When Reflection Hurts: The Effect of Cognitive Processing Types on Organizational Adaptation to Discontinuous Change

2023 | Organization Science | Citations: 1

Authors: Alves, Marlon Fernandes Rodrigues; Vastola, Vincenzo; Vasconcelos Ribeiro Galina, Simone; Zollo, Maurizio

Abstract: Technological breakthroughs, institutional disruptions, and natural disasters of ... Expand

Abstract: Technological breakthroughs, institutional disruptions, and natural disasters often alter the course of organizations and entire industries. Such discontinuous changes threaten organizations’ survival by affecting the value of the knowledge accumulated in routines and capabilities. Although it is widely acknowledged that managerial cognition is a critical antecedent of organizational responses to discontinuous change, the role of type 1 (intuitive) and type 2 (reflective) processing in the adaptation of shared patterns of behavior, that is, routines, remains understudied. Drawing on dual-process theory, we propose that particular features of type 1 processing render this approach superior to type 2 processing, especially in highly ambiguous environments in which information is limited