The effect of lockup and persuasion on online investment decisions: An experimental study in ICOs

2023 | Electronic Markets | Citations: 0

Authors: Bruckner, Moritz T.; Steininger, Dennis M.; Thatcher, Jason Bennett; Veit, Daniel J.

Abstract: Many firms use social media (SM) to solicit online investments. In this study, w ... Expand

Abstract: Many firms use social media (SM) to solicit online investments. In this study, we examine the interaction between SM attributes and online-investment attributes to determine how this interaction shapes users’ investment decisions. Specifically, we investigate initial coin offerings (ICOs) as an application domain of distributed ledger technology for peer-to-peer investment. We use signaling theory to develop a context-specific explanation for how the interplay of persuasion signals found in SM and technology-enforced lockups shapes individuals’ ICO investment decisions. To evaluate this interplay, we conducted a 2 × 2 factorial experiment with 473 participants. The results show that when an investment does not require a technology-enforced lockup, persuasion signals encourage investments in ICOs; however, when an investment requires a technology-enforced lockup, persuasion signals do not affect investments in ICOs. Furthermore, our analyses suggest that combining a technology-enforced lockup and persuasion signals reduces the ICO’s plausibility. This is the first study to investigate how the willingness to invest in ICOs is influenced by the relationship between technology-enforced lockups and persuasion signals. The findings have practical implications for individuals attempting to make sound decisions on ICO investments, policymakers regulating online investments, and firms seeking to attract investors. Collapse

Topics: internet technology crowdfunding crowdsourcing Facebook blockchain

Methods: experimental group parametric test repeated measures ANOVA experimental design cross sectional research

Theories: signaling theory

The promise of digital technologies for sustainable entrepreneurship: A systematic literature review and research agenda

2023 | International Journal of Information Management | Citations: 1

Authors: Holzmann, Patrick; Gregori, Patrick

Abstract: Research on sustainable entrepreneurship increasingly recognizes the transformat ... Expand

Abstract: Research on sustainable entrepreneurship increasingly recognizes the transformative potential of digital tech­ nologies to mitigate and counteract grand environmental and social challenges through entrepreneurial action. However, this emerging field of research, referred to as digital sustainable entrepreneurship, is currently dispersed and fragmented and lacks the consolidated foundation to progress further. This article further estab­ lishes this nascent stream by conducting a systematic literature review offering two main contributions. First, common themes are derived from the literature (i.e., enabling value for society and environment, stakeholder inclusion, venture viability, and entrepreneurial individuals) to unravel the field’s current state. Second, previous work is discussed and integrated by applying a business model perspective. Specifically, the article offers a framework that contributes to the role of business models for merging sustainability and digital technologies, reconceptualizes digital technologies as business model actors, and further develops the entrepreneur-business model nexus. Based on this, we present a comprehensive and actionable research agenda and practical implications. Collapse

Topics: business model entrepreneurship big data mobile application green IS

Methods: structured literature research theory development literature study longitudinal research machine learning

Theories: sociomaterialism theory

Decentralized platform economy: emerging blockchain-based decentralized platform business models

2022 | Electronic Markets | Citations: 0

Authors: Lage, Oscar; Saiz-Santos, María; Zarzuelo, José Manuel

Abstract: Emerging decentralized multisided platforms aim to create more open collaboratio ... Expand

Abstract: Emerging decentralized multisided platforms aim to create more open collaborations between participants and question currently centralized networked business models, such as Google, Amazon, Uber, or Airbnb. In this paper, a systematic analysis of the emerging decentralized platform economy is presented based on blockchain technology. Collapse

Topics: blockchain business model database system electronic market social network

Methods: cluster analysis qualitative interview case study hierarchical clustering literature study

Human Decision Making in AI Augmented Systems: Evidence from the Initial Coin Offering Market

2021 | HICSS | Citations: 2

Authors: Basu, Saunak; Garimella, Aravinda; Han, Wencui; Dennis, Alan

Abstract: The growing consensus that human intelligence and artificial intelligence are co ... Expand

