Value Creation Tradeoff in Business Ecosystems: Leveraging Complementarities While Managing Interdependencies

2023 | Organization Science | Citations: 0

Authors: Agarwal, Shiva; Kapoor, Rahul

Abstract: Complementary assets play an important role in shaping an innovation’s commercia ... Expand

Abstract: Complementary assets play an important role in shaping an innovation’s commercialization success. In this paper, we broaden the locus of complementarities to examine the role of complementary technologies residing in the business ecosystems that are becoming an important source of value creation for innovating firms. We argue that, on one hand, complementary technologies help innovations create more value for their users. On the other hand, they can also limit the focal innovation’s value creation by exposing them to performance bottlenecks as the underlying technological architecture of the ecosystem evolves. We further extend the notion of specialization of complementary assets to ecosystems by considering complementary technologies that are specialized to a focal ecosystem and those that are available across multiple ecosystems. We highlight that, although the complementary technologies that are specialized to an ecosystem facilitate greater value creation, they are more likely to subject the focal innovation to performance bottlenecks. Evidence from 244,034 apps launched by software developers for Apple’s iPhone ecosystem during 2008–2015 offers strong support for our framework. In summary, the study sheds light on the value creation tradeoff for firms innovating in business ecosystems—the opportunities associated with leveraging complementarities and the challenges associated with managing technological interdependencies. Funding: S. Agarwal was funded by the McCombs School of Business at The University of Texas at Austin [Research Excellence Grant]. Collapse

Topics: mobile application innovation management value creation Apple iPhone iOS

Methods: statistical hypothesis test instrumental variables estimation cross sectional research proportional hazards model robustness check

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

TEA-IS: A hybrid DEA-TOPSIS approach for assessing performance and synergy in Chinese health care

2023 | Decision Support Systems | Citations: 0

Authors: Antunes, Jorge; Hadi-Vencheh, Abdollah; Jamshidi, Ali; Tan, Yong; Wanke, Peter

Abstract: This paper presents an assessment of the Chinese healthcare system in 31 provinc ... Expand

Abstract: This paper presents an assessment of the Chinese healthcare system in 31 provinces for a 10-year period in light of relevant physical and human resource variables. First, a novel TEA-IS (Trigonometric Envelopment Analysis for Ideal Solutions) model is developed to assess healthcare efficiency at the province level. Machine learning methods are also employed to predict high-low performance and the synergistic Chinese healthcare province in terms of contextual variables. The results indicate that synergy has played a pivotal role in the Chinese healthcare systems, not only by triggering higher performance levels due to the progressive adoption of best practices over the course of time, but also by being closely related to different socioeconomic and demographic variables, such as the illiteracy rate. It is possible to claim that healthcare performance has remained stable in China over the past two decades, performance and synergy at the province level are still heterogeneous. Collapse

Topics: health information system IT productivity human resource management service quality productivity

Methods: TOPSIS trade-off analysis method machine learning artificial neural network literature study

AI-Enhanced Hybrid Decision Management

2023 | Business & Information Systems Engineering | Citations: 0

Authors: Bork, Dominik; Ali, Syed Juned; Dinev, Georgi Milenov

Abstract: The Decision Model and Notation (DMN) modeling language allows the precise speci ... Expand

Abstract: The Decision Model and Notation (DMN) modeling language allows the precise specification of business decisions and business rules. DMN is readily understandable by business users involved in decision management. However, as the models get complex, the cognitive abilities of humans threaten manual maintainability and comprehensibility. Proper design of the decision logic thus requires comprehensive automated analysis of e.g., all possible cases the decision shall cover; correlations between inputs and outputs; and the importance of inputs for deriving the output. In the paper, the authors explore the mutual benefits of combining human-driven DMN decision modeling with the computational power of Artificial Intelligence for DMN model analysis and improved comprehension. The authors propose a model-driven approach that uses DMN models to generate Machine Learning (ML) training data and show, how the trained ML models can inform human decision modelers by means of superimposing the feature importance within the original DMN models. An evaluation with multiple real DMN models from an insurance company evaluates the feasibility and the utility of the approach. Collapse

Topics: artificial intelligence explainable artificial intelligence perceived usefulness price management extensible markup language

Methods: computational algorithm decision tree classification experiment conceptual modelling simulation

Business Inferences and Risk Modeling with Machine Learning; The case of Aviation Incidents

2023 | HICSS | Citations: 0

Authors: Cankaya, B.; Topuz, K.; Glassman, A.

