Showing papers in "The Missouri Review in 2006"

An Empirical Examination of the Influence of Organizational Culture on Knowledge Management Practices

Abstract: Knowledge management to facilitate the creation, storage, transfer, and application of knowledge in organizations has received wide attention in practice and research in the past several years. Often cited as a significant challenge in knowledge management practices is the issue of organizational culture. Although many studies raise the issue of organizational culture's influence on knowledge management success, few investigate the way in which this influence manifests itself. This paper aims to explore how organizational culture influences knowledge management practices. Using a case study method, we examine the cultural values and knowledge management approaches within a large global information services company and one of its knowledge communities. The findings highlight the influence of culture on the use of knowledge management technologies and the outcomes of such use.

Do I Trust You Online, and If So, Will I Buy? An Empirical Study of Two Trust-Building Strategies

Abstract: This research investigates the effectiveness of various trust-building strategies to influence actual buying behavior in online shopping environments, particularly for first-time visitors to an Internet store that does not have an established reputation. Drawing from the literature on trust, we developed a model of how trust-building strategies could affect trust and the consequences of trust. We investigated two trust-building strategies: portal association (based on reputation categorization and trust transference) and satisfied customer endorsements (based on unit grouping, reputation categorization, and trust transference). A series of two studies was conducted at a large public university in Hong Kong. The first study employed a laboratory experiment to test the model in an online bookstore environment, using a real task that involves actual book purchases. Of the two strategies investigated, satisfied customer endorsement by similar peers, but not portal association, was found to increase consumers' trusting beliefs about the store. This, in turn, positively influenced consumers' attitudes toward the store and their willingness to buy from the store, which ultimately led to actual buying behaviors. To gather further insights on the two Web strategies investigated, a second study was conducted using a questionnaire survey approach. Overall, the findings corroborated those in the first study. Specifically, it shows that endorsements by similar (local, nonforeign) peers, but not by dissimilar (foreign) peers, were effective means of developing trust among first-time visitors to online stores.

How Presentation Flaws Affect Perceived Site Quality, Trust, and Intention to Purchase from an Online Store

Abstract: Although there has been a great deal of research on impression formation, little application of that research has been made to electronic commerce. A research model was constructed that hypothesized errors, poor style, and incompleteness to be inversely related to the users' level of perceived quality of an online store. Further, this perceived quality of the online store's Web site would be directly related to users' trust in the store and, ultimately, to users' intentions to purchase from the store. An experimental study with 272 undergraduate and graduate student volunteers supported all the hypotheses. In addition, it was found that the relationship between the factors and perceived quality was mediated by the perception of the flaws. The perception of flaws rather than the actual flaws influenced users' perception of quality. Supplemental analysis also seemed to indicate a pattern of diminishing effects with each subsequent flaw.

Relational Antecedents of Information Flow Integration for Supply Chain Coordination

Abstract: A new model of competition, where competition is among supply chain networks rather than individual firms, is transforming traditional market-based buyer-supplier relations to one of competition among cooperative sets. In order to integrate and realize performance gains from participating in cooperative supply networks, the importance of information sharing across the supply chain has been emphasized in different literature streams. In this study, we examine the relational antecedents of this critical aspect of supply chain integration-that is, information flow integration. Our objective is to investigate the relationship between relational orientation of the focal firm, as characterized by (1) long-term orientation of its supply chain relationships, (2) asset specificity, and (3) interaction routines and the information flow integration between a firm and its supply chain partners. A research model was developed and data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that tangible and intangible resources invested in supply chain relationships enable the integration of information flows with supply chain partners. Specifically, formal and informal interaction routines that take time and effort to develop enable integration of informational flows across a firm's supply chain. Investments in relation-specific assets and long-term orientation in relationships enable the development of these interaction routines.

Understanding Business Process Change Failure: An Actor-Network Perspective

Abstract: In this paper, we use concepts from actor-network theory (ANT) to interpret the sequence of events that led to business process change (BPC) failure at a telecommunications company in the United States. Through our intensive examination of the BPC initiative, we find that a number of issues suggested by ANT, such as errors in problematization, parallel translation, betrayal, and irreversible inscription of interests, contributed significantly to the failure. We provide nine abstraction statements capturing the essence of our findings in a concrete form. The larger implication of our study is that, for sociotechnical phenomena such as BPC with significant political components, an ANT-informed understanding can enable practitioners to better anticipate and cope with emergent complexities.

