Maintaining or Altering the Status Quo in the Nonmarket Arena: Theory and Evidence from Government Contract Disputes

2023 | Organization Science | Citations: 0

Authors: Abdurakhmonov, Mirzokhidjon; Hasija, Dinesh; Ridge, Jason W.; Hill, Aaron D.

Abstract: We develop a theory that considers important differences in competition in the p ... Expand

Abstract: We develop a theory that considers important differences in competition in the political arena based on whether firms are attempting to maintain or alter the status quo. Particularly, we argue that although investing resources and time to build relationships with politicians and government officials fosters trust, solidarity, and reciprocity, likely producing desired outcomes for both firms attempting to maintain the status quo and those trying to alter it, such relationships are more strongly positive for firms maintaining the status quo. As the effectiveness of relational strategies may differ based on firms’ political strategies and firm characteristics, we then theorize that the effects of a more relational approach on ”winning” these desired outcomes for firms seeking to maintain or alter the status quo will be moderated by (1) prior targeting in the political arena where the competition unfolds and (2) a firm’s social reputation. Specifically, we argue that knowledge and relationships from prior targeting in a political domain where competition unfolds, and a firm’s better social reputation will strengthen the effect of a more relational approach on securing desired outcomes for both firms seeking to maintain and alter the status quo. We expect the moderating effect for a firm’s targeting and social reputation will be stronger for firms seeking to maintain the status quo compared with firms seeking to alter the status quo. Our study contributes to corporate political activity literature and notably to the research on political markets by advancing a more nuanced but realistic understanding of interfirm rivalry for governmental outcomes. Collapse

Topics: resource allocation database system competitive advantage legal context anonymity

Methods: theory development statistical hypothesis test chi squared test cluster analysis Compustat

Theories: resource based view of the firm

Brand Crisis and Customer Relationship Management on Social Media: Evidence from a Natural Experiment from the Airline Industry

2023 | Information Systems Research | Citations: 0

Authors: Al Balawi, Ramah; Hu, Yuheng; Qiu, Liangfei

Abstract: In this study, we investigate the effect of a brand crisis on the customer relat ... Expand

Abstract: In this study, we investigate the effect of a brand crisis on the customer relationship management (CRM) efforts of brands on social media. Despite the opportunities social media offers to brands to connect and engage with customers, it is still unclear how a brand crisis can change a brand’s social CRM efforts. Social media platforms can amplify the negative consequences of a brand crisis. However, the unique and public nature of social media platforms can offer new means for brands to handle a brand crisis and publicly manage their customer relationships. Compared with traditional CRM, social media enables brands to communicate with their customers publicly, which can strengthen their relationships with customers and maintain higher levels of customer engagement. Leveraging a natural experiment setting, we investigate the impact of the United Airlines crisis on three dimensions of social CRM efforts: informativeness, timeliness, and attentiveness. Contrary to traditional CRM efforts and recommendations, we find that the brand crisis increases informativeness efforts but reduces timeliness and attentiveness efforts.History: Yong Tan, Senior Editor; Beibei Li, Associate Editor.Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1159. Collapse

Topics: social media Twitter customer service customer satisfaction customer relationship management

Methods: mediation analysis longitudinal research robustness check natural experiment experimental group

Impressionable or Immune? Examining the Influence of Marquee Sellers in B2B Secondary Market Platforms for IT Products

2023 | Information Systems Research | Citations: 0

Authors: Alhauli, Abdullah; Elmaghraby, Wedad J.; Gopal, Anandasivam

Abstract: Although digital platforms have become mainstream, there still remain some unans ... Expand

Abstract: Although digital platforms have become mainstream, there still remain some unanswered questions pertaining to managing platform ecosystems. One such unexplored question pertains to the effect of marquee sellers on the platform—marquee sellers arguably attract other sellers and buyers to the platform, thereby enhancing the platform’s value. In this paper, we study how adding a marquee seller to a business-to-business (B2B) secondary-market platform for IT products affects other sellers, in terms of the prices they obtain for comparable products. Using proprietary data on B2B secondary-market auctions obtained from a platform provider, we show that the entry of a marquee seller has a positive effect on the prices obtained by other sellers on the platform, reflecting a reference-price effect. We further show that this positive effect on final prices is moderated by the extent to which bidders are active on multiple seller sites on the same platform and the extent to which bidders participate in the marquee seller site. We explain these effects using theory in multihoming and involvement, in terms of how reference prices are set. Our work extends the platforms literature by considering the specific influence of a marquee seller on other sellers, thereby informing platform owners on the implications of the advice to add more marquee sellers to platforms. We also contribute to the literature on secondary markets for durable, used IT products, which are instrumental in reducing electronic waste and mitigating the environmental damage done by electronic products in landfills.History: Raghu Santanam, Senior Editor; Pallab Sanyal, Associate Editor.Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1137. Collapse

