Does Social Media Accelerate Product Recalls? Evidence from the Pharmaceutical Industry

2022 | Information Systems Research | Citations: 0

Authors: Gao, Yang; Duan, Wenjing; Rui, Huaxia

Abstract: Social media has become a vital platform for voicing product-related experiences ... Expand

Abstract: Social media has become a vital platform for voicing product-related experiences that may not only reveal product defects, but also impose pressure on firms to act more promptly than before. This study scrutinizes the rarely studied relationship between these voices and the speed of product recalls in the context of the pharmaceutical industry in which social media pharmacovigilance is becoming increasingly important for the detection of drug safety signals. Using Federal Drug Administration drug enforcement reports and social media data crawled from online forums and Twitter, we investigate whether social media can accelerate the product recall process in the context of drug recalls. Results based on discrete-time survival analyses suggest that more adverse drug reaction discussions on social media lead to a higher hazard rate of the drug being recalled and, thus, a shorter time to recall. To better understand the underlying mechanism, we propose the information effect, which captures how extracting information from social media helps detect more signals and mine signals faster to accelerate product recalls, and the publicity effect, which captures how firms and government agencies are pressured by public concerns to initiate speedy recalls. Estimation results from two mechanism tests support the existence of these conceptualized channels underlying the acceleration hypothesis of social media. This study offers new insights for firms and policymakers concerning the power of social media and its influence on product recalls. Collapse

Topics: social media Twitter anonymity Google Search database system

Methods: hazard function survival analysis econometric modeling support vector machine robustness check

The Colors of Performance – Assessing the Impact of Color-Coding on Worker Behavior in Retail Order Picking

2022 | International Conference on Information Systems | Citations: 0

Authors: Loske, Dominic; Menck, Jannes; Lechte, Henrik; Lembcke, Tim-Benjamin; Modica, Tiziana; Klumpp, Matthias

Abstract: Advanced technologies are introduced in warehouse operations, rendering the int ... Expand

Abstract: Advanced technologies are introduced in warehouse operations, rendering the interplay between human worker behavior and information systems (IS) a critical issue. We investigate how IS supports manual order picking by studying how visual color-coding information on picking locations provided through personal digital assistants accelerates search and picking tasks. Considering real-world data on a storage system where 20 dissimilar items are stored together at one picking location, we apply a log-logistic accelerated failure time model with N=112,672 picks performed by N=190 workers and find that color-coding accelerates the picking process by up to 17.28%. To increase the internal validity of our field-based examination, we conduct one VR experiment (N=29 participants) providing evidence for an acceleration of 23.74%, and one online experiment (N=178 participants) indicating an acceleration of 24.29%. Based on an innovative method of triangulation, we demonstrate how IS can influence picker behavior and discuss how to better design IT artifacts. Collapse

Topics: virtual reality logistics management user behavior systems design misinformation

Methods: experiment triangulation accelerated failure time model laboratory experiment simulation

Theories: nudge theory socio technical theory

Effects of an Advancing Tenure on CEO Cognitive Complexity

2020 | Organization Science | Citations: 0

Authors: Graf-Vlachy, Lorenz; Bundy, Jonathan; Hambrick, Donald C.

Abstract: We study how the cognitive complexity of chief executive officers (CEOs) changes ... Expand

Abstract: We study how the cognitive complexity of chief executive officers (CEOs) changes during their tenures. Drawing from prior theory and research, we argue that CEOs attain gradually greater role-specific knowledge, or expertise, as their tenures advance, which yields more complex thinking. Beyond examining the main effect of CEO tenure on cognitive complexity, we consider three moderators of this relationship, each of which is expected to influence the accumulation of expertise over a CEO’s time in office: industry dynamism, industry jolts, and CEO positional power. We conduct our tests on a sample of 684 CEOs of public corporations. The analytic centerpiece of our study is a novel index of CEO cognitive complexity based on CEOs’ language patterns in the question-and-answer portions of quarterly conference calls. As part of our extensive theory of measurement, we provide evidence of the reliability and validity of our index. Our results indicate that CEOs, in general, experience substantial increases in cognitive complexity over their time in office. Examined moderators somewhat, but modestly, alter this general trajectory, and nonlinearities are not observed. We discuss the implications of our findings. Collapse

