consequences of the broad employment of modern explainable AI methods. In particular, side effects of mental model adjustments present a potential risk of manipulating user behavior, promoting discriminatory inclinations, and increasing noise in decision making. Our findings may inform the refinement of current efforts of companies building AI systems and regulators that aim to mitigate problems associated with the black-box nature of many modern AI systems. History: Alessandro Acquisti, senior editor; Jason Chan, associate editor. Funding: This work was supported by the Deutsche Forschungsgemeinschaft (DFG) (Projek 449023539), Volkswagen Foundation (ML2MT), and LeibnizInstitute for Financial Research SAFE. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2023.1199. Collapse

Topics: explainable artificial intelligence artificial intelligence shapley additive explanation local interpretable model agnostic explanation decision making

Methods: F-test regression analysis method experiment field study robustness check

How synchronous participation affects the willingness to subscribe to social live streaming services: the role of co-Interactive behavior on Twitch

2023 | European Journal of Information Systems | Citations: 0

Authors: Bründl, Simon; Matt, Christian; Hess, Thomas; Engert, Simon

Abstract: Social computing has transformed the content industry. Content providers have ch ... Expand

Abstract: Social computing has transformed the content industry. Content providers have changed from providing merely content to offering social content experiences that allow users not only to passively consume content but also to actively participate. As the latest development, social live streaming services (SLSS) have emerged that enable so-called co-interactive behaviour, i.e., the live interplay between users while co-experiencing content. Yet, it remains unclear how co-interactive behaviour affects the monetisation of social live content. Based on a data set of 868,940 users from 59 gaming channels of the freemium-based SLSS Twitch, we empirically show that co-interactive behaviour has a stronger effect on users’ willingness to subscribe (WTS) than passive and active behaviour. Since we find that a user’s reciprocated interactions also directly increase other users’ WTS, our results call for dismantling the current dichotomy of user participation and social influences in IS research. We suggest a social-experiential perspective that integrates social influences as an inherent part of users’ participation experiences. This novel interactive second-person perspective contributes to research on user engagement and value capture on social content platforms, and it allows SLSS providers to obtain a more precise picture of user value to better develop or adapt their monetisation strategies. Collapse

Topics: participatory design social influence user behavior Twitch application programming interface

Methods: design methodology propensity score matching experimental group descriptive statistic logistic regression

Theories: general systems theory

Effectiveness of Health Communication Technology on Compliance Disposition of Covid-19 Guidelines

2023 | Communications of the Association for Information Systems | Citations: 0

Authors: Bui, Quang “Neo”; Moriuchi, Emi

Abstract: Recent research has mostly examined the role of health communication technology ... Expand

Abstract: Recent research has mostly examined the role of health communication technology (HCT) in patient empowerment and in producing patient-focused outcomes. This study examines HCT in a larger context where it is used as a tool to improve public health. The objective is to examine how HCT is used to monitor Covid-19's spread, and how social factors affect individual assessment of HCT and individual compliance disposition of Covid-19 guidelines. Analyzing data collected from 360 HCT users suggests that the information and system quality of HCT indeed impact users' assessment of its effectiveness and their compliance disposition. However, such effects are strongly mediated by social factors: Peer influence and government trust can sway an individual's cognitive judgments of Covid-19 regardless of HCT's impacts. The findings highlight the importance of social factors in pandemic management and the need to socialize health informatics to make them more effective. Collapse

Topics: social influence data quality digital dashboard system quality mobile application

Methods: survey mediation analysis partial least squares path modeling post analysis path analysis

Theories: health belief model information systems success model

Divergent Innovation: Directing the Wisdom of Crowd to Tackle Societal Challenges

2023 | International Conference on Information Systems | Citations: 0

Authors: Cao, Chuhan; Zhu, Jiantao; Xiong, Bingqing; Lim, Eric; Liu, Hefu; Cai, Zhao; Tan, Chee-Wee

Abstract: Crowdsourcing is acknowledged as a promising avenue for addressing societal cha ... Expand

Abstract: Crowdsourcing is acknowledged as a promising avenue for addressing societal challenges by drawing on the wisdom of the crowd to offer diverse solutions to complex problems. Advancing a new conceptual framework of 'divergent innovation' which delineates between topic and quality divergence as focal metrics of performance when crowdsourcing for solutions to societal challenges, this study investigates the impacts of four ideation stimuli on divergent innovation. These four stimuli include task description concreteness, resource richness, topic entropy, and judging criteria comprehensiveness. Empirical analysis based on data sourced from an online crowd-ideation platform reveals that task description concreteness negatively affects topic divergence but positively influences quality divergence, whereas resource richness positively affects topic divergence but negatively influences quality divergence. Additionally, the relationship between topic entropy and topic divergence is U-shaped, with no significant impact on quality divergence. These findings contribute to extant literature on crowdsourcing and offer invaluable insights for practitioners. Collapse

