Strategic Investments for Platform Launch and Ecosystem Growth: A Dynamic Analysis

2023 | Journal of Management Information Systems | Citations: 0

Authors: Anderson Jr., Edward G.; Parker, Geoffrey G.; Tan, Burcu

Abstract: Multi-sided platforms must make decisions on both pricing and engineering invest ... Expand

Abstract: Multi-sided platforms must make decisions on both pricing and engineering investment and must continually adjust them as the platform scales over its lifecycle. Engineering investments can be allocated to features that improve a platform's standalone value, social features to take advantage of same-side network effects, or integration tools and boundary resources to facilitate third-party content creation. Guidance in the academic or practitioner literature is not granular. Moreover, relevant normative economic models that consider externalities are rarely dynamic. Hence, there is a gap in knowledge about how to best balance tradeoffs between different strategic decisions throughout the entire platform lifecycle. To begin to address this gap, we explore normative strategies for coordinating pricing and engineering investment decisions on a continuous basis under different ecosystem conditions. We build a simulation model informed by economics and marketing theory and perform extensive sensitivity analyses on key parameters in different ecosystem scenarios over a multi-period lifecycle. We find that pricing and investment strategies must continuously change to perform optimally. In particular, strategies that are most effective at launch often differ from those that are most effective during scaling as well as those most effective at maturity. We also find that the optimal strategy depends strongly on the monetization model and market aversion to price changes. Lastly, we specifically examine four different industry segments: mobile platforms, social media, the sharing economy, and business-to-business. The results provide evidence that the trajectory of platform pricing and investment strategies should greatly differ depending on industrial context. Collapse

Topics: price management digital platform social media decision making business-to-business

Methods: simulation sensitivity analysis system dynamics optimization model conjoint analysis

Theories: control theory marketing theory

Unveiling the underlying cognitive processes of creative idea generation using mobile collaboration platforms

2023 | Information & Management | Citations: 0

Authors: Choi, Stephen; Lee, One-Ki Daniel; Suh, Woojong; Lim, Kai Hin

Abstract: This study examines how an individual cognitively generates creative ideas using ... Expand

Abstract: This study examines how an individual cognitively generates creative ideas using mobile collaboration platforms (MCPs). Applying the cognitive creativity perspective and the knowledge of the idiosyncratic capabilities of MCPs, the study proposes a research model that explains MCP-driven creative idea generation mechanisms. The model is validated using a field study where individuals were involved in a group collaboration setting for a cognitively challenging task. The results indicate that the use of an MCP positively supports an individual’s creative idea generation process through cognitive warming-up processes (spontaneity effect) and behavioral autonomy (freedom effect). Collapse

Topics: idea generation mobile application IT supported collaboration social media brainstorming

Methods: field study data transformation survey theory development confirmatory factor analysis

Design for Social Sharing: The Case of Mobile Apps

2023 | Information Systems Research | Citations: 1

Authors: Karanam, Subrahmanyam Aditya; Agarwal, Ashish; Barua, Anitesh

Abstract: With a large number of mobile apps on platforms such as iOS and Android, app dev ... Expand

Abstract: With a large number of mobile apps on platforms such as iOS and Android, app developers face a significant challenge in generating market demand. Apps can incorporate social features to share information and create awareness. We focus on the impact of these features and their interplay with intrinsic features in the head, body, and tail of the demand distribution. Using a panel of version release notes from the iOS platform, we develop a novel hierarchical deep learning model to extract intrinsic and social features. Our results suggest that social features help increase the demand for tail apps and are also useful for head apps in informing users about new intrinsic features. To explore possible mechanisms, we analyze how different types of social features (personal and platform), intrinsic features (common versus differentiating), and app quality influence demand. We find that social features that allow sharing on platforms with large audiences are more effective at increasing demand than those on personal messaging systems. Furthermore, within platforms, social features perform better on those with stronger ties, such as Facebook as opposed to Twitter. Our analysis of different types of intrinsic features reveals that social features can help increase the demand for all apps when introduced with differentiating or less common intrinsic features. Furthermore, we find that there is a negative effect on the demand of tail apps when differentiating intrinsic features are combined with platform-based social features that have weaker ties. However, this negative effect is limited to low-quality tail apps only. Our results underscore the differences in the effect of different types of social and intrinsic features in various parts of the demand distribution. Our study provides managerial guidance to app developers in enabling social sharing through design choices and generating higher demand.History: Kai Lung Hui, Senior Editor; Beibei Li, Associate Editor.Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1151. Collapse