Topics: Apple iPhone business-to-business willingness to pay network effect mobile system

Methods: robustness check descriptive statistic statistical hypothesis test post-hoc analysis ordinary least square

Theories: involvement theory

When Reflection Hurts: The Effect of Cognitive Processing Types on Organizational Adaptation to Discontinuous Change

2023 | Organization Science | Citations: 1

Authors: Alves, Marlon Fernandes Rodrigues; Vastola, Vincenzo; Vasconcelos Ribeiro Galina, Simone; Zollo, Maurizio

Abstract: Technological breakthroughs, institutional disruptions, and natural disasters of ... Expand

Abstract: Technological breakthroughs, institutional disruptions, and natural disasters often alter the course of organizations and entire industries. Such discontinuous changes threaten organizations’ survival by affecting the value of the knowledge accumulated in routines and capabilities. Although it is widely acknowledged that managerial cognition is a critical antecedent of organizational responses to discontinuous change, the role of type 1 (intuitive) and type 2 (reflective) processing in the adaptation of shared patterns of behavior, that is, routines, remains understudied. Drawing on dual-process theory, we propose that particular features of type 1 processing render this approach superior to type 2 processing, especially in highly ambiguous environments in which information is limited and difficult to verify. We tested our hypotheses in a longitudinal experiment linking individual-level factors with organizational-level practices of routine adaptation. Experienced managers, paired in 80 groups, developed routines in a first round of a simulation game; in a second round, we then introduced a discontinuous change making previous routines obsolete in order to observe how they adapted. The data show that priming type 1 processing facilitates organizational adaptation more than type 2 processing by providing faster, more routinized, efficiently coordinated, and optimal responses. In addition, type 1 appears to be more functional in highly ambiguous environments, whereas type 1 and type 2 processes yield similar levels of performance under low levels of ambiguity. Overall, our study advances the understanding of the nondeliberative dimension of organizational adaptation to discontinuous change.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: This work was supported by Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (Finance Code 001).Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1517. Collapse

Topics: decision making strategic management innovation management problem solving task productivity

Methods: experiment longitudinal research parametric test ANOVA statistical hypothesis test

Theories: dual-system theory dynamic capabilities theory

The Effect of Consensus Algorithm on Ethereum Price and Volume

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Ampel, Benjamin

Abstract: Cryptocurrencies, such as Bitcoin and Ethereum, are digital currencies operatin ... Expand

Abstract: Cryptocurrencies, such as Bitcoin and Ethereum, are digital currencies operating on a peer-to-peer network. Cryptocurrencies rely on consensus algorithms for transaction validation and network security. Ethereum recently replaced its proof-of-work (PoW) consensus algorithm with a proof-of-stake (PoS) algorithm on September 15, 2022. This research aims to study the following research question: Does changing from PoW to PoS consensus increase price and transaction volume? To answer this question, we implemented synthetic control methods to compare the pre-and post-treatment trends of the price and volume of Ethereum against a synthetic counterfactual. The result of our analysis suggests that Ethereum shifting from PoW to PoS had a positive effect on its price and a non-significant negative effect on transaction volume. Price increasing relative to the synthetic counterfactual is promising for convincing other PoW blockchains that a switch to PoS may lead to increased investment opportunities while decreasing the environmental impact. Collapse

Topics: Ethereum cryptocurrency Bitcoin knowledge base decision making

Methods: computational algorithm experiment synthetic control method experimental group longitudinal research

The Consequences of Rating Inflation on Platforms: Evidence from a Quasi-Experiment

2023 | Information Systems Research | Citations: 0

Authors: Aziz, Arslan; Li, Hui; Telang, Rahul

Abstract: Informative online ratings enable digital platforms to reduce the search cost fo ... Expand