Abstract: The growing consensus that human intelligence and artificial intelligence are complementary has led to Human-AI hybrid systems. As digital platforms incorporating human-AI hybrids, platform designers need to evaluate the influence of AI on human judgment, and how such hybrid systems perform. In this paper, we investigate: Are human decisions influenced by AI agents in high uncertainty environments, such as evaluating ICO projects? Under what situations are humans able to mitigate AI agents-induced errors? Our results suggest that in general, humans are influenced by AI agents. Humans tend to use AI as a filter to rule out low quality projects, while a high AI rating triggers human expert to apply their own judgment. Collapse

Topics: artificial intelligence website initial coin offering decision support system human AI collaboration

Methods: machine learning computational algorithm descriptive statistic theory development qualitative content analysis

Theories: prospect theory

When good blocks go bad: Managing unwanted blockchain data

2021 | International Journal of Information Management | Citations: 15

Authors: Carvalho, Arthur; Merhout, Jeffrey W.; Kadiyala, Yogesh; Bentley II, John

Abstract: Blockchain has been praised for providing the technical infrastructure that enab ... Expand

Abstract: Blockchain has been praised for providing the technical infrastructure that enables a group of self-interested entities to share data without relying on intermediaries. Technically, blockchain is a distributed and decen­ tralized append-only database. This latter aspect leads to an important, yet overlooked governance issue, namely what should the network members do when erroneous or malicious data are added to the blockchain ledger? We start by describing three public cases when the above happened. For each case, we elaborate on the adopted solution, which we refer to as the “rollback,” the “do nothing,” and the “overturn” solution. Drawing from these previous cases, discussions with experts, and from our own experience with blockchain research and develop­ ment, we provide suggestions concerning managerial, technical, and information security policies and practices organizations should follow when contemplating enterprise-level applications of the blockchain technology. Collapse

Topics: blockchain data security research and development smart contract cryptocurrency

Methods: qualitative interview

Who Matters After Fundraising? Empirical Examination of Venture Survival in the Blockchain Ecosystem

2021 | International Conference on Information Systems | Citations: 0

Authors: Grau, Caroline; Schulz, Colin; Bendig, David; Brettel, Malte

Abstract: In digital entrepreneurship, the boundaries between young ventures and their su ... Expand

Abstract: In digital entrepreneurship, the boundaries between young ventures and their surroundings are blurring. Digital startups face distributed entrepreneurial agency when involving third-party groups (i.e., individuals, crowd, and firms) in shared value creation processes. To date, research on third-party support focuses on the funding stage, and insights on performance determinants beyond fundraising are scarce. This study empirically investigates the relationship between different types of third-party support and digital venture survival in the blockchain ecosystem. Based on a unique, large-scale dataset of 1,677 digital ventures that conducted an initial coin offering (ICO) before July 2018, we show that professional advisor support is related to increased survival probability. Furthermore, involving crowd programmers and board interlocks are relevant determinants of digital venture survival. For board interlocks, we hypothesize and find support for an inverted U-shaped relationship with performance. Finally, we discuss implications for founders and investors and open new research avenues for IS research. Collapse

Topics: social media blockchain software developer digital entrepreneurship organizational productivity

Methods: robustness check statistical hypothesis test qualitative interview regression analysis method descriptive statistic

Bitcoin investment: a mixed methods study of investment motivations

2021 | European Journal of Information Systems | Citations: 11

Authors: Mattke, Jens; Maier, Christian; Reis, Lea; Weitzel, Tim

Abstract: Bitcoin is a well-established blockchain-based cryptocurrency that has attracted ... Expand

Abstract: Bitcoin is a well-established blockchain-based cryptocurrency that has attracted a great deal of attention from media and regulators alike. While millions of individuals invest in bitcoin, their motivations for doing so are less clear than with traditional investment decisions. We argue that the technical nature of bitcoin investments gives it unique characteristics and, consequently, that we lack a thorough understanding of how this affects the motivations behind bitcoin investment. We use a mixed method approach consisting of qualitative (n = 73) and quantitative (n = 150) studies and fuzzy-set qualitative comparative analysis (fsQCA) to identify seven bitcoin-specific motivations (profit expectancy, ease of bitcoin acquisition, support of bitcoin ideology, investment skills, risk affinity, anticipated and experienced inaction regret) and how configurations of them explain bitcoin investment. The findings reveal, among others, that some individuals invest in bitcoin because they support the bitcoin ideology. Contrary to the traditional investment literature, profit expectancy is not a necessary condition to the extent that there is one empirical configuration of motivations that explains that individuals also invest in bitcoin even if they do not expect profits. The results disclose non-trivial investment motivation configurations and lay the groundwork for future studies of the role of cryptocurrencies in society. Collapse

