Value Creation Tradeoff in Business Ecosystems: Leveraging Complementarities While Managing Interdependencies

2023 | Organization Science | Citations: 0

Authors: Agarwal, Shiva; Kapoor, Rahul

Abstract: Complementary assets play an important role in shaping an innovation’s commercia ... Expand

Abstract: Complementary assets play an important role in shaping an innovation’s commercialization success. In this paper, we broaden the locus of complementarities to examine the role of complementary technologies residing in the business ecosystems that are becoming an important source of value creation for innovating firms. We argue that, on one hand, complementary technologies help innovations create more value for their users. On the other hand, they can also limit the focal innovation’s value creation by exposing them to performance bottlenecks as the underlying technological architecture of the ecosystem evolves. We further extend the notion of specialization of complementary assets to ecosystems by considering complementary technologies that are specialized to a focal ecosystem and those that are available across multiple ecosystems. We highlight that, although the complementary technologies that are specialized to an ecosystem facilitate greater value creation, they are more likely to subject the focal innovation to performance bottlenecks. Evidence from 244,034 apps launched by software developers for Apple’s iPhone ecosystem during 2008–2015 offers strong support for our framework. In summary, the study sheds light on the value creation tradeoff for firms innovating in business ecosystems—the opportunities associated with leveraging complementarities and the challenges associated with managing technological interdependencies. Funding: S. Agarwal was funded by the McCombs School of Business at The University of Texas at Austin [Research Excellence Grant]. Collapse

Topics: mobile application innovation management value creation Apple iPhone iOS

Methods: statistical hypothesis test instrumental variables estimation cross sectional research proportional hazards model robustness check

A Study for Sustainable IT: Management Effects of On-Premises and On-Demand IT on Carbon Intensity

2023 | International Conference on Information Systems | Citations: 0

Authors: Alghamdi, Majed; Aghakhani, Navid; Park, Jiyong; Oh, On-Ook

Abstract: Reducing the level of carbon intensity -i.e., the level of carbon emission -is ... Expand

Abstract: Reducing the level of carbon intensity -i.e., the level of carbon emission -is an important issue in cooperate IT management. Drawing upon the belief-action-outcome (BAO) framework, this study examines the impact of two different IT resources -i.e., onpremises IT (OPIT) and on-demand IT (ODIT) -on a firm's carbon intensity. Also, we examine the moderating impact of green management strategies -i.e., environmental board oversight and environmental management incentives -on the effect of OPIT and ODIT on a firm's carbon intensity. Using panel data with a sample of 3074 observations collected from 864 firms from 2016 to 2019, we find that OPIT usage is positively associated with carbon intensity, whereas ODIT usage is negatively associated with carbon intensity. In addition, we find that, while environmental board oversight mitigates the positive direct impact of OPIT on carbon intensity, environmental management incentives reinforce the negative direct impact of ODIT on carbon intensity. Collapse

Topics: strategic management green IS environmental sustainability database system corporate governance

Methods: longitudinal research Compustat descriptive statistic Breusch-Pagan test

Theories: theory of economic growth

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

Telepresence in live-stream shopping: An experimental study comparing Instagram and the metaverse

2023 | Electronic Markets | Citations: 0

Authors: Barta, Sergio; Gurrea, Raquel; Flavián, Carlos

Abstract: Advances in digital platforms allow influencers to use live shows to showcase pr ... Expand

Abstract: Advances in digital platforms allow influencers to use live shows to showcase products, which has given rise to live-stream shopping. Moreover, new communication forms have emerged, such as the metaverse. The social interactions that occur in these immersive environments foster influencer-follower interactions. This research compares the impact of live-stream shopping on followers’ experiences and behaviors on two communication channels (live shows on Instagram and in the metaverse) and analyses the moderating role of content involvement in telepresence. Data were collected in a between-subjects quasi-field experiment. Two scenarios that differed in degree of telepresence were created, a live show on Instagram and a live show in the metaverse. The results showed that telepresence is an important part of the user experience and in the success of live shows. Telepresence was seen to have a major influence on experiential value, but not on instrumental value. Both values provided followers with satisfaction with the experience. This satisfaction generated stickiness intention and intention to recommend the influencers’ live shows. The effect of telepresence on experiential value was greater for followers less involved with the influencer’s content. This research is pioneering in comparing an established platform, Instagram, with the metaverse. Despite the greater experiential value provided by the metaverse, to increase its instrumental value metaverse spaces needs to be further developed. Collapse

