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Showing papers in "Information Systems Research in 2018"


Journal ArticleDOI
TL;DR: This editorial reviews key insights from the literature on digital infrastructures and platforms, present emerging research themes, highlight the contributions developed from each of the six articles in this special issue, and conclude with suggestions for further research.
Abstract: In the last few years, leading-edge research from information systems, strategic management, and economics have separately informed our understanding of platforms and infrastructures in the digital age. Our motivation for undertaking this special issue rests in the conviction that it is significant to discuss platforms and infrastructures concomitantly, while enabling knowledge from diverse disciplines to cross-pollinate to address critical, pressing policy challenges and inform strategic thinking across both social and business spheres. In this editorial, we review key insights from the literature on digital infrastructures and platforms, present emerging research themes, highlight the contributions developed from each of the six articles in this special issue, and conclude with suggestions for further research.

442 citations


Journal ArticleDOI
TL;DR: This work identifies and analyzes a prominent form of strategic exploitation called platform forking in which a hostile firm bypasses the host’s controlling boundary resources and exploits the platform’'s shared resources, core and complements, to create a competing platform business.
Abstract: Digital platforms can be opened in two ways to promote innovation and value generation. A platform owner can open access for third-party participants by establishing boundary resources, such as API...

153 citations


Journal ArticleDOI
TL;DR: The decision to design a complement to operate on multiple platforms, is becoming increasingly common in many platform markets and perceived wisdom suggests that multihoming is beneficial.
Abstract: Multihoming, the decision to design a complement to operate on multiple platforms, is becoming increasingly common in many platform markets. Perceived wisdom suggests that multihoming is beneficial...

130 citations


Journal ArticleDOI
TL;DR: It is found that reviews are significantly more positive but the the quality decreases, even though the platform enjoys an increase in the number of new reviewers, disproportionately more reviews appear to be written for highly rated products.
Abstract: Firms have considered various forms of incentives for writing reviews, including the use of extrinsic rewards to attract reviewers. Building on this literature, we study the implications of monetar...

122 citations


Journal ArticleDOI
TL;DR: It is found that rating similarity between friends is significantly higher after the formation of the friend relationship, indicating that with social-networking functions, online rating contributors are socially nudged when giving their ratings.
Abstract: Social-networking functions are increasingly embedded in online rating systems. These functions alter the rating context in which consumer ratings are generated. In this paper, we empirically investigate online friends’ social influence in online book ratings. Our quasi-experimental research design exploits the temporal sequence of social-networking events and ratings and offers a new method for identifying social influence while accounting for the homophily effect. We find that rating similarity between friends is significantly higher after the formation of the friend relationship, indicating that with social-networking functions, online rating contributors are socially nudged when giving their ratings. Exploration of contingent factors suggests that social influence is stronger for older books and for users who have smaller networks, and that relatively more recent and extremely negative ratings cast more salient influence. The online appendix is available at https://doi.org/10.1287/isre.2017.0741.

121 citations


Journal ArticleDOI
TL;DR: In this paper, the authors study how platform owners' decision to enter complementary markets affects innovation in the ecosystem surrounding the platform and conclude that Google's entry was associated with a substantial increase in complementary innovation.
Abstract: We study how platform owners’ decision to enter complementary markets affects innovation in the ecosystem surrounding the platform. Despite heated debates on the behavior of platform owners toward complementors, relatively little is known about the mechanisms linking platform owners’ entry and complementary innovation. We exploit Google’s 2015 entry into the market for photography apps on its own Android platform as a quasi-experiment. We conclude based on our analyses of a time-series panel of 6,620 apps that Google’s entry was associated with a substantial increase in complementary innovation. We estimate that the entry caused a 9.6% increase in the likelihood of major updates for apps affected by Google’s entry, compared to similar but not affected apps. Further analyses suggest that Google’s entry triggered complementary innovation because of the increased consumer attention for photography apps, instead of competitive “racing” or “Red Queen” effects. This attention spillover effect was particularly p...