Abstract: Machine learning becomes truly valuable only when decision-makers begin to depe ... Expand

Abstract: Machine learning becomes truly valuable only when decision-makers begin to depend on it to optimize decisions. Instilling trust in machine learning is critical for businesses in their efforts to interpret and get insights into data, and to make their analytical choices accessible and subject to accountability. In the field of aviation, the innovative application of machine learning and analytics can facilitate an understanding of the risk of accidents and other incidents. These occur infrequently, generally in an irregular, unpredictable manner, and cause significant disruptions, and hence, they are classified as "highimpact, low-probability" (HILP) events. Aviation incident reports are inspected by experts, but it is also important to have a comprehensive overview of incidents and their holistic effects. This study provides an interpretable machine-learning framework for predicting aircraft damage. In addition, it describes patterns of flight specifications detected through the use of a simulation tool and illuminates the underlying reasons for specific aviation accidents. As a result, we can predict the aircraft damage with 85% accuracy and 84% in-class accuracy. Most important, we simulate a combination of possible flight-type, aircraft-type, and pilot-expertise combinations to arrive at insights, and we recommend actions that can be taken by aviation stakeholders, such as airport managers, airlines, flight training companies, and aviation policy makers. In short, we combine predictive results with simulations to interpret findings and prescribe actions.A machine-learning (ML) algorithm was chosen for its fast performance, short run-time, and interpretability. The ML algorithms were compared and evaluated on a confusion matrix for their mean receiver operating characteristic curve (ROC), Collapse

Topics: decision making decision support system graphical user interface usability missing data

Methods: simulation machine learning multinomial logistic regression computational algorithm support vector machine

How Tourist Group Books Hotels Meeting the Majority Affective Expectations: A Group Selection Frame with Kansei Text Mining and Consensus Coordinating

2023 | Group Decision and Negotiation | Citations: 0

Authors: Chang, Jia-Li; Li, Hui; Wu, Jian

Abstract: The decision on which hotel to book is a high-cost process for individuals and e ... Expand

Abstract: The decision on which hotel to book is a high-cost process for individuals and even more for groups due to the information explosion on online travel agent platforms. To assist group selecting the optimal hotel that meets the majority affective expectations, this study proposes a group hotel selection frame for booking with Kansei text mining and consensus coordinating. Firstly, to quantify the tourists’ affective needs for hotels, a Kansei-related dictionary towards hotel domain is constructed by Kansei text mining. Secondly, the bilattice-based Kansei score of hotels is defined and measured to represent hotel affective information scientifically. Then, a group consensus model with minimum adjustment cost is introduced to coordinate consistency of individual preferences in a tourist group. Moreover, a group hotel ranking based on group affective preference is interactively generated to meet the group personalized demands. Finally, a case study on Trip.com is conducted to demonstrate the proposed method. Collapse

Topics: knowledge representation online review personality website

Methods: natural language processing word2vec computational algorithm sentiment analysis case study

A Theory-Driven Deep Learning Method for Voice Chat–Based Customer Response Prediction

2023 | Information Systems Research | Citations: 0

Authors: Chen, Gang; Xiao, Shuaiyong; Zhang, Chenghong; Zhao, Huimin

Abstract: As artificial intelligence and digitalization technologies are flourishing real- ... Expand

Abstract: As artificial intelligence and digitalization technologies are flourishing real-time, online interaction–based commercial modes, exploiting customers’ purchase intention implied in online interaction processes may foster huge business opportunities. In this study, we target the task of voice chat–based customer response prediction in an emerging online interaction–based commercial mode, the invite-online-and-experience-in-store mode. Prior research shows that satisfaction, which can be revealed by the discrepancy between prior expectation and actual experience, is a key factor to disentangle customers’ purchase intention, whereas black-box deep learning methods empirically promise us advantageous capabilities in dealing with complex voice data, for example, text and audio information incorporated in voice chat. To this end, we propose a theory-driven deep learning method that enables us to (1) learn customers’ personalized product preferences and dynamic satisfaction in the absence of their profile information, (2) model customers’ actual experiences based on multiview voice chat information in an interlaced way, and (3) enhance the customer response prediction performance of a black-box deep learning model with theory-driven dynamic satisfaction. Empirical evaluation results demonstrate the advantageous prediction performance of our proposed method over state-of-the-art deep learning alternatives. Investigation of cumulative satisfaction reveals the collaborative predictive roles of theory-driven dynamic satisfaction and deep representation features for customer response prediction. Explanatory analysis further renders insights into customers’ personalized preferences and dynamic satisfaction for key product attributes. History: Yong Tan, Senior Editor; Jingjing Zhang, Associate Editor. Funding: This work was supported in part by the National Natural Science Foundation of China [Grants 71971067 and 72271059] and the China Postdoctoral Science Foundation [Grant 2022M722394]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1196. Collapse

