Modern Centaurs: How Humans and AI Systems Interact in Sales Forecasting

2023 | European Conference On Information Systems | Citations: 0

Authors: Beese, Jannis; Fahse, Tobias

Abstract: Recent achievements of artificial intelligence (AI) have caused organizations t ... Expand

Abstract: Recent achievements of artificial intelligence (AI) have caused organizations to increasingly bring AI capabilities into their core business processes. Such AI-supported business processes often result in human-AI hybrid systems, which consist of an AI system, which performs most of the execution, and humans, who monitor this execution and occasionally provide additional inputs and overrides. Using sales data from Walmart, we conduct an online study to investigate if human supervision can improve upon state-of-the-art AI forecasts. Furthermore, we analyze the perceptions and behavioral intentions of the human participants over time. We find that human interventions consistently lead to less accurate forecasts and that participants initially underestimate the AI system's accuracy and overestimate their own potential to improve upon AI forecasts. However, perceptions quickly shift over the course of the study, causing the participants to perceive the AI system increasingly favorably, which also leads to behavioral changes and better hybrid system performance. Collapse

Topics: artificial intelligence IT productivity information system use task productivity perceived usefulness

Methods: regression analysis method survey LightGBM conceptual modelling experiment

Theories: technology acceptance model

How smart technology empowers consumers in smart retail stores? The perspective of technology readiness and situational factors

2023 | Electronic Markets | Citations: 0

Authors: Chen, Jiahe; Chang, Yu-Wei

Abstract: Smart retail stores have been gaining momentum in smart retailing. Instead of re ... Expand

Abstract: Smart retail stores have been gaining momentum in smart retailing. Instead of relying on in-store staff like traditional counterparts, smart retail stores provide an unmanned environment purely enabled by various in-store smart technologies that support customers throughout the shopping journey. This unstaffed operating model also enables smart retail stores to provide competitive prices by reducing labor costs. However, studies have overemphasized the unique value offered by smart technology but discounted the common value strengthened in smart retail. This study applies the situational factor framework to identify both unique and common factors empowered by smart technology from a comprehensive perspective; then, technology readiness is incorporated to explore consumer purchase intentions in smart retail stores. A total of 283 survey data were collected and analyzed. The main results indicate that most situational factors have a direct effect on purchase intention, and technology readiness enhances the unique situational factors enabled directly by smart technology. Collapse

Topics: business model innovation management price management accounting

Methods: survey structural equation modeling statistical power analysis partial least squares regression partial least squares path modeling

An Empirical Study of Information Technology Capabilities to Enable Value Chain Activities and Interfaces

2023 | Information Systems Frontiers | Citations: 0

Authors: Chou, Yen-Chun; Shao, Benjamin B. M.

Abstract: Information technology (IT) is a critical resource and asset for a firm’s intern ... Expand

Abstract: Information technology (IT) is a critical resource and asset for a firm’s internal operations and external interactions with outside stakeholders. This paper explores IT capabilities that enable a retailer’s value chain activities and interfaces with suppliers and customers. IT capabilities that enable the value chain activities of logistics and operations as well as those of marketing and sales are identified to examine how they influence a retailer’s implementation of value chain interfaces. Through the lens of organizational information processing theory (OIPT), we find that both IT capabilities and IT infrastructure play a pivotal role in implementing value chain interfaces but in distinctive ways. On the supplier-facing side, a retailer’s IT infrastructure and IT capabilities enabling logistics and operations are essential to its vendor-managed inventory (VMI) system. On the customer-facing side, a retailer’s e-commerce website requires IT infrastructure and IT capabilities that enable marketing and sales. Moreover, synergies are found downstream for e-commerce website that benefits from the integration of IT infrastructure and IT capabilities enabling logistics and operations while such synergies are not found upstream for VMI. This partial complementary effect is explicated by the sequential asymmetric information dependency of value chain activities. Finally, we discuss the implications of our findings for the research and practice of IT enablement and integration. Collapse

Topics: information technology capability electronic commerce website information technology infrastructure logistics management

Methods: survey chi squared test descriptive statistic econometric modeling regression analysis method

Theories: organizational information processing theory

Shopping for digital innovation— The role of startup acquisitions for digital innovation in incumbents

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Dekova, Ani; Böttcher, Timo; Krcmar, Helmut

Abstract: Incumbent firms increasingly acquire startups for digital innovation. Startups ... Expand

