Multi-Homing Revisited: Level of Adoption and Competitive Strategies

2021 | Management Information Systems Quarterly | Citations: 0

Authors: Barua, Anitesh; Mukherjee, Rajiv

Abstract: Aided by the increasing ease of use, lower adoption cost, and higher network be ... Expand

Abstract: Aided by the increasing ease of use, lower adoption cost, and higher network benefits, consumers are demonstrating a strong propensity to concurrently use competing firms' products or services. Depending on their relative preference for a firm, such "multi-homing" consumers may adopt each firm partially and therefore contribute to the network benefits of no firm fully, as would be the case with single-homing. Consumers' level of adoption of competing products is a key feature of multihoming, which, while observed widely in practice, has not previously been studied in the literature. Through a series of analytical models, we demonstrate the important role of this construct in the pricing and capability-related decisions of competing firms. Our results provide several new insights, which suggest that as multi-homing (M) settings become common across industries, technology strategists and managers should exercise caution against simply extrapolating insights from singlehoming (S) settings, where consumers adopt only one firm, or from M settings, where the level of adoption is not accounted for. Specifically, in markets where competing products are not well differentiated, contrary to intuition, we find that under price competition, a firm's profit can be hurt by high levels of adoption by multi-homing consumers; further, in markets where prices are inflexible, a firm with a higher level of adoption can succeed even with a lower level of capability innovation relative to that of an S setting. In contrast to single-homing settings, we show that firms in M settings need to mitigate uncertainty regarding network benefits if the level of adoption is low. Finally, we explore the role of adoption level in two-sided markets and demonstrate that if one side does not have a strong preference for a platform, then, contrary to prevailing wisdom, the latter need not strongly subsidize the other side of the market. Collapse

Topics: network effect innovation management virtualization technology product differentiation Microsoft Windows

Methods: optimization model mathematical model

A multivariate approach for multi-step demand forecasting in assembly industries: Empirical evidence from an automotive supply chain

2021 | Decision Support Systems | Citations: 0

Authors: Gonçalves, João N.C.; Cortez, Paulo; Carvalho, M. Sameiro; Frazão, Nuno M.

Abstract: Demand forecasting works as a basis for operating, business and production plann ... Expand

Abstract: Demand forecasting works as a basis for operating, business and production planning decisions in many supply chain contexts. Yet, how to accurately predict the manufacturer’s demand for components in the presence of endcustomer demand uncertainty remains poorly understood. Assigning the proper order quantities of components to suppliers thus becomes a nontrivial task, with a significant impact on planning, capacity and inventory-related costs. This paper introduces a multivariate approach to predict manufacturer’s demand for components throughout multiple forecast horizons using different leading indicators of demand shifts. We compare the autoregressive integrated moving average model with exogenous inputs (ARIMAX) with Machine Learning (ML) models. Using a real case study, we empirically evaluate the forecasting and supply chain performance of the multivariate regression models over the component’s life-cycle. The experiments show that the proposed multivariate approach provides superior forecasting and inventory performance compared with traditional univariate benchmarks. Moreover, it reveals applicable throughout the component’s life-cycle, not just to a single stage. Particularly, we found that demand signals at the beginning of the life-cycle are predicted better by the ARIMAX model, but it is outperformed by ML-based models in later life-cycle stages. Collapse

Topics: supply chain management logistics management procurement management enterprise resource planning decision support

Methods: longitudinal research time series analysis regression analysis method autoregressive integrated moving average case study

How Digital Innovation Labs Use Knowledge: Access Strategies and Recombination Paths

2021 | International Conference on Information Systems | Citations: 6

Authors: Hund, Axel; Beimborn, Daniel; Wagner, Heinz-Theo; Legl, Sven; Holotiuk, Friedrich

Abstract: Current research on digital innovation mainly focuses on the recombination of d ... Expand

Abstract: Current research on digital innovation mainly focuses on the recombination of digital and physical components, yet little attention is given to the recombination of knowledge. Since digital technology enables access to virtually unlimited amounts of knowledge, we explore the strategies used by Digital Innovation Labs to access different types of knowledge and uncover five distinct knowledge recombination paths. Based on our results we develop seven propositions that address the role of different types of knowledge involved in recombination. In doing so, we take a first step toward unraveling the pathways of knowledge recombination and highlight the importance of knowledge recombination for future research on digital innovation. Collapse

Topics: innovation management digital innovation knowledge type communication service infrastructure video conference

Methods: qualitative interview case study experiment multiple case study theoretical contribution

