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

Does Analytics Help Resolve Equivocality in the Healthcare Context? Contrasting the Effects of Analyzability and Differentiation

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

Authors: Adjerid, Idris; Angst, Corey; Devaraj, Sarv; Berente, Nicholas

Abstract: Organizations are increasingly using data analytics to help make decisions and ... Expand

Abstract: Organizations are increasingly using data analytics to help make decisions and drive positive outcomes. But organizational scholarship has warned us that the sort of information processing associated with analytic capabilities, while effective for uncertainty reduction, may be less effective in equivocal contexts. Equivocality is evident when tasks are not easily analyzable (task analyzability) or when organizational departments are highly differentiated (differentiation). We hypothesize that analytics will be less effective in driving positive outcomes when equivocality is high because of low task analyzability. However, when an organization is more differentiated, resulting in high equivocality, we anticipate that analytics will be more effective in driving positive outcomes. To test this theory, we studied how clinical healthcare analytics influenced experiential quality (akin to patient satisfaction) in over 3,000 hospitals across nine years. Our results show that analytics capabilities, on average, do improve outcomes in terms of patient experiential quality, suggesting that analytics can reduce uncertainty, but we also found evidence for the moderating role of equivocality. Specifically, as task analyzability decreases (i.e., increasing equivocality), clinical healthcare analytics becomes less effective in improving experiential quality. However, when equivocality is high because of differentiation, there is a positive relationship between clinical healthcare analytics and experiential quality but only in larger hospitals. From a managerial perspective, this study has implications for boundary conditions of data analytics in organizations. Collapse

Topics: healthcare analytics technology adoption electronic health record health information system artificial intelligence

Methods: theory development post-hoc analysis experimental group longitudinal research machine learning

Theories: organizational information processing theory

The Effects of Digitally Delivered Nudges in a Corporate Wellness Program

2023 | Journal of the Association for Information Systems | Citations: 1

Authors: Babar, Yash; Curley, Shawn; Ke, Zhihong; Liu, De; Sheffler, Zachary

Abstract: We investigate how two digitally delivered nudges, namely light social support ... Expand

Abstract: We investigate how two digitally delivered nudges, namely light social support (nonverbal cues such as kudos or likes) and motivational messaging, affect employees' self-reported physical activity in an online, corporate wellness program. Within this unique field setting, using data from several years, we found evidence that both types of nudges provide benefits beyond the effect of cash incentives. However, the effects vary by individual, depending on whether the employee is actively engaging in physical activity, and by time, depending on how long the employee has been in the wellness program. We found light social support to be less effective over time, while motivational messages were found to be more effective with the duration in the program and generally more effective for physically inactive users. Our findings have implications for the design of wellness systems, suggesting different approaches depending on an employee's current activity level and tenure in the program.De Liu is a Xian Dong Eric Jing Professor of Information and Decision Sciences at the Carlson School of Management, University of Minnesota. He received his PhD from the University of Texas at Austin, and his master's and bachelor's degrees from Tsinghua University. His recent research interests include gamification, AI /augmented reality, internetbased auctions and market mechanisms, online reviews, and crowdfunding. His research has appeared in leading journals such as MIS Quarterly, Management Science, Information Systems Research, Journal of Marketing, Journal of Market Research, and Production and Operations Management. He has served as an associate editor for Information Systems Research and Journal of Organizational Computing and Electronic Commerce. He is also the academic director of the Business Analytics programs at the Carlson School of Management.Yash Babar is an assistant professor in the Department of Operations and Information Management at the University of Wisconsin-Madison. He received his PhD from the University of Minnesota in information and decision sciences and his bachelor's degree from BITS Pilani Goa. He researches the socioeconomic impacts of information systems exploring online-offline interactions in digital platforms like the gig economy, online communities, social media, and mobile fitness applications. His work has appeared in Information Systems Research and MIS Quarterly and at several international IS conferences. Collapse

Topics: mobile phone web forum intrinsic motivation user behavior

Methods: longitudinal research difference in differences Poisson regression propensity score matching robustness check

Theories: self determination 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

The motivation paradox: Understanding contradictory effects of awards on contribution quantity versus quality in virtual community

