First-party content and market concentration on a B2B E-commerce platform – Theory and empirical evidence

2023 | Decision Support Systems | Citations: 0

Authors: Wei, Jianjiong; Wei, Xueqi; Zhang, Dawei (David); Liu, Jie

Abstract: In this study, we develop analytical models based on the Cournot competition mod ... Expand

Abstract: In this study, we develop analytical models based on the Cournot competition model to analyze the influence of substitutive first-party content (SFPC) on platform-based market concentration at different complementary firstparty content (CFPC) levels. We further use a unique dataset collected from an online B2B E-commence platform to validate our findings. We discover that at a low CFPC level, increased SFPC leads to fewer seller-posted products on the platform and crowds out third-party sellers, making the platform a more concentrated mar­ ket. When the CFPC level is high, third-party sellers' responses to increased SFPC turn the opposite: they fight back by posting more products on the platform. Consequently, the market becomes less concentrated and more competitive. To our knowledge, this study is among the first to explore the strategic use of SFPC and its influence on market concentration at different CFPC levels in the context of B2B E-commerce platforms. Collapse

Topics: business-to-business network effect electronic commerce business-to-consumer business model

Methods: mathematical model descriptive statistic parametric test ANOVA statistical hypothesis test

Continued usage of smart wearable devices (SWDs): cross-level analysis of gamification and network externality

2022 | Electronic Markets | Citations: 0

Authors: Tsai, Juin-Ming; Hung, Shiu-Wan; Lin, Guan-Ting

Abstract: With the increasing maturity of mobile networks and big data technology, smart w ... Expand

Abstract: With the increasing maturity of mobile networks and big data technology, smart wearable devices (SWDs) are regarded as a new technology trend following smartphones. Especially during the COVID-19 pandemic, the increase in telework and the growing interest in self-health monitoring have greatly promoted the market growth of SWDs. This study aimed to investigate the factors affecting the continued use of SWDs. A cross-level analysis model that integrates technical characteristics, gamification theory, perceived value theory, and network externality was constructed. A hierarchical linear model was employed to evaluate the data and test it against the hypotheses. The empirical results showed that, at the individual level, gamification enhances users’ value perceptions. Users pay more attention to rewards in gamification than to competition. Rewards were also found to effectively promote the users’ value perception and increase the intention to continue using the device. At the group level, the effect of network externality significantly influences the intention to continue using SWDs. Moreover, SWDs are associated with the phenomenon by which consumers conspicuously display and highlight their own characteristics, and this attribute is also a crucial factor enticing consumers to continue using SWDs. Developers should therefore establish clear product positioning and strengthen interactivity as early as possible to build a loyal customer base. Collapse

Topics: gamification mobile system smart bracelet smart watch network effect

Methods: survey hierarchical linear modeling descriptive statistic statistical hypothesis test literature study

News-Induced Dynamic Networks for Market Signaling: Understanding the Impact of News on Firm Equity Value

2021 | Information Systems Research | Citations: 0

Authors: Chen, Kun; Li, Xin; Luo, Peng; Zhao, J. Leon

Abstract: Firm relations, which inform the competitive environments of firms, are critical ... Expand

Abstract: Firm relations, which inform the competitive environments of firms, are critical to firm operations and are often factored into investor decisions. Previous studies and practices have considered relatively stable and long-term business relations as an indicator of firm market value. Public news often reports on business relations, especially dynamic and short-term opportunities and challenges involving different partners. Learning about firm relations from news is commonly done by human investors but has not been studied systematically in previous research, leading to a research opportunity in market signaling via dynamic firm relations. In this study, we propose a new approach to market signaling by leveraging text-mining methods to extract cobenefit/counter-benefit networks based on firms’ mutual or conflicting interests in business events. We find that the resulting networks in the long term are partially aligned with firm cooperation and competition relationships, confirming their semantic implications for investor perception and attention. Our empirical study further shows that dynamic networks formed in a short time period (measured by firm centrality in networks) have significant impacts on firm equity value, after controlling for market activities and other information from news, such as volume, sentiment, and comentions. We show that dynamic networks can provide additional value in predicting firm equity value over stable networks. Moreover, the negative effects of counter-benefit networks emerge rapidly and persist longer than the positive effects of cobenefit networks. This study provides new insights into investor perception of news and suggests new research directions for financial text mining. Our research findings on market signaling via news-induced networks also have an impact on financial practices, such as market analysis and automatic trading. Collapse