118 citations


Journal ArticleDOI
TL;DR: There is a positive and statistically significant effect of the level of personality similarity between two social media users on the likelihood of a subsequent purchase from a recipient of a WOM message after exposure to the WOM message of the sender.
Abstract: Word of mouth (WOM) plays an increasingly important role in shaping consumers’ behavior and preferences. In this paper, we examine whether latent personality traits of online users accentuate or attenuate the effectiveness of WOM in social media platforms. To answer this question, we leverage machine-learning methods in combination with econometric techniques utilizing a novel quasi-experiment. Our analysis yields two main results. First, there is a positive and statistically significant effect of the level of personality similarity between two social media users on the likelihood of a subsequent purchase from a recipient of a WOM message after exposure to the WOM message of the sender. In particular, exposure to WOM messages from similar users in terms of personality, rather than dissimilar users, increases the likelihood of a postpurchase by 47.58%. Second, there are statistically significant effects of specific pairwise combinations of personality characteristics of senders and recipients of WOM messag...

112 citations


Journal ArticleDOI
TL;DR: This study examines the impact of online management responses on business performance and their spillover effect on nearby businesses, and finds that the responses by a business owner play a significant role in the performance of the focal business as well as in theperformance of the nearby businesses.
Abstract: In the past decade, we have witnessed the growing importance of management responses to online reviews on digital platforms. In this study, we examine the impact of online management responses on business performance and their spillover effect on nearby businesses. By adopting multiple causal identification strategies to address the issue of self-selected responses, we find that the responses by a business owner play a significant role in the performance of the focal business as well as in the performance of the nearby businesses. We observe that, in general, the launch of the new management response feature benefits businesses. What is more interesting is that the benefit is not observed in a consistent manner across all businesses. Only the businesses that choose to use the management response feature observe increases in check-ins. On the other hand, the businesses that are unaware of the management response feature launch on digital platforms, or are aware but choose not to use the management response feature, tend to remain at a disadvantage. Interestingly, we also uncover that the spillover effect externality of online management responses on the nearby businesses crucially depends on whether the focal business and the nearby businesses are in direct competition. Furthermore, we identify conditions under which business owners are more likely to respond to consumer comments. Our findings have direct implications for both business owners and digital platforms: Digital platforms can help businesses develop the right engagement strategies by taking the online response strategies of the nearby businesses into account. The online appendix is available at https://doi.org/10.1287/isre.2017.0749 .

108 citations


Journal ArticleDOI
TL;DR: In this article, the effect of product reviews on product return has been studied, and the authors hypothesize that, by reducing the number of negative reviews, product returns will increase.
Abstract: Although many researchers in information systems and marketing have studied the effect of product reviews on sales, few have looked at their effect on product returns. We hypothesize that, by reduc...

100 citations


Journal ArticleDOI
TL;DR: This study suggests that the entrepreneur might forgo the opportunity of acquiring information via crowdfunding because the benefits of crowdfunding are insufficient to offset the risk of campaign failure.
Abstract: We consider an entrepreneur who designs a reward-based crowdfunding campaign when the campaign provides a signal about the future demand for the product and subsequent venture capital is needed. We find that both the informativeness of the campaign and considerations related to gaining access to venture capital funding affect the entrepreneur’s choice of campaign instruments, as well as her decision of whether to run a campaign. In particular, entrepreneurs should launch the campaign either when it is highly informative or when it is not informative at all. For relatively low levels of informativeness, but not so low that the venture capitalist (VC) completely ignores the campaign outcome in his funding decision, our study suggests that the entrepreneur might forgo the opportunity of acquiring information via crowdfunding because the benefits of crowdfunding are insufficient to offset the risk of campaign failure. We also find that the preference of entrepreneurs in favor of crowdfunding is stronger than ...

86 citations


Journal ArticleDOI
TL;DR: Strong evidence is found that randomly assigned song recommendations affected participants' willingness to pay, even when controlling for participants' preferences and demographics, and the existence of important economic side effects of personalized recommender systems is demonstrated.
Abstract: Recommender systems are an integral part of the online retail environment. Prior research has focused largely on computational approaches to improving recommendation accuracy, and only recently researchers have started to study their behavioral implications and potential side effects. We used three controlled experiments, in the context of purchasing digital songs, to explore the willingness-to-pay judgments of individual consumers after being shown personalized recommendations. In Study 1, we found strong evidence that randomly assigned song recommendations affected participants' willingness to pay, even when controlling for participants' preferences and demographics. In Study 2, participants viewed actual system-generated recommendations that were intentionally perturbed introducing recommendation error, and we observed similar effects. In Study 3, we showed that the influence of personalized recommendations on willingness-to-pay judgments was obtained even when preference uncertainty was reduced through immediate and mandatory song sampling prior to pricing. The results demonstrate the existence of important economic side effects of personalized recommender systems and inform our understanding of how system recommendations can influence our everyday preference judgments. The findings have significant implications for the design and application of recommender systems as well as for online retail practices. The online appendix is available at https://doi.org/10.1287/isre.2017.0703 .

