Showing papers in "Journal of Management Information Systems in 2002"

Individual Trust in Online Firms: Scale Development and Initial Test

Abstract: The importance of trust as a key facilitator of electronic commerce is increasingly being recognized in academic and practitioner communities. However, empirical research in this area has been beset by conflicting conceptualizations of the trust construct, inadequate attention to its underlying dimensions, causes, and effects, and lack of a validated trust scale. This paper addresses these limitations in part by theoretically conceptualizing and empirically validating a scale to measure individual trust in online firms. The proposed scale taps into three key dimensions of trust: trustee's ability, benevolence, and integrity. An iterative testing and refinement procedure using two field surveys of online retailing and online banking users, leads to a final seven-item trust scale that exhibits adequate levels of reliability, convergent validity, discriminant validity, and nomological validity. It is expected that the scale presented in this paper will assist future empirical research on trust in online entities.

Investment in Enterprise Resource Planning: Business Impact and Productivity Measures

Abstract: Enterprise Resource Planning (ERP)software systems integrate key business and management processes within and beyond a firm's boundary.Although the business value of ERP implementations has been extensively debated in trade periodicals in the form of qualitative discussion or detailed case studies, there is little large-sample statistical evidence on whether the benefits of ERP implementation exceed the costs and risks. With multiyear multi-firm ERP implementation and financial data, we find that firms that invest in ERP tend to show higher performance across a wide variety of financial metrics. Even though there is a slowdown in business performance and productivity shortly after the implementation, financial markets consistently reward the adopters with higher market valuation (as measured by Tobin's q). Due to the lack of mid- and long-term post-implementation data, future research on the long-run impact of ERP is proposed.

Leadership Effectiveness in Global Virtual Teams

Abstract: The trend toward physically dispersed work groups has necessitated a fresh inquiry into the role and nature of team leadership in virtual settings. To accomplish this, we assembled thirteen culturally diverse global teams from locations in Europe, Mexico, and the United States, assigning each team a project leader and task to complete. The findings suggest that effective team leaders demonstrate the capability to deal with paradox and contradiction by performing multiple leadership roles simultaneously (behavioral complexity). Specifically, we discovered that highly effective virtual team leaders act in a mentoring role and exhibit a high degree of understanding (empathy) toward other team members. At the same time, effective leaders are also able to assert their authority without being perceived as overbearing or inflexible. Finally, effective leaders are found to be extremely effective at providing regular, detailed, and prompt communication with their peers and in articulating role relationships (responsibilities) among the virtual team members. This study provides useful insights for managers interested in developing global virtual teams, as well as for academics interested in pursuing virtual team research.

Determinants of User Acceptance of Digital Libraries: An Empirical Examination of Individual Differences and System Characteristics

Abstract: The explosion in Internet usage and huge government funding initiatives in digital libraries have drawn attention to research on digital libraries. Whereas the traditional focus of digital library research has been on the technological development, there is now a call for user-focused research. Although millions of dollars have been spent on building “usable” systems, research on digital libraries has shown that potential users may not use the systems in spite of their availability. There is a need for research to identify the factors that determine users' adoption of digital libraries. Using the technology acceptance model (TAM) as a theoretical framework, this study investigates the effect of a set of individual differences (computer self-efficacy and knowledge of search domain) and system characteristics (relevance, terminology, and screen design) on intention to use digital libraries. Based on a sample of 585 users of a university's award-winning digital library, the results strongly support the utilization of TAM in predicting users' intention to adopt digital libraries, and demonstrate the effects of critical external variables on behavior intention through perceived ease of use and perceived usefulness. All of the individual differences and system characteristics have significant effects on perceived ease of use of digital libraries. In addition, relevance has the strongest effect on perceived usefulness of digital libraries.