Expert Blogs and Consumer Perceptions of Competing Brands

2017 | Management Information Systems Quarterly | Citations: 31

Authors: Luo, Xueming; Gu, Bin; Zhang, Jie; Phang, Chee Wei

Abstract: Social media-based expert blogs are a crucial and credible online information so ... Expand

Abstract: Social media-based expert blogs are a crucial and credible online information source for consumers, yet little is known about the role of expert blogs for general consumer brand perceptions that bestow long-term value for the firm. On the basis of a novel dataset with 7,871 brand-day observations of over 131,000 expert blogs on major brands in the PC industry, this study reveals how expert blogs may act as a quality signal leading general consumers’ perceptions of rival brands. Our analyses reveal three key insights: (1) Expert blog sentiments and volume on a focal brand have a positive relationship with consumer perceptions of the focal brand but a negative relationship with those of its competing brands. (2) The focal brand’s blogs have a reinforcing relationship with its subsequent blogs and a cannibalistic relationship with competitors’ subsequent blogs. (3) Brand position (leading versus non-leading in the market) plays a nontrivial role in these competitive, dynamic relationships. For example, a 1 percent unexpected increase in Acer’s expert blog sentiment would be associated with a 1.5 percent lift in its own brand quality as perceived by consumers, thus winning more consumer hearts and minds. Also, a 1 percent unexpected increase in Acer’s expert blog sentiment would be associated with a .7 percent (Toshiba) to 1.5 percent (Sony Vaio) drop in its rival brand quality, thus undermining consumer hearts and minds of competing brands in the same industry. Also, the effects are asymmetrical across leading versus non-leading brands as a 1 percent unexpected increase in expert blog sentiment is associated with a 1.6 percent drop in rival-brand quality perceptions among consumers for non-leading brands, vis-à-vis only a 0.88 percent drop for leading brands. For researchers and managers, these results unravel some neglected benefits of expert blogs. Collapse

Topics: blog social media marketing management advertising management research and development

Methods: Mann Whitney U test parametric test Student's t-test statistical hypothesis test descriptive statistic

Theories: signaling theory

Adverse Effects of CEO Family-to-Work Conflict on Firm Performance

2017 | Organization Science | Citations: 0

Authors: Reina, Christopher S.; Peterson, Suzanne J.; Zhang, Zhen

Abstract: We examine whether chief executive officers’ (CEOs’) experiences occurring outsi ... Expand

Abstract: We examine whether chief executive officers’ (CEOs’) experiences occurring outside the work domain influence the performance of their respective firms. We suggest that the family-to-work conflict (FWC) that CEOs experience depletes their ability to self-regulate, thereby reducing their ability to make appropriately comprehensive decisions for their firms. This reduced decision-making comprehensiveness, in turn, has negative implications for firm performance. We further propose that CEOs’ levels of job engagement, or the extent to which they invest themselves in their work, can expand their capacity to withstand the negative effects of self-regulatory depletion. We test our hypotheses using a sample of 98 CEOs from the United States computer software and hardware industry. Findings confirm that reduced decision-making comprehensiveness represents one mechanism by which the experience of FWC in CEOs harms the performance of their firms. Moreover, CEO job engagement buffers both the negative effect of CEO FWC on decision-making comprehensiveness and the strength of the indirect relationship between FWC and firm performance via decision-making comprehensiveness. Collapse

Topics: decision making organizational productivity personality accounting computer hardware

Methods: survey theory development descriptive statistic chi squared test statistical hypothesis test

Theories: upper echelons theory

Digital Business Convergence and Emerging Contested Fields: A Conceptual Framework

2017 | Journal of the Association for Information Systems | Citations: 18

Authors: Seo, Dongback

Abstract: Due to innovations in digital technologies, organizations that used to practice ... Expand

Abstract: Due to innovations in digital technologies, organizations that used to practice their business in discrete industries now confront radically transformed environments with new competitors from other industries. To understand this phenomenon of digital business convergence, I adopt the theory of strategic action fields from the literature on social movements and organizations. I use elements of this theory to analyze the actions of organizations in contested fields instead of taking a vertical, horizontal, or single-industry perspective. Specifically, I look at how organizations use different types of mobilizabilities (political, social, and technological) to influence the emergence and evolution of contested fields. This paper raises research questions about digital business convergence, suggests ways to investigate those questions, and provides a conceptual framework to study organizations’ strategies and behaviors from a strategic action field perspective. Collapse

Topics: digital business electronic business digital innovation innovation management entrepreneurship

LEO in East Europe 1963-1974

2016 | Communications of the Association for Information Systems | Citations: 0

Authors: Land, Ralph Richard

Abstract: I became responsible for developing the market for computers in Eastern and Cent ... Expand