Journal ArticleDOI
TL;DR: This work investigates how digital options and digital debt were implicated in a large Scandinavian media organization’s management of a news production platform over nearly 17 years.
Abstract: As organizations increasingly use digital platforms to facilitate innovation, researchers are seeking to understand how platforms shape business practices. Although extant literature offers important insights into platform management from a platform-owner perspective, we know little about how organizations manage industry platforms provided by external parties to generate opportunities and overcome challenges in relation to their infrastructure and work processes. As part of larger ecosystems, these digital platforms offer organizations bundles of digital options that they can selectively invest in over time. At the same time, organizations’ previous investments in digital infrastructure and work processes produce a legacy of digital debt that conditions how they manage their digital platforms over time. Against this backdrop, we investigate how digital options and digital debt were implicated in a large Scandinavian media organization’s management of a news production platform over nearly 17 years. Drawi...

Journal ArticleDOI
TL;DR: Zhang et al. as discussed by the authors used a combination of machine learning techniques such as natural language processing, latent semantic analysis, network-based clustering, and image analysis to identify apps as original or copycat and detect two types of copycats: deceptive and nondeceptive.
Abstract: While the growth of the mobile apps market has created significant market opportunities and economic incentives for mobile app developers to innovate, it has also inevitably invited other developers to create rip-offs. Practitioners and developers of original apps claim that copycats steal the original app's idea and potential demand, and have called for app platforms to take action against such copycats. Surprisingly, however, there has been little rigorous research analyzing whether and how copycats affect an original app's demand. The primary deterrent to such research is the lack of an objective way to identify whether an app is a copycat or an original. Using a combination of machine learning techniques such as natural language processing, latent semantic analysis, network-based clustering, and image analysis, we propose a method to identify apps as original or copycat and detect two types of copycats: deceptive and nondeceptive. Based on the detection results, we conduct an econometric analysis to determine the impact of copycat apps on the demand for the original apps on a sample of 10,100 action game apps by 5,141 developers that were released in the iOS App Store over five years. Our results indicate that the effect of a specific copycat on an original app's demand is determined by the quality and level of deceptiveness of the copycat. High-quality nondeceptive copycats negatively affect demand for the originals. By contrast, low-quality, deceptive copycats positively affect demand for the originals. Results indicate that in aggregate the impact of copycats on the demand of original mobile apps is statistically insignificant. Our study contributes to the growing literature on mobile app consumption by presenting a method to identify copycats and providing evidence of the impact of copycats on an original app's demand. The online appendix is available at https://doi.org/10.1287/isre.2017.0735 .

Journal ArticleDOI
TL;DR: A theory of how the interplay between an app’s internal and external architecture shape its ability to leverage the platform to outcompete rival apps is developed.
Abstract: The internal architecture of apps has yet to receive attention in platform studies, which predominantly study apps’ platform-facing, external architecture. We develop a theory of how the interplay ...

Journal ArticleDOI
TL;DR: It is demonstrated that awarding user control leads to reduced targeting differentiation between platforms and lower advertising fees, which is derived from the equilibrium targeting levels for platforms that use a subscription-based business model instead of an advertising- based business model.
Abstract: We study the effect of user privacy concerns on competition between online advertising platforms. Online platforms attract advertisers by offering capabilities to reach audiences likely to be receptive to their ads in a timely and accurate manner. However, the collection and processing of user information required for targeting of ads may lead to privacy concerns. We model the competition between two platforms as a two-stage game where platforms announce their targeting capabilities in the first stage and advertising fees in the second stage. The presence of heterogeneity in the user and the advertiser populations with respect to their preferences for targeting leads to differentiation between platforms. While one platform offers the minimum level of targeting feasible, the other platform offers a strictly higher level of targeting. The extent of differentiation in targeting levels depends on the intensity of competition between the platforms on the user side. When competition on the user side is relatively low, the extent of differentiation is higher. Such competition for users may decline, when users are less concerned about loss of privacy or when they choose to double home. Higher targeting differentiation allows platforms to charge higher advertising fees and earn higher profits. We also consider the case where platforms can reduce the privacy concerns of users by offering them greater control over their personal information. We demonstrate that awarding user control leads to reduced targeting differentiation between platforms and lower advertising fees. Last, we derive the equilibrium targeting levels for platforms that use a subscription-based business model instead of an advertising-based business model. The online appendix is available at https://doi.org/10.1287/isre.2017.0730 .