Examining a Model of Information Technology Acceptance by Individual Professionals: An Exploratory Study

Abstract: The recent proliferation of information technology designed to support or enhance an individual professional's task performance has made the investigation of technology acceptance increasingly challenging and significant. This study investigates technology acceptance by individual professionals by examining physicians' decisions to accept telemedicine technology. Synthesized from relevant prior research, a generic research framework was built to provide a necessary foundation upon which a research model for telemedicine technology acceptance by physicians could be developed. The research model was then empirically examined, using data collected from more than 400 physicians practicing in public tertiary hospitals in Hong Kong. Results of the study suggest several areas where individual "professionals" might subtly differ in their technology acceptance decision-making, as compared with end users and business managers in ordinary business settings. Specifically, physicians appeared to be fairly pragmatic, largely anchoring their acceptance decisions in the usefulness of the technology rather than in its ease of use. When making decisions to accept a technology, physicians expressed considerable concerns about the compatibility of the technology with their practices, placed less importance on controlling technology operations, and attached limited weight to peers' opinions about using the technology. Based on results obtained from this study, the initially proposed framework for technology acceptance by individual professionals was revised to a "hierarchical, three-layer" structure with the individual context at the inner core, the implementation context on the outermost layer, and the technological context residing in the middle. Implications for information systems research and telemedicine management practice that have emerged from the study's findings are also discussed.

Becoming a Virtual Professor: Pedagogical Roles and Asynchronous Learning Networks

Abstract: Asynchronous Learning Networks (ALN) are a form of "e-learning" that emphasizes the use of the Internet to support class discussions and activities. This paper presents a qualitative study of role changes that occur when faculty become online or "virtual" professors. In 20 semi-structured interviews of faculty, coded with pattern analysis software, the authors captured role changes enacted by instructors in ALN settings - cognitive roles, affective roles, and managerial roles. The cognitive role, which relates to mental processes of learning, information storage, and thinking, shifts to one of deeper cognitive complexity. The affective role, which relates to influencing the relationships between students, the instructor, and the classroom atmosphere, required faculty to find new tools to express emotion, yet they found the relationship with students more intimate. The managerial role, which deals with class and course management, requires greater attention to detail, more structure, and additional student monitoring. Overall, faculty reported a change in their teaching persona, toward more precision in their presentation of materials and instructions, combined with a shift to a more Socratic pedagogy, emphasizing multilogues with students. The main sources of frustration and of fulfillment of the virtual professor are explored.

Research in Information Systems: An Empirical Study of Diversity in the Discipline and Its Journals

Abstract: Throughout its history, the information systems (IS) discipline has engaged in extensive self-examination, particularly with regard to its apparent diversity. Our overall objective in this study is to better understand the diversity in IS research, and the extent to which diversity is universal across journals that publish IS research. We developed a classification system that comprises five key characteristics of diversity (reference discipline, level of analysis, topic, research approach, and research method) based on a review of prior literature. We then examined articles over a five-year period, from 1995 to 1999, in five journals acknowledged as the top journals of the field, at least in NorthAmerica.Analyses reveal considerable diversity in each of the key characteristics. Perhaps not surprisingly, the research approach used is more focused with most studies being conducted using hypothetico-deductive approaches, whereas reference discipline is perhaps the most diverse of the characteristics examined. An interesting finding is that IS itself emerged as a key reference discipline in the late 1990s. The Journal of Management Information Systems and Information Systems Research publish articles displaying the greatest diversity, and MIS Quarterly and Decision Sciences publish articles that focus on subsets of the field. Our research provides a foundation for addressing the direction that diversity in the IS discipline takes over time. In the shorter term, researchers can use our classification system as a guide to writing abstracts and selecting key words, and the findings of our journal analyses to determine the best outlet for their type of research.

Newly Vulnerable Markets in an Age of Pure Information Products: An Analysis of Online Music and Online News

Abstract: We describe the emerging competition between music companies and their star acts and the role of online distribution in this industry. We then contrast this with the lack of competition newspapers will face from their reporters, writers, and photographers, but identify other possible competitors for newspaper publishers. We examine what resources have previously enabled record companies to lock in their star acts and ways in which technology has altered artists' abilities to reach the market independently and thus their dependency upon record companies. We examine which resources have seen their value eroded in the newspaper industry and the remaining value that the newspaper company still creates, other than bundling stories, adding advertising, and printing and selling the papers. We consider what part of the newspaper business is vulnerable, if any, and where threats may arise. We combine the resource-based view of competitive advantage to examine which industry may have become newly easy to enter, and the theory of newly vulnerable markets to assess which industry may actually have become vulnerable as a result. Our analyses are then used to create a computer simulation model to make the implications more explicit under a range of assumptions.