Topics: customer satisfaction willingness to pay decision making marketing information system customer service

Methods: deep learning experiment machine learning BERT theory development

Understanding active participation of online dating services: A mixed methods study

2023 | Decision Support Systems | Citations: 0

Authors: Chen, Qi; Yun, Guobiao; Lu, Jiandong; Wang, Xiaolei

Abstract: Online dating has transformed the way people meet and start relationships. Howev ... Expand

Abstract: Online dating has transformed the way people meet and start relationships. However, online dating platforms typically have many lurkers without active participation. Using a self-regulation framework, this paper aims to study users’ active participation in online dating through a mixed methods study. We first conducted qualitative and quantitative investigations with a machine learning method to explore user active participation and its antecedents. We then developed a theoretical model and conducted a statistical analysis of the model. The empirical findings showed that service quality and trust significantly affected individual active participation in a dating site through attachments to the daters and services. The findings of the study contribute to the extant literature by analyzing user participation in online dating from an attachment perspective. Collapse

Topics: service quality online dating participatory design online dating service Python

Methods: design methodology mixed method qualitative coding machine learning machine learning method

Theories: attachment theory marketing theory

Who’s Watching TV?

2023 | Information Systems Research | Citations: 0

Authors: Clark, Jessica; Paiement, Jean-François; Provost, Foster

Abstract: This work addresses the problem of “user disambiguation”—estimating the likeliho ... Expand

Abstract: This work addresses the problem of “user disambiguation”—estimating the likelihood of each member of a small group using a shared account or device. The main focus is on television set-top box (STB) viewership data in multiperson households, in which it is impossible to tell with certainty which household members watch what. The first main contribution is formulating user disambiguation as a predictive problem. The second contribution is a solution for estimating the likelihood that each individual in a multiperson household watches each TV segment. Kernel theories from the marketing, economics, and sociology literature inform the design of our method. This method learns priors for viewership in single-person households and then adapts them to the specifics of each multiperson household’s viewership history. Finally, we formalize two ad hoc heuristics that are currently used in industry (and research) for estimating audience composition of STB data and conduct a comparative analysis using simulated data, real large-scale viewership data, and a fully labeled panel-based data source. We find that our method has superior performance and practical value. The proposed solution has implications for advertisers, researchers who seek better understanding of TV viewership, and anyone using data generated by shared devices or accounts. A major TV provider has deployed this new method for use in its TV ad-targeting system. No personally identifiable information was gathered or used in conducting this study. To the extent any data were analyzed, it was anonymous and/or aggregated data, consistent with the carrier’s privacy policy. History: Eric Zheng, Senior Editor. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2023.1204. Collapse

Topics: marketing management logistics management advertising management internet technology

Methods: machine learning experiment simulation longitudinal research descriptive statistic

Theories: social sciences theory economic theory

A Comparison of Methods for Treatment Assignment with an Application to Playlist Generation

2023 | Information Systems Research | Citations: 0

Authors: Fernández-Loría, Carlos; Provost, Foster; Anderton, Jesse; Carterette, Benjamin; Chandar, Praveen

Abstract: This study presents a systematic comparison of methods for individual treatment ... Expand

Abstract: This study presents a systematic comparison of methods for individual treatment assignment, a general problem that arises in many applications and that has received significant attention from economists, computer scientists, and social scientists. We group the various methods proposed in the literature into three general classes of algorithms (or metalearners): learning models to predict outcomes (the O-learner), learning models to predict causal effects (the E-learner), and learning models to predict optimal treatment assignments (the A-learner). We compare the metalearners in terms of (1) their level of generality and (2) the objective function they use to learn models from data; we then discuss the implications that these characteristics have for modeling and decision making. Notably, we demonstrate analytically and empirically that optimizing for the prediction of outcomes or causal effects is not the same as optimizing for treatment assignments, suggesting that, in general, the A-learner should lead to better treatment assignments than the other metalearners. We demonstrate the practical implications of our findings in the context of choosing, for each user, the best algorithm for playlist generation in order to optimize engagement. This is the first comparison of the three different metalearners on a real-world application at scale (based on more than half a billion individual treatment assignments). In addition to supporting our analytical findings, the results show how large A/B tests can provide substantial value for learning treatment-assignment policies, rather than simply for choosing the variant that performs best on average.History: Olivia Liu Sheng, Senior Editor; Gautam Pant, Associate Editor.Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1149. Collapse

Topics: decision making digital service music streaming service Spotify marketing management

Methods: meta learning computational algorithm machine learning experiment decision tree classification