P2P lending and Natural Disasters: Is Altruistic Behavior conditional?

2023 | International Conference on Information Systems | Citations: 0

Authors: Agrawal, Lavlin; Sharman, Raj; Tiu, Christian; Joenväärä, Juha

Abstract: In the aftermath of natural disasters, borrowers seeking credit from traditiona ... Expand

Abstract: In the aftermath of natural disasters, borrowers seeking credit from traditional sources, such as banks, may encounter higher interest rates than in pre-disaster periods. We examine the lending behavior of peer-topeer (P2P) platforms in the wake of disasters. Since P2P platforms involve individual investors in making lending decisions, they accommodate both profit motives and empathetic responses. Empirical evidence from psychology suggests that empathy can lead to prosocial behavior. Consistent with this assertion, we find that loans affected by natural disasters have lower interest rates than comparable loans not issued in the wake of disasters. Our study finds that lenders are involved in a prosocial behavior and are ready to give away some part of their interest income to help the communities in need. Collapse

Topics: crowdsourcing natural hazard peer-to-peer lending peer-to-peer model LendingClub

Methods: instrumental variables estimation experimental group sensitivity analysis ordinary least square robustness check

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

Towards More Convenient Services: A Text Analytics Approach to Understanding Service Inconveniences in Digital Platforms

2023 | HICSS | Citations: 0

Authors: Amat-Lefort, N.; Barnes, S.

Abstract: In today's fast-paced world, where time is our most valuable asset, convenience ... Expand

Abstract: In today's fast-paced world, where time is our most valuable asset, convenience is on the rise. This trend has led to a huge growth in digital on-demand services, which target convenience-oriented consumers. Using big data and text analytics, we examine the impact of service inconveniences on customer satisfaction in the context of on-demand food delivery. Building on the Model of Service Convenience and Attribution Theory, we analyze 235,147 user-generated reviews via a combination of keyword-assisted topic modelling and cumulative link model analysis. We introduce the concept of Remote support inconvenience and identify the key topics related to each inconvenience. We find that all service inconveniences negatively influence satisfaction (especially cancelled orders and remote support incidences), and the effects are exacerbated when moderated by stability or controllability attributions. These insights contribute to our theoretical understanding of service inconvenience and can help platforms identify and improve critical areas of their services. Collapse

Topics: user satisfaction customer satisfaction mobile application user-generated content crowdsourcing

Methods: natural language processing topic model exploratory data analysis ANOVA parametric test

Theories: attribution theory

Single-Sourcing vs. Multisourcing: An Empirical Analysis of Large Information Technology Outsourcing Arrangements

2023 | Information Systems Research | Citations: 0

Authors: Bapna, Ravi; Gupta, Alok; Ray, Gautam; Singh, Shweta

Abstract: As the information technology (IT) services landscape matures, clients are incre ... Expand

Abstract: As the information technology (IT) services landscape matures, clients are increasingly adopting multisourcing arrangements that involve multiple vendors. Although a large body of information systems (IS) literature addresses issues of whether to outsource (to a single vendor), what types of contracts to use, and how to achieve optimal relational governance, little is known about the antecedents and consequents of the single versus multisourcing decision. Moreover, while conceptual and analytical models of single-sourcing versus multisourcing have been developed, there is no empirical IS research using a large-scale data set with rigorous econometric analysis that examines the antecedents and consequents of multisourcing in the IT context. This paper fills this void, using the transaction cost economic lens and a data set of 49,057 large IT outsourcing arrangements that spans multiple industries and dates back 25 years. We find that there is a curvilinear relationship between number of IT services in an IT outsourcing arrangement and the likelihood of multisourcing. This relationship increases as the number of IT services increases to up to five services and then decreases. For managers who plan to multisource IT outsourcing arrangements, this research provides guidance to minimize exchange hazards through a better understanding of the relationship between sourcing choice, client IT outsourcing capabilities, the competitiveness of the vendor landscape, and the number of IT services in an IT outsourcing arrangement. We provide empirical evidence that the choice between single-sourcing and multisourcing is material to the performance of outsourcing contracts as an incorrect sourcing choice is likely to result in negative contract outcomes. History: Paul A. Pavlou, Senior Editor; Ning Su, Associate Editor. Collapse

Topics: outsourcing system integration IS management service desk data center

Methods: XGBoost robustness check machine learning k-nearest neighbor statistical hypothesis test

Theories: transaction cost economics game theory

Network Centralization and Collective Adaptability to a Shifting Environment

2023 | Organization Science | Citations: 1

Authors: Bernstein, Ethan S.; Shore, Jesse C.; Jang, Alice J.