Managing Information Technology Investment Risk: A Real Options Perspective

Abstract: Past information systems research on real options has focused mainly on evaluating information technology (IT)investments that embed a single, a priori known option (such as, deferral option, prototype option). In other words, only once a specific isolated option is identified as being embedded in a target IT investment, does this research call upon using real options analysis to evaluate the option. In effect, however, because real options are not inherent in any IT investment, they usually must be planned and intentionally embedded in a target IT investment in order to control various investment-specific risks, just like financial risk management uses carefully chosen options to actively manage investment risks. Moreover, when an IT investment involves multiple risks, there could be numerous ways to reconfigure the investment using different series of cascading (compound) options. In this light, we present an approach for managing IT investment risk that helps to rationally choose which options to deliberately embed in an investment so as to optimally control the balance between risk and reward. We also illustrate how the approach is applied to an IT investment entailing the establishment of an Internet sales channel.

Implementation Team Responsiveness and User Evaluation of Customer Relationship Management: A Quasi-Experimental Design Study of Social Exchange Theory

Abstract: Customer Relationship Management (CRM) systems require extensive configuration during which users come into extensive contact with the technical implementation team. Previous research examining other Enterprise Resource Planning (ERP) modules has shown that user perception of the responsiveness of such teams, as an indicator of a possible social exchange, is significantly associated with an increased favorable assessment of the new system and ultimately its adoption, the reason being that perceived responsiveness creates a constructive social exchange. However, previous research, using survey data alone, did not examine causation. The objective of this study is to examine, using a quasi-experimental design, whether different degrees of actual responsiveness in different sites during CRM implementation result in significant differences in the users'favorable assessment of the correctness and ultimately their approval of a new CRM. The data support these hypotheses, but show that the downstream effects of actual responsiveness are mediated by perceived responsiveness. Implications concerning the social exchange relationship during CRM adoption are discussed.

Turnover of Information Technology Workers: Examining Empirically the Influence of Attitudes, Job Characteristics, and External Markets

Abstract: This paper presents and tests a conceptual model linking perceptions of the internal work environment and external markets to information technology (IT) worker turnover. The model focuses on organizational commitment (OC) as the primary predictor of turnover intention. We suggest that OC mediates perceptions of the workplace and external environment on turnover intention. Specifically, we hypothesize that OC mediates the influence of (1) job satisfaction, (2) perceived job characteristics, (3) perceived competitiveness of pay, and (4) perceived job alternatives on turnover intention. Also, perceived job alternatives are modeled as having a direct effect on turnover intention. Analysis provides moderate empirical support for the research model. OC and perceived job alternatives demonstrated distinct effects on turnover intention. In addition, OC mediated the influence of job satisfaction, perceived job characteristics, and perceived competitiveness of pay on turnover intention. Findings suggest that through cultivating positive beliefs about the job and attitudes toward the employer, managers may counter the influence of external markets on IT workers' turnover intention.

Development of a Measure for the Organizational Learning Construct

Abstract: The concept of organizational learning (OL) is receiving an increasing amount of attention in the research and practice of management information systems (MIS) due to its potential for affecting organizational outcomes, including control and intelligence, competitive advantage, and the exploitation of knowledge and technology.As such, further development of the salient issues related to OL is warranted, especially measurement of the construct. Based on a domain definition grounded in the literature, this research represents the initial work in developing an empirically reliable and valid measure of organizational learning. The rigorous method utilized in the derivation of this measure, which integrates two methodological frameworks for instrument development, is the main strength of this work. The result is an eightfactor, 28-item instrument for assessing OL, derived from a sample of 119 knowledge-based firms. The empirically derived factors are awareness, communication, performance assessment, intellectual cultivation, environmental adaptability, social learning, intellectual capital management, and organizational grafting. MIS function managers can use these factors to gauge organizational or subunit success in the creation and diffusion of new applications of information technology.

