Too Tired and in Too Good of a Mood to Worry About Privacy: Explaining the Privacy Paradox Through the Lens of Effort Level in Information Processing

2023 | Information Systems Research | Citations: 0

Authors: Alashoor, Tawfiq; Keil, Mark; Smith, H. Jeff; McConnell, Allen R.

Abstract: The confluence of digital transactions, growing cybersecurity threats, and the i ... Expand

Abstract: The confluence of digital transactions, growing cybersecurity threats, and the internet of the future (e.g., web 3.0 and the metaverse) have made information privacy increasingly important to consumers and companies that rely on consumers willingly sharing their personal information. Although information privacy has been of interest to researchers for decades and much has been learned, one thing that perplexes scholars is the privacy paradox, which we define as a mismatch between stated privacy concerns and actual disclosure behaviors. In this paper, we shed light on this phenomenon and show that low-effort information processing triggered by cognitive depletion (Experiment 1), positive mood (Experiment 2), or both (Experiment 3) significantly attenuates the association between stated privacy concerns and disclosure behaviors. These findings do not indicate that individuals do not care about privacy because we find consistent evidence in the three experiments for a significant negative association between stated privacy concerns and disclosure behaviors when individuals have sufficient cognitive capacity (Experiment 1), experience a negative (or neutral) mood (Experiment 2), or have sufficient cognitive capacity coupled with a negative mood state (Experiment 3). Our findings reveal that the paradox is neither an absolute phenomenon nor a myth, but its existence is conditional on contextual factors, including psychological factors related to information processing. We discuss our contribution to privacy theory and provide implications for consumers, companies, and policymakers. History: Alessandro Acquisti, Senior Editor; Idris Adjerid, Associate Editor. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1182. Collapse

Topics: information privacy concern privacy decision making mobile application task productivity

Methods: experiment descriptive statistic statistical hypothesis test theory development Student's t-test

Theories: elaboration likelihood model

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

Privacy Regulation and Its Unintended Consequence on Consumption Behaviors: Evidence From CCPA

2023 | International Conference on Information Systems | Citations: 0

Authors: Bae, Donghwa; Mayya, Raveesh; Nian, Tingting

Abstract: This study explores the unintended consequences of data protection regulations ... Expand

Abstract: This study explores the unintended consequences of data protection regulations on consumer behavior. Specifically, we examine the California Consumer Privacy Act, which restricts companies from collecting Californians' personal information. Privacy regulations may limit firms' ability to suggest products aligned with consumers' taste predicted from data, potentially influencing subsequent consumer behavior. These regulations especially pose a challenge to digital platforms, as their success hinges on seamless data flow between firms and consumers. Using a difference-in-differences approach with transaction data, we find that post-CCPA, Californians reduce purchase by 4.1%, increase returns by 2.9%. Moreover, we find that Californians spend more time online and visit more webpages, potentially indicating increased search efforts. Mechanism analysis suggests that firms under CCPA proactively alter their data collection strategy to reduce the liability. These results reveal the complex interplay between privacy regulation and consumer behavior, highlighting the need for a nuanced understanding of the trade-offs between privacy protection and economic outcomes. Collapse

Topics: information privacy law legal context consumer behavior advertising management website

Methods: experimental group longitudinal research natural experiment archival research difference in differences

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

Organizing Entrepreneurial Teams: A Field Experiment on Autonomy over Choosing Teams and Ideas

2023 | Organization Science | Citations: 1

Authors: Boss, Viktoria; Dahlander, Linus; Ihl, Christoph; Jayaraman, Rajshri

Abstract: Scholars have suggested that autonomy can lead to better entrepreneurial team pe ... Expand