Topics: video conference virtual reality Instagram social network social media

Methods: survey field experiment statistical power analysis statistical hypothesis test experimental group

Theories: technology acceptance model

Public Opinion and Impression Management in the Communication of Performance During the Second Iraq War

2023 | Organization Science | Citations: 0

Authors: Audia, Pino G.; Rousseau, Horacio E.; Stimmler, Mary Kate

Abstract: Although studies show that organizations engaged in controversial actions often ... Expand

Abstract: Although studies show that organizations engaged in controversial actions often aim to minimize the release of threatening information, scholars know relatively little about what may prompt organizations to increase transparency in these situations. In this study, we focus on support from public opinion as a condition that may influence the disclosure of sensitive performance information to the public. Using the second Iraq War as an empirical context, we focus on the extent to which public officials—Pentagon spokespersons—release and frame information about war performance. This outcome is critical because the way in which organizations communicate their performance to outsiders has often been regarded as a key defensive impression management tactic. We hypothesize that high public support for the war will increase the likelihood that Pentagon officials release information about sensitive combat performance indicators in their press briefings and identify contingencies, such as adversity and organizational spokespersons’ power, that moderate this relationship. We also explore whether high public support decreases the strategic use of alternate performance frames that emphasize metrics that signal progress toward a desirable end state. Using a unique data set based on the coding of press briefings, public opinion data, and other public sources, we find support for several of our hypotheses. We discuss implications for understanding the relationship between public opinion and impression management and highlight the importance of extending this research to nongovernmental organizations. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1598. Collapse

Topics: armed conflict organization structure website database system terrorist incident

Methods: logistic regression descriptive statistic statistical hypothesis test regression analysis method theory development

Theories: accountability 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

Gender, Pay Transparency, and Competitiveness: Why Salary Information Sometimes, but Not Always, Mitigates Gender Gaps in Salary Negotiations

2023 | Group Decision and Negotiation | Citations: 0

Authors: Bear, Julia B.; Pinkley, Robin; Barsness, Zoe; Mazei, Jens; Bhatia, Nazli; Sleesman, Dustin J.

Abstract: Although pay transparency is a widely accepted remedy for the gender pay gap, re ... Expand

Abstract: Although pay transparency is a widely accepted remedy for the gender pay gap, research has devoted little attention to the specific types of salary information that are available to job seekers and whether the framing of this information moderates gender differences in negotiation outcomes. We first conducted an exploratory study to investigate whether men and women differ in how much they rely on and perceive the usefulness of various sources of salary information. A survey of experienced MBA students revealed that, relative to women, men tend to place greater value on sources that involve direct social comparisons (e.g., professional networks) as opposed to more aggregate, general sources (e.g., websites). We then conducted a controlled experiment using a hypothetical job offer negotiation to determine whether framing salary information in terms of social comparison moderates gender gaps in salary requests. Our results supported a moderated mediation model, revealing that men requested higher salaries than women when presented with upward social comparison information (i.e., what a more qualified employee earns), but not downward (i.e., what a less qualified employee earns) or lateral comparison information (i.e., what a similarly qualified employee earns). These effects were driven by heightened competitiveness among men. We also discovered that both men and women experienced the greatest boost in competitiveness and salary requests when presented with downward social comparison information. Overall, salary information is effective in reducing gender gaps, but the effects are nuanced, as they depend on the social comparison inherent to the information. Collapse

Topics: IT career website

Methods: archival research parametric test ANOVA theory development experiment

“Dear CEO and Board”: How Activist Investors’ Confidence in Tone Influences Campaign Success

2023 | Organization Science | Citations: 0

Authors: Brauer, Matthias; Wiersema, Margarethe; Binder, Philipp

Abstract: Activist hedge funds represent the most potent form of financial activism. Yet w ... Expand

