On Predicting ESG Ratings Using Dynamic Company Networks

2023 | ACM Transactions on Management Information Systems | Citations: 0

Authors: Ang, Gary; Guo, Zhiling; Lim, Ee-Peng

Abstract: Environmental, social and governance (ESG) considerations play an increasingly i ... Expand

Abstract: Environmental, social and governance (ESG) considerations play an increasingly important role due to the growing focus on sustainability globally. Entities, such as banks and investors, utilize ESG ratings of companies issued by specialized rating agencies to evaluate ESG risks of companies. The process of assigning ESG ratings by human analysts is however laborious and time intensive. Developing methods to predict ESG ratings could alleviate such challenges, allow ESG ratings to be generated in a more timely manner, cover more companies, and be more accessible. Most works study the effects of ESG ratings on target variables such as stock prices or financial fundamentals of companies, but few works study how different types of company information can be utilized to predict ESG ratings. Previous works also largely focus on using only the financial information of individual companies to predict ESG ratings, leaving out the different types of inter-company relationship networks. Such inter-company relationship networks are typically dynamic, i.e., they evolve across time. In this paper, we focus on utilizing dynamic inter-company relationships for ESG ratings prediction, and examine the relative importance of different financial and dynamic network information in this prediction task. Our analysis shows that utilizing dynamic inter-company network information, based on common director, common investor and news event-based knowledge graph relationships, can significantly improve ESG rating prediction performance. Robustness checks over different time-periods and different number of time-steps in the future further validate these insights. Collapse

Topics: shapley additive explanation knowledge graph database system missing data network effect

Methods: machine learning econometric modeling longitudinal research Granger causality robustness check

Network Centralization and Collective Adaptability to a Shifting Environment

2023 | Organization Science | Citations: 1

Authors: Bernstein, Ethan S.; Shore, Jesse C.; Jang, Alice J.

Abstract: We study the connection between communication network structure and an organizat ... Expand

Abstract: We study the connection between communication network structure and an organization’s collective adaptability to a shifting environment. Research has shown that network centralization—the degree to which communication flows disproportionately through one or more members of the organization rather than being more equally distributed—interferes with collective problem-solving by obstructing the integration of existing ideas, information, and solutions in the network. We hypothesize that the mechanisms responsible for that poor integration of ideas, information, and solutions would nevertheless prove beneficial for problems requiring adaptation to a shifting environment. We conducted a 1,620-subject randomized online laboratory experiment, testing the effect of seven network structures on problem-solving success. To simulate a shifting environment, we designed a murder mystery task and manipulated when each piece of information could be found: early information encouraged an inferior consensus, requiring a collective shift of solution after more information emerged. We find that when the communication network within an organization is more centralized, it achieves the benefits of connectivity (spread of novel better solutions) without the costs (getting stuck on an existing inferior solution). We also find, however, that these benefits of centralization only materialize in networks with two-way flow of information and not when information only flows from the center of the network outward (as can occur in hierarchical structures or digitally mediated communication). We draw on these findings to reconceptualize theory on the impact of centralization—and how it affects conformity pressure (lock-in) and awareness of diverse ideas (learning)—on collective problem-solving that demands adaptation.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: The authors acknowledge financial support from the Division of Research at the Harvard Business School for making this research possible. Collapse

Topics: social influence problem solving internet technology social network debugging

Methods: experiment machine learning simulation Poisson regression logistic regression

Theories: organizational theory

Models as Social Actors in the Diffusion of AI Innovations: A Multilayer, Heterogeneous, Dynamic Network Perspective

2023 | International Conference on Information Systems | Citations: 0

Authors: Gao, Kaige; Yoo, Youngjin; Schecter, Aaron

Abstract: Artificial Intelligence (AI) has emerged as a crucial facet of contemporary tec ... Expand

Abstract: Artificial Intelligence (AI) has emerged as a crucial facet of contemporary technological innovation, influencing diverse domains. Consequently, understanding the diffusion and evolution of AI innovations is vital. Scholarly publications have commonly served as proxies for studying these AI innovations. However, previous studies on publication diffusion have largely overlooked the role of models, which is particularly integral for AI innovations as they bridge upstream datasets and downstream applications. Moreover, models form an interdependent network due to their combinational evolution. This paper addresses this gap, examining how the location, movement, and speed of model movement in that model network affect the dissemination of AI research. Using a four-layer network-author collaborations, paper citations, model dependencies, and keyword co-occurrences-we examine 345,383 AI papers from 2000345,383 AI papers from to 2022 This research aims to contribute to the diffusion of innovation literature and dynamic network analysis, offering several novel insights and advancements. Collapse

Topics: artificial intelligence innovation management diffusion of innovation website

Methods: co-citation analysis literature sample longitudinal research mathematical model statistical hypothesis test

From Seeker to Provider: User Ability and Role Switching in Online Support Communities

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Lee, Michael; Liao, Ruochen; Wang, Xunyi; Kishore, Rajiv

Abstract: Online health communities offer a platform for patients to seek support from ot ... Expand