Abstract: Scholars have suggested that autonomy can lead to better entrepreneurial team performance. Yet, there are different types of autonomy, and they come at a cost. We shed light on whether two fundamental organizational design choices—granting teams autonomy to (1) choose project ideas to work on and (2) choose team members to work with—affect performance. We run a field experiment involving 939 students in a lean startup entrepreneurship course over 11 weeks. The aim is to disentangle the separate and joint effects of granting autonomy over choosing teams and choosing ideas compared with a baseline treatment with preassigned ideas and team members. We find that teams with autonomy over choosing either ideas or team members outperform teams in the baseline treatment as measured by pitch deck performance. The effect of choosing ideas is significantly stronger than the effect of choosing teams. However, the performance gains vanish for teams that are granted full autonomy over choosing both ideas and teams. This suggests the two forms of autonomy are substitutes. Causal mediation analysis reveals that the main effects of choosing ideas or teams can be partly explained by a better match of ideas with team members’ interests and prior network contacts among team members, respectively. Although homophily and lack of team diversity cannot explain the performance drop among teams with full autonomy, our results suggest that self-selected teams fall prey to overconfidence and complacency too early to fully exploit the potential of their chosen idea. We discuss the implications of these findings for research on organizational design, autonomy, and innovation.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: The authors are grateful for funding from the Innovation Growth Laboratory, the Peter Curtius Foundation, and the Deutsche Forschungsgemeinschaft [Grant CRC TRR 190].Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1520. Collapse

Topics: team productivity entrepreneurship missing data intrinsic motivation evaluation criteria

Methods: experiment experimental group survey causal mediation analysis field experiment

Pay-for-performance schemes and hospital HIT adoption

2023 | Decision Support Systems | Citations: 0

Authors: Cheng, Ningning; Li, Hongfei; Bang, Youngsok

Abstract: Pay-for-performance (P4P) schemes are implemented to incentivize or penalize hos ... Expand

Abstract: Pay-for-performance (P4P) schemes are implemented to incentivize or penalize hospitals for their safe care­ giving. Given that health information technology (HIT) results in better healthcare outcomes, P4P schemes are expected to promote hospital HIT adoption. However, P4P schemes could also discourage hospitals from adopting HIT because they may take away resources initially allocated for HIT adoption. This paper is one of the first to empirically investigate the double-edged role of P4P schemes in HIT adoption. We leverage a natural experiment in the US healthcare system, which introduced P4P schemes in 2013. Our empirical analysis reveals an unintended side effect of P4P schemes that could potentially impede HIT adoption. We also find that P4P schemes have a negative spillover effect on nonparticipating hospitals in the same multihospital system (MHS) as participating hospitals, particularly for small nonparticipating hospitals. Our findings provide important impli­ cations for health policy design and MHS management. Collapse

Topics: health information system database system technology adoption organization learning missing data

Methods: longitudinal research experimental group natural experiment survey robustness check

Unveiling the paradox of technostress: Impacts of technology-driven stressors on the elderly's avoidance behaviors

2023 | Information & Management | Citations: 0

Authors: Cheng, Xusen; Huang, Xiaowen; Yang, Bo; Xiao, Yuting

Abstract: This study reveals the paradox of technostress on the elderly due to the large-s ... Expand

Abstract: This study reveals the paradox of technostress on the elderly due to the large-scale COVID testing during the postCOVID-19 period. Drawing upon the stressor-strain-outcomes framework, we examined how technology-driven stressors affect the elderly’s avoidance behaviors. Results indicate that two types of technology-driven stressors exert opposite influences on the elderly’s avoidance behaviors through the mediating effect of technology anxiety. Specifically, the elderly’s technology-driven challenge stressors exert a positive influence on their avoidance behaviors, while the elderly’s technology-driven hindrance stressors exert a negative influence. Moreover, stigma consciousness plays a moderating role in the relationship between the elderly’s technologydriven hindrance stressors and technology anxiety by strengthening the positive influence of the elderly’s technology-driven hindrance stressors on technology anxiety. Our findings deepen the understanding of the good and bad of technostress and provide implications for older adults, technology developers, and the government. Collapse

Topics: smartphone technostress pandemic self efficacy anonymity

Methods: qualitative interview survey SEM tool mixed method qualitative coding

Let Artificial Intelligence Be Your Shelf Watchdog: The Impact of Intelligent Image Processing-Powered Shelf Monitoring on Product Sales

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Deng, Yipu; Zheng, Jinyang; Huang, Liqiang; Kannan, Karthik

Abstract: We collaborated with a leading fast-moving consumer goods (FMCG) manufacturer t ... Expand