Abstract: Activist hedge funds represent the most potent form of financial activism. Yet we do not fully understand how these activist investors, despite holding only a small stake in target firms, are able to influence management and the board to acquiesce to their demands, especially given the large uncertainty that their demands will improve shareholder value. Building on impression management (IM) theory, we propose that activist investors who express their concerns and demands with high confidence in their letters to target firms are likely to be perceived as knowledgeable and competent by the firm’s other shareholders, thus influencing the response of the firm’s management and board. In support of this theoretical proposition, results of our empirical analysis of 475 U.S. activist campaigns against U.S. companies between 2007 and 2019 suggest that confidence in tone in an activist’s letter, as a form of self-promotion, is positively associated with campaign success. We also observe that the positive association between confidence in tone in activist letters and campaign success is less for activists with greater success in prior campaigns and in campaigns with multiple activists. Our paper contributes to financial activism research by showing that activists’ verbal impression management can serve as an effective influence tactic in their campaigns. Our study also contributes to the emerging research stream on verbal IM by introducing a language attribute, confidence in tone, that has not been studied in management research and is distinct from past constructs examined in verbal IM research. Collapse

Topics: corporate governance strategic management organizational productivity decision making database system

Methods: descriptive statistic qualitative content analysis theory development linguistic analysis regression analysis method

Theories: behavioral theory

When Does the Pre-entry Experience of New Entrants Improve Their Performance? A Meta-Analytical Investigation of Critical Moderators

2023 | Organization Science | Citations: 0

Authors: Cao, Zhi; Posen, Hart E.

Abstract: Although pre-entry experience is widely regarded as a critical asset that positi ... Expand

Abstract: Although pre-entry experience is widely regarded as a critical asset that positively influences new entrant performance, empirical support is mixed. To address this inconsistency, we conduct a meta-analysis of the empirical findings in 272 papers. We draw theoretically on the organizational learning literature to argue that the pre-entry experience–new entrant performance relationship is contingent on the characteristics of pre-entry experience, the environmental context of the new entrant, and the interaction between the two. In particular, we examine the effects of two levels of pre-entry experience (firm and founder), four types of founder-level pre-entry experience (entrepreneurial, managerial, industry, and functional experience), and two types of environments (industry and institutional). The meta-analysis results show a significant and positive correlation between founder-level pre-entry experience and economic performance of 0.07. Likewise, the failure rates of spinouts and diversifying entrants are 11% lower than that of start-ups. The moderating analysis results show that the correlation of founder-level pre-entry experience and economic performance is lower in knowledge- or technology-intensive (KTI) industries and higher in low-KTI manufacturing and service industries. The correlation is also higher in institutional environments with high power distance and individualism. These findings provide compelling new evidence for the importance of pre-entry experience and advance our understanding of the boundary conditions on the pre-entry experience–new entrant performance relationship. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1589. Collapse

Topics: national culture organization learning entrepreneurship productivity research and development

Methods: descriptive statistic hazard function meta analysis literature sample chi squared test

Token Incentives in a Volatile Crypto Market: The Effects of Token Price Volatility on User Contribution

2023 | Journal of Management Information Systems | Citations: 0

Authors: Chen, Kun; Fan, Yifan; Liao, Shaoyi Stephen

Abstract: Crypto tokens, issued and managed via smart contracts, function as rewards in bl ... Expand

Abstract: Crypto tokens, issued and managed via smart contracts, function as rewards in blockchain systems to encourage user participation. Distinct from monetary incentives, token incentives are uncertain in reward magnitude due to the large swings in token prices on crypto markets. By focusing on token price volatility, this study investigates how the reward uncertainty affects user contribution in a tokenized digital platform. Our empirical setting is Steemit, a platform where bloggers write posts and share token rewards based on their posts' popularity. We find that while high token price volatility induces a large volume of blog posts, it diminishes post quality. The dichotomous effects are explained via two mechanisms: users' direct reactions to reward uncertainties and their indirect reactions, mediated by altered token preference amid volatility shocks. Deeply exploring this dynamic process, our results reveal that token price volatility facilitates a platform's network short-term effect but impairs long-term user creativity. Our empirical findings thus extend the literature on blockchain economics and cryptocurrencies and have practical implications for the design of incentive mechanisms on tokenized digital platforms. Collapse

Topics: blog blockchain digital platform cryptocurrency user behavior

Methods: longitudinal research instrumental variables estimation data transformation principal component analysis vector autoregression

Theories: motivation crowding theory