Showing papers in "Information Systems Research in 2008"

Examining the Relationship Between Reviews and Sales: The Role of Reviewer Identity Disclosure in Electronic Markets

Abstract: Consumer-generated product reviews have proliferated online, driven by the notion that consumers' decision to purchase or not purchase a product is based on the positive or negative information about that product they obtain from fellow consumers. Using research on information processing as a foundation, we suggest that in the context of an online community, reviewer disclosure of identity-descriptive information is used by consumers to supplement or replace product information when making purchase decisions and evaluating the helpfulness of online reviews. Using a unique data set based on both chronologically compiled ratings as well as reviewer characteristics for a given set of products and geographical location-based purchasing behavior from Amazon, we provide evidence that community norms are an antecedent to reviewer disclosure of identity-descriptive information. Online community members rate reviews containing identity-descriptive information more positively, and the prevalence of reviewer disclosure of identity information is associated with increases in subsequent online product sales. In addition, we show that shared geographical location increases the relationship between disclosure and product sales, thus highlighting the important role of geography in electronic commerce. Taken together, our results suggest that identity-relevant information about reviewers shapes community members' judgment of products and reviews. Implications for research on the relationship between online word-of-mouth WOM and sales, peer recognition and reputation systems, and conformity to online community norms are discussed.

The Consequences of Technostress for End Users in Organizations: Conceptual Development and Empirical Validation

Abstract: The research reported in this paper studies the phenomenon of technostress, that is, stress experienced by end users of Information and Communication Technologies (ICTs), and examines its influence on their job satisfaction, commitment to the organization, and intention to stay. Drawing from the Transaction-Based Model of stress and prior research on the effects of ICTs on end users, we first conceptually build a nomological net for technostress to understand the influence of technostress on three variables relating to end users of ICTs: job satisfaction, and organizational and continuance commitment. Because there are no prior instruments to measure constructs related to technostress, we develop and empirically validate two second order constructs: technostress creators (i.e., factors that create stress from the use of ICTs) and technostress inhibitors (i.e., organizational mechanisms that reduce stress from the use of ICTs). We test our conceptual model using data from the responses of 608 end users of ...

Self-Selection and Information Role of Online Product Reviews

Abstract: Online product reviews may be subject to self-selection biases that impact consumer purchase behavior, online ratings' time series, and consumer surplus. This occurs if early buyers hold different preferences than do later consumers about the quality of a given product. Readers of early product reviews may not successfully correct for these preference differences when interpreting ratings and making purchases. In this study, we develop a model that examines how idiosyncratic preferences of early buyers can affect long-term consumer purchase behavior as well as the social welfare created by review systems. Our model provides an explanation for the structure of product ratings over time, which we empirically test using online book reviews posted on Amazon.com. Our analysis suggests that firms could benefit from altering their marketing strategies such as pricing, advertising, or product design to encourage consumers likely to yield positive reports to self-select into the market early and generate positive ...

Research Note---How Does Personality Matter? Relating the Five-Factor Model to Technology Acceptance and Use

Abstract: The five-factor model (FFM) of personality has been used to great effect in management and psychology research to predict attitudes, cognitions, and behaviors, but has largely been ignored in the IS field. We demonstrate the potential utility of incorporating this model into IS research by using the FFM personality factors in the context of technology acceptance. We propose a dispositional perspective to understanding user attitudes and beliefs, and examine the effect of user personality---captured using the FFM's big five factors---on both the perceived usefulness of and subjective norms toward the acceptance and use of technology. Using logged usage data from 180 new users of a collaborative technology, we found general support for our hypotheses that the FFM personality dimensions can be useful predictors of users' attitudes and beliefs. We also found strong support for the relationships between intention to use and system use.

Social Capital and Knowledge Integration in Digitally Enabled Teams

Abstract: To understand the impact of social capital on knowledge integration and performance within digitally enabled teams, we studied 46 teams who had a history and a future working together. All three dimensions of their social capital (structural, relational, and cognitive) were measured prior to the team performing two tasks in a controlled setting, one face-to-face and the other through a lean digital network. Structural and cognitive capital were more important to knowledge integration when teams communicated through lean digital networks than when they communicated face-to-face; relational capital directly impacted knowledge integration equally, regardless of the communication media used by the team. Knowledge integration, in turn, impacted team decision quality, suggesting that social capital influences team performance in part by increasing a team’s ability to integrate knowledge. These results suggest that team history may be necessary but not sufficient for teams to overcome the problems with the use of lean digital networks as a communication environment. However, team history may present a window of opportunity for social capital to develop, which in turn allows teams to perform just as well as in either communication environment.