2023 | Information & Management | Citations: 0

Authors: Banerjee, Shankhadeep; Bhattacharyya, Samadrita; Bose, Indranil

Abstract: We use the lens of the intrinsic/extrinsic motivation theory to holistically mod ... Expand

Abstract: We use the lens of the intrinsic/extrinsic motivation theory to holistically model the effects of intangible awards on member contribution in virtual communities. Using multiple studies on Yelp, we validate that the influence of award stimuli on contribution outcomes become significantly moderated by the aspect of contribution (quantity versus quality) and the novelty of stimuli (time and repetition of awards) to interestingly form divergent (downward versus upward) yet theoretically explicable curvilinear trajectories of contribution. This study contributes to IS literature on virtual communities and social-cognitive literature on work motivation and offers insights to community managers to design better incentive systems. Collapse

Topics: online community intrinsic motivation electronic health blockchain online review

Methods: theory development ANOVA parametric test regression analysis method experimental group

Theories: motivation theory self determination theory cognitive evaluation theory

Attention to Digital Innovation: Exploring the Impact of a Chief Information Officer in the Top Management Team

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Bendig, David; Wagner, Robin; Piening, Erk; Foege, Johann

Abstract: We draw on the attention-based view of the firm to examine whether and when the ... Expand

Abstract: We draw on the attention-based view of the firm to examine whether and when the presence of a CIO in the TMT has a positive effect on both firms' ideated digital innovation (IDI) (i.e., the intensity of firms' digital patenting activity) and commercialized digital innovation (CDI) (i.e., the digital sophistication of firms' new products). Building on the idea that attention processes are context dependent, we also explore the moderating roles of CEO characteristics (IT background and role tenure) as well as environmental characteristics (the industry's IT attention). We analyze data from a cross-industry panel of U.S. S&P 500 firms over eight years that includes up to 2,852 firm-year observations. The results indicate that CIO presence in the TMT is positively related to a firm's IDI and CDI. Furthermore, they show that the organizational context related to CEO characteristics moderates the CIO-CDI relationship and that the environmental context related to the industry's IT attention moderates the CIO-IDI relationship. Our research contributes to the information systems literature by providing robust evidence that CIO presence in the TMT positively influences a firm's digital innovation outcomes, showing how internal and external boundary conditions affect the work of CIOs, and elaborating the role of managerial attention as an underlying mechanism explaining digital innovation. Collapse

Topics: Chief Information Officer innovation management digital innovation research and development IT investment

Methods: regression analysis method theory development instrumental variables estimation Compustat descriptive statistic

Save Our Souls: Study of Twitter Use during India’s COVID-19 Pandemic

2023 | International Conference on Information Systems | Citations: 0

Authors: Bhattacharyya, Samadrita; Mojumder, Probal

Abstract: Twitter is a commonly used social platform for communication during disasters. ... Expand

Abstract: Twitter is a commonly used social platform for communication during disasters. Tweets by citizens during disasters to share information, seek, and offer help create a body of spontaneous, decentralized, emergent social media communication. Users' exploit Twitter's reach-enabling technological functionalities (hashtags (#), mentions (@), and 'reply-to') to draw attention to the messages. Set in context of the second wave of COVID-19 in India, that saw a surge in citizen-driven tweets seeking healthcare resources from fellow citizens and officials (i.e., SOS tweets), our paper empirically analyses the effects of Twitter's reach-enabling functionalities on online responses (i.e., retweets and replies) to these SOS tweets. We investigate the effects of inclusion of hashtags, mentions, and 'reply to' SOS tweets. We also examine the moderating effect of how the effects of the reach-enabling functionalities change as the social platform gets crowded with SOS tweets. The study offers various academic and practical implications. Collapse

Topics: Twitter pandemic social media Python societal evaluation criteria

Methods: propensity score method machine learning propensity score matching econometric modeling robustness check

How synchronous participation affects the willingness to subscribe to social live streaming services: the role of co-Interactive behavior on Twitch

2023 | European Journal of Information Systems | Citations: 0

Authors: Bründl, Simon; Matt, Christian; Hess, Thomas; Engert, Simon

Abstract: Social computing has transformed the content industry. Content providers have ch ... Expand