A Contingency Approach to Software Project Coordination

Abstract: Before software project managers can enhance productivity and satisfaction of the software project team member, the effect of task characteristics, goal orientations, and coordination strategies on design and coding-task outcomes must be understood. A research model, which suggests that task interdependence, goal conflict, and coordination strategies significantly affect productivity and satisfaction associated with software design and coding activities, is presented. Issues such as contingency/design misfit, conflicting contingencies, and the extent of deviation to theoretically prescribed coordination mechanisms applied to contingencies are used to make predictions on productivity and process satisfaction. A 2x2x2 factorial experiment was utilized. Overall, projects characterized by low task interdependence exhibited greater productivity than projects with high task interdependence. Also, in general, organic coordination was more productive than mechanistic coordination. There was also a significant interaction between task interdependence and coordination strategy. Low goal conflict and organic coordination each lead to greater process satisfaction. Productivity results for the goal conflict manipulation was opposite to the hypothesized direction. Unconflicted contingencies addressed with consistent coordination and partially conflicted contingencies, regardless of the coordination used, exhibited significant gains in productivity. In comparison, unconflicted contingencies with inconsistent coordination and conflicted contingencies, regardless of the coordination applied, resulted in lower productivity. This suggests that there are instances where multiple contingencies, which warrant the use of different coordination strategies, can be adequately addressed with a specific coordination strategy.

The Shareholder-Wealth and Trading-Volume Effects of Information-Technology Infrastructure Investments

Abstract: Despite the rising tide of investments in information technologies (IT) infrastructures, empirical evidence about the effects of such investment moves is scarce. Stock market investors provide one appropriate perspective on the value-creation and growth potential of IT infrastructure investments through their reactions to specific IT infrastructure investment moves by business firms. This research utilizes the event-study analysis approach to examine if IT infrastructure investments are associated with significantly positive abnormal stock market returns and rises in trading volume when firms announce such investments. Drawing upon a sample of IT infrastructure announcements in the early 1990s, this research finds significant evidence that positive abnormal returns and increased trading volume are associated with IT infrastructure investment announcements. Further, when such investments are contrasted with investments in IT applications, evidence exists that infrastructure investments generate greater excess returns and a larger increase in trading volume than applications investments do. The evidence provides empirical support for the potential of IT infrastructure investments to be perceived as a platform for growth and revenue generation opportunities in contemporary business firms.

An Integrated Performance Model Information Systems Projects

Abstract: This study makes an initial attempt to validate an integrated, theoretically driven performance model of information systems (IS) projects. IS project performance is defined in terms of task, psychological, and organizational outcomes. We draw upon different theoretical perspectives including IS, organizational teams, and project management to link six categories of variables to IS project performance: technology characteristics, project characteristics, task characteristics, people characteristics, organizational characteristics, and work processes. Data collected via a field survey of IS project leaders in 84 manufacturing organizations were used to test the proposed model. Support is found for three conclusions: (1) IS project performance is a multidimensional construct, (2)certain preconditions falling into the above categories have to exist to achieve a high performing IS project, and (3) there is a possible cross-relationship among the variables studied by IS research, organizational teams research, and project management research. We discuss the implications of this study for future research and managerial practice.

Investigating the Moderators of the Group Support Systems Use with Meta-Analysis

Abstract: This paper presents a meta-analysis that investigates five moderators (task, tool, the type of group, the size of the group, and facilitation) and their influences on the overall effects of group support systems (GSS). Results show that process satisfaction is higher for idea-generation tasks than for decision-making tasks. The GSS tool (that is, the use of level 1 or level 2 GSS) influences decision quality. Level 1 tools support the exchange of information, whereas, level 2 tools are designed to aid in decision-making. Decision quality is higher when using level 2 tools, however, there is no difference in the number of ideas generated when using level 1 or level 2 tools. Decision quality is lower for virtual teams, but there is no difference in the number of ideas generated between virtual teams and face-to-face teams using GSS. Group size is an important moderator when measuring decision time and satisfaction with process. The former is shorter for larger groups, and the latter is higher for larger groups. Process facilitation leads to higher decision quality and higher satisfaction with the process. These results illustrate the importance of examining the moderators of GSS use and the viability of conducting a meta-analysis to investigate a large body of research with seemingly conflicting or equivocal results.

Toward Virtual Community Knowledge Evolution

Abstract: This paper puts forth a vision and an architecture for a community knowledge evolution system. We propose augmenting a multimedia document repository (digital library) with innovative knowledge evolution support, including computer-mediated communications, community process support, decision support, advanced hypermedia features, and conceptual knowledge structures. These tools, and the techniques developed around them, would enable members of a virtual community to learn from, contribute to, and collectively build upon the community's knowledge and improve many member tasks. The resulting Collaborative Knowledge Evolution Support System (CKESS) would provide an enhanced digital library infrastructure serving as an ever-evolving repository of the community's knowledge, which members would actively use in everyday tasks and regularly update.