Topics: mobile application Facebook Twitter iOS accounting

Methods: deep learning robustness check computational algorithm word embedding natural language processing

Self-Regulation and External Influence: The Relative Efficacy of Mobile Apps and Offline Channels for Personal Weight Management

2023 | Information Systems Research | Citations: 0

Authors: Kwon, Hyeokkoo Eric; Dewan, Sanjeev; Oh, Wonseok; Kim, Taekyung

Abstract: This study contributes to the information systems literature on mobile health in ... Expand

Abstract: This study contributes to the information systems literature on mobile health interventions and omnichannel management by examining the relative effectiveness of mobile and offline channels in facilitating personal weight management. Drawing on the social cognitive theory of self-regulation, our empirical analysis utilizes a system generalized method of moments approach applied to panel data on customers enrolled in a weight loss program that delivers services through multiple channels, including a mobile app and offline office visits. Our results show that the use of the mobile app is positively associated with weight management by both free and paid users. For paid users, who have access to the mobile app and office visits, usage of both channels is associated with increased short-term weight loss. Furthermore, the two channels function as substitutes for one another, with users able to compensate for infrequent offline store visits through more intense mobile app usage. In the long term, however, only mobile app usage (and not offline store visits) contributes to the sustainability of weight loss, as reflected in reduced weight variability and lower overall failure rate. Qualitative evidence gleaned from interviews with actual customers substantiated the self-regulation mechanism enabled by mobile app usage. Additional empirical analyses further revealed that frequency and granularity of mobile app usage are positively associated with weight loss. We also found that individuals exposed to low performance pressure benefit more fully from mobile app usage. The results are robust to endogeneity concerns and alternative measures of the key variables. Overall, our analysis sheds light on the important role of a self-regulatory mobile app in a multichannel setting of personal weight management, as compared with the external influence stemming from human experts in offline channels, with useful implications for research and practice. History: Anandasivam Gopal, Senior Editor; Jianqing Chen, Associate Editor. Collapse

Topics: mobile application mobile channel mobile health ease of use individual characteristic

Methods: qualitative interview longitudinal research survey design artifact experimental group

Theories: social cognitive theory

Positive Demand Spillover of Popular App Adoption: Implications for Platform Owners’ Management of Complements

2023 | Information Systems Research | Citations: 0

Authors: Lee, Mi Hyun; Han, Sang Pil; Park, Sungho; Oh, Wonseok

Abstract: As platform owners interact with end users and complementors, their demand-side ... Expand

Abstract: As platform owners interact with end users and complementors, their demand-side characteristics and performance affect the overall value creation of ecosystems. This research investigated how the emergence of popular complements on a mobile communication platform impacts the usage of other complementary products by the platform’s end users and how platform owners can benefit from such demand spillovers. We identified two different forms of demand spillovers (i.e., backward and forward) and conceptualized how each subsequently affects platform expansion. On the basis of individual user-level app usage data, we empirically demonstrated how the presence of a popular app alters the demand structure of a platform through changes in the usage of other apps operating within it. The findings reveal that popular app adoption by users increases the number of apps used and the duration of app usage, excluding the usage of popular apps, only within the platform offering a popular app. These results support the existence of positive spillovers from popular complement adoption on a platform. Such positive within-platform spillovers are derived from both backward spillovers onto existing apps adopted before popular app adoption and forward spillovers onto new apps to be adopted after the uptake of favored apps. These patterns suggest that positive spillovers of popular app adoption occur through both the increased retrieval of existing apps and reduced uncertainty about newly released apps. Furthermore, forward spillover is considerably stronger than backward spillover, implying that platform owners can reap benefits by coordinating the launch of new complements and the promotion of less-known counterparts to end users with the emergence of a popular app. These results shed light on how platform owners can manage their complements and create value beyond direct contributions from popular complements. History: Yulin Fang, Senior Editor; Yan Huang, Associate Editor. Collapse