Abstract: We study the connection between communication network structure and an organizat ... Expand

Abstract: We study the connection between communication network structure and an organization’s collective adaptability to a shifting environment. Research has shown that network centralization—the degree to which communication flows disproportionately through one or more members of the organization rather than being more equally distributed—interferes with collective problem-solving by obstructing the integration of existing ideas, information, and solutions in the network. We hypothesize that the mechanisms responsible for that poor integration of ideas, information, and solutions would nevertheless prove beneficial for problems requiring adaptation to a shifting environment. We conducted a 1,620-subject randomized online laboratory experiment, testing the effect of seven network structures on problem-solving success. To simulate a shifting environment, we designed a murder mystery task and manipulated when each piece of information could be found: early information encouraged an inferior consensus, requiring a collective shift of solution after more information emerged. We find that when the communication network within an organization is more centralized, it achieves the benefits of connectivity (spread of novel better solutions) without the costs (getting stuck on an existing inferior solution). We also find, however, that these benefits of centralization only materialize in networks with two-way flow of information and not when information only flows from the center of the network outward (as can occur in hierarchical structures or digitally mediated communication). We draw on these findings to reconceptualize theory on the impact of centralization—and how it affects conformity pressure (lock-in) and awareness of diverse ideas (learning)—on collective problem-solving that demands adaptation.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: The authors acknowledge financial support from the Division of Research at the Harvard Business School for making this research possible. Collapse

Topics: social influence problem solving internet technology social network debugging

Methods: experiment machine learning simulation Poisson regression logistic regression

Theories: organizational theory

Analyzing Patients’ EHR: Predicting and Explaining Admission Consequences for COPD and Liver Disease Patients

2023 | International Conference on Information Systems | Citations: 0

Authors: Ben-Assuli, Ofir; Geva, Gaya

Abstract: This study analyzed the admission outcomes in chronic patients (with COPD, and ... Expand

Abstract: This study analyzed the admission outcomes in chronic patients (with COPD, and Liver disease) to demonstrate the feasibility of applying prediction methods on EHR records while incorporating an explainable AI technique. We predicted three target variables: 30-day readmission, Medium&Long Length of Stay and Single-day admission and analyzed the features using an explainable AI technique, the SHapley Additive exPlanations (SHAP). The results show that Readmission had higher prediction scores than all other dependent variables. Some features affected all target variables with either positive or negative influence including: Age, Charlson comorbidity index, Day-Shift, Gender, using EHR screens and Insurance cover level. These findings thus point to the value of using Machine-Learning combined with an explainable AI method to understand and assess the risks factors. The assessment of the potential factors leading to multiple complications can bolster prevention-oriented medical decisions to groups of patients but can also be tailored to the patient level. Collapse

Topics: shapley additive explanation explainable artificial intelligence Python IT work artificial intelligence

Methods: machine learning XGBoost logistic regression artificial neural network classification method

The Relationship Between Twitter Sentiment and Stock Performance: A Decision Tree Approach

2023 | HICSS | Citations: 0

Authors: Chen, Rongjuan; Dong, Ruoxi

Abstract: Social media has become a communication tool, but also a valuable database for r ... Expand

Abstract: Social media has become a communication tool, but also a valuable database for researchers and practitioners to gather information, share knowledge, as well as express opinions about stock performance. The sentiment embedded in social media content can be analyzed to predict stock performance. Although numerous past studies have attempted to predict stock price movement using social media sentiment, some emerging analytical tools, like existing lexicons, may require further testing and validation in a financial decision making context. In this study, we develop and test predictive models for stock price and trend forecasting. By using a large-scale sample of tweets collected from Twitter, related to four companies, Apple, Google, Microsoft, and Netflix, we propose a novel decision tree approach to stock performance prediction. Based on our findings, we then provide theoretical and practical implications and discuss the directions for future work. Collapse

