Institutional pressures and RegTech challenges for banking: The case of money laundering and terrorist financing in Lebanon

2023 | Journal of Information Technology | Citations: 0

Authors: Bakhos Douaihy, Houanyda; Rowe, Frantz

Abstract: As banks face heightened levels of regulatory challenges, many of them, especial ... Expand

Abstract: As banks face heightened levels of regulatory challenges, many of them, especially those in developing countries, are struggling to maintain their reputations. This paper addresses the following questions: How do commercial banks in developing countries like Lebanon respond to institutional pressures for compliance concerning anti-money laundering (AML) and counter-financing of terrorism (CFT)? How do Regulatory Technology (RegTech) solutions contribute to solving their compliance problems in this domain and why may the potential of RegTech be limited in the Lebanese context? To answer these questions, we conducted a field study among Lebanese commercial banks and their vendors. Based on thematic analysis, findings reveal the importance of technology for enhancing compliance of Lebanese banks with international regulations, especially US ones, thereby avoiding sanctions. Thus, the adoption of RegTech is mainly due to coercive pressures, whereas the choice of RegTech solutions is highly dependent on mimetic and normative forces, and happens later. Results also show that manual processes are insufficient for compliance due to the huge number of regulations and transactions. Hence, RegTech for AML/CFT is notably adopted for the efficient screening of clients and monitoring of their transactions. These solutions enhance decision-making processes for compliance teams, which become effective when the banks ensure an adequate interaction between employees and the new technologies. However, RegTech presents several additional challenges that have to be overcome for effective compliance such as finding the right vendors and ensuring data quality. Moreover, the geopolitical context in developing countries like Lebanon limits the potential of RegTech for AML/CFT. Collapse

Topics: decision making terrorist incident criminality IS discipline electronic finance

Methods: qualitative interview field study qualitative content analysis literature study theoretical contribution

Theories: institutional theory technology acceptance theory

A Signal Detection Theory Approach for Predicting Immunity to Pandemic Vaccine Fake News

2023 | HICSS | Citations: 0

Authors: Barajas, J.; John, R.

Abstract: Managing a contagious disease pandemic, such as , requires that the public unde ... Expand

Abstract: Managing a contagious disease pandemic, such as , requires that the public understand and cooperate with behavioral guidelines to reduce viral transmission. This research uses Signal Detection Theory (SDT) to explore how U.S. adults distinguish between true and false information related to COVID-19 vaccines. A total of 372 U.S. adults categorized 17 true and 17 false COVID-19 vaccine headlines. Item Response Theory analyses suggest that the ability to identify true information about the pandemic is a construct that can be reliably measured with our novel methodology. Signal Detection Theory analyses indicate high accuracy (AUC = 0.861), with no bias favoring either true or false responses. Overall, U.S. adults correctly classified 7 of 10 true and 8 of 10 false headlines. Multiple regression analyses on individual performance metrics reveal substantially lower accuracy among conservatives and those with lower scores on a measure of Actively Open-minded Thinking. Implications and limitations of these findings within the pandemic news context are discussed. Collapse

Topics: misinformation fake news pandemic social media covid 19

Methods: machine learning survey multiple linear regression survey design regression analysis method

Theories: signal detection theory

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

Great Divisions: The Evolution of Polarization During the Man-made Emergency of January 6, 2021

2023 | HICSS | Citations: 0

Authors: Bhatt, P.; Vemprala, N.; Valecha, R.; Hariharan, G.; Rao, H.

Abstract: Polarization, which refers to the formation of opposing groups based on peoples ... Expand

Abstract: Polarization, which refers to the formation of opposing groups based on peoples' beliefs and opinions, is a phenomenon that has existed for eons. However, in the recent past, social media has caused a quantum change in the dynamics of polarization since beliefs may change almost instantaneously on social media because of unfolding events. We investigate social media communication that has resulted in polarized opinions among individuals prior to, during, and after a crisis event; the January 6th US Capitol riots. Analyses of the dominant narratives on Twitter surrounding the incident reveal a high level of polarization throughout the unfolding of the event, with increased polarization possibly attributable to the onset of the crisis. We also observe the evolution of the phenomenon: as the event unfolds, polarization changes. We suggest that understanding the evolution of polarization is important for timely crisis resolution by crisis managers. We utilize three measures, spread, distinctness and regionalization, to examine polarization during a crisis. Based on these measures our findings indicate that social media discussions exhibit an increase in the negative sentiment during the crisis as compared to precrisis, but there is a rebound in terms of positive sentiments emerging in the post crisis period. Also, the results signal reduced diversity in discussion topics during the crisis as compared to pre and post-crisis. Collapse

Topics: social media Twitter terrorist incident artificial intelligence application programming interface

Methods: topic model longitudinal research qualitative content analysis longitudinal survey cluster analysis

A Framework for virtual training in a crisis context and a focus on the animation component: the gamemaster workshop

2023 | HICSS | Citations: 0

Authors: Evain, A.; Fertier, A.; Halse, S.; Kropczynski, J.; Benaben, F.; Panzoli, D.; Batard, R.