The Effects of the Social Structure of Digital Networks on Viral Marketing Performance

Abstract: Viral marketing is a form of peer-to-peer communication in which individuals are encouraged to pass on promotional messages within their social networks. Conventional wisdom holds that the viral marketing process is both random and unmanageable. In this paper, we deconstruct the process and investigate the formation of the activated digital network as distinct from the underlying social network. We then consider the impact of the social structure of digital networks (random, scale free, and small world) and of the transmission behavior of individuals on campaign performance. Specifically, we identify alternative social network models to understand the mediating effects of the social structures of these models on viral marketing campaigns. Next, we analyse an actual viral marketing campaign and use the empirical data to develop and validate a computer simulation model for viral marketing. Finally, we conduct a number of simulation experiments to predict the spread of a viral message within different types of social network structures under different assumptions and scenarios. Our findings confirm that the social structure of digital networks play a critical role in the spread of a viral message. Managers seeking to optimize campaign performance should give consideration to these findings before designing and implementing viral marketing campaigns. We also demonstrate how a simulation model is used to quantify the impact of campaign management inputs and how these learnings can support managerial decision making.

Addressing the What and How of Online Services: Positioning Supporting-Services Functionality and Service Quality for Business-to-Consumer Success

Abstract: With the continued growth of business-to-consumer (B2C) e-business, online vendors are providing an increasing array of services that support and enhance their core products or services. For example, Amazon.com does not just sell books; it also enhances that core product with automated product recommendations, “wish list” tracking, order status updates, customer reviews, and many other valuable supporting services. These supporting services are made possible exclusively through the design and deployment of information technology (IT) to provide website supporting services functionality (SSF). In this paper, we define and develop the concept of B2C SSF and investigate how IT can support core products or services. We theorize the role that SSF plays in an environment where individuals who visit B2C websites are not only customers but also technology users. Given the unique online environment that amalgamates vendor services with information systems (IS), our model integrates theories from both services marketing and technology acceptance to help explain the behavior of these customers/users. In doing so, we investigate the role of the extensively researched concept of service quality in relation to SSF. Although service quality provides guidance for how supporting services should be provided (e.g., responsively and reliably), it does not address what those services are (e.g., product recommendations). SSF addresses this deficiency, thus providing both theoretical and practical benefits through a focus on IT design and deployment. The results of a field study support that SSF is an important predictor of customer beliefs and behavior, beyond that predicted by service quality alone. SSF is an important concept to consider---theoretically and practically---in IT-mediated B2C service.

Emergence of New Project Teams from Open Source Software Developer Networks: Impact of Prior Collaboration Ties

Abstract: Recent years have witnessed a surge in self-organizing voluntary teams collaborating online to produce goods and services. Motivated by this phenomenon, this research investigates how these teams are formed and how individuals make decisions about which teams to join in the context of open source software development (OSSD). The focus of this paper is to explore how the collaborative network affects developers' choice of newly initiated OSS projects to participate in. More specifically, by analyzing software project data from real-world OSSD projects, we empirically test the impact of past collaborative ties with and perceived status of project members in the network on the self-assembly of OSSD teams. Overall, we find that a developer is more likely to join a project when he has strong collaborative ties with its initiator. We also find that perceived status of the noninitiator members of a project influences its probability of attracting developers. We discuss the implications of our results with respec...