Moderating Effects of Task Type on Wireless Technology Acceptance

Abstract: The technology acceptance model (TAM) is one of the most widely used models of information technology (IT) adoption. According to TAM, IT adoption is influenced by two perceptions: usefulness and ease of use. In this study, we extend TAM to the mobile commerce context. We categorize the tasks performed on wireless handheld devices into three categories: (1) general tasks that do not involve transactions and gaming, (2) gaming tasks, and (3) transactional tasks. We propose a unified conceptual model for wireless technology adoption. In this model, task type moderates the effects of four possible determinants: perceived usefulness, perceived ease of use, perceived playfulness, and perceived security. We postulate that, under the mobile context, user intention to perform general tasks that do not involve transactions and gaming is influenced by perceived usefulness and perceived ease of use, user intention to play games is affected by perceived playfulness, and user intention to transact is influenced by perceived usefulness and perceived security. A survey was conducted to collect data about user perception of 12 tasks that could be performed on wireless handheld devices and user intention to use wireless technology. Multiple regression analyses supported the proposed research model.

An Information Systems Security Risk Assessment Model Under the Dempster-Shafer Theory of Belief Functions

Abstract: This study develops an alternative methodology for the risk analysis of information systems security (ISS), an evidential reasoning approach under the Dempster-Shafer theory of belief functions. The approach has the following important dimensions. First, the evidential reasoning approach provides a rigorous, structured manner to incorporate relevant ISS risk factors, related countermeasures, and their interrelationships when estimating ISS risk. Second, the methodology employs the belief function definition of risk--that is, ISS risk is the plausibility of ISS failures. The proposed approach has other appealing features, such as facilitating cost- benefit analyses to help promote efficient ISS risk management. The paper elaborates the theoretical concepts and provides operational guidance for implementing the method. The method is illustrated using a hypothetical example from the perspective of management and a real-world example from the perspective of external assurance providers. Sensitivity analyses are performed to evaluate the impact of important parameters on the model's results.

A Virtual Integration Theory of Improved Supply-Chain Performance

Abstract: Organizing and maintaining a competent and flexible supply chain is a major challenge to manufacturers in today's increasingly competitive and uncertain environments. Virtual integration represents the substitution of ownership with partnership by integrating a set of suppliers through information technology (IT) for tighter supply-chain collaboration. From the systems and control perspectives, this study develops a theory of virtual integration with an empirical model to examine the role that virtual integration plays in facilitating manufacturers to achieve greater manufacturing flexibility and comparative cost advantage. Based on a survey of Taiwanese manufacturing firms, our results show that environmental uncertainty tends to motivate manufacturers to increase their manufacturing flexibility, with both virtual integration and supplier responsiveness playing a vital enabling role. The results demonstrate the importance of supplier responsiveness for manufacturers to gain manufacturing flexibility and comparative cost advantage in supply-chain operations. Environmental uncertainty, thus, might first appear as a threat to a manufacturer, but with the help of IT and more responsive suppliers, such a threat could be transformed into a competitive edge, as reflected in the manufacturer's higher levels of manufacturing flexibility and comparative cost advantage.

Digital Inclusiveness--Longitudinal Study of Internet Adoption by Older Adults

Abstract: In order to build a digital inclusive society, both government and nongovernment organizations in countries such as China, Japan, Korea, Singapore, Taiwan, the United Kingdom, and the United States have been offering training programs to the general public and establishing communitywide public access computer facilities in recent years. However, offering training programs and enabling access to facilities are not sufficient on their own if, due to other reasons, the socially disadvantaged groups do not choose to make use of the facilities. As an exploratory investigation, this study focuses on the voluntary adoption of these facilities (typified by the Internet) by one such disadvantaged group--older adults. In particular, this study investigates the role of Internet self-efficacy and outcome expectations in older adults' usage of the Internet through a three-part longitudinal study, involving almost 1,000 participants. A theoretical model based on social cognitive theory was developed and empirically tested through both surveys and lab experiments. Behavioral modeling training courses were offered to adults age 55 or older in the study over a one-year period. Questionnaire surveys and cognitive knowledge assessments were conducted. In general, the findings in the longitudinal study (including three repeated measures) validated the affects of Internet self-efficacy and outcome expectations on usage intention, and the important roles of support and encouragement in the formation of self-efficacy and outcome expectations. Limitations and implications are discussed.