Abstract: Critical infrastructures, historical places, and sensitive buildings are vulner ... Expand

Abstract: Critical infrastructures, historical places, and sensitive buildings are vulnerable to crises, from natural to man-made disasters. Public institutions and practitioners have to train, before the occurrence of a major event, to be prepared to respond to the crisis. These sites are difficult to vacate just to perform exercises. To propose training adapted to the needs the trainer have to create an exercise dedicated to the aimed skills. Stakeholders responding to high-risk situations are asking for new ways to train and compensate for the weaknesses of existing training approaches. The research work presented in this paper concerns the design of immersive environments that can be used to create, implement and simulate crisis scenarios to improve collaborative training. Collapse

Topics: virtual reality terrorist incident decision support system open source usability

Methods: simulation survey case study

The Impact of Bribery Relationships on Firm Growth in Transition Economies

2023 | Organization Science | Citations: 0

Authors: Jung, Hyun Ju; Lee, Seung-Hyun

Abstract: This study explores how bribery affects firm growth by focusing on the asymmetri ... Expand

Abstract: This study explores how bribery affects firm growth by focusing on the asymmetric dependence of firms on government resources and services. We conceptualize bribery as relationships through which bribery requests require firms to frequently interact with rent-seeking government officials. Through bribery relationships, such officials extort firms beyond the exchange of bribe money for preferential treatment, depriving acquiescing firms of time and effort and thereby imposing hidden costs that could be otherwise used for firm growth. We find that bribery relationships damage firm growth. Firm status such as introducing new products or not affects how rent-seeking government officials check on firms and calculate their extortion schemes in bribery relationships; bribery relationships damage firm growth more significantly for firms without new products. The damage of bribery relationships to firm growth is also contingent on institutional environments. Under pervasive corruption, firms in bribery relationships may increase their acquiescence to the extortion of rent-seeking government officials. In countries with high-quality governance, however, firms can depend on sound regulations and rules of law and government officials experience high moral costs of corruption. Thus, the negative effect of the bribery relationship on firm growth will be strengthened under pervasive corruption and weakened under high-quality governance. Using Business Environment and Enterprise Performance Survey and World Governance Indicators data for 28 Eastern European countries from 2002–2014, we demonstrate the multifaceted features of the bribery relationship and its interaction with country-level institutional environments. Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2022.1575. Collapse

Topics: research and development database system communication service infrastructure missing data telephone

Methods: survey qualitative interview descriptive statistic statistical hypothesis test robustness check

Theories: theory of economic growth

To regulate or not to regulate: unravelling institutional tussles around the regulation of algorithmic control of digital platforms

2023 | Journal of Information Technology | Citations: 0

Authors: Kokshagina, Olga; Reinecke, Pauline C; Karanasios, Stan

Abstract: Regulating how digital platforms use algorithms to determine and control content ... Expand

Abstract: Regulating how digital platforms use algorithms to determine and control content displayed to their users is both a controversial topic and an important societal challenge. Existing research acknowledges institutional tussles around regulating how digital platforms use algorithms to determine and control content. However, we lack research showing how the development of regulation unfolds. We build on data from a longitudinal discourse analysis of 410 media articles and 483 policy and industry documents to study two cases of algorithmic control regulation in Australia. The first involves algorithmic control for content display, the second for content moderation. We develop a process model of institutional work towards regulation of algorithmic control. It captures the institutional tussles between governments, digital platforms and third parties as each expresses their perspective on legitimate forms of algorithmic control and shapes the process and outcome of regulation. Building on our model, we discuss the dynamics of regulation development in light of the constellation of actors and their power position in the process. We further consider the regulatory outcome and highlight future research questions that build on our findings. Collapse

Topics: digital platform terrorist incident Facebook innovation management database system

Methods: computational algorithm qualitative content analysis literature sample longitudinal research business process modeling

Putting Religious Bias in Context: How Offline and Online Contexts Shape Religious Bias in Online Prosocial Lending

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Sabzehzar, Amin; Burtch, Gordon; Hong, Yili; Raghu, T. S.