Predictors of Formal Control Usage in IT Outsourcing Partnerships

Abstract: Client control over the vendor has been identified as a critical factor in successfully managing information technology outsourcing relationships. Though prior studies have suggested that “how much” control is exercised has significant ramifications for individuals and firms, relatively few studies have operationalized and studied this important concept. In this study, we define the amount of formal control as the variety of mechanisms used by a client to exercise control over a vendor and the extent to which the mechanisms are used. We use literature on transaction cost economics and organizational control to build a model of the antecedents of the amount of formal control. The study uses data from 138 client-vendor matched pairs working in eight large, long-term, ongoing outsourcing arrangements to test specific hypotheses. The results suggest that clients who have technical or relationship management knowledge, or have high levels of trust in their vendors, use formal control mechanisms to a lesser extent. On the other hand, task uncertainty was found to be positively associated with the amount of formal control, and the degree of core competency involved in the outsourced activity was not found to be related to the amount of formal control. These results are discussed, and implications for research and practice are drawn.

Research Note A Model of Conflict, Leadership, and Performance in Virtual Teams

Abstract: Organizations in many different industries employ virtual teams in a variety of contexts, including research and development, customer support, software development, and product design. Many virtual teams are geographically and culturally dispersed in order to facilitate around-the-clock work and to allow the most qualified individuals to be assigned to a project team. As such dispersion increases, virtual teams tend to experience greater and more diverse conflict compared to co-located teams. Since the dynamics of virtual team leadership are not yet well understood, research that examines how team leaders alleviate threats to team cohesion and provide strategies for conflict resolution makes significant contributions to the literature. Our study uses a survey-based methodology to examine the perceptions of 159 virtual team members employed by a large U.S. telecommunications corporation and five Korean firms involved in construction, finance, business consulting, sales, and distribution. The study integra...

Using Self-Regulatory Learning to Enhance E-Learning-Based Information Technology Training

Abstract: Technology-mediated learning methods are widely used by organizations and educational institutions to deliver information technology training. One form of technology-mediated learning, e-learning, in which the platform is the tutor, is quickly becoming the cost-effective solution of choice for many corporations. Unfortunately, the learning outcomes have been very disappointing. E-learning training makes an implicit assumption that learners can apply a high level of self-directed learning to assimilate the training content. In contrast, based on perspectives from social cognitive theory, we propose that instructional strategies need to persuade learners to follow self-regulated learning strategies. We test our ideas with participants who were trained through e-learning to design a website. Our findings indicate that participants who were induced to follow self-regulated learning strategies scored significantly higher on learning outcomes than those who were not persuaded to do so. We discuss our findings, and suggest that the interaction among information technology features, instructional strategies, and psychological learning processes offers a fruitful avenue for future information systems training research.

Editorial Overview—The Interplay Between Digital and Social Networks

Abstract: Social networks constructed on digital platforms are becoming increasingly pervasive in all aspects of individual and organizational life. This special issue of Information Systems Research includes 10 papers that focus on the interplay between digital and social networks. The interplay draws attention to the fact that digital interaction among individuals and organizations is almost always embedded in, influenced by, and in turn influences a social network. The papers in this special issue collectively shed light on the technical, behavioral, and economic challenges and implications of such networks and contribute to our understanding of how the power of such networks can be harnessed.

The Impact of Information Diffusion on Bidding Behavior in Secret Reserve Price Auctions

Abstract: The interactive nature of the Internet promotes collaborative business models (e.g., auctions) and facilitates information-sharing via social networks. In Internet auctions, an important design option for sellers is the setting of a secret reserve price that has to be met by a buyer's bid for a successful purchase. Bidders have strong incentives to learn more about the secret reserve price in these auctions, thereby relying on their own network of friends or digital networks of users with similar interests and information needs. Information-sharing and flow in digital networks, both person-to-person and via communities, can change bidding behavior and thus can have important implications for buyers and sellers in secret reserve price auctions. This paper uses a multiparadigm approach to analyze the impact of information diffusion in social networks on bidding behavior in secret reserve price auctions. We first develop an analytical model for the effect of shared information on individual bidding behavior ...

The Role of Feedback in Managing the Internet-Based Volunteer Work Force

Abstract: This paper explores a new phenomenon at the intersection of digital networks and organizations—the Internet-based volunteer work force—people who use Internet applications to pursue a personal interest through volunteering contributions of time and talent that may create value for organizations and their customers or members. This work force is not centrally organized, managed, or measured. It is an emergent phenomenon resulting from discretionary small actions taken by large numbers of people, enabled by technology and human initiative. This paper proposes a general framework for understanding the phenomenon and offers an empirical investigation of one component of it—the role of feedback in producing and sustaining high-quality contributions from this work force. In a comparative study of Internet-based voluntary technical support groups for software problems, we found that in groups who implement systematic quality feedback systems (compared to those that do not), question askers return over a longer d...