Dynamic Work Distribution in Workflow Management Systems: How to Balance Quality and Performance

Abstract: Today's workflow management systems offer work items to workers using rather primitive mechanisms.Although most workflow systems support a role-based distribution of work, they have problems dealing with unavailability of workers as a result of vacation or illness, overloading, context-dependent suitability, deadlines, and delegation. As a result, the work is offered to too few, too many, or even the wrong set of workers. Current practice is to offer a work item to one person, thus causing problems when the person is not present or too busy, or to offer it to a set of people sharing a given role, thus not incorporating the qualifications and preferences of people. Literature on work distribution is typically driven by considerations related to authorizations and permissions. However, workflow processes are operational processes where there is a highly dynamic trade-off between quality and performance. For example, an approaching deadline and an overloaded specialist may be the trigger to offer work items to less qualified workers. This paper addresses this problem by proposing a systematic approach to dynamically create a balance between quality and performance issues in workflow systems. We illustrate and evaluate the proposed approach with a realistic example and also compare how a workflow system would implement this scenario to highlight the shortcomings of current, state of the art workflow systems. Finally, a detailed simulation model is used to validate our approach.

Relationships Between Job Skills and Performance: A Study of Webmasters

Abstract: The main purpose of this study is to determine the mix of organizational and technical skills demanded of Webmasters, and the degree to which those skills influence job performance. The study is composed of two parts. First, a job-content analysis of 800 Webmaster positions is conducted in order to determine the mix of skills demanded of Webmasters by employers. Second, a survey of 232 Webmasters is conducted to test the relationships between those skills and job performance. The job-content analysis suggested that employers seek technical skills over organizational skills, and, in contrast, the survey results showed that Webmasters regard organizational skills as more important in performing their jobs. Structured equation modeling on the survey data showed that deficiency in both technical and organizational skills leads to lower job performance. Moreover, the effect of organizational skill deficiencies on job performance was found to be larger than that of technical skill deficiencies. For researchers, the establishment of an empirical link between job skills and job performance opens the field to further research in the skills of information systems personnel. For employers, the results suggest more attention should be paid to attracting organizational skills when recruiting information systems personnel, such as Webmasters.

A Discrepancy Model of Information System Personnel Turnover

Abstract: Turnover of information system (IS) personnel is a critical problem for organizations. To gain a better understanding of turnover, researchers have explored career orientations that characterize an employee's internal motivations and desires. The inability of an organization to match career desires is often related to measures indicative of turnover in IS employees, including intent to leave and career dissatisfaction, though empirical evidence is indirect and inconclusive. Using career orientations, this study explicitly models the impact of the discrepancy between the wants of employees and employee perceptions of how their organization satisfies those wants. The model is based on discrepancy theory and predicts the gap is closely related to the turnover indicators. Model predictions hold true for a sample of 153 IS personnel. These results indicate the importance of developing career plans that employees perceive as matching their wants.

Multiparty Negotiation Support: The Role of Visualization's Influence on the Development of Shared Mental Models

Abstract: The study examines a method for supporting multiparty negotiations by means of a Negotiation Support System (NSS). More specifically, this study investigated the effect of visualization support on the development of shared mental models among negotiators who resolved a spatial planning dispute. The objective of this study is to determine how to support the development of shared mental models in order to stimulate more productive negotiations. Afurther goal is to provide guidelines for the design of NSS. Compared with a control condition, visualization improved three aspects of negotiations: visualization support aided negotiators' convergence of perceptions of reality and had positive socio-emotional consequences in terms of increasing cohesiveness and entitativity. As a result, groups with visualization support reached consensus more easily and were more satisfied with the process. In sum, the current study provides support for the idea that presenting negotiators with unambiguous information helps negotiators develop shared mental models.