Topics: decision making database system organizational productivity innovation management accounting

Methods: descriptive statistic data transformation accelerated failure time model archival research factor analysis

Theories: cognitive complexity theory

How does Virtual Reality Matter? Evidence from an Online Real Estate Platform

2020 | International Conference on Information Systems | Citations: 0

Authors: Yan, Zhenbin; Meng, Zixuan; Tan, Yong

Abstract: Virtual reality (VR) develops rapidly and has been employed in a broad field of ... Expand

Abstract: Virtual reality (VR) develops rapidly and has been employed in a broad field of business. The interactivity and vividness of VR can bring users the experience of telepresence. Prior literature shows that VR may affect consumers’ attitudes, but the ease of use can also be a challenge. In this paper, we study how the VR Tour affects properties’ selling procedure in an online real estate platform and identify its role of delivering information. We find that VR Tour demonstrates a short-run deceleration effect and a long-run acceleration effect on the selling time of properties. The badge of VR could attract consumers’ attention before using VR Tour. After exploiting information provided by VR Tour, consumers can more effectively discern property quality and improve their intention of offline house visits. VR Tour is a good substitute for pictures. Sellers don’t need to demonstrate abundant pictures simultaneously if VR Tour is supported. Collapse

Topics: virtual reality decision making information storage and retrieval system website accounting

Methods: proportional hazards model propensity score matching survival analysis propensity score method experimental group

Theories: lemon market theory

When Do Patients Start to Benefit From Electronic Weak Ties? Empirical Examination of Online Social Capital Accumulation

2019 | International Conference on Information Systems | Citations: 0

Authors: Jiang, Shan; Lin, Shan; Liu, Xuan; Cheng, Yan

Abstract: In recent years, patients start to develop electronic weak ties in online health ... Expand

Abstract: In recent years, patients start to develop electronic weak ties in online healthcare platforms, through which beneficial outcomes such as social support entail. In this study, we examine how electronic weak ties dynamically affect two major types of social support: informational support and emotional support. Specifically, we investigated how much social capital patients need to accumulate before they start to benefit from electronic weak ties, and employed Cox Proportional Hazards models with varying time spells to examine the influence of weak ties on of social support over time. Our preliminary analysis shows that individuals’ visibility and endorsement are two forms of weak ties that positively affect their chances of acquiring social support, and these effects fluctuate during the first several months. To the best of our knowledge, this research is the first to investigate the influence of electronic weak ties in online health platforms from a dynamic perspective. Collapse

Topics: social capital electronic health knowledge sharing

Methods: proportional hazards model naïve bayes hazard function machine learning accelerated failure time model

Digitization of Music: Consumer Adoption Amidst Piracy, Unbundling, and Rebundling

2019 | Management Information Systems Quarterly | Citations: 5

Authors: Koh, Byungwan; Hann, Il-Horn; Raghunathan, Srinivasan

Abstract: Digital music formats and the Internet as a distribution mechanism have fundamen ... Expand

Abstract: Digital music formats and the Internet as a distribution mechanism have fundamentally disrupted the music industry by altering the way music is packaged, distributed, and consumed. This disruptive innovation has come in two stages. First, it enabled music to be purchased as an individual song (digital single) or as an album (digital album) or to be enjoyed without paying for it (unlicensed digital music). More recently, music has become available as a streaming service (streaming music). Prior to these innovations, music was primarily distributed as an album using a physical medium such as the CD. Building on multi-generation diffusion models, we identify and quantify different types of concurrent demand migration in the music industry such as generational substitution, unbundling, and piracy effects in the first stage and streaming effects in the subsequent stage. Measuring the relative contributions of factors that drive each of these different migration types, we find that the introduction of licensed digital downloads (digital single and digital album) has weakened the piracy effect. Since the introduction of licensed digital downloads, the piracy effect on the demand for CDs has decreased about 15 percent every year. At the same time, unbundling, rather than piracy, has become the dominant factor in the decline of industry revenue. More recently, streaming music services such as Pandora have moved demand from digital albums to streaming music. However, demand has not yet migrated from digital singles to streaming music. The introduction of streaming music has further weakened the piracy effect by about 7 percent every year. Collapse