Abstract: Incumbent firms increasingly acquire startups for digital innovation. Startups excel at sensing market opportunities, and incumbents provide valuable resources and knowledge to seize these opportunities in digital business models. While extant research has explored the benefits resulting from such acquisitions, the reasons and strategic motivations for startup acquisitions remain unclear. This paper seeks to explore the motivations behind such acquisitions and their impact on digital business strategies. Drawing on a qualitative analysis of 124 startup acquisitions by retail incumbents, we identify six reasons incumbents acquire digital startups and two strategic goals pursued through these acquisitions. They illustrate how and why the acquisitions contribute to the incumbents' strategic goals for digital innovation and growth, and propose three testable hypotheses to deepen our understanding of this relationship. This study provides valuable insights for incumbents seeking to collaborate with startups and identifies startups suited for acquisition or collaboration. Collapse

Topics: digital innovation innovation management digital entrepreneurship business model digital business strategy

Methods: literature study qualitative coding triangulation survey grounded theory

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

Someone Else to Blame: The Effectiveness of Egocentric and Alter-Centric Impression Management Tactics in the U.S. Food Retail Industry

2023 | Organization Science | Citations: 0

Authors: Diestre, Luis; Montauti, Martina; Pinto de Sousa, Helena

Abstract: We investigate the effectiveness of two types of impression management tactics i ... Expand

Abstract: We investigate the effectiveness of two types of impression management tactics implemented around negative attributes: egocentric (claiming the absence or low presence of a negative attribute in a focal organization) and alter-centric tactics (claiming the greater presence of a negative attribute in an organization’s competitor). We claim that the effectiveness of each tactic depends on the risk of audiences’ skepticism, which stems from the incongruence between the information conveyed in the tactic and audiences’ default expectations about the presence of the attribute among members of a given market segment. Audiences expect a conspicuous presence of the attribute, we propose, the more stakeholders contest a market segment for that very attribute. Thus, we advance that egocentric (alter-centric) tactics are less likely to be effective for contested (uncontested) attributes because the information conveyed in such tactics clashes with audiences’ default expectations, triggering skepticism. We find support for our predictions looking at the impact of nutrient content claims on product sales in the U.S. food retail industry between 2006 and 2015. Funding: H. Pinto de Sousa acknowledges the support, in the form of a research scholarship, granted by the Portuguese Foundation for Science and Technology (Fundação para a Ciência e Tecnologia), under the European Social Fund and the Human Capital Operational Program (Programa Operacional Capital Humano) funding program [Grant SFRH/BD/128536/2017]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1612. Collapse

Topics: database system marketing management Twitter social influence sensemaking

Methods: experimental group survey descriptive statistic statistical hypothesis test probit regression

Cryptocurrency Payment Method for Retailers: A Systematic Review

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Dyosi, Neliswa; Tanner, Maureen

Abstract: The retail industry is highly competitive and requires businesses to continuous ... Expand

Abstract: The retail industry is highly competitive and requires businesses to continuously explore and implement technological innovations that will set them apart. Adopting cryptocurrency as a payment method is one innovation that gives businesses a competitive edge. We conducted a systematic literature review based on an in-depth analysis of 28 published articles. The literature analysis shows that cryptocurrency payments adoption is a growing research area, although only a few studies have been conducted in the last decade. Our analysis of the results showed that retailers consider a few factors regarding cryptocurrency payment adoption. The considerations include the company's size, innovativeness, regulatory requirements, perceived ease of use, perceived usefulness, attracting new customers, competitive advantage, meeting demand from existing customers, and using the technology as a marketing tool. The study's findings will be helpful to those retailers who wish to leverage cryptocurrency payments as a business tool to gain a competitive advantage. Collapse

Topics: cryptocurrency database system innovation management perceived usefulness business process management

Methods: literature sample survey structured literature research literature study synthesis

Theories: unified theory of acceptance and use of technology technology acceptance model

Exploring Digital Social Norms Nudges in E-Grocery: Typical Consumer Testimonials with a Warm Glow

2023 | International Conference on Business Informatics | Citations: 0

Authors: Gottschewski-Meyer, Phillip Oliver; Lüddemann, Nicole; Landwehr, Marvin Auf der; Viebahn, Christoph von

Abstract: Digitization offers several possibilities to alter consumer decisions to suppor ... Expand