Topics: mobile application mobile game Android mobile platform operating system

Methods: experimental group regression analysis method propensity score method longitudinal research propensity score matching

Theories: theory of economic growth

The Impact of Green Disclosure Nudging in Online Reuse Markets: Evidence from a Natural Experiment

2023 | International Conference on Information Systems | Citations: 0

Authors: Liao, Yunqi; Liu, Xiaoxiao; Gong, Xiang; Xiao, Zhenxin

Abstract: As the environment continues to deteriorate, for managers, the means of shiftin ... Expand

Abstract: As the environment continues to deteriorate, for managers, the means of shifting consumer behavior to "green" is urgently needed. Information disclosure as a tactic to promote green consumption has been widely studied, which typically stimulates demand for new green products through cost disclosure. In contrast, the impact of environmental benefit information disclosure on green consumption, especially on online reuse platforms, remains to be ascertained. In this study, we examine the economic effects of a green disclosure nudge through a natural experiment. Drawing on daily sales data, we find that the green disclosure nudge can stimulate consumer demand and generate economic benefits. We provide suggestive evidence that this positive effect stems from an increase in consumers' perceptions of the functional and symbolic value of used products, respectively. In addition, exploratory analysis shows that the nudge may have potential social benefits. The findings provide practical and theoretical implications for promoting green consumption. Collapse

Topics: data breach electronic commerce digital media marketing management mobile platform

Methods: natural experiment experimental group regression analysis method Poisson regression causality analysis

Stimulating Feedback Contributions Using Digital Nudges: A Field Experiment in a Real-time Mobile Feedback Platform

2023 | International Conference on Information Systems | Citations: 0

Authors: Rivera, Michael; Guo, Xue; Shan, Guohou; Qiu, Liangfei

Abstract: In the contemporary remote work environment, the demand for effective and timel ... Expand

Abstract: In the contemporary remote work environment, the demand for effective and timely feedback has significantly grown. Despite the adoption of feedback systems, many employees still find these platforms lacking in delivering meaningful insights. This study delves into the potential of digital nudges-reminder notifications sent to users-as a strategy to enhance feedback contributions on mobile platforms. A randomized field experiment was conducted in collaboration with a prominent organization, exploring variations in nudge send times and the emphasis on task significance. Spanning five weeks, the experiment evaluated the efficacy of these nudges in fostering feedback engagement among employees. Our findings indicate that the timing, content of nudges (i.e., task significance message), and a combination of these two, can significantly influence feedback behavior. The study's findings have potential implications for organizations aiming to bolster their feedback systems, making them more responsive and effective in the digital age. Collapse

Topics: decision making smartphone IS effectiveness individual impact marketing management

Methods: experimental group experiment randomized field experiment qualitative interview Student's t-test

Theories: elaboration likelihood model prisoner's dilemma

Foreignness Liability of Mobile App Startups: Examining Performance in the Context of Consumer and Investor Cultural Distances

2023 | Journal of Management Information Systems | Citations: 0

Authors: Soh, Franck; Grover, Varun

Abstract: Mobile platforms provide important entrepreneurial opportunities by facilitating ... Expand