Abstract: Informative online ratings enable digital platforms to reduce the search cost for buyers to find good sellers. However, rating inflation, a phenomenon in which average rating increases and rating variance across listings decreases, threatens the informativeness of ratings. We empirically identify the consequences of rating inflation by conducting a quasi-experiment with a digital platform that exogenously changed its rating display rule in a treated neighborhood, which resulted in rating inflation. Using a differences-in-differences approach, we find that platforms benefit from one aspect of rating inflation: user purchases and seller sales increase because of the increased average rating. However, they also face negative consequences: rating inflation causes a decrease in user trial and a greater concentration of sales among popular restaurants. Overall, our results illustrate the potential consequences of rating inflation that platforms need to consider when designing and managing their rating system.History: Xiaoquan (Michael) Zhang, Senior Editor; Gordon Burtch, Associate Editor.Supplemental Material: The online appendices are available at https://doi.org/10.1287/isre.2022.1134. Collapse

Topics: digital platform mobile application word of mouth ease of use consumer behavior

Methods: experiment pilot experiment experimental group robustness check quasi experiment

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

Incentivizing Effort Allocation Through Resource Allocation: Evidence from Scientists’ Response to Changes in Funding Policy

2023 | Organization Science | Citations: 0

Authors: Blomfield, Michael; Vakili, Keyvan

Abstract: Prior research in management and economics has predominantly focused on how mana ... Expand

Abstract: Prior research in management and economics has predominantly focused on how managers or policymakers can shape workers’ allocation of effort using output-based or effort-based incentives. In many settings, however, managers may seek to influence workers’ effort choices through resource allocation—that is, changing the cost of securing resources for different projects or activities. In this paper, we develop a formal model to investigate how a worker changes the allocation of a fixed amount of effort across different projects in response to changes in the cost of securing resources for each project. Our model shows how cutting resources available to one project, under certain circumstances, can inadvertently reduce the share of effort allocated to other projects and vice versa. We use the insights from the model to explore the effectiveness of funding strategies designed to influence the research direction of academic scientists. We specifically examine how U.S. scientists working in stem cell research responded to a 2001 policy change that restricted access to federal funding for research in the human embryonic stem cell (hESC) area. In line with our model’s predictions, we find that cutting resources for hESC research inadvertently reduced U.S. scientists’ output in non-hESC areas of stem cell research—an effect that is strongest among the highest-ability scientists. Our findings highlight the complexities of incentivizing effort allocation using resource-based incentives. In particular, we show how altering resource-based incentives in one area can have unforeseen spillover effects on effort allocation in other areas. Funding: Financial support from the London Business School is gratefully acknowledged. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1565. Collapse

Topics: IT career human resource management individual characteristic

Methods: longitudinal research robustness check ordinary least square autocorrelation analysis experimental group

Theories: theory of economic development

Gender Differences in Responses to Competitive Organization? A Field Experiment on Differences Between STEM and Non-STEM Fields from an Internet-of-Things Platform

2023 | Organization Science | Citations: 0

Authors: Boudreau, Kevin J.; Kaushik, Nilam

Abstract: Prior research, primarily based on laboratory experiments of children and studen ... Expand

Abstract: Prior research, primarily based on laboratory experiments of children and students, suggests that women might be more averse to competition than are men; women might, instead, be more inclined toward collaboration. Were these findings to generalize to working-age men and women across the workforce, there could be profound implications for organizational design and personnel management. We report on a field experiment in which 97,678 adults from a wide range of fields of training and career stages were invited to join a product development platform. Individuals were randomly assigned to treatments framing the opportunity as either involving competitive or collaborative interactions with other participants. Among those outside of science, technology, engineering, and math (STEM) fields, we find differences in the willingness of men and women to participate under competition. Thus, patterns in non-STEM fields conform to the usual claims of gender differences. However, among those in STEM fields, we find no statistical gender differences. Results hold under a series of alternative specifications, controls, and stratified analyses of 17 narrowly defined STEM subfields. The results are consistent with sorting into fields on the basis of competitiveness, as suggested by prior research, as well as other explanations we discuss. Overall, heterogeneity among women and heterogeneity among men appear to be at least as important as population-wide gender differences.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: This work was supported by Ewing Marion Kauffman Foundation [Grant G00005624].Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1624. Collapse

Topics: new product development mobile system internet of things accounting electronic mail

Methods: experiment Wald test field experiment laboratory experiment theory development