The Dynamic Effects of Group Support Systems on Group Meetings

Abstract: A number of theoretical models have been presented in group support systems (GSS) literature, which suggest that various GSS structures such as anonymity and simultaneity, influence group interaction, which in turn influences group productivity and meeting outcomes. Examples of such theories include the adaptive structuration theory and the balance of forces model and they could generally be described as dynamic or procedural in nature. Much of the empirical research that tests such theories, however, is deterministic in that it often compares final outcomes between various levels of technological support without measuring and testing (1) the influence that the technological structures have on group interaction and group dynamics, and (2) the corresponding influence that group interaction has on meeting outcomes. This paper reports a study that examines the validity of such dynamic theories by examining the relationships between GSS structures, group dynamics, and meeting outcomes over time. Four process constructs (production blocking, free riding, sucker effect, and evaluation apprehension) and three meeting outcome constructs (group cohesion, affective reward, and self-reported learning) were initially selected for the study. Structural equation modeling was used to analyze longitudinal survey data gathered from an experiment conducted with naturally occurring groups. The model tested was found to be valid and GSS was found to be effective in reducing process losses. However, the findings also revealed that process losses vary in the degree to which they influence meeting outcomes and certain meeting outcomes, such as affective reward, were found to be heavily influenced by other meeting outcomes, such as group cohesion and self-reported learning. Theoretical implications of the study and methodology are discussed.

Effects of Local Versus Global Schema Diagrams on Verification and Communication in Conceptual Data Modeling

Abstract: Much research in conceptual data modeling has focused on developing techniques for view integration, or combining local conceptual schemas into a global schema. Local schemas are argued to be important in verifying conceptual data requirements before proceeding to database design. View integration is claimed to fulfill two purposes. First, a global conceptual schema is a prerequisite to logical design and implementation. Second, global schemas are thought to be useful in improving organizational communication among diverse user groups with different perspectives and information needs. However, performing view integration is difficult. Moreover, there is no empirical evidence that global schemas either impede local verification or support communication. Drawing on classification research, this paper develops and tests claims about the impact of schema structure (local versus global) on verification and communication. Local schemas are hypothesized to better support verification than global schemas. When different local views contain conflicting structure, local schemas are expected to be superior in supporting communication. However, when local views contain complementary structure, global schemas are expected to be superior in supporting communication. A laboratory experiment was conducted to test these predictions. The results support the hypotheses. Implications for the practice of database design and for further research are considered.

Job Satisfaction of Information Technology Workers: The Impact of Career Orientation and Task Automation in a CASE Environment

Abstract: This study investigates the job satisfaction of information technology (IT) professionals in an environment where computer aided software engineering (CASE) tools are used. Although the recent downturn in the economy might have temporarily eased the IT labor shortage, issues of recruitment and retention of qualified personnel are key to the success of IS development projects. This study presents a model of the combination of CASE tool usage and job satisfaction as related to internal career orientation. Two hypotheses based on this model were tested using empirical evidence collected through a survey method. The first examines whether the career orientation of IS personnel influences their job satisfaction. The second incorporates the impact of CASE tool usage on this relationship. The results indicate that in a CASE tool environment, personnel with a predominant technical career orientation have more job satisfaction than those with a predominant managerial tation. However, there is a significant and positive synergy between the sophistication of the CASE tool used and managerial competence orientation leading to higher job satisfaction. These findings indicate that combating the IT personnel shortage through task automation may also increase worker satisfaction, thereby decreasing turnover. Careful selection of the CASE tool for use may result in this win-win situation.

An Examination of the Impact of Stimuli Type and GSS Structure on Creativity: Brainstorming Versus Non-Brainstorming Techniques in a GSS Environment

Abstract: Of the techniques available for idea generation with group support systems (GSS), little research attention has been given to techniques that challenge problem assumptions or that use unrelated stimuli to promote creativity. When implementing such techniques with GSS, choices must be made regarding how to configure the GSS to deploy the initial creative stimuli and to present the pool of emerging ideas that act as additional stimuli. This paper reports the results of an experiment that compares Electronic Brainstorming (few unnamed rotating dialogues) with Assumption Reversals (many related stimuli, many named dialogues, free movement among dialogues) and Analogies (many unrelated stimuli, many named dialogues, free movement among dialogues). Analogies produced creative, but fewer, ideas, due to the use of unrelated stimuli. Assumption Reversals produced the most, but less creative, ideas, possibly due to fragmentation of the group memory and cognitive inertia caused by lack of forced movement among dialogues.