Abstract: Social computing has transformed the content industry. Content providers have changed from providing merely content to offering social content experiences that allow users not only to passively consume content but also to actively participate. As the latest development, social live streaming services (SLSS) have emerged that enable so-called co-interactive behaviour, i.e., the live interplay between users while co-experiencing content. Yet, it remains unclear how co-interactive behaviour affects the monetisation of social live content. Based on a data set of 868,940 users from 59 gaming channels of the freemium-based SLSS Twitch, we empirically show that co-interactive behaviour has a stronger effect on users’ willingness to subscribe (WTS) than passive and active behaviour. Since we find that a user’s reciprocated interactions also directly increase other users’ WTS, our results call for dismantling the current dichotomy of user participation and social influences in IS research. We suggest a social-experiential perspective that integrates social influences as an inherent part of users’ participation experiences. This novel interactive second-person perspective contributes to research on user engagement and value capture on social content platforms, and it allows SLSS providers to obtain a more precise picture of user value to better develop or adapt their monetisation strategies. Collapse

Topics: participatory design social influence user behavior Twitch application programming interface

Methods: design methodology propensity score matching experimental group descriptive statistic logistic regression

Theories: general systems theory

The Value of Social Media Customer Support During the Pandemic

2023 | HICSS | Citations: 0

Authors: Cheng, Huai-Tzu; Pan, Yang; Hirschheim, Rudy

Abstract: Many companies are utilizing social media as the primary avenue for customer ser ... Expand

Abstract: Many companies are utilizing social media as the primary avenue for customer service during the pandemic. However, how customers’ behaviors and interactions with customer service agents on social media are impacted by the lockdowns has not been well understood. In this study, we examine the impact of lockdowns and physical distancing on changes in customers’ behaviors, such as emotional expressions in tweets and customers’ satisfaction with social media customer service. Using a difference-in-differences research design, we find that with the lockdowns and physical distancing, customers expressed more negative emotions when tweeting the company they were having issues with. Surprisingly, compared to before the pandemic period, customers’ emotional expressions became more positive and they were more likely to express their satisfaction after interacting with customer service agents. Interestingly, our findings reveal that gender differences exist in these scenarios. We also discuss the theoretical and practical implications of these findings. Collapse

Topics: Twitter customer service social media pandemic customer satisfaction

Methods: experimental group two sample t-test with equal variance propensity score matching parametric test robustness check

Does the new entrant eat my pie or enlarge my pie? Market entry investigation in the online-to-offline on-demand context

2023 | Decision Support Systems | Citations: 0

Authors: Dai, Hongyan; Ta, La; Xu, Xun

Abstract: The facilitation of information technology has led to the rapid development of o ... Expand

Abstract: The facilitation of information technology has led to the rapid development of online-to-offline commerce, and this mode is attracting increasing businesses to enter the market. Its unique on-demand features affect con­ sumers’ shopping behaviors. This study uses a difference-in-difference approach with propensity score matching and machine learning approaches to examine the impact of a new giant online-to-offline entrant on consumers’ ordering and spending behavior. We find that overall, the new entrant has a negative impact on consumers’ ordering and spending from the perspective of existing providers. This negative impact is amplified if the con­ sumers are highly engaged on the platform. However, the new entrant effect is reduced if the providers use inhouse rather than outsourced deliverymen or consumers have a relatively long distance from the new entrant. Furthermore, the new entrant effect is altered if the platform implements technological innovation. On a provider level, the new entrant has a direct negative impact on consumers’ ordering and spending from homogenous providers; however, a positive spillover effect is observed in terms of increasing consumers’ spending on het­ erogeneous providers. The direct effect occurs immediately, while the spillover effect appears in a time-lagged pattern. On a product level, we find that the new entrant negatively affects consumers’ ordering and spending on substitute products also sold by the new entrant, but that their spending on non-substitute products is boosted. Our findings provide decision support for the new entrant and existing providers to expand the market to stimulate consumers’ purchase from both, to enhance their financial performance. Collapse

Topics: decision support digital innovation innovation management electronic commerce financial performance

Methods: experimental group k-means clustering machine learning computational algorithm Student's t-test