Casting the Net: A Multimodal Network Perspective on User-System Interactions

Abstract: Information systems (IS) researchers have typically examined the user-system relationship as an isolated dyad between a single, independent user and an individual, freestanding information system. We argue that this conceptualization does not adequately represent most organizations today, in which multiple users interact with multiple information systems within a group. Relying heavily on the theory and methods behind social network analysis, we introduce the concept of multimodal networks to assess both users and information systems as equivalent nodes in a single social network. This perspective allows us to examine the influence of information systems on organizational outcomes as a function of all of the user-system and interpersonal interactions in a group. We explore two different possible mechanisms for this influence: (1) direct user-system interactions by aggregating the strength of all the dyadic user-system interactions in a group, and (2) indirect user-system interactions by assessing the cent...

Research Note---A Value-at-Risk Approach to Information Security Investment

Abstract: Information security investment has been getting increasing attention in recent years. Various methods have been proposed to determine the effective level of security investment. However, traditional expected value methods (such as annual loss expectancy) cannot fully characterize the information security risk confronted by organizations, considering some extremal yet perhaps relatively rare cases in which a security failure may be critical and cause high losses. In this research note we introduce the concept of value-at-risk to measure the risk of daily losses an organization faces due to security exploits and use extreme value analysis to quantitatively estimate the value at risk. We collect a set of internal daily activity data from a large financial institution in the northeast United States and then simulate its daily losses with information based on data snapshots and interviews with security managers at the institution. We illustrate our methods using these simulated daily losses. With this approach, decision makers can make a proper investment choice based on their own risk preference instead of pursuing a solution that minimizes only the expected cost.

Research Note---On Vendor Preferences for Contract Types in Offshore Software Projects: The Case of Fixed Price vs. Time and Materials Contracts

Abstract: Prior research has indicated that, on average, offshore vendors have higher profits associated with time and materials (T&M) contracts than fixed price (FP) contracts. This research raises two questions. First, Is the relative importance of various profit drivers different across two contractual regimes? Second, Does it follow that vendors unconditionally prefer T&M contracts for all projects? We address these questions by using data on 93 offshore projects completed by a leading Indian vendor. We use an endogenous switching regression framework and the program evaluation methodology to show that profit equations are distinctly different for the two contractual regimes. Using these two profit equations, we also identify contingencies under which the vendor prefers an FP contract to a T&M contract. We hypothesize that the vendor's ability leverage information asymmetry about capabilities and experiences translates into the vendor preferring FP contract to secure larger information rents. Our results support this hypothesis and suggest that the vendor would prefer the FP contract for larger and longer projects with larger teams. However, vendors would prefer a T&M contract when the risk of employee attrition from the project team is high. In addition, we discuss managerial implications of these results in the paper.

From Peer Production to Productization: A Study of Socially Enabled Business Exchanges in Open Source Service Networks

Abstract: Peer production phenomena such as open source software (OSS) have been posited as a viable alternative to traditional production models. However, community-based development often falls short of creating software “products” in the sense that consumers understand. Our research identifies an emerging business network archetype in the OSS sector, the open source service network (OSSN), which seeks to address the “productization” challenge. To do so, OSSNs must overcome the problems associated with exchanging resources between firms. We demonstrate that OSSNs overcome exchange problems by primarily relying on social, rather than legal, mechanisms; similar to the OSS communities from which they emerged. This is made possible because OSSNs use IT infrastructures that provide high visibility for primary value-creating activities. The research utilizes a multimethod theory-building approach, deriving a model from extant research, refining the model through qualitative case study analysis, and further refining the...