Topics: network effect database system supply chain management blog accounting

Methods: computational algorithm machine learning experiment longitudinal research natural language processing

Theories: cognitive attention theory

The impact of imitation on Chinese social commerce buyers’ purchase behavior: The moderating role of uncertainty

2021 | International Journal of Information Management | Citations: 0

Authors: Chen, Xiayu; Li, Yanrui; Davison, Robert M.; Liu, Yezheng

Abstract: The purpose of this study is to explore how buyers’ imitation of others’ online ... Expand

Abstract: The purpose of this study is to explore how buyers’ imitation of others’ online behavior is positively associated with purchase behavior. In addition, we consider the moderating role that product uncertainty, seller uncertainty and product fit uncertainty play in the relationship between imitation and purchase behavior. Users in China who have purchase experience on Xiaohongshu were chosen to test the hypotheses. Finally, longitudinal data from 282 respondents was collected. The findings show that imitation has a positive impact on purchase intention. Purchase intention positively affects actual purchase behavior. Product uncertainty and product fit uncertainty positively moderate the relationship between imitation and purchase intention. But seller uncertainty doesn’t moderate the relationship between imitation and purchase intention. Both theoretical and practical contributions are also considered. Collapse

Topics: social commerce knowledge sharing network effect decision making online community

Methods: survey longitudinal research PLS tool chi squared test theoretical contribution

Growth, Complexity, and Generativity of Digital Platforms: The Case of Otto.de

2019 | International Conference on Information Systems | Citations: 0

Authors: Fuerstenau, Daniel; Rothe, Hannes; Baiyere, Abayomi; Schulte-Althoff, Matthias; Masak, Dieter; Schewina, Kai

Abstract: We study the growth, complexity, and generativity of a digital platform—Otto.de. ... Expand

Abstract: We study the growth, complexity, and generativity of a digital platform—Otto.de. Through a longitudinal analysis of the company’s 65 GitHub open source repositories over a period of 6.5 years, we find a) support for a superlinear growth pattern, b) a structural split in the platform into two clusters, and c) indication that more active repositories will be more generative and in turn more popular. These findings have implications for scholars studying platform evolution as well as for companies opening up their internal IT platforms. Collapse

Topics: digital platform open source microservice architecture blog innovation management

Methods: regression analysis method descriptive statistic longitudinal research network analysis post analysis

Theories: signaling theory network effect theory

The Effects of Communication Networks and Turnover on Transactive Memory and Group Performance

2018 | Organization Science | Citations: 9

Authors: Argote, Linda; Aven, Brandy L.; Kush, Jonathan

Abstract: We theorize that the effect of membership turnover on group processes and perfor ... Expand

Abstract: We theorize that the effect of membership turnover on group processes and performance depends on a group’s communication network. We describe two mechanisms through which communication networks affect group performance: (1) the number of direct communication paths and (2) the clarity of the coordination logic. These mechanisms map onto two network dimensions: density, which affects a group’s behavior through the number of available communication paths, and centralization, which affects a group’s behavior through the clarity of the coordination logic. We empirically analyze the effects of turnover on the performance of fully connected all-channel networks and hub-and-spoke or wheel networks in an experiment of 109 four-person groups performing two collaborative problem-solving tasks. The greater number of direct communication paths enabled fully connected groups with stable membership to develop stronger transactive memory systems (TMSs) and perform better than fully connected groups that experienced turnover. By contrast, the clear coordination logic of perfectly centralized groups that experienced turnover facilitated more frequent dyadic communication, which enabled them to strengthen their TMSs, incorporate the contributions of new members, and improve their performance. Thus, our results indicate that communication networks condition the effect of membership turnover on group processes and performance. The online appendix is available at https://doi.org/10.1287/orsc.2017.1176. Collapse

Topics: team productivity problem solving programming language network effect task interdependence

Methods: experiment descriptive statistic mediation analysis robustness check theory development

Impact of Network Structure on Malware Propagation: A Growth Curve Perspective

2016 | Journal of Management Information Systems | Citations: 4

Authors: Guo, Hong; Cheng, Hsing Kenneth; Kelley, Ken

Abstract: Malicious software, commonly termed “malware,” continuously presents one of the ... Expand