Journal ArticleDOI
TL;DR: While a key motivation for globally distributed software development (GDSD) is to harness appropriate human capital, ironically, scant attention has been paid to addressing the human resource challenges of GDSD.
Abstract: While a key motivation for globally distributed software development (GDSD) is to harness appropriate human capital, ironically, scant attention has been paid to addressing the human resource manag...

Journal ArticleDOI
TL;DR: In this paper, the authors explore the strategic decision of an incumbent to open a proprietary technology platform to allow same-side co-opetition in a market characterized by network effects and propose a game-theoretic model that analytically conceptualizes the interplay among the degree of same side platform openness, the absorptive capacity of the entrant, and the intensity of network effects.
Abstract: In this paper, we explore the strategic decision of an incumbent to open a proprietary technology platform to allow same-side co-opetition in a market characterized by network effects. We propose a game-theoretic model that analytically conceptualizes the interplay among the degree of same-side platform openness, the absorptive capacity of the entrant, and the intensity of network effects. Our analysis uncovers interesting new results. First, when entrant product quality is exogenous, under very strong network effects, the incumbent closes the technology. Moreover, we discuss various interesting open-platform co-opetition outcomes that arise under a fully covered market. When the entrant chooses the quality level and the incumbent is strategic in its platform opening decision, we find that intense network effects make new players shun the market, so intellectual property (IP) sharing is not possible in equilibrium. When the network effects are of intermediate intensity, the incumbent opens the technology ...

Journal ArticleDOI
TL;DR: A research model of the antecedents of SNS gifting is developed that builds on social exchange theory and prior gifting literature, and incorporates the unique aspects of such gifting (that the authors refer to as microgifting, with low-price digital voucher gifts).
Abstract: The increasing popularity of social network services (SNS) presents an opportunity to offer gifting services through SNS. For givers, gifting can be an important means to enhance social relationships. On the other hand, for SNS providers, members’ gifting can serve as a major source of revenue. As SNS providers continue to face challenges in generating revenues, understanding how to stimulate gifting through SNS can allow them to profit from members’ relationships. However, there is little understanding of what drives members’ gifting through SNS, with limited prior research on online gifting. Thus motivated, we develop a research model of the antecedents of SNS gifting that builds on social exchange theory and prior gifting literature, and incorporates the unique aspects of such gifting (that we refer to as microgifting, with low-price digital voucher gifts). The theoretical model was validated through a field study, in which both subjective and objective data were collected from an SNS that has been suc...

Journal ArticleDOI
TL;DR: This paper investigates how the feedback information on a crowdsourcing platform and systematic bias of crowdsourcing workers can affect crowdsourcing outcomes and suggests the salience bias influences the performance of contestants, including the winners of the contests.
Abstract: Crowdsourcing relies on online platforms to connect a community of users to perform specific tasks. However, without appropriate control, the behavior of the online community might not align with t...

Journal ArticleDOI
TL;DR: The concept of regulatory episode is introduced as a unit of analysis for studying IT-based regulation and a tentative research agenda is formulated that focuses on tensions triggered by the three key elements of the IT- based regulatory processes.
Abstract: As information technology (IT) based regulation has become critical and pervasive for contemporary organizing, Information Systems research turns mostly a deaf ear to the topic. Current explanations of IT-based regulation fit into received frameworks such as structuration theory, actor-network theory, or neo-institutional analyses but fail to recognize the unique capacities IT and related IT based regulatory practices offer as a powerful regulatory means. Any IT-based regulation system is made up of rules, practices and IT artifacts and their relationships. We propose this trifecta as a promising lens to study IT-based regulation in that it sensitizes scholars into how IT artifacts mediate rules and constitute regulatory processes embracing rules, capacities of IT endowed by the artifact, and organizational practices. We review the concepts of rules and IT-based regulation and identify two gaps in the current research on organizational regulation: 1)the critical role of sense-making as part of IT based regulation, and 2)the challenge of temporally coupling rules and their enactment during IT based regulation. To address these gaps we introduce the concept of regulatory episode as a unit of analysis for studying IT-based regulation. We also formulate a tentative research agenda for IT-based regulation that focuses on tensions triggered by the three key elements of the IT-based regulatory processes.