Abstract: We collaborated with a leading fast-moving consumer goods (FMCG) manufacturer to investigate how intelligent image processing (IIP)-based shelf monitoring aids manufacturers' shelf management by using data from a quasi-experiment and a field experiment. We discovered that such artificial intelligence (AI) assistance significantly and consistently improves product sales. Several underlying mechanisms were revealed by our quantitative and qualitative analysis. First, retailers are more likely to comply due to the greater monitoring effectiveness enabled by AI assistance. Second, the positive effect of IIP-based shelf monitoring partially persists after it is terminated, implying that human learning takes place. Third, the value of IIP-based shelf monitoring can be attributed to independent retailers rather than chain retailers. Since the degree of contract heterogeneity is the major difference between these retailers in terms of monitoring, this finding further suggests that AI is relatively more scalable when coping with more heterogeneous instances. Apart from these great benefits, we demonstrate the low marginal costs of implementing IIP-powered shelf monitoring, which indicates its long-term applicability and potential to generate incremental value. Our research contributes to several literature streams and provides managerial insights for practitioners who consider AI-assisted operational models. Collapse

Topics: artificial intelligence organizational value cost benefit analysis mobile application human AI collaboration

Methods: experimental group field experiment qualitative interview experiment quasi experiment

The Impact of Social Reputation Features in Innovation Tournaments: Evidence from a Natural Experiment

2023 | Information Systems Research | Citations: 0

Authors: Deodhar, Swanand J.; Gupta, Samrat

Abstract: This study examines how a change in an online reputation system, specifically th ... Expand

Abstract: This study examines how a change in an online reputation system, specifically the addition of a social reputation feature, affects contestant performance in innovation tournaments. Drawing from the literature on peer recognition and social evaluation anxiety, we project competing effects whereby the feature could either enhance or diminish contestant performance. Furthermore, we hypothesize a series of contingent effects involving the soft reserve, a competitive dynamic that unfolds in tournaments, and a determinant of performance in its own right. Specifically, we hypothesize that the direct influence of the social reputation feature on contestant performance would be predicated on the level of two types of soft reserves in an innovation tournament: that created by the focal contestant and that created by competitors. We test these hypotheses leveraging a natural experiment, where an innovation tournament platform (Kaggle.com) introduced a social reputation feature, allowing contestants to follow other contestants unilaterally. Estimates obtained using a panel data set bracketed within a narrow time window (15 days) around the feature launch reveal that the feature significantly improves the performance. We further report that the two types of soft reserves significantly moderate the positive effect of the social reputation feature on contestant performance, whereby the higher the soft reserve, the weaker the effect of the social reputation feature on contestant performance. These findings have several theoretical and practical implications for managing innovation tournaments.History: Manju Ahuja, Senior Editor; Maha Shaikh, Associate Editor.Funding: The authors acknowledge Research & Publications office of IIM Ahmedabad for providing funding for language editing services.Supplemental Material: The online appendices are available at https://doi.org/10.1287/isre.2022.1118. Collapse

Topics: innovation management online reputation system word of mouth accounting blog

Methods: natural experiment robustness check statistical hypothesis test descriptive statistic computational algorithm

Evaluating Effects of the Payment Ecosystem on Central Bank Digital Currency Adoption and Design

2023 | HICSS | Citations: 0

Authors: Digiammaria, Chiara; Omarini, Anna; Kauffman, Robert; Kim, Kwansoo

Abstract: CBDC has become a discussion topic with worldwide economic and societal relevanc ... Expand

Abstract: CBDC has become a discussion topic with worldwide economic and societal relevance. Payment system efficiency is a top driver for digital currency adoption. We examine literature gaps for payment ecosystem impact on CBDC adoption and design, and conduct test for 65 World Bank countries. We measure payment alternatives and preferences impacts and estimate least squares and limited dependent variables regressions. CBDC adoption is driven by payment ecosystem, alternative characteristics, e-money usage, perceived safety, and infrastructure. This signals that user familiarity with digital payment methods, trust in authorities, and structural capabilities support CBDC adoption. Adoption is inversely related to alternatives that dampen the need for CBDC. Transaction volume and trust in authorities are linked to choosing a central database, not a digital ledger technology (DLT) infrastructure. Deviations occur from ambiguous effects of cash and DLT usage on CBDC adoption and industry concentration, architecture, and linkages. Collapse

Topics: analytical information system digital innovation

Methods: robustness check deep learning propensity score matching convolutional neural network causality analysis