Evaluating the Adoption of Enterprise Application Integration in Health-Care Organizations

Abstract: The integration of heterogeneous information systems has always been problematic in health-care organizations, as it is associated with the delivery of key services and has high operational costs. Therefore, health-care organizations are looking for new means to increase their functional capabilities and reduce integration cost. In addressing this need, enterprise application integration (EAI) technology has emerged to facilitate systems integration, enhance the quality of services, and reduce integration costs. Despite the application of EAI in other sectors, its adoption in health care is slow. In seeking to build on the limited normative research surrounding EAI, the authors of this paper focus on the evaluation of factors that influence EAI adoption in the health-care sector. In doing so, using fuzzy cognitive mapping as a technique to identify causal interrelationships among the EAI adoption factors. This approach will enhance the quality of the evaluation process and emphasizes the importance of each factor and its interrelationship with other factors. The outcomes shown in this paper will support health-care organizations' decision makers in exploring the implications surrounding EAI adoption.

The Role of Knowledge Repositories in Technical Support Environments: Speed Versus Learning in User Performance

Abstract: Knowledge repositories are commonly used by technical support analysts in call center environments as a way of capturing and reusing solutions to common problems, and are generally expected to improve service quality, reduce costs, and enhance analyst learning. This study investigates why technical support analysts seek out and access knowledge from these repositories, as opposed to more traditional sources of such knowledge--colleagues and manuals. Focusing on the demand for--rather than supply of--knowledge in organizations, our research elaborates the role played by analysts' learning orientation, perceived work demands, and risk aversion in predicting their knowledge sourcing behavior. Our results include several counterintuitive findings that suggest there is not very much learning going on via technical support knowledge repositories. Analysts seem to be focused on finding recipes for solving customers' problems rather than building a better understanding of the products they support. Implications for research and practice highlight the need for more effective technologies to speed searches, the utility of a formal and visible mechanism for validating knowledge, and the inherent tension between efficiency and learning in these environments.

Information Systems Success in the Context of Different Corporate Cultural Types: An Empirical Investigation

Abstract: Previous studies surrounding the DeLone and McLean model of information systems (IS) success have called for future research and further examination of its measure in different contexts. We draw from the literature on strategic IS planning and organizational culture to contextualize the DeLone and McLean model. There is some evidence that a high-quality information technology (IT) plan leads to system success; therefore, we empirically examine the inclusion of the IT plan quality construct as an antecedent to IS success. We also empirically examine the relationships among constructs in the model of IS success in the context of different corporate cultural types-entrepreneurial and formal. The results provide strong support for the research model and suggest that variations in IS success are explained by the quality of the IT plan and the corporate culture exhibited by a firm. We discuss implications related to our finding that IT plan quality has a greater impact on IS success in organizations that exhibit an entrepreneurial corporate culture than in those that exhibit a formal corporate culture. Furthermore, we discuss how the relationships in the DeLone and McLean model of IS success differ in diverse corporate cultural types and the meaning of these differences.

The Market's Perception of the Transactional Risks of Information Technology Outsourcing Announcements

Abstract: Despite the fact that several event studies have investigated the market's reaction to information technology (IT) investment announcements, little is known about how specific transactional risks influence the market value of a firm. This study examines stock market data to assess investors' responses to various transactional risks associated with IT outsourcing. More specifically, we develop and test several hypotheses to understand how transactional risks that arise due to a range of factors (i.e., the size of outsourcing contracts, difficulties in performance monitoring, asset specificity of IT resources, vendor capability, and the lack of cultural similarity between client and vendor firms) influence investors' reactions to IT outsourcing announcements. Our results indicate that most of these factors indeed significantly influence investors' perceptions of the risks involved in IT outsourcing. We discuss these findings in a larger organizational context and offer implications for both research and practice. In particular, our study offers a theoretical rationale for why negative reactions to IT outsourcing announcements may occur, while providing practitioners with several means by which they can increase the informational value of outsourcing arrangements.