Let the Pirates Patch? An Economic Analysis of Software Security Patch Restrictions

Abstract: We study the question of whether a software vendor should allow users of unlicensed (pirated) copies of a software product to apply security patches. We present a joint model of network software security and software piracy and contrast two policies that a software vendor can enforce: (i) restriction of security patches only to legitimate users or (ii) provision of access to security patches to all users whether their copies are licensed or not. We find that when the software security risk is high and the piracy enforcement level is low, or when tendency for piracy in the consumer population is high, it is optimal for the vendor to restrict unlicensed users from applying security patches. When piracy tendency in the consumer population is low, applying software security patch restrictions is optimal for the vendor only when the piracy enforcement level is high. If patching costs are sufficiently low, however, an unrestricted patch release policy maximizes vendor profits. We also show that the vendor can use security patch restrictions as a substitute to investment in software security, and this effect can significantly reduce welfare. Furthermore, in certain cases, increased piracy enforcement levels can actually hurt vendor profits. We also show that governments can increase social surplus and intellectual property protection simultaneously by increasing piracy enforcement and utilizing the strategic interaction of piracy patch restrictions and network security. Finally, we demonstrate that, although unrestricted patching can maximize welfare when the piracy enforcement level is low, contrary to what one might expect, when the piracy enforcement level is high, restricting security patches only to licensed users can be socially optimal.

Research Note—Towards Dynamic Visualization for Understanding Evolution of Digital Communication Networks

Abstract: The capabilities offered by digital communication are leading to the evolution of new network structures that are grounded in communication patterns. As these structures are significant for organizations, much research has been devoted to understanding network dynamics in ongoing processes of electronic communication. A valuable method for this objective is Social Network Analysis. However, its current focus on quantifying and interpreting aggregated static relationship structures suffers from some limitations for the domain of analyzing online communication with high volatility and massive exchange of timed messages. To overcome these limitations, this paper presents a method for event-based dynamic network visualization and analysis together with its exploratory social network intelligence software Commetrix. Based on longitudinal data of corporate email communication, the paper demonstrates how exploration of animated graphs combined with measuring temporal network changes identifies measurement artifa...

Research Note---Awareness Displays and Social Motivation for Coordinating Communication

Abstract: Researchers and designers have been building awareness displays to improve the coordination of communication between distributed co-workers since the early 1990s. Awareness displays are technology designed to provide contextual information about the activities of group members. Most researchers have assumed that these displays improve the coordination of communication regardless of the relationship between the communicating parties. This article examines the conditions under which awareness displays improve coordination and the types of designs that most effectively support communication timing without overwhelming people with irrelevant information. Results from a pair of laboratory experiments indicate that awareness displays containing information about a remote collaborator's workload lead to communication attempts that are less disruptive, but only when the interrupter has incentives to be concerned about the collaborator's welfare. High-information awareness displays harmed interrupters' task performance, while abstract displays did not. We conclude that a display with an abstract representation of a collaborator's workload is optimal; it leads to better timing of interruptions without overwhelming the person viewing the display.

Marketspace or Marketplace? Online Information Search and Channel Outcomes in Auto Retailing

Abstract: The growth of the Internet has spawned an increasing number of online information sources (OISs). The effect of OISs on consumer information search processes has been particularly striking in sectors such as auto retailing, where the typical consumer has conventionally been confronted with an unpleasant and inefficient purchase process. However, the relationships between the information found in the online “marketspace,” consumer search in the offline “marketplace,” and other aspects of the multichannel shopping process are not well understood. This study examines the differential impact of price and product information found in the marketspace, relating consumers' information needs and information retrieval from OISs to three shopping-related outcomes---purchase based on online infomediary referral (i.e., referred purchase), intensity of search in the marketplace, and online search satisfaction. We draw on a large data set of more than 16,000 new vehicle purchasers who reported using the Web for search related to their new vehicle purchase. We find that OISs offer different levels of price and product information and consumers are differentiated in their ability to retrieve this information. Further, the retrieval of price versus product information online has important implications for whether consumers consummate their online search through referred purchase or extend their search into the physical marketplace. Our results suggest different business models for infomediaries providing price and product information and underscore the need for designing information provisioning systems of OISs to facilitate transition between the marketspace and the marketplace.