Topics: innovation management societal challenge crowdsourcing evaluation criteria media richness

Methods: BERT literature study statistical hypothesis test regression analysis method language model

Excuse Me, Something Is Unfair! - Implications of Perceived Fairness of Service Robots

2023 | European Conference On Information Systems | Citations: 0

Authors: Büttner, Sebastian; Sourkounis, Cora Maria; Gutzmann, Jan; Prilla, Michael

Abstract: Fairness is an important aspect for individuals and teams. This also applies to ... Expand

Abstract: Fairness is an important aspect for individuals and teams. This also applies to human-robot interaction (HRI). Especially if intelligent robots provide services to multiple humans, humans may feel treated unfairly by robots. Most work in this area deals with the aspects of fair algorithms, task allocation, and decision support. This work focuses on a different, yet little-explored perspective, which looks at fairness in HRI from a human-centered perspective in human-robot teams. We present an experiment in which a service robot was responsible for distributing resources among competing team members -in one condition with an efficient (but rather unfair) distribution algorithm and in another condition with an algorithm that was less efficient but could be considered fair. We investigated how the different strategies of distribution influence the perceived fairness and how this perceived fairness influenced the perception of the robot as such. Our study shows that humans might perceive technically efficient algorithms executed by a robot as unfair, especially if humans personally experience negative consequences. Interestingly, this perceived unfairness had a negative impact on human perception of the robot as such, which should be considered in the design of future robots. Collapse

Topics: robotic user acceptance user interface artificial intelligence data quality

Methods: experiment nonparametric test computational algorithm Mann Whitney U test survey

USING TRANSACTION COST ECONOMICS SAFEGUARDING TO REDUCE THE DIFFUSION OF DISINFORMATION ON SOCIAL MEDIA

2023 | European Conference On Information Systems | Citations: 0

Authors: Eccles, David; Kurnia, Sherah; Geard, Nicholas; Dingler, Tilman

Abstract: Human users contribute to the spread of disinformation on Social Media. To redu ... Expand

Abstract: Human users contribute to the spread of disinformation on Social Media. To reduce the spread, we apply Transaction Cost Economics (TCE) Safeguarding, which penalises the sharing of disinformation. Using the economic theory TCE positions Social Media platforms as free markets, in which actors are motivated to protect their assets and peer reputation. We conducted a study exploring TCE Safeguarding as a market correction mechanism to change the disinformation diffusion behaviour of users. Our findings show that users will be less likely to post a comment and more likely to correct their previous disinformation diffusion actions when TCE Safeguarding is applied. Focusing on Social Media as a market rather than its individual components may provide a mechanism to address the "fake news" phenomenon. Collapse

Topics: disinformation social media user behavior fake news Facebook

Methods: survey experiment Mann Whitney U test nonparametric test economic model

Theories: economic theory transaction cost economics

Tagging the Fakes? - The Impact of Tagging Fake Reviews on Consumer Trust and Purchase Intention

2023 | European Conference On Information Systems | Citations: 0

Authors: Erlebach, Stefanie; Kupfer, Alexander; Wrabel, Andrea; Zimmermann, Steffen

Abstract: The manipulation of online consumer reviews (OCRs) became a global phenomenon. ... Expand

Abstract: The manipulation of online consumer reviews (OCRs) became a global phenomenon. Although policymakers require platforms to delete OCRs that are identified as fake, they also urge to consider the principle of freedom of expression before deleting content. Since fake OCR detection algorithms are imperfect, platforms must either balance preventive deletion with preserving freedom of expression, or they can simply tag OCRs that are potentially fake. In this paper, we examine the consequences of the latter. With an incentive-compatible experiment, we observe that tagging fake OCRs harms relevant consumer trust dimensions. Contrary to our expectations, tags do not serve as trust-increasing signals for the platform as a signal provider. They do, however, not only directly harm consumers' trust in OCRs and reviewers, but also indirectly via the activation of consumers' persuasion knowledge. Although consumer trust decreases, we find no negative economic consequences for the platform from tagging potential fake OCRs. Collapse

Topics: electronic commerce data quality digital platform digital service marketing management

Methods: experiment mediation analysis theoretical contribution Student's t-test statistical power analysis

Theories: signaling theory