Abstract: Biases on online platforms pose a threat to social inclusion. We examine the inf ... Expand

Abstract: Biases on online platforms pose a threat to social inclusion. We examine the influence of a novel source of bias in online philanthropic lending, namely that associated with religious differences. We first propose religion distance as a probabilistic measure of differences between pairs of individuals residing in different countries. We then incorporate this measure into a gravity model of trade to explain variation in country-to-country lending volumes. We further propose a set of contextual moderators that characterize individuals’ offline (local) and online social contexts, which we argue combine to determine the influence of religion distance on lending activity. We empirically estimate our gravity model using data from Kiva.org, reflecting all lending actions that took place between 2006 and 2017. We demonstrate the negative and significant effect of religion distance on lending activity, over and above other established factors in the literature. Further, we demonstrate the moderating role of lenders’ offline social context (diversity, social hostilities, and governmental favoritism of religion) on the aforementioned relationship to online lending behavior. Finally, we offer empirical evidence of the parallel role of online contextual factors, namely those related to community features offered by the Kiva platform (lending teams), which appear to amplify the role of religious bias. In particular, we show that religious team membership is a double-edged sword that has both favorable and unfavorable consequences, increasing lending in general but skewing said lending toward religiously similar borrowers. Our findings speak to the important frictions associated with religious differences in individual philanthropy; they point to the role of governmental policy vis-à-vis religious tolerance as a determinant of citizens’ global philanthropic behavior, and they highlight design implications for online platforms with an eye toward managing religious bias. Collapse

Topics: electronic market online community crowdsourcing crowdfunding peer-to-peer model

Methods: robustness check descriptive statistic qualitative content analysis survey archival research

Theories: theory of economic growth

How do live-streaming platforms facilitate persuasion in political campaigns? Theory and empirical evidence from the perspective of affordance actualization

2023 | Information & Management | Citations: 0

Authors: Yu, Tian; Chen, Yan; Luo, Xin (Robert)

Abstract: Prior research is limited in how live-streaming platforms (LSPs) enable technolo ... Expand

Abstract: Prior research is limited in how live-streaming platforms (LSPs) enable technological features facilitating po­ litical persuasion and engagement. Through the theoretical lens of affordance and theory of persuasion and mindfulness, this study (1) identifies persuasion-related affordances on LSPs that afford users with sufficient ability and motivation to process persuasive messages in live streaming, and (2) discovers how the actualization of such affordances fosters political mindfulness and promotes political engagement. We validate the research model using survey data collected from 16 live-streaming campaign rallies for the 2020 presidential election. This study makes significant theoretical contributions to live streaming and e-politics. Collapse

Topics: mindfulness affordance user experience usability anonymity

Methods: survey partial least squares regression literature study theoretical contribution PLS tool

Theories: theory of affordance information systems theory media synchronicity theory

Ridesharing and Digital Resilience for Urban Anomalies: Evidence from the New York City Taxi Market

2023 | Information Systems Research | Citations: 0

Authors: Zhang, Yingjie; Li, Beibei; Qian, Sean

Abstract: Urban anomalies bring uncertainties to society, urban transportation systems, an ... Expand

Abstract: Urban anomalies bring uncertainties to society, urban transportation systems, and businesses. Some urban anomalies, such as no-notice and/or unpredictable terrorist attacks or other urban strikes, if not handled in timely ways may result in loss of life or property and pose tremendous risks to public safety overall. Previous studies have focused on developing emergency-management technology but without in-depth analysis exploring how technology-mediated digital systems perform in reality. Besides, the recent literature has demonstrated significant interest in analyzing and comparing the traditional on-demand service (i.e., taxies) and ridesharing platforms (e.g., Uber). The majority of prior studies have focused on their complementary roles in determining environmental conditions. Little is known, however, regarding how and why the two types of platforms perform in contexts of uncertainty (e.g., under emergency situations). This paper aims to bridge this literature gap. Specifically, we consider different types of unexpected urban anomalies (including terrorist attacks, car crashes, and subway shutdowns) and collect large-scale trip data on taxi and ridesharing services. Empirically, we employ a difference-in-differences econometric model to compare the platform-level performances (measured by the number of fulfilled trips) of a traditional taxi system and a ridesharing platform after urban anomaly shocks. We observe that the ridesharing platform significantly outperforms the traditional taxi platform in coping with the uncertainties brought about by unexpected anomalies. We conduct a set of robustness checks to verify our findings and propose multiple possibilities to explain them. We conclude, conservatively, that the technological effect and the technology-enabled supply elasticity of the digital platforms are the main factors determining the differences between the platforms during an urban anomaly. This work offers important insights into the design of platform strategies, especially for the stimulation of the labor supply and incentivization of the adoption and use of technology in urban transportation systems in response to anomalous urban upheavals. History: Wonseok Oh, Senior Editor; Tianshu Sun, Associate Editor. Funding: Y. Zhang acknowledges the funding support from the National Nature Science Foundation of China [Grant 72272003]. S. Qian acknowledges the support from the National Science Foundation Award [CMMI-1751448]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2023.1212. Collapse

Topics: ride sharing platform Uber terrorist incident Lyft emergency management

Methods: robustness check experimental group econometric modeling longitudinal research mixed method