Abstract: Online health communities offer a platform for patients to seek support from other users with similar conditions. As those support seekers' situation improves, they may ultimately want to give back to the community and provide support to others. This study explores how seekers' ability to provide support, operationalized using their cognitive state and social network structure, can influence the seekers' propensity to switch roles and become support providers. We leverage the Dual Perspective Model of Agency and Communion and Social Networks literature to theorize a seeker's ability to provide support. We apply survival analysis to study seekers' first role switch to a provider and the duration from seekers' initial post to role switch. We find that while seekers who have higher positive agency and closeness centrality are more likely to switch roles to a provider, those having higher positive communality, degree centrality, and eigenvector centrality are less likely to switch. Collapse

Topics: social network Python

Methods: survival analysis proportional hazards model theory development robustness check word2vec

Alternative Dispute Resolution Research Landscape from 1981 to 2022

2023 | Group Decision and Negotiation | Citations: 0

Authors: Mota, Fabio Batista; Braga, Luiza Amara Maciel; Cabral, Bernardo Pereira

Abstract: Alternative dispute resolution (ADR) is an important means of resolving disputes ... Expand

Abstract: Alternative dispute resolution (ADR) is an important means of resolving disputes outside of traditional legal frameworks. It is usually adopted because of its flexibility, cost-effectiveness, and ability to preserve relationships that a contentious court battle might damage. This study aims to evaluate the scientific publication related to ADR. To do so, we used metadata of ADR-related articles from 1981 to 2022 collected in the Web of Science Core Collection and carried out a bibliometric, network, and latent Dirichlet allocation analysis. Our results indicate that ADR research is concentrated in North America, with research organizations from the United States accounting for most publications. At the same time, recent years have seen a shift to a more diverse group of countries, with the Chinese City University of Hong Kong and the Australian Victoria University leading in the last five years. The five main topics in ADR research include online dispute resolution for consumer protection, mediation for family law, arbitration in medical malpractice cases, ADR in construction projects, and ADR in employment law. The most frequent research areas assigned to ADR publications are Government & Law and Business & Economics. Network results show keywords ADR, Mediation, and Arbitration as central nodes, while the Chinese and North American organizations established the most frequent collaborations, addressing ADR applications in various sectors. The findings underscore the interdisciplinary nature of ADR research, its adaptability across industries, and the importance of cross-cultural research partnerships. Collapse

Topics: Python information system use accounting

Methods: action design research network analysis literature sample bibliometric analysis latent dirichlet allocation

Mobile or Desktop? That is the Question: An Empirical Study of the Role of Device Type on Real-time Employee Feedback Quality

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Shan, Guohou; Bauman, Konstantin; Rivera, Michael; Kumar, Subodha

Abstract: Many workplaces have replaced annual reviews with ongoing performance evaluatio ... Expand

Abstract: Many workplaces have replaced annual reviews with ongoing performance evaluations, often through the integration and use of real-time feedback applications. These applications allow users to provide feedback through different device mediums. However, organizational leaders are not primarily concerned with convenience: Feedback structure and quality are paramount to the application's effectiveness, and the distinct technological affordances of mobile and desktop devices may yield different feedback comments. This study uniquely investigates the impact of device medium (desktop vs. mobile) usage on textual feedback according to four helpfulness indicators: comment length, subjectivity, specificity, and valence. Analyzing two years of proprietary data obtained through an enterprise real-time feedback application via regression analysis, we interestingly find that the device medium impacts the four distinct helpfulness indicators differently. Our study underscores the impact of device type on evaluation outcomes and derived managerial insights will help organizational leaders looking to optimize real-time feedback app usage. Collapse

Topics: mobile system anonymity tablet Python mobile application

Methods: regression analysis method descriptive statistic natural language processing

Theories: theory of affordance core competency theory

Investigating Churn in Physical Activity Challenges: Evidence from a U.S. Online Social Network

2023 | HICSS | Citations: 0

Authors: Zhu, Y.; Mani, A.

Abstract: Physical activities have been found to be positively contagious, as active exer ... Expand

Abstract: Physical activities have been found to be positively contagious, as active exercisers tend to motivate their friends to do more exercise. However, it is not clearly understood if inactive exercising behaviors are also socially contagious. As insufficient physical activity is a huge threat to people's health, understanding the potential negative contagion in physical activities is crucial. We approach this problem by studying the effect of individuals' churn of online physical activity challenges relying on the physical activity and a large social network data from a renowned U.S. fitness platform. The underexplored online physical activity challenges provide a natural setup to measure churn and opportunities to study the contagion heterogeneities. Consistent with previous findings, we confirm that physical activity churn is socially contagious. Interestingly, unlike the insideout positive contagion, our analyses reveal that the contagion of churn happens outside-in on the social network. Implications of such findings are discussed. Collapse

Topics: social network accounting social influence

Methods: instrumental variables estimation longitudinal research causality analysis statistical hypothesis test econometric modeling