A Model of Neutral B2B Intermediaries

Abstract: Business-to-business (B2B) electronic commerce has become an important issue in the debate about electronic commerce. How should the intermediary charge suppliers and buyers to maximize profits from such a marketplace? We analyze a monopolistic B2B marketplace owned by an independent intermediary. The marketplace exhibits two-sided network effects where the value of the marketplace to buyers is dependent on the number of suppliers, and the value to suppliers is dependent on the number of buyers and suppliers. When these two-sided network effects exist, we find that the optimal price for buyers and the fraction of buyers in the electronic market are dependent on the switching cost and the strength of the network effect of both types: buyers and suppliers. The same is true for the optimal price for suppliers and the fraction of suppliers in the electronic market. In other words, the parameters that define the buyers also affect the optimal price for suppliers and the fraction of suppliers in the electronic market, and vice versa. Our results also point to some counterintuitive optimal pricing strategies that depend on the nature of the industry served by the marketplace.

Evolution of Prices in Electronic Markets Under Diffusion of Price-Comparison Shopping

Abstract: Price-comparison engines allow customers to compare product offerings of online sellers and reveal almost complete information on the alternatives, and hence create erosion in store loyalty Consequently,the competitive dynamics of online sales are affected in markets where price-comparison shopping is diffusing rapidly We develop a dynamic competitive pricing model that deals with an asymmetric duopolistic market where the segment sizes are determined through a diffusion process Our diffusion-of-innovations approach allows us to dynamically capture the proportion of informed and uninformed customers in a homogenous goods market We use this model to analyze how strategic profit-maximization behavior evolves over time This analysis shows that the increasing numbers of price-comparison shoppers pull prices down, and the rate at which prices decrease is shaped by the diffusion curve and brand preference Our analysis shows that stores with loyal customers, or with a preference for their brands, can attain higher profits further into the diffusion process The direct implication is that firms should use their information technology, operations, and marketing capabilities to create, enhance, and cultivate stronger preferences for, and loyalty to, their brand names to survive the inevitable information-rich markets of tomorrow

Enterprise Resource Planning

Abstract: (2002). Enterprise Resource Planning. Journal of Management Information Systems: Vol. 19, No. 1, pp. 11-15.

Information-Technology Investment Decisions: When Do Costs and Benefits in the Social Subsystem Matter?

Abstract: The inclusion of social subsystem costs and benefits in information technology (IT) investment choices has been a difficult problem for IT decision-makers. Past research has shown that although some organizations adequately and consistently consider social subsystem issues when making IT investment decisions, many do not. This demonstrates a discrepancy between prescriptive theory and descriptive evidence. Our study addresses this theory-practice disconnection by investigating which firms, and under what conditions IT investments are likely to follow or violate prescriptions. Data collected from a national sample of 200 firms shed light on the firm and situational factors that affect the consideration of social subsystem issues during the IT investment decision process. The amount of social subsystem disruption associated with the IT in question, the strategic relevance of the IT to the organization, and the firm's continuous-learning culture each have direct or interactive influences on the decision process. Specifically, they impact the consideration of social subsystem costs and benefits for IT investments. Organizational size and industry are unrelated to this facet of decision-making. Overall, the empirical results help us better understand (1) what kinds of IT decisions cause stronger evaluation of social subsystem costs and benefits, (2) what types of firms give the greatest consideration to these issues, and (3) which intangible social subsystem costs or benefits are seen as the most important.

Training for Crisis Decision-Making: Psychological Issues and Computer-Based Solutions

Abstract: Crises demand swift and effective decision-making; yet there are many problems in training personnel on the skills necessary to achieve the goals of crisis management. This paper has three objectives concerning training for crisis management. First we integrate diverse literatures and present a framework for an understanding of the unique challenges in crisis management training, and the role of training systems with capabilities for simulation, immersion, and critiquing. Second, we describe an example of a trainer for ship damage control, called DC-Train, which addresses these challenges. This system consists of a first-principles simulator that generates large numbers of realistic scenarios, an immersive multimedia interface that helps elicit psychological processes involved in actual crisis management, and a critiquing expert system that provides real-time and post-session feedback on human decision-making performance. Finally, we present an empirical method for evaluating the effectiveness of such a system for crisis management training. Results of evaluation experiments with participants in a ship damage control training program indicate that the described computer-based trainer has psychological realism and improves decision-making performance.