Abstract: Malicious software, commonly termed “malware,” continuously presents one of the top security concerns, and causes tremendous worldwide financial losses for organizations. In this paper, we propose a structural risk model to analyze malware propagation dynamics measured by a four-parameter (asymptote, point of inflection, rate, and infection proportion at inflection) growth curve. Using both social network data and technological network infrastructure from a large organization, we estimate the proposed structural risk model based on incident-specific nonlinear growth curves. This paper provides empirical evidence for the explanatory power of the structural characteristics of the underlying networks on malware propagation dynamics. This research provides useful findings for security managers in designing their malware defense strategies. We also simulate three common malware defense strategies (preselected immunization strategies, countermeasure dissemination strategies, and security awareness programs) based on the proposed structural risk model and show that they outperform existing strategies in terms of reducing the size of malware infection. Collapse

Topics: malware social network logistics management MySpace IT security

Methods: simulation regression analysis method descriptive statistic network analysis computational algorithm

Can Informal Communication Networks Disrupt Coordination in New Product Development Projects?

2015 | Organization Science | Citations: 8

Authors: Sosa, Manuel E.; Gargiulo, Martin; Rowles, Craig

Abstract: This paper investigates how the structure of the informal communication network ... Expand

Abstract: This paper investigates how the structure of the informal communication network that results from efforts to coordinate task interdependence between design teams in complex product development projects moderates the effect of task interdependence on interteam communication. Drawing on theoretical mechanisms from the social network and knowledge transfer literature, as well as on recent empirical advances in exponential random graphs models of social networks, we examine how the presence of a common third party in the communication network affects the likelihood of technical communication between interdependent teams designing the components of a large commercial aircraft engine. Although task interdependence has a strong and significant effect on the likelihood of communication between teams, this effect is moderated by the presence of common third parties. The nature of this moderation depends on the position of the common third party within the triadic communication structure. When the common third party seats in the middle of a communication chain between the potential source and the potential recipient of technical communication, its presence increases the likelihood of communication between these two teams. However, when the communication between the source and recipient can trigger cyclic exchanges between the three teams, the presence of the third party reduces the likelihood of communication between the two interdependent teams, increasing the risk of coordination disruptions. We discuss the implications of our findings on the literature of intraorganizational networks in new product development. Collapse

Topics: task interdependence network effect new product development social network information exchange

Methods: cluster analysis qualitative interview theory development simulation field study

Theories: organizational theory

Predicting online channel acceptance with social network data

2014 | Decision Support Systems | Citations: 9

Authors: Verbraken, Thomas; Goethals, Frank; Verbeke, Wouter; Baesens, Bart

Abstract: The goal of this paper is to identify a new way to predict whether a specific pe ... Expand

Abstract: The goal of this paper is to identify a new way to predict whether a specific person believes buying online is appropriate for a specific product. By analyzing data that was gathered through a survey, we show that knowledge of a person's social network can be helpful to predict that person's e-commerce acceptance for different products. Our experimental setup is interesting for companies because (1) knowledge about only a small number of connections of potential customers is needed, (2) knowing the intensity of the relation is not necessary, and (3) data concerning variables such as age, gender and whether one likes working with the PC is not needed. Hence, companies can rely on publicly available data on their customers' social ties. Network-based classifiers tend to perform especially well for highly durable goods and for services for which few customers think it is appropriate to reserve them online. Collapse

Topics: social network logistics management electronic commerce internet technology information system use

Methods: machine learning survey logistic regression regression analysis method descriptive statistic

Theories: social contagion theory

Dual Signals: How Competition Makes or Breaks Interfirm Social Ties

2013 | Organization Science | Citations: 0

Authors: Trapido, Denis

Abstract: Research has documented the benefits of social ties across boundaries of competi ... Expand

Abstract: Research has documented the benefits of social ties across boundaries of competing firms but has not specified when competition enables such ties or when it damages them. Ninety semistructured interviews sought to elicit answers to this question from leaders of drug development companies in the San Francisco Bay Area. The informants reported withholding social ties from counterparts in competing companies if these companies affirmed to them the goal conflict aspect of the competition relation; they reported social connectedness to individuals in competing companies if these companies affirmed to them joint professional affiliation, the other necessary aspect of competition. Unique quantitative data on competition and social relations in the Bay Area's drug development industry confirmed this pattern for weak social ties (acquaintance). Strong social ties (friendship) were not affected by any examined organizational or interorganizational factors. Collapse

Topics: network effect database system

Methods: qualitative interview survey Lagrange multiplier test descriptive statistic personal interview