THE DARK SIDE OF DIGITAL PLATFORMS: UNDERSTANDING SMALL AND MEDIUM ENTERPRISES' DEPENDENCE ON THIRD-PARTY PLATFORMS

2023 | European Conference On Information Systems | Citations: 0

Authors: Asadullah, Ahmad; Faik, Isam; Lim, Shi Ying

Abstract: The digital platform business model has evolved and become a dominant form of e ... Expand

Abstract: The digital platform business model has evolved and become a dominant form of economic interaction worldwide. Small and medium enterprises (SMEs) had to shift their business to platforms to survive in this new market. While existing studies show the positive side of SMEs' use of platforms, there has been little research on the dark side of their participation in the platform economy, particularly their high dependence on platforms. We conducted a qualitative study to examine the mechanisms of dependence and its repercussions on SMEs' performance. Our findings suggest that SMEs' dependence on platforms arises from high importance, low discretion, and limited substitutability. We also find that, beyond their dependence on single platforms, SMEs generally become dependent on an oligopolistic system of dominant platforms. This dependence heightens the power asymmetry between platforms and SMEs. We highlight major manifestations of this power asymmetry, including the platform's ability to restrict access to resources and to prioritize different stakeholders' interests in their ecosystem. Collapse

Topics: electronic commerce digital platform business-to-consumer website electronic business

Methods: qualitative interview field study computational algorithm personal interview theory development

Theories: resource dependency theory

The double side of flow in regret and product returns: Maximizers versus satisficers

2023 | International Journal of Information Management | Citations: 0

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

Abstract: While the positive aspects of the flow state have been widely researched, the ef ... Expand

Abstract: While the positive aspects of the flow state have been widely researched, the effects of being aware of this state and the negative consequences still need to be explored. The loss of awareness that flow state may bring can lead to the purchase of products that consumers afterward regret and want to return them. This research aims to understand flow consciousness’s effect on consumer post-purchase regret from a dual perspective (process and outcome regret). The relevance of these relationships is also examined by analyzing the differences between 2 groups: maximizers and satisficers consumers. Through a structural equation model based on covariances tested with EQS 6.4, the results show that flow consciousness generates process regret but not outcome regret. How­ ever, the differences found between the two groups are worth noting. The research sheds light on the effect of flow consciousness on regret and provides insight into the mechanism of product return through post-purchase regret. The theoretical and managerial implications for e-commerce retailers are discussed. Collapse

Topics: consumer behavior frequency of use electronic commerce logistics management

Methods: survey structural equation modeling statistical hypothesis test descriptive statistic Student's t-test

Caught in an Expectations Trap: Risks of Giving Securities Analysts What They Expect

2023 | Organization Science | Citations: 0

Authors: Bascle, Guilhem; Jung, Jiwook

Abstract: Although recent research shows that there is mounting pressure on firms to achie ... Expand

Abstract: Although recent research shows that there is mounting pressure on firms to achieve earnings expectations of securities analysts, firms are far from being passive conformers; many firms proactively manage such pressure, particularly with earnings management tools. Yet why does the pressure to meet analyst expectations persist despite firms’ efforts to reduce it? To address the question, we develop an intertemporal model of the mutually reinforcing relationships between analyst expectations and firms’ strategic response, combining the behavioral theory of the firm and the concept of expectations trap. We argue that firms’ efforts to meet analyst expectations strengthen their salience as a predominant performance benchmark and, in doing so, ironically put them under greater pressure from analysts in three sequentially related steps—escalating future earnings expectations, imposing more severe penalties for failure to meet heightened expectations, and generating compensatory action for missed expectations. Our analysis, using data on more than 700 of the largest listed U.S. firms between 1986 and 2015, supports our arguments. Our study expands the scope of the behavioral theory of the firm, by demonstrating the increasing importance of performance feedback based on analyst expectations. Our study also contributes to the research on earnings pressure, by illuminating why the pressure persists despite firms’ efforts to reduce or evade it, and finally to the literature on strategic management of external expectations, by elaborating its unintended, long-term consequences. Supplemental Material: The e-companion is available at https://doi.org/10.1287/orsc.2021.1569. Collapse

Topics: strategic management organizational productivity Generally Accepted Accounting Principles IS downsizing accounting

Methods: longitudinal research statistical hypothesis test Compustat descriptive statistic robustness check

Theories: behavioral theory of the firm institutional theory

All External Reference Prices Are Not the Same: How Magnitude, Source, and Fairness Shape Payment for Digital Goods

2023 | Information Systems Research | Citations: 0

Authors: Bassellier, Geneviève; Ramaprasad, Jui

Abstract: External reference prices (ERPs) are recognized to influence consumers’ payment ... Expand

Abstract: External reference prices (ERPs) are recognized to influence consumers’ payment for physical goods. We examine the role of ERPs in a digital goods context, emphasizing the importance of disentangling the effects of two components of ERPs: the magnitude and the source. We first examine the impact of the price magnitude and then investigate how the impact of ERP magnitude is moderated by its source―the specific context in which the reference price is set—and by its perceived fairness. Using a laboratory experiment with 471 participants, we first establish that as an ERP increases, payment for digital songs also increases. Furthermore, the source of the ERP motivates payment differently. Indeed, consumers’ willingness to pay is more strongly influenced by a price recommended by the site than by information on the price paid by others. Last, we show that the perceived fairness of the ERP matters. Results indicate that when the ERP is perceived to be high, the marginal effect of an increase in ERP on payment is smaller than when it is perceived to be fair. We contribute to the understanding of the effect of ERPs in digital context, where the source of an ERP can be varied, and perception of fairness can be heterogenous across consumers. This has implications for the design of digital platforms seeking to sell digital goods using a flexible pricing scheme. History: Anandasivam Gopal, Senior Editor; Sunil Wattal, Associate Editor. Funding: This work was supported by the Social Science and Humanities Research Council of Canada [Insight Development Grant 430-2017-01055]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2023.1206. Collapse