Information Technology, Production Process Outsourcing, and Manufacturing Plant Performance

Abstract: What is the role of information technology (IT) in enabling the outsourcing of manufacturing plant production processes? Do plant strategies influence production outsourcing? Does production process outsourcing influence plant performance? This research addresses these questions by investigating the role of IT and plant strategies as antecedents of production outsourcing, and evaluating the impact of production outsourcing and IT investments on plant cost and quality. We develop a theoretical framework for the antecedents and performance outcomes of production outsourcing at the plant level. We validate this theoretical framework using cross-sectional survey data from U.S. manufacturing plants. Our analysis suggests that plants with greater IT investments are more likely to outsource their production processes, and that IT investments and production outsourcing are associated with lower plant cost of goods sold and higher product quality improvement. Our research provides an integrated model for studying the effects of IT and production outsourcing on plant performance.

Turning a Community into a Market: A Practice Perspective on Information Technology Use in Boundary Spanning

Abstract: This paper examines how information technology (IT) transforms relations across fields of practice within organizations. Drawing on Bourdieu's practice theory, we argue that the production of any practice involves varying degrees of embodiment (i.e., relying on personal relationships) and objectification (i.e., relying on the exchange of objects). We subsequently characterize boundary-spanning practices according to their relative degrees of embodiment and objectification. We distinguish between "market-like" boundary-spanning practices, which rely primarily on an objectified mode of practice production, from "community-like" practices, which involve mostly the embodied mode of practice production. IT is then conceptualized as a medium for sharing objects in the production of practices. As such, IT use allows for the sharing of objects without relying on embodied relationships. We use data from an in-depth ethnographic case study to investigate how IT was used to transform community-like boundary-spanning practices within an organization into market-like ones. Moreover, we demonstrate how, as IT was used to support the exchange and combination of depersonalized objects, other aspects of the practice (such as the roles of intermediaries and the nature of meetings) also changed. The related changes in these diverse aspects of a boundary-spanning practice supported the trend toward greater objectification. IT use also increased visibility of the terms associated with object exchange. This increased visibility exposed the inequity of the exchange and encouraged the disadvantaged party to renegotiate the relationship.

Involvement and Decision-Making Performance with a Decision Aid: The Influence of Social Multimedia, Gender, and Playfulness

Abstract: This research explores how multimedia vividness and the use of computer-based social cues can influence involvement with technology and decision-making outcomes. An experiment is conducted that examines the effect that increased levels of vividness (text, voice, and animation) and decision aid personality have on decision-making involvement. In addition, the influence of two individual differences, gender and computer playfulness, on decision aid involvement are investigated. The cost-benefit framework of decision making and related research on consumer information processing provide the theoretical foundation for the study and suggest how increased involvement may influence decision making. Several decision-making outcomes are measured, including decision effort, decision quality, satisfaction with the decision aid, and understanding of the decision aid. Findings indicate that personality similarity (between the user and the decision aid) and computer playfulness result in increased involvement with the decision aid. In addition, women report higher levels of involvement with the decision aid. Increased levels of multimedia vividness are found to have a contradictory effect, with animation actually reducing involvement with the decision aid. The findings are discussed in terms of theoretical contributions and practical interface design implications.

Collaborative Activities in Virtual Settings: A Knowledge Management Perspective of Telemedicine

Abstract: Advances in information and communications technology have made possible collaborative activities in virtual settings. Virtual settings can significantly expand the knowledge resources available, yet they also create additional challenges to the already difficult activities of collaborating. The purpose of this research is to provide a better understanding of how collaborative activities in virtual settings enable the different parties to achieve their desired objectives by examining them from a knowledge management perspective. Three aspects of knowledge management-- knowledge transfer, knowledge discovery, and knowledge creation--are examined in the context of telemedicine projects. The findings indicate that an association exists between the types of collaborative activities engaged in virtual settings and the effects such projects are perceived as having. While this research focuses only on virtual collaborative activities in health care, it is likely that these findings are applicable to other industries engaged in such activities in virtual settings.