Topics: Twitter social media decision making digital service Netflix

Methods: sentiment analysis decision tree classification regression analysis method multiple linear regression NLP tool

Theories: behavioral economics

Algorithm-Human-Algorithm: A New Classification Approach to Integrating Judgemental Adjustments

2023 | International Conference on Information Systems | Citations: 0

Authors: Chen, Christopher; Jain, Nitish; Karamshetty, Varun

Abstract: Modern-day firms face the predicament of blending the comparative advantages of ... Expand

Abstract: Modern-day firms face the predicament of blending the comparative advantages of their two core resources: machines and humans. When forecasting demand (e.g. for a product), extant literature documents that always permitting (or prohibiting) human revision of a machine forecast is beneficial if the humans' private information role is larger (or smaller) than that of machine-accessible public information. We propose and test a complementary framework that shifts the focus to the regulation of each human revision; and in doing so, adjusts for human vulnerability to systematic biases. We collaborate with a European retailer to compile a large dataset (∼ 1.1 mn transactions) on machine-led demand forecasts. Humans revise nearly 38% of these forecasts, but revisions do not always yield an improved final forecast. Compared to the always permit or prohibit strategies, the ideal regulation of each of these revisions could reduce the absolute deviation of the final forecast from realized sales in close to 50% of instances. Any regulation to obtain the best of the machine and human-revised forecasts requires an ability to predict revision quality. In addition to private information indicators, we show that indicators of systematic bias in human judgement (e.g., indicators of cognitive load) can improve the prediction of revision quality. In an out-of-sample analysis, our revision-level regulation approach picks the best of available forecasts in 14% more instances, compared to an always-permit or prohibit strategy at the product-store level. Our paper provides practitioners with a novel approach to combining the machine-human output to improve demand forecasting performance. Collapse

Topics: privacy logistics management supply chain management analytical information system

Methods: computational algorithm machine learning descriptive statistic XGBoost gradient boosting

Developing AI Literacy of Management Students using Problem and Project based Learning

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Chen, Elaine; Qin, Zhenxin

Abstract: Artificial Intelligence (AI) tools are becoming everyday tool for business of a ... Expand

Abstract: Artificial Intelligence (AI) tools are becoming everyday tool for business of all sizes. Business and management students who have good understanding of AI concepts, tools, technologies, and ethics will have an advantage in contributing to the integration of AI technologies in business. The objective of this study is to examine the effectiveness of using problem-based learning (PBL) and project-based learning (PjBL) to teach AI literacy to master's level management students in a university setting. A module on AI literacy was developed using PBL and PjBL, and a quantitative approach was employed to assess its effectiveness by measuring students' experiences and perceived AI literacy level before and after the module. The results indicate that both PBL and PjBL approaches are effective in developing AI literacy, with 69% of students reporting an increase in their AI literacy level after completing the module. The study also offers recommendations for future AI literacy education in business schools. Collapse

Topics: artificial intelligence analytical information system IT skill problem solving open source

Methods: survey simulation descriptive statistic cross sectional research survey design

Promise not fulfilled: FinTech, data privacy, and the GDPR

2023 | Electronic Markets | Citations: 0

Authors: Dorfleitner, Gregor; Hornuf, Lars; Kreppmeier, Julia

Abstract: This article analyzes how the General Data Protection Regulation (GDPR) has affe ... Expand

Abstract: This article analyzes how the General Data Protection Regulation (GDPR) has affected the privacy practices of FinTech firms. We study the content of 276 privacy statements respectively before and after the GDPR became binding. Using text analysis methods, we find that the readability of the privacy statements has decreased. The texts of privacy statements have become longer and use more standardized language, resulting in worse user comprehension. This calls into question whether the GDPR has achieved its original goal—the protection of natural persons regarding the transparent processing of personal data. We also link the content of the privacy statements to FinTech-specific determinants. Before the GDPR became binding, more external investors and a higher legal capital were related to a higher quantity of data processed and more transparency, but not thereafter. Finally, we document mimicking behavior among FinTech industry peers with regard to the data processed and transparency. Collapse

Topics: legal context General Data Protection Regulation privacy electronic finance website

Methods: parametric test paired t-test descriptive statistic Student's t-test qualitative content analysis

Theories: privacy calculus theory