Topics: digital service music streaming service internet technology innovation management computer crime

Methods: robustness check hazard function accelerated failure time model simulation descriptive statistic

Contracting Efficiency and New Firm Survival in Markets Enabled by Information Technology

2011 | Information Systems Research | Citations: 29

Authors: Susarla, Anjana; Barua, Anitesh

Abstract: Application service providers (ASP), who host and maintain information technolog ... Expand

Abstract: Application service providers (ASP), who host and maintain information technology (IT) applications across the Internet, emerged as an innovation in the way IT services are delivered to client firms. In spite of many potential benefits of this model, ASPs experienced business failure and high rates of exit. Drawing on agency theory, we argue that the efficiency of contracting arrangements between ASPs and client organizations is an important determinant of ASP survival. We test this prediction using a unique data set combining multiple sources that allows us to track an ASP from the year of founding through the beginning of 2006. Contractual misalignment, or adopting contracts mismatched with the underlying agency costs, significantly lowers the probability of survival of service providers in the ASP marketplace. The impact of misalignment is particularly severe when coupled with adjustment costs that impede the transition to aligned contracts. To account for potential heterogeneity in ASPs' knowledge of contracting, we test for endogenous self-selection of ASPs in the relationship between contractual misalignment and survival. Our results are robust to a variety of model specifications as well as alternate explanations of survival from multiple theoretical domains. Collapse

Topics: internet technology web page database system service quality marketing management

Methods: survey qualitative interview propensity score method econometric modeling proportional hazards model

Theories: agency theory resource based view of the firm

The Impact of Joint Venture Status on the Longevity of Japanese Stakes in U.S. Manufacturing Affiliates

1998 | Organization Science | Citations: 0

Authors: Hennart, Jean-François; Dong-Jae Kim; Ming Zeng

Abstract: A number of well-known studies report that between one-third and two-thirds of i ... Expand

Abstract: A number of well-known studies report that between one-third and two-thirds of international joint ventures eventually break up. While many generalizations, explanations, and prescriptions have been based on these statistics, their meaning is unclear. First, all foreign affiliates are subject to normal business risk, and to the risk that they will be divested by parents for strategic or financial reasons. Are these risks higher for joint ventures than for wholly-owned subsidiaries? Second, joint ventures may be shorter lived not because of their joint venture status, but because affiliates which are joint ventured have other characteristics that make them more likely to exist. To know whether joint ventures are shorter lived, one must control for the other factors that affect the longevity of affiliates, whether wholly-owned or joint ventured. Third, many joint ventures contracts contain clauses that allow partners to sell their stakes to one another at specific intervals. Because they make exit easier, joint ventures should have shorter lives, but these shorter lives should only be due to selloffs, not to liquidations. It is therefore important to see whether the supposedly higher termination rate of joint ventures stakes is due to higher rate of selloffs or to a higher rate of liquidations. In this paper, we (1) compare the longevity of stakes in joint ventures versus those in wholly-owned subsidiaries (2) while controlling for other factors that affect the longevity of such stakes and (3) while distinguishing between two types of exit, those through sale and those through liquidation. While past authors have addressed these three issues in piecemeal fashion, we believe we are the first to address them simultaneously. We analyze the factors that affect the longevity of 355 Japanese stakes in U.S. manufacturing affiliates. Controlling for all the factors that affect exit rates, we find that Japanese parents are more likely to terminate their stakes in U.S.... Collapse

Topics: database system missing data facsimile transmission telephone

Methods: hazard function proportional hazards model survey accelerated failure time model descriptive statistic