Topics: Bitcoin crowdsourcing crowdfunding blockchain cryptocurrency

Methods: qualitative interview mixed method survey triangulation design artifact

Theories: regret theory fuzzy set theory theory of abduction set theory rational choice theory

An Exploration of Governing via IT in Decentralized Autonomous Organizations

2021 | International Conference on Information Systems | Citations: 11

Authors: Mini, Tobias; Ellinger, Eleunthia Wong; Gregory, Robert; Widjaja, Thomas

Abstract: A decentralized autonomous organization (DAO) is a distinct form of platform me ... Expand

Abstract: A decentralized autonomous organization (DAO) is a distinct form of platform metaorganization that heavily relies on smart contracts running on blockchains to govern a distributed network of autonomous actors, thereby continuing the shift toward governance via IT. Motivated by the fact that this shift toward governance via IT in DAOs challenges established assumptions in the literature on IT governance, we explore how DAOs are governed via IT. For this purpose, we applied techniques of grounded theory to build inductive theory by analyzing five cases of DAOs (Aragon, Flare Networks, KyberDAO, MakerDAO, and MolochDAO) based on white papers, blog entries, and newspaper articles. Our findings implicate that DAOs governed via IT synthesize autonomy and alignment through the mechanism of "establishing algorithmic organization." At the same time, DAOs rely on a more pluralistic and decentralized form of algorithmic management through the mechanism of "taming algorithmic power." Collapse

Topics: IT governance blockchain smart contract blog Ethereum

Methods: computational algorithm design artifact grounded theory theory development qualitative coding

Initial Coin Offering (ICO): a systematic review of the literature

2021 | HICSS | Citations: 1

Authors: Moxoto, Ana Claudia De; Melo, Paulo; Soukiazes, Elias

Abstract: Initial ICO coin offerings have emerged as a new business financing mechanism. I ... Expand

Abstract: Initial ICO coin offerings have emerged as a new business financing mechanism. ICOs have raised more than $ 31.14 billion by 2019, sparking interest in finance studies. Despite ongoing scientific research on the topic, academic knowledge remains limited and fragmented. This study aims to conduct a systematic review of the literature with 30 contributions from journals published until January 2020. Based on an indepth analysis of the publications identified, we describe the landscape of the field of ICOs focusing on two aspects. First, we conducted an analysis of the empirical articles that addressed the success determinants of ICOs. Second, we categorize relevant contributions in five different perspectives: human and social capital, technological characteristics, governance and legal aspects and financial details of the campaign. Thematic analysis was carried out to address dominant themes and subthemes in each perspective. Collapse

Topics: social capital legal context initial coin offering source code knowledge base

Methods: literature study qualitative content analysis structured literature research synthesis

Pick The Odd-Ones Out! Conferring Legitimacy Of Initial Coin Offerings By Distinction

2021 | International Conference on Information Systems | Citations: 0

Authors: Shahid, Muhammad Nauman; Hahn, Jungpil

Abstract: In what ways do new entrepreneurial ventures gain legitimacy and attract critic ... Expand

Abstract: In what ways do new entrepreneurial ventures gain legitimacy and attract critical resources? According to a growing body of cultural entrepreneurship research, new ventures require distinctiveness to stand out, but existing research suggests that distinctiveness counteracts with organizational legitimacy. We challenge this assumption that distinctiveness is counterproductive to achieving legitimacy and suggest that distinctiveness can serve as a source of legitimacy. The significance of this assumption lies in the fact that it fundamentally alters the relationship between distinctiveness and resources acquired from novelty-seeking audiences. We also show how online media affects the distinctiveness -resource acquisition tradeoff as a dichotomous instrument. Finally, based on our theoretical assumptions, we examine how new ventures acquire resources through initial coin offerings (ICOs). Our analysis of 306 ICOs across 29 market categories shows that while higher levels of distinctiveness may lead to superior ICO performance, public sentiments expressed on media can shift legitimacy. Collapse

Topics: digital media Twitter initial coin offering Reddit crowdsourcing

Methods: topic model sentiment analysis qualitative coding regression analysis method literature sample

Theories: lemon market theory