Abstract: Digitization offers several possibilities to alter consumer decisions to support social concerns. The objective of this study is to examine the impact of personalized digital social norm nudges on consumer decisions enriched with the theory of warm glow on e-grocery buying decisions with the aim of supporting social projects. Specific pro-social behaviors targeted were supporting fair payment of the producers of grocery goods, social inclusion projects and initiatives against poverty by deciding for a specific choice option. A between-subjects experiment was performed with the help of a questionnaire using a mock-up mobile grocery store to measure product choices. Results showed that claims supporting pro-social initiatives have a significant impact on buying decisions. Perceived product recommendation influenced our model positively, while we had a negative price impact. The study suggests that warm glow theory and enriched social norm nudges are effective tools for behavior change towards social initiatives. Collapse

Topics: social norm crowdsourcing web page social presence artificial intelligence

Methods: experiment survey experimental group statistical hypothesis test Levene's test

Bots with Feelings: Should AI Agents Express Positive Emotion in Customer Service?

2023 | Information Systems Research | Citations: 0

Authors: Han, Elizabeth; Yin, Dezhi; Zhang, Han

Abstract: Customer service employees are generally advised to express positive emotion dur ... Expand

Abstract: Customer service employees are generally advised to express positive emotion during their interactions with customers. The rise and maturity of artificial intelligence (AI)–powered conversational agents, also known as chatbots, beg the question: should AI agents be equipped with the ability to express positive emotion during customer service interactions? This research explores how, when, and why an AI agent’s expression of positive emotion affects customers’ service evaluations. We argue that AI-expressed positive emotion can influence customers via dual pathways: an affective pathway of emotional contagion and a cognitive pathway of expectation–disconfirmation. We propose that positive emotion expressed by an AI agent (versus a human employee) is less effective in facilitating service evaluations because of a heightened level of expectation–disconfirmation. We further introduce a novel individual difference variable, customers’ relationship norm orientation, which affects their expectations toward the AI agent and moderates the cognitive pathway. Results from three laboratory experiments substantiate our claims. By revealing a distinctive impact of positive emotion expressed by an AI agent compared with a human employee, these findings deepen our understanding of customers’ reactions to emotional AIs, and they offer valuable insights for the deployment of AIs in customer service. History: Deepa Mani, Senior Editor; Pallab Sanyal, Associate Editor. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1179. Collapse

Topics: artificial intelligence service quality customer service human AI collaboration social media

Methods: analysis of covariance experiment statistical hypothesis test chatbot theory development

Theories: information theory dual-system theory

Just Diverse Among Themselves: How Does Negative Performance Feedback Affect Boards’ Expertise vs. Ascriptive Diversity?

2023 | Organization Science | Citations: 0

Authors: Jung, HeeJung; Lee, Yonghoon G.; Park, Sun Hyun

Abstract: We investigate how negative performance feedback affects board diversity, which ... Expand

Abstract: We investigate how negative performance feedback affects board diversity, which is instrumental in shaping a firm’s strategic change. When a firm underperforms compared with its aspiration, its board is motivated to promptly address the underperformance. The board needs to not only help search for strategic alternatives but also quickly build consensus around its strategic reorientation. These two motivations lead the board to value two dimensions of diversity among its members differently. On the one hand, to understand the problem of underperformance and find a solution, the board is motivated to seek new expertise, avoiding redundancy in the pool of expertise already represented in the boardroom. This results in a higher level of diversity in director expertise. On the other hand, the urgent need to build consensus prompts the board to value trust and solidarity and to avoid potential conflict among directors. Because people perceive others with similar ascriptive backgrounds as trustworthy, changes in the board of an underperforming firm are likely to yield a lower level of diversity in its members’ ascriptive backgrounds. These changes in board are affected by the committee chairs of the board whose power and influence are significant in the boardroom. Analyses of the boards of 733 U.S. listed manufacturing firms show that when a firm underperforms compared with its aspirations, it increases the board expertise diversity, but decreases the board ascriptive diversity. When chairs on the board are gender or racial minorities, the negative association between underperformance and the board ascriptive diversity is weakened. Supplemental Material: The e-companion is available at https://doi.org/10.1287/orsc.2022.1595. Collapse

Topics: research and development organizational productivity accounting corporate governance database system

Methods: statistical hypothesis test theory development qualitative interview descriptive statistic ordinary least square