Theories: social contagion theory

Algorithmic Processes of Social Alertness and Social Transmission: How Bots Disseminate Information on Twitter

2022 | Management Information Systems Quarterly | Citations: 0

Authors: Alves de Lima Salge, Carolina; Karahanna, Elena; Thatcher, Jason

Abstract: Despite increased empirical attention, theory on bots and how they act to dissem ... Expand

Abstract: Despite increased empirical attention, theory on bots and how they act to disseminate information on social media remains poorly understood. Our study leverages the conduit brokerage perspective and the findings of a multiple case study to develop a novel framework of algorithmic conduit brokerage for understanding information dissemination by bots and the design choices that may influence their actions. Algorithmic conduit brokerage encompasses two intertwined processes. The first process, algorithmic social alertness, relies on bot activity to curate and reconfigure information. Algorithmic social alertness is significant because it involves action triggers that dictate the kinds of information being searched, discovered, and retrieved by bots. The second process, algorithmic social transmission, relies on bot activity to embellish and distribute the information curated. Algorithmic social transmission is important because it can broaden the reach of information disseminated by bots through increased discoverability and directed targeting. The two algorithmic conduit brokerage processes we offer are unique to bots and distinct from the original conceptualization of conduit brokerage, which is rooted in human activity. First, since bots lack the human ability of sensemaking and are instead fueled by automation and action triggers rather than by emotions, algorithmic conduit brokerage is more invariant and reliable than human conduit brokerage. Second, automation increases the speed and scale of information curation and transfer, making algorithmic conduit brokerage not only more consistent but also faster and more extensive. Third, algorithmic conduit brokerage includes a set of new concepts (e.g., action triggers and rapid scaling) that are specific to bots and therefore not applicable to human conduit brokerage. Collapse

Topics: Twitter boundary spanning social media website social network

Methods: multiple case study computational algorithm case study theory development machine learning

Problemistic Search of the Embedded Firm: The Joint Effects of Performance Feedback and Network Positions on Venture Capital Firms’ Risk Taking

2022 | Organization Science | Citations: 0

Authors: Hu, Songcui; Gu, Qian (Cecilia); Xia, Jun

Abstract: The Behavioral Theory of the Firm suggests that performance below aspirations tr ... Expand

Abstract: The Behavioral Theory of the Firm suggests that performance below aspirations triggers problemistic search that can lead to risk taking. This prediction has received empirical support from most studies on the topic. However, this literature has typically focused on the internal determinants of firm search and risk-taking behavior and given little attention to the influences of social networks in which firms are embedded. To this end, we incorporate the network embeddedness perspective regarding firms’ network positions and their roles in firm decision making. We suggest that a firm’s search behavior is jointly directed by its performance feedback and network positions. Specifically, network brokerage and centrality play important yet distinct roles in guiding firm search behavior by differentially shaping the direction of problemistic search: high brokerage directs problemistic search to high-risk solutions, whereas high centrality directs problemistic search to low-risk solutions. Our theoretical predictions receive general empirical support based on analyses using longitudinal data from the Chinese venture capital industry. Our approach incorporates the crucial role of network structures into the problemistic search model and works toward building a problemistic search theory of the embedded firm. Collapse

Topics: decision making social network database system organizational productivity organizational change

Methods: theory development qualitative interview statistical hypothesis test descriptive statistic generalized linear model

Theories: problemistic search theory theory of bounded rationality

From information systems resources to effective use: Moderating effect of network embeddedness

2022 | Journal of Strategic Information Systems | Citations: 0

Authors: Li, He; Yoo, Sungjin

Abstract: This research examines how organizations can achieve effective information syste ... Expand

Abstract: This research examines how organizations can achieve effective information systems (IS) use by aligning internal IS resources with embeddedness in the IS outsourcing network. Leveraging the empirical opportunity of large-scale organization-wide meaningful use attestation of electronic health records, we conducted a longitudinal analysis of US hospitals from 2013 to 2017. We found that an organization’s network embeddedness amplifies the positive relationship between IS resources and effective IS use. We also identify different impacts depending on network embeddedness types and organization sizes. We found positive moderating effects of structural and positional embeddedness. However, junctional embeddedness has no direct or moderating effect on IS use. In addition, the moderating effects manifest differently for different-sized organizations – i.e., structural embeddedness has a stronger positive moderating effect for large organizations, while positional embeddedness’ positive moderating effect is stronger for small organizations. We also found heterogeneous direct effects of structural and positional embeddedness on organizational IS use. Solely depending on structural embeddedness will result in lower IS use, which is more prominent for small organizations. Positional embeddedness has a negative direct effect on small organizations’ IS use but positively relates to large organizations’ IS use. This research highlights the role of network embeddedness in facilitating IS use and offers a nuanced understanding of its impacts. Our findings also provide practical implications for organizational IS use through strategic IS outsourcing. Collapse

Topics: information system use outsourcing information systems strategy IT manager IT investment

Methods: theory development statistical hypothesis test longitudinal research longitudinal data analysis theoretical contribution