Journal ArticleDOI
TL;DR: It is argued that net neutrality, which is concerned with a gatekeeper at the infrastructure level, may just be part of a larger debate on data neutrality where the gatekeeper may rather control a software platform.
Abstract: The Internet has assumed a central role in the global economy facilitating commerce and communication and is thus central to many areas of information systems (IS) research. In particular, IS researchers played a critical role in the academic discourse on net neutrality, which has recently informed new regulatory frameworks in the United States and Europe. We discuss and categorize the various issues and key trade-offs that are still being debated in the context of net neutrality and identify open research questions in this domain. Based on these insights, we argue that net neutrality, which is concerned with a gatekeeper at the infrastructure level, may just be part of a larger debate on data neutrality where the gatekeeper may rather control a software platform. We provide several examples of potential data neutrality issues and generalize the key trade-offs in the context of a proposed four-step framework for identifying and organizing promising areas of IS research on data neutrality.

Journal ArticleDOI
TL;DR: Using data from a major location-based social networking application in China, a mobile application that offers users the option to share their location information with friends is estimated.
Abstract: Recently, mobile applications have offered users the option to share their location information with friends. Using data from a major location-based social networking application in China, we estim...

Journal ArticleDOI
TL;DR: It is argued that IS project managers with project-related knowledge mitigate technical IS project risk by facilitating the enactment of internal and external process controls in their IS projects.
Abstract: We integrate control theory and the information systems IS project management literature using a multilevel lens to theorize the cross-level effects of technical IS project risk on individual developer outcomes-performance and psychological stress-and the mechanisms by which IS project managers' project-related knowledge attenuates this relationship. We argue that IS project managers with project-related knowledge mitigate technical IS project risk by facilitating the enactment of internal and external process controls in their IS projects. Our empirical study involves data collected from 1,230 individual developers embedded in 130 IS project teams that are managed by 20 IS project managers. Our results provide strong support for the three-level model and its set of a cross-level main effects of technical IS project risk on individual developer outcomes; b cross-level main effects of IS project manager project-related knowledge on enacted internal and external process controls; and c cross-level moderation of the relationship between technical IS project risk and individual developer outcomes by IS project manager project-related knowledge through internal and external process controls. Our study provides insights on how IS project management, IS project process controls, and technical IS project risk must be managed as a system of multilevel dependencies to achieve the desired developer outcomes. The online appendix is available at https://doi.org/10.1287/isre.2017.0723 .

Journal ArticleDOI
TL;DR: It is found that, on average, nonfocal airlines increased their defensive marketing efforts but decreased their offensive marketing efforts after the Germanwings Flight 9525 crash, which is attributed to the negative spillover effect.
Abstract: When a focal firm undergoes a product-harm crisis, nonfocal firms offering similar products or services can suffer from a negative spillover effect, but can also benefit from customers switching from the troubled focal firm, which we call the competitive effect. In response, a nonfocal firm can adapt its marketing strategy in consideration of these two opposing effects. Because social media is a flexible medium through which firms can quickly adjust marketing strategies in response to such unexpected events, we study how nonfocal firms adjust their post-crisis social media efforts to induce purchases and to improve customer relationships-two strategies known in the literature as offensive and defensive marketing, respectively. In particular, we use the daily social media activities of 56 major airlines on Twitter around the time of the Germanwings Flight 9525 crash to study how nonfocal airlines ran offensive and defensive marketing on social media before and after the crisis. We find that, on average, nonfocal airlines increased their defensive marketing efforts but decreased their offensive marketing efforts after the crash, which we attribute to the negative spillover effect. However, the strategic adjustment of decreasing offensive marketing is attenuated by the competition between nonfocal airlines and the focal one, which we attribute to the moderating role of the competitive effect. These results are shown to be robust in various tests and reveal how the interplay of the two effects of a product-harm crisis on nonfocal firms shapes their postcrisis social media strategies. The online appendix is available at https://doi.org/10.1287/isre.2017.0707 .