Abstract: I became responsible for developing the market for computers in Eastern and Central Europe during the early days of the expansion of the computer industry in 1963 until 1974. In this paper, I describe LEO’s successful entry into that market to take what I believe to have been a leading position during my period as export manager. We primarily achieved this position due to LEO’s achieving a deep understanding of the special features driving this market during the Cold War, which enabled LEO to meet the market’s needs more successfully. Collapse

Topics: IT career IT job armed conflict

An Empirical Analysis of Software-as-a-Service Development Mode and Its Impacts on Firm Performance

2014 | International Conference on Information Systems | Citations: 0

Authors: Chen, Yuanyuan; Huang, Yuxin

Abstract: We address the following two research questions: (1) under what circumstances wi ... Expand

Abstract: We address the following two research questions: (1) under what circumstances will firms prefer internal SaaS development to external sourcing? and (2) how does the SaaS development mode affect firm performance? We examine the SaaS development actions in the computer industry (SIC code 737) from 2003 to 2012. The preliminary analysis results suggest that firms with large amount of working capital can consider developing SaaS application in-house. However, if firms have high level of R&D capability, they may have better absorptive capability of technology innovation. Firms can grasp SaaS innovation through external sourcing. Our results indicate that the strategic decision of SaaS development mode will have short-term impact on firm performance (i.e., gross margin and market share), but not for the long-run performance (Tobins’q). Collapse

Topics: software as a service organizational productivity systems development accounting cloud computing

Methods: propensity score matching econometric modeling cross sectional research descriptive statistic theoretical contribution

A research case study: Difficulties and recommendations when using a textual data mining tool

2013 | Information & Management | Citations: 0

Authors: Al-Hassan, Abeer A.; Alshameri, Faleh; Sibley, Edgar H.

Abstract: Although many interesting results have been reported by researchers using numeri ... Expand

Abstract: Although many interesting results have been reported by researchers using numeric data mining methods, there are still questions that need answering before textual data mining tools will be considered generally useful due to the effort needed to learn and use them. In 2011, we generated a dataset from the legal statements (mainly privacy policy and terms of use) on the websites of 475 of the US Fortune 500 Companies and used it as input to see what we could detect about the organizational relationships between the companies by using a textual data mining tool. We hoped to find that the tool would cluster similar corporations into the same industrial sector, as validated by the company's self-reported North American Industry Classification System code (NAICS). Unfortunately, this proved only marginally successful, leading us to ask why and to pose our research question: What problems occur when a data-mining tool is used to analyze large textual datasets that are unstructured, complex, duplicative, and contain many homonyms and synonyms? In analyzing our large dataset we learned a great deal about the problem and fortunately, after significant effort, determined how to “massage” the raw dataset to improve the process and learn how the tool can be better used in research situations. We also found that NAICS, as self-reported by companies, are of dubious value to a researcher—a matter briefly discussed. Collapse

Topics: website privacy knowledge representation database system healthcare data

Methods: cluster analysis machine learning descriptive statistic experiment case study

The Rise and Fall of Small Worlds: Exploring the Dynamics of Social Structure

2012 | Organization Science | Citations: 16

Authors: Gulati, Ranjay; Sytch, Maxim; Tatarynowicz, Adam

Abstract: This paper explores the interplay between social structure and economic action b ... Expand

Abstract: This paper explores the interplay between social structure and economic action by examining some of the evolutionary dynamics of an emergent network that coalesces into a small-world system. The study highlights the small-world system's evolutionary dynamics at both the macro level of the network and the micro level of an individual actor. This dual analytical lens helps establish that, in competitive and information-intensive settings, a small-world system could be a highly dynamic structure that follows an inverted U-shaped evolutionary pattern, wherein an increase in the small-worldliness of the system is followed by its later decline as a result of three factors: (1) the recursive relationship between the evolving social structure and individual actors' formation of bridging ties, which eventually homogenizes the information space and decreases actors' propensity to form bridging ties, creating a globally separated network; (2) self-containment of the small-world network, or increasing homogenization of the social system, which makes the small world less accepting of and less attractive to new actors, thereby limiting formation of bridging ties to outside clusters; and (3) fragmentation of the small-world network, or the small-world system's inability to retain current clusters. The study uses data on interorganizational tie formation in the global computer industry in the period from 1996 to 2005 to test the hypothesized relationships. Collapse

Topics: social network database system

Methods: cluster analysis longitudinal research robustness check autocorrelation analysis simulation

Theories: organizational behavior theory organizational theory