Abstract: Mobile platforms provide important entrepreneurial opportunities by facilitating access to a global market composed of more than a hundred countries. These opportunities are crucial for mobile app startups as they seek to reach a wider audience and accelerate growth. Nevertheless, performing in foreign countries is challenging as mobile app startups face a "foreignness liability" since they are competing against complementors (i.e., app developers) who have experience in their domestic market. We offer a research model that assesses the impact of cultural distance on the app-level performance of mobile app startups in foreign countries. We hypothesize the moderating effects of investor-consumer cultural distance and environmental characteristics within foreign countries. We test the model using a dataset of over 550 mobile app startups operating on the iOS platform. Our findings support our hypotheses and provide insights into whether mobile platforms are level playing fields. Our study sheds light on the interactions between a startup and its investors' cultural distances highlighting configurations of cultural distance that are beneficial for app performance in foreign countries when the environment is stable or uncertain. Collapse

Topics: mobile application mobile platform iOS database system electronic market

Methods: statistical hypothesis test cross sectional research descriptive statistic mediation analysis robustness check

Theories: cultural dimensions theory

What Makes Resource Provision an Effective Means of Poverty Alleviation? A Resourcing Perspective

2023 | Organization Science | Citations: 0

Authors: Sutter, Christopher; Bhatt, Babita; Qureshi, Israr

Abstract: Adequately addressing the grand challenge of poverty requires addressing resourc ... Expand

Abstract: Adequately addressing the grand challenge of poverty requires addressing resource scarcity. However, efforts to provide resources as a means of poverty alleviation have met with mixed success. We explore what makes resource provision effective as a means of poverty alleviation. We adopt a resourcing perspective, which focuses on the relationship between potential resources and schemas, or shared understandings, that shape how resources are used. Consistent with prior research, we find that schemas shape how resources are used in practice. However, we also find that who can access the resources is as consequential as how they are used. In exploring this issue, we identify a new category of schemas related not to use but to access, which we refer to as access schemas. We define access schemas as shared understandings regarding who can appropriately access potential resources. We find that different social groups have distinct schemas regarding access, and we identify three mechanisms—precedence, complementarity, and scaffolding—that shape the way that access schemas are enacted in resource-scarce settings. Our study contributes to the literature on grand challenges by clarifying the link between resource provision and resource use. We also contribute to the literature on resourcing by uncovering mechanisms that shape schema enactment in the presence of conflicting access schemas held by different social groups. Funding: This work was supported by the Research Grants Council, University Grants Committee [GRF Grants PolyU 548210 and PolyU 549211], and International Development Research Centre [Doctoral Research Award 107473-99906075-074]. Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2021.1570. Collapse

Topics: organizational context mobile platform social norm

Methods: qualitative interview archival research field study longitudinal research grounded theory

Theories: social practice theory management theory

Female-exclusive Support and Gender Gap on Digital Platforms

2023 | International Conference on Information Systems | Citations: 0

Authors: Xia, Yu; Chen, Hailiang

Abstract: This study investigates the gender gap issue in the mobile platform context by ... Expand

Abstract: This study investigates the gender gap issue in the mobile platform context by analyzing performance disparities between male and female-led app companies. First, we identify the existence of the performance gap between the apps from two gender groups, utilizing a representative sample of mobile apps on Apple App Store. By employing the occurrence of Apple Entrepreneur Camp 2019 as an exogenous event, we assess the effectiveness of the platform's female-exclusive support in mitigating the gap. The results demonstrate that following the event, apps from the supported female-led companies exhibit improved performance compared to their male-led counterparts, whereas there is no significant increase in the performance of apps from unsupported female-led companies. We further show that as the age of apps from the unsupported female group increases, the event shows an increasingly positive impact on app performance. This finding suggests the presence of a conditional spillover effect of the platform's support. This study contributes to understanding the gender gap and emphasizes the importance and limitations of platform support initiatives for promoting gender equality within the platform. Managerial implications highlight the need for implementing supporting strategies to foster diversity and inclusion in the platform ecosystem. Collapse

Topics: mobile application digital distribution mobile application market mobile platform

Methods: probit regression natural experiment propensity score matching robustness check experimental group