Journal ArticleDOI
TL;DR: These models allow implementing the real options logic more fully by supporting both passive and proactive IT investment risk management, and operationalize the effects of mitigations in the IT and cybersecurity investment contexts.
Abstract: Managerial flexibility, or real options, embedded in information technology IT investments allows resolving uncertainty not only by passively waiting for new information to arrive during deferral but also by proactively deploying mitigations. Classic real options models fail to account for the value of proactive uncertainty-reducing mitigations, since they assume that uncertainty is fixed or follows a continuous, time-dependent dynamics. We present adaptations of these models that address this shortcoming. In our models, zero or more mitigations can be applied in varying sequences, mitigations have impulse-type effects on uncertainty reduction, and mitigations' effects can be complementary, substitutive, or synergetic. These traits make the value of mitigations path dependent and conditional on the uncertainty-reduction ability of earlier deployed mitigations. We operationalize the effects of mitigations in the IT and cybersecurity investment contexts. We also apply the adapted models to a real-world cybersecurity investment case from a Japanese company. Investments in multiple cybersecurity mitigations are typically treated as having a multiplicative effect that leads to overinvestment in mitigations. Our models avoid this problem, permitting to lower cybersecurity costs without compromising on loss prevention. More generally, our models allow implementing the real options logic more fully by supporting both passive and proactive IT investment risk management. The online appendix is available at https://doi.org/10.1287/isre.2017.0714 .

Journal ArticleDOI
TL;DR: This commentary examines the nature of this bias, both analytically and empirically, and shows that it can be severe even when data mining models exhibit relatively high performance.
Abstract: The application of predictive data mining techniques in information systems research has grown in recent years, likely because of their effectiveness and scalability in extracting information from large amounts of data. A number of scholars have sought to combine data mining with traditional econometric analyses. Typically, data mining methods are first used to generate new variables (e.g., text sentiment), which are added into subsequent econometric models as independent regressors. However, because prediction is almost always imperfect, variables generated from the first-stage data mining models inevitably contain measurement error or misclassification. These errors, if ignored, can introduce systematic biases into the second-stage econometric estimations and threaten the validity of statistical inference. In this commentary, we examine the nature of this bias, both analytically and empirically, and show that it can be severe even when data mining models exhibit relatively high performance. We then show...

Journal ArticleDOI
TL;DR: The results show that two types of sharing mechanisms negatively affect content sharing in the domain of news sharing: those that allow greater information flow control over the sharing process and thus protect users’ social privacy and those that employ two-click designs to preserve users' institutional privacy.
Abstract: Research on online content diffusion is vast but has rarely examined contextual factors, including the influence of online sharing mechanisms, such as social plugins e.g., Facebook's "Like" button,...

Journal ArticleDOI
TL;DR: Text communication has been put forth as one solution to addressing this duality of team diversity, but unfortunately, the technology is not well suited for this role.
Abstract: Diversity can have positive and negative effects on team decision making. Text communication has been put forth as one solution to addressing this duality of team diversity. Unfortunately, the empi...

Journal ArticleDOI
Xitong Li1
TL;DR: Examining how a restaurant’s online review ratings affect consumers to endorse deal vouchers sold by the restaurant via social media before they redeem the vouchers shows that the effect of average rating is greater when review ratings are more dispersed and discount threshold is relatively large.
Abstract: This paper examines how a restaurant’s online review ratings affect consumers to endorse deal vouchers sold by the restaurant via social media before they redeem the vouchers. While the effect of the average of review ratings is straightforward, we focus on examining how the effect is moderated by the dispersion of review ratings and the discount threshold set for the group-buying deals. A comprehensive literature review suggests that a large rating dispersion can deliver two different messages to consumers (uncertainty in product quality and uniqueness of product taste) and thus may either positively or negatively moderate the effect of average rating on social media endorsement. Discount threshold may serve as a quality signal, reinforcing the effect of average rating. The empirical results show that the effect of average rating is greater when review ratings are more dispersed and the discount threshold is relatively large. The findings generate important managerial and research implications. The onlin...

Journal ArticleDOI
TL;DR: Evaluating the simultaneous effect of both direct and indirect peer influences in technology adoption in the context of caller ringback tone (CRBT) in a cellular telephone network, using data from 200 million calls by 1.4 million users is evaluated.
Abstract: With the availability of large-scale network data, peer influence in social networks can be more rigorously examined and understood than before. Peer influence can arise from immediate neighbors in the network (formally defined as cohesion or direct ties with one-hop neighbors) and from indirect peers who share common neighbors (formally defined as structural equivalence or indirect ties with two-hop neighbors). While the literature examined the role of each peer influence (direct or indirect) separately, the study of both peer network effects acting simultaneously was ignored, largely because of methodological constraints. This paper attempts to fill this gap by evaluating the simultaneous effect of both direct and indirect peer influences in technology adoption in the context of caller ringback tone (CRBT) in a cellular telephone network, using data from 200 million calls by 1.4 million users. Given that such a large-scale network makes traditional social network analysis intractable, we extract many de...