Workarounds as generative mechanisms for bottom-up process innovation—Insights from a multiple case study

2023 | Information Systems Journal | Citations: 0

Authors: Bartelheimer, Christian; Wolf, Verena; Beverungen, Daniel

Abstract: Workarounds are goal-driven deviations from the standard operating procedures pe ... Expand

Abstract: Workarounds are goal-driven deviations from the standard operating procedures performed to overcome obstacles constraining day-to-day work. Despite starting as temporary fixes, they can become established across an organisation and trigger the innovation of processes and IT artefacts that can resolve misfits permanently. Although prior research has elicited antecedents and types of workarounds, it is not known how workarounds diffuse in an organisation and, thereby, innovating co-workers' activities, IT artefacts, and organisational structures. The results of our multiple two-year case study provide unique empirical insights into the diffusion of workarounds and how they can act as generative mechanisms for bottom-up process innovation. Collapse

Topics: business process management innovation management business process innovation organization structure business process redesign

Methods: design artifact case study business process modeling qualitative interview qualitative coding

Theories: socio technical theory structuration theory

DO NEGATIVE EXTERNALITIES AFFECT PLATFORM MEMBERSHIP CONDITIONS? THE IMPACT OF MORAL AND REGULATORY LEGITIMACY ON PLATFORM GOVERNANCE

2023 | European Conference On Information Systems | Citations: 0

Authors: Brandwijk, Noah; Reuver, Mark de

Abstract: When allowing third parties to join their platforms, platform owners run the ri ... Expand

Abstract: When allowing third parties to join their platforms, platform owners run the risk of attracting harmful third-party complements. Existing literature considers that low-quality offerings negatively affect crossside user satisfaction and attractiveness, ultimately harming the platform's reputation and stability. However, recent events show that negative externalities from third-party offerings can also motivate platform sponsors to adapt their membership conditions. Existing platform literature does not explain the underlying theoretical mechanisms. In this paper, we examine why platform sponsors adjust the conditions that govern third parties joining their platforms in response to negative externalities. We apply legitimacy theory to a critical case on a payment transaction platform. We find that negative externalities affect both moral and regulatory legitimacy, which in turn motivate the platform sponsor to adjust the conditions under which third parties may join the platform. Collapse

Topics: platform governance digital ecosystem digital platform user satisfaction network effect

Methods: qualitative interview case study theory development single case study

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

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

Wisdom in the Wild: Generalization and Adaptive Dynamics

2023 | Organization Science | Citations: 0

Authors: Choi, Jaeho; Levinthal, Daniel

Abstract: Learning from experience is a central mechanism underlying organizational capabi ... Expand

Abstract: Learning from experience is a central mechanism underlying organizational capabilities. However, in examining how organizations learn from past experiences, much of the literature has focused on situations in which actors are facing a repeated event. We direct attention to a relatively underexamined question: when an organization experiences a largely idiosyncratic series of events, at what level of granularity should these events, and the associated actions and outcomes, be encoded? How does generalizing from experience impact the wisdom of future choices and what are the boundary conditions or factors that might mitigate the degree of desired generalization? To address these questions, we develop a computational model that incorporates how characteristics of opportunities (e.g., acquisition candidates, new investments, product development) might be encoded so that experiential learning is possible even when the organization’s experience is a series of unique events. Our results highlight the power of learning through generalization in a world of novelty as well as the features of the problem environment that reduce this “power.” Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1609. Collapse

Topics: organization learning new product development

Methods: descriptive statistic reinforcement learning robustness check literature study

Organizations as Digital Enactment Systems: A Theory of Replacement of Humans by Digital Technologies in Organizational Scanning, Interpretation, and Learning

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

Authors: Constantiou, Ioanna; Joshi, Mayur; Stelmaszak, Marta

Abstract: Digital transformation has become a dominant phenomenon of interest among infor ... Expand

Abstract: Digital transformation has become a dominant phenomenon of interest among information systems scholars. To account for this phenomenon, it is imperative to develop a theoretical understanding of its processes and objects. We adapt a seminal organizational theory that conceptualizes organizations as interpretation systems to a possible future of organizations. We theorize digital transformation as a progressive replacement of humans by digital technologies in performing an organization's fundamental activities underpinning the processes of scanning, interpretation, and learning that encompass an organization's interaction with its environment. As a result, organizations cease to be human interpretation systems and instead turn into digital enactment systems, where digital technologies, instead of humans, nearly autonomously create and act upon information. We illustrate this digital transformation theory using the example of high-frequency trading. This transformation redefines the relationship among organizations, information, and the environment, changing the role of humans and reshaping strategic decision-making. Thus conceived, digital transformation offers a concrete way of theorizing and accounts for deep implications on the nature of organizations and organizing in the digital age. Collapse

Topics: digital transformation IT work decision making electronic trading organization structure

Methods: theory development computational algorithm

Theories: general systems theory organizational theory

To Stem the Tide: Organizational Climate and the Locus of Knowledge Transfer

2023 | Organization Science | Citations: 0

Authors: Di Stefano, Giada; Micheli, Maria Rita

Abstract: Prior work has maintained that organizations benefit from managing the transfer ... Expand