Consumer surplus in online auctions

Abstract: Despite the growing research interest in Internet auctions, particularly those on eBay, little is known about quantifiable consumer surplus levels in such mechanisms. Using an ongoing novel field experiment that involves real bidders participating in real auctions, and voting with real dollars, we collect and examine a unique data set to estimate consumer surplus in eBay auctions. The estimation procedure relies mainly on knowing the highest bid, which is not disclosed by eBay but is available to us from our experiment. At the outset we assume a private value second-price sealed-bid auction setting, as well as a lack of alternative buying options within or outside eBay. Our analysis, based on a sample of 4,514 eBay auctions, indicates that consumers extract a median surplus of at least $4 per eBay auction. This estimate is unbiased under the above assumptions; otherwise it is a lower bound. The surplus distribution is highly skewed given the diverse nature of the data. We find that eBay's auctions generat...

CONQUER: A Methodology for Context-Aware Query Processing on the World Wide Web

Abstract: A major impediment to accurate information retrieval from the World Wide Web is the inability of search engines to incorporate semantics in the search process. This research presents a methodology, CONQUER (CONtext-aware QUERy processing), that enhances the semantic content of Web queries using two complementary knowledge sources: lexicons and ontologies. The methodology constructs a semantic net using the original query as a seed, and refines the net with terms from the two knowledge sources. The enhanced query, represented by the refined semantic net, can be executed by search engines. This paper describes the methodology and its implementation in a prototype. An empirical evaluation shows that queries suggested by the prototype produce more relevant results than those obtained by the original queries. The research, thus, provides a successful demonstration of the use of existing knowledge sources to enhance the semantic content of Web queries. The paper concludes by identifying potential uses of such enhancements of search technology in organizational contexts.

Examining the Relationship Between Reviews and Sales

Abstract: Consumer-generated product reviews have proliferated online, driven by the notion that consumers' decision to purchase or not purchase a product is based on the positive or negative information abo...

A Comparison of Pair Versus Solo Programming Under Different Objectives: An Analytical Approach

Abstract: This study compares the performances of pair development (an approach in which a pair of developers jointly work on the same piece of code), solo development, and mixed development under two separate objectives: effort minimization and time minimization. To this end, we develop analytical models to optimize module-developer assignments in each of these approaches. These models are shown to be strongly NP-hard and solved using a genetic algorithm. The solo and pair development approaches are compared for a variety of problem instances to highlight project characteristics that favor one of the two practices. We also propose a simple criterion that can reliably recommend the appropriate approach for a given problem instance. Typically, for efficient knowledge sharing between developers or for highly connected systems, the pair programming approach is preferable. Also, the pair approach is better at leveraging expertise by pairing experts with less skilled partners. Solo programming is usually desirable if the system is large or the effort needed either to form a pair or to code efficiently in pairs is high. Solo programming is also appropriate for projects with a tight deadline, whereas the reverse is true for projects with a lenient deadline. The mixed approach (i.e., an approach where both the solo and pair practices are used in the same project) is only indicated when the system consists of groups of modules that are sufficiently different from one another.

Capacity Provision Networks: Foundations of Markets for Sharable Resources in Distributed Computational Economies

Abstract: With the rapid growth of rich-media content over the Internet, content and service providers (SP) are increasingly facing the problem of managing their service resources cost-effectively while ensuring a high quality of service (QoS) delivery at the same time. In this research we conceptualize and model an Internet-based storage provisioning network for rich-media content delivery. This is modeled as a capacity provision network (CPN) where participants possess service infrastructures and leverage their topographies to effectively serve specific customer segments. A CPN is a network of SPs coordinated through an allocation hub. We first develop the notion of discounted QoS capabilities of storage resources. We then investigate the stability of the discount factors over time and the network topography using a test-bed on the Internet through a longitudinal empirical study. Finally, we develop a market maker mechanism for optimal multilateral allocation and surplus sharing in a network. The proposed CPN is closely tied to two fundamental properties of Internet service technology: positive network externality among cooperating SPs and the property of effective multiplication of capacity allocation among several distributed service sites. We show that there exist significant incentives for SPs to engage in cooperative allocation and surplus sharing. We further demonstrate that intermediation can enhance the allocation effectiveness and that the opportunity to allocation and surplus sharing can play an important role in infrastructure planning. In conclusion, this study demonstrates the practical business viability of a cooperative CPN market.