An Assessment of Electronic Information Transfer in B2B Supply-Channel Relationships

Abstract: The basic premise of the extant literature related to electronic integration has been that the higher the integration, the higher will be the organizational performance. However, excessive electronic integration can be dysfunctional too. We make a conceptual argument that more is not always better and that the fit between contextual factors and electronic information sharing should be achieved to seek optimal channel performance. We empirically examine the fit between electronic information transfer (EIT) and contextual factors of a supply channel, our specific contribution being the assessment of fit in terms of multivariate congruence. The data required for this field study was collected from 124 managers/buyers responsible for supplier relationships in six multinational enterprises in two different industries (automobile and heavy shipbuilding) headquartered in Korea. The results ratify our hypothesis that multivariate congruence between EIT components and supply-channel contextual factors indeed exists. Follow-up drill-down analysis indicates that the monitoring component of EIT has a significant influence on demand uncertainty, and complexity-in-use is influenced by the coordination aspect of EIT. However, both the coordination and monitoring aspects of EIT are significantly relevant to interdependence of partners in a supply channel. A post hoc exploratory analysis suggests that the supply-channel performance is influenced by the fit between the contextual factors and the channel design factors. An inference of practical value that emerges from our findings is that more or less electronic integration is not the real issue. What is critical is the fit between supply-channel context and the level of electronic integration.

Field Experiences with eXtreme Programming: Developing an Emergency Response System

Abstract: eXtreme Programming (XP) is a well-known agile software development method. While a number of reports have been published on explaining the XP methodology and the perceived benefits when using XP for system development in recent years, less is known about the actual operationalization of the XP principles. This paper presents an action research study reporting on the experiences of implementing the XP methodology in a development project for a Web-based, distributed information system. The goal of this research was to increase the understanding of how to effectively operationalize XP techniques so that the system being developed catered to today's fast-paced technological environment by allowing the developers to respond quickly to innovative and changing requirements. Overall, the research indicates that most of the XP principles could be effectively implemented; however, three of the principles required modification (i.e., testing, pair programming, customer collocation). Several benefits resulted from the usage of XP. The rapid prototyping enabled information technology developers and users to clarify system requirements, communicate openly, quickly build rapport, and create an interface that was easy to use and learn. Further, the research found that where the technology was new or foreign to the development team and the user, the XP process was flexible enough to support several iterations of technology and produce prototypes in a timely manner. Pair programming appeared to work effectively and offer value; however, it is not always practically feasible.

Dynamic Knowledge Patterns to Inform Design: A Field Study of Knowledge Stocks and Flows in an Extreme Organization

Abstract: Knowledge represents a critical resource in the modern enterprise. But it is dynamic and distributed unevenly. Capitalizing on this dynamic resource for enterprise performance depends upon its rapid and reliable flows across people, organizations, locations, and times of application. From a technological perspective, this points immediately to the design of information systems to enhance knowledge flows. The problem is, the design of information systems to enhance knowledge flows requires new understanding. The research described in this paper concentrates on understanding the dynamics of knowledge phenomenologically and on developing and applying techniques for modeling and visualizing dynamic knowledge flows and stocks. We draw key, theoretical concepts from multiple literatures, and we build upon integrative modeling work that composes a parsimonious, multidimensional, analytical framework for representing and visualizing dynamic knowledge. We then conduct field research to learn how this theoretical framework may be used to model knowledge flows in practice. By focusing this empirical work on an extreme organization and processes that involve and rely upon tacit knowledge, we illustrate how dynamic knowledge patterns can inform design in new ways. New chunks of kernel theory deriving from this fieldwork are articulated in terms of a propositional model, which provides a basis for the development of testable design theory hypotheses.