Abstract: Prior work has maintained that organizations benefit from managing the transfer of proprietary knowledge. Transfer is often advantageous within organizational boundaries but may be harmful across them, because it might erode competitive advantage. Hence, we ask: How can organizations affect the direction in which knowledge flows? We examine the role of organizational climate as a governing mechanism for knowledge transfer. Our empirical strategy consists of a mixed-methods approach leveraging qualitative and experimental data over two cycles of theory building and theory testing. We start with an extensive field study of the European Organization for Nuclear Research (CERN), leveraging the insights from desk research, field observations, 53 interviews, and a laboratory-in-the-field experiment involving 518 physicists. We then provide a causal test of the emerging framework by means of two laboratory experiments with 389 participants. Our findings suggest employees are more likely to transfer knowledge to their colleagues when they identify as an integral part of the organization, but they would rather transfer knowledge to outside competitors when their organization encourages them to outperform coworkers. In the presence of an organizational climate that is unfavorable to preventing knowledge spillovers, we argue, organizations can redirect the locus of knowledge transfer internally by acting upon an individual employee’s job design and socialization regime.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: The authors acknowledge generous financial support from Bocconi University, the HEC Foundation of HEC Paris, and IESEG School of Management.Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1551. Collapse

Topics: knowledge sharing electronic mail pandemic knowledge spillover strategic management

Methods: experiment qualitative interview field study theory development laboratory experiment

Theories: organizational theory

Bridging the Gap: How Firms Use Process Mining to Create and Act on a Shared End-to-End Process Understanding

2023 | International Conference on Information Systems | Citations: 0

Authors: Eggers, Julia; Hein, Andreas; Krcmar, Helmut

Abstract: Firms struggle with improving end-to-end (E2E) processes due to difficulties in ... Expand

Abstract: Firms struggle with improving end-to-end (E2E) processes due to difficulties in establishing shared E2E process understanding across firm levels. Creating behavioral visibility into processes might provide a solution, but traditional methods are limited in effectiveness. Thus, process mining (PM), offering data-driven process discovery and measurement, shows promise, but its implications on creating and acting on a shared E2E process understanding remain unclear. Addressing this gap, we conduct a single case study at a manufacturing firm guided by theories of organizational learning and organizational routines. Our preliminary findings reveal how the data-driven behavioral visibility through PM enables four mechanisms within and between the individual, team, and firm levels to create a shared E2E process understanding and change. We contribute to business process management and PM research by showing how firms use PM to overcome challenges in the multi-level process of creating and acting on a shared E2E process understanding. Collapse

Topics: organization learning procurement management business process management

Methods: qualitative interview case study archival research theory development grounded theory

Prior Experience of Managers and Maladaptive Responses to Performance Feedback: Evidence from Mutual Funds

2023 | Organization Science | Citations: 0

Authors: Gaba, Vibha; Lee, Sunkee; Meyer-Doyle, Philipp; Zhao-Ding, Amy

Abstract: In this study, we examine how the prior experiences of decision makers systemati ... Expand

Abstract: In this study, we examine how the prior experiences of decision makers systematically influence their assessment of and responses to negative performance feedback. We posit that, although greater and more specialized experiences enable managers to build relevant knowledge and expertise in specific domains, they also make them overconfident in their abilities and strategies. Such experience-induced overconfidence further leads to distortions in the performance assessment process, hindering a firm’s ability to recognize and respond to poor performance. We empirically test these arguments in the context of U.S. mutual fund managers making investment decisions in response to fund performance below aspirations. As hypothesized, we find that more experienced and more specialized fund managers change their investment decisions less when faced with negative performance feedback than managers who are less experienced and less specialized. In additional analyses, we further show that the lower responsiveness of more experienced (specialized) managers is associated with the fund’s lower future performance, supporting our proposed theoretical mechanism (overconfidence). This study augments existing performance feedback research by showing how decision makers’ prior experience can impede problem-solving behavior in organizations. It also contributes to the literature on human capital and organizational learning by documenting an unintended consequence of accumulated human capital on firm adaptive behavior. Funding: This work was supported by INSEAD research & development funds. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1605. Collapse

Topics: IT career organizational productivity human resource management unintended consequence problem solving

Methods: robustness check descriptive statistic theory development qualitative content analysis SEC EDGAR

Theories: theory of bounded rationality behavioral theory of the firm

Continuous improvement of information security management: an organisational learning perspective

2023 | European Journal of Information Systems | Citations: 0

Authors: Ghahramani, Fereshteh; Yazdanmehr, Adel; Chen, Daniel; Wang, Jingguo

Abstract: This study explores ways to empower organisations to continuously improve their ... Expand

Abstract: This study explores ways to empower organisations to continuously improve their information security management (ISM). Drawing upon the dynamic capabilities approach, we investigated the mechanism wherein absorptive capacity has an effect. We found that absorptive capacity affects an organisation’s continuous improvement of ISM, with its effect mediated through an organisation’s adaptability to information security threats. In addition, the effect of absorptive capacity on adaptability is contingent upon the organisation’s competitive pressure, which enhances the mediating effect of adaptability. We tested our research model using survey data collected from 130 US-based managers familiar with information security management in their organisations. Theoretical and practical implications of the study are discussed. Collapse

Topics: data security information security management absorptive capacity IT security anonymity

Methods: survey statistical hypothesis test structural equation modeling conceptual modelling ordinary least square

Theories: dynamic capabilities theory