Topics: enterprise resource planning digital good website price management digital platform

Methods: experiment Student's t-test survey regression analysis method laboratory experiment

Theories: behavioral economics

How social media live streams affect online buyers: A uses and gratifications perspective

2023 | International Journal of Information Management | Citations: 2

Authors: Bawack, Ransome Epie; Bonhoure, Emilie; Kamdjoug, Jean-Robert Kala; Giannakis, Mihalis

Abstract: Social media live streams (SMLSs) are becoming mainstream e-commerce platforms, ... Expand

Abstract: Social media live streams (SMLSs) are becoming mainstream e-commerce platforms, especially for direct selling, offering online retailers (e-tailers) immense consumer interaction and engagement levels. Despite their growing prevalence, e-tailers face difficulties capitalising on this platform to enhance retail operations. This paper ex­ plores how SMLSs affect consumers’ purchase intentions by exploring their motivations for participating in ecommerce SMLSs. To this end, we used the uses and gratifications (U&G) theory to explain how using SMLSs to satisfy consumers’ needs could lead to high or low purchase intentions. It was done by collecting cross-sectional data from 795 consumers who have participated in e-commerce SMLSs. The data were analysed using partial least squares-structural equation modelling (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA). Our findings revealed that people use SMLSs to satisfy their need for value, social identification, and the me­ dium’s attributes. Based on these findings, we show six configurations that lead to high or low purchase in­ tentions and make corresponding theoretical propositions. Thus, our study contributes to the research and practice of using SMLSs for online shopping. Collapse

Topics: electronic commerce price management social media social network information exchange

Methods: survey partial least squares path modeling structural equation modeling partial least squares regression cross sectional research

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

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

UNDERSTANDING USER’S TRUST FORMATION ON MULTI-SIDED E-COMMERCE PLATFORMS

2023 | European Conference On Information Systems | Citations: 0

Authors: Benz, Carina; Oberländer, Rebekka; Riefle, Lara

Abstract: With the ever-growing popularity of online shopping, platform environments prov ... Expand

Abstract: With the ever-growing popularity of online shopping, platform environments providing access to products by multiple sellers increasingly attract users. To reduce information asymmetry and enhance user trust, platform actors provide signals such as star reviews to demonstrate their trustworthiness. This work investigates the influence of trust signals from different sources (on the platform itself vs. on external third-party review sites) and for different targets (platform provider vs. seller) on users' trust formation in multi-sided e-commerce platforms. We conduct a choice-based conjoint analysis based on data from 81 participants. Our results show that users weigh external signals stronger than internal ones when building trust. Also, trust signals for sellers have a higher impact on users' trust than platform provider signals. Signal discrepancies between internal and external reviews are especially harmful to the platform provider. These insights extend prior knowledge on trust formation and its impacting factors on e-commerce platforms. Collapse

Topics: online review electronic commerce digital platform internet technology website

Methods: conjoint analysis experiment survey survey design factorial experiment

Theories: signaling theory

Designing a conversational AI agent: Framework combining customer experience management, personalization, and AI in service techniques

2023 | HICSS | Citations: 0

Authors: Blümel, J.; Jha, G.

Abstract: Conversational AI agents are fundamentally changing how firms are delivering se ... Expand

Abstract: Conversational AI agents are fundamentally changing how firms are delivering service to their customers. The rapid advancement of technology and ready tools means that deploying a conversational AI agent has become far simpler than ever imagined. However, customers remain unsatisfied with their experience and firms are unable to demonstrate value of conversational AI agents. Drawing on the theoretical notions of customer experience (CX) management, personalization, and AI in service, we develop a framework to design conversational AI agents. We propose a six-stage iterative design for conversational AI agents that begins with sensing customer intent, adapting to journey context, assigning tone to the conversation, delegating to humans, orchestrating processes to service requests and training of AI agents to adaptively improve and loopback into prior design stages. Additionally, we recognize that firms need to holistically qualify and allocate service requests to such conversational AI agents based on the firm's purpose and CX strategy. Collapse

Topics: artificial intelligence usability personalization conversational agent Amazon Alexa

Methods: chatbot natural language processing literature study

Artificial Intelligence as a Service: Trade-Offs Impacting Service Design and Selection

2023 | International Conference on Information Systems | Citations: 0

Authors: Brecker, Kathrin; Lins, Sebastian; Trenz, Manuel; Sunyaev, Ali

Abstract: AI as a Service (AIaaS) is a promising path to leverage AI capabilities from th ... Expand

Abstract: AI as a Service (AIaaS) is a promising path to leverage AI capabilities from the cloud. However, there is no one-size-fits-all service, but heterogenous service options since interdependent AIaaS characteristics require trade-offs. We lack knowledge on these tradeoffs and how they result from conflicting characteristics. Therefore, we interviewed 39 AIaaS providers, customers, and consultants to provide rich descriptions of interdependent characteristics and uncover resulting trade-offs and their consequences. This study contributes to a better understanding of the inner functioning and interplay of AIaaS characteristics and discusses how this complex nature of service offerings impacts providers' design and customers' selection decisions. Collapse

Topics: artificial intelligence cloud computing ease of use data protection economies of scale

Methods: qualitative interview design artifact constant comparative analysis qualitative coding triangulation

Theories: SERVQUAL core competency theory