Consumer Search and Retailer Strategies in the Presence of Online Music Sharing

Abstract: Advances in online technologies and bandwidth availability have opened new vistas for online distribution of digital goods, but potential benefits for consumers are juxtaposed against challenges for retailers. Here, we investigate one type of digital experience good-music-whose market environment includes the very real presence of online piracy. Although arguments abound for and against online distribution of such digital goods, little research exists in this area. We develop a model of consumer search for such an experience good, and study different emerging market environments for retailers, where consumers can pirate music online. Retailer cost to publishers is modeled using a variety of licensing schemas. Survey results, together with data from online sharing networks, are utilized to validate a key assumption. Finally, computational analysis is used to develop insights that cannot be obtained analytically. Our results indicate that decreasing piracy is not necessarily equivalent to increasing profit, and online selling strategies can provide additional profits for a traditional retailer even in the presence of piracy. We show that leading strategies for business in such goods should include pricing options, provision of efficient search tools, and new licensing structures.

ERP Misfit: Country of Origin and Organizational Factors

Abstract: There are many benefits of enterprise resource planning (ERP) systems, but their implementation is both complicated and difficult because the product spans functional silos and involves many internal and external entities. An ERP system is the outcome of social processes, and different ERP systems can embody distinct social arrangements when developed in different cultural contexts. Such social arrangements are difficult to change due the closure effect of technology stabilization. This leads to various misfit problems, both during and after ERP implementation, causing adverse effects on delivered ERP quality. With a survey of 85 ERP implementation cases in Taiwan, this study derives and empirically tests the main as well as the interaction effects of the country of origin of the ERP package, consultant quality, top management support, and user support of the ERP system quality as perceived by the client after implementation. The results demonstrate the important role of the country of origin of the ERP package and consultant quality in configuring a high-quality ERP system and alleviating the negative effect of misfit problems.

Coauthorship Dynamics and Knowledge Capital: The Patterns of Cross-Disciplinary Collaboration in Information Systems Research

Abstract: From the social network perspective, this study explores the ontological structure of knowledge sharing activities engaged in by researchers in the field of information systems (IS) over the past three decades. We construct a knowledge network based on coauthorship patterns extracted from four major journals in the IS field in order to analyze the distinctive characteristics of each subfield and to assess the amount of internal and external knowledge exchange that has taken place among IS researchers. This study also tests the role of different types of social capital that influence the academic impact of researchers. Our results indicate that the proportion of coauthored IS articles in the four journals has doubled over the past 25 years, from merely 40 percent in 1978 to over 80 percent in 2002. However, a significant variation exists in terms of the shape, density, and centralization of knowledge exchange networks across the four subfields of IS--namely, behavioral science, organizational science, computer science, and economic science. For example, the behavioral science subgroup, in terms of internal cohesion among researchers, tends to develop the most dense collaborative relationships, whereas the computer science subgroup is the most fragmented. Moreover, external collaboration across these subfields appears to be limited and severely unbalanced. Across the four subfields, on average, less than 20 percent of the research collaboration ties involved researchers from different subdisciplines. Finally, the regression analysis reveals that knowledge capital derived from a network rich in structural holes has a positive influence on an individual researcher's academic performance.

Information Processing Design Choices, Strategy, and Risk Management Performance

Abstract: We examined the relationship between information technology (IT) and organizational performance in the U.S. life/health insurance industry by applying and testing Galbraith's information processing theory and strategic contingency theory. Rather than focusing on resource allocations in IT, we instead examined the manner in which IT is deployed in organizations through information processing design choices. Our results suggest that while some information processing design choices are generally related to organizational performance, others should be matched to a specific strategic posture. For example, we found that all organizations benefit from using IT to increase cost-effectiveness. However, other uses of IT should be more closely aligned with an organization's strategy. In particular, domain offensive organizations should align their IT systems to focus on the front end of their operations and understanding customer needs, which will spur further innovation.

Systems Design, Process Performance, and Economic Outcomes in International Banking

Abstract: Information technology (IT) value remains a serious concern of management today, especially how it should be measured and how it is created. Although we have made significant progress at the firm and aggregate levels of analysis, process-level analysis is still in its infancy, and there is a need for a systematic basis for identifying IT effects. We provide such an approach by developing two models: a process performance model of how system characteristics enhance process output and quality and an economic performance model linking process performance to the economic performance of the firm. We apply these models to global trade services in international banking. We obtained estimates for key variables in both models and general support for the approach. We interpret our results and discuss the merits of the process-level approach for the assessment of IT-reliant work systems.

Consumer Perceptions and Willingness to Pay for Intrinsically Motivated Online Content

Abstract: Providing profitable online content has been an elusive goal, challenging many companies such as the New York Times, Disney/ABC/ESPN, and Microsoft/Slate. Charging for content has been hit-or-miss, attributable to a lack of generally applicable models of information value. Previous studies in the management information systems literature emphasized extrinsically motivated content (addressing tangible gains), while many sites target intrinsic goals such as entertainment or education. This study examines potential factors influencing willingness to pay for intrinsically motivated online content. Data from 392 college students indicate that even when analyzing content whose potential rewards are intangible and nonquantifiable, potential consumers focus on "expected benefits" as the main antecedent for willingness to pay. Other antecedents, such as perceived quality and provider reputation, only affected willingness to pay indirectly through expected benefits. Researchers are offered a baseline model for future study, and practitioners are advised to provide initial visitors a clear message about benefits of use to entice them to pay for content.

Analyzing Complementarities Using Software Stacks for Software Industry Acquisitions

Abstract: The existence of product complementarities is especially relevant in network-type industries, such as information technology and communications, where systems of complementary components made by different manufacturers have to be assembled. Relying on the characteristics of software markets and drawing on the economic theory of complementarities, this paper investigates how complementarities create value in mergers and acquisitions between software companies. We introduce and empirically validate the software stack as a structure to measure complementarities. In a sample of mergers and acquisitions, in which either the acquirer or the target is a software firm, we find values of abnormal returns consistent with previous results. However, when we use the concept of stack, we find an inverse curvilinear relationship between abnormal returns and the distance between acquirers and targets in various layers of the stack.

How Hypertext Links Influence Consumer Perceptions to Build and Degrade Trust Online

Abstract: This paper suggests and empirically supports the propositions that a link between two organizations' Web sites will have simultaneous effects on trust in both the link sender and the link recipient, and that these effects result from interactions among the reputation of the link recipient, trust in the link sender, and the perceived relationship of the linked organizations. The study finds that the perceived relationship caused by a link leads to positive effects for the less reputable of the linked organizations, but negative effects for the more reputable organization. These effects are exaggerated or attenuated depending on the reputation of the organization that sends the link. The effect of presenting the link as an advertisement or a link to a partner was also examined, but no effect was uncovered, raising the question of how organizations may effectively differentiate links on their Web sites.

On the Valuation of Multistage Information Technology Investments Embedding Nested Real Options

Abstract: As real options analysis (ROA) is being applied to increasingly complex information technology (IT) investment problems, a concern arises over the use of heuristic ROA models that are simpler to apply but can produce overvaluations. A good example is the application of a heuristic nested variation of the Black-Scholes (BS) model to the evaluation of interrelated IT investments as nested options. This particular heuristic BS model could overvalue by more than 100 percent. Using a binomial model that is custom-tailored to a generic IT investment embedding nested options as the "baseline," we identify conditions under which the degree of overvaluation of this heuristic BS model is severe and unpredictable. Moreover, upon examining the structure of the custom-tailored binomial model, we identify the reason for overvaluation and derive a more accurate nested variation of the BS model. These findings should serve as a cautionary message about the use of untested heuristic ROA models.

Buyers' Choice of Online Search Strategy and Its Managerial Implications

Abstract: The Internet offers several tools such as shopping bots and search engines that help potential buyers search for lower prices. This paper defines buyers' online search strategy as using one or more of these tools to search for lower prices, and empirically investigates the validity of economics of information search theory in explaining buyers' choice of a particular online search strategy. We find that buyers' attitudes toward the price offered by their preferred online seller, their perception of online price dispersion, and their awareness of shopping agents have a significant effect on their choice of online search strategy. An understanding of buyers' choice of online search strategies can help an online seller to estimate its expected probability of making an online sale, optimize its online pricing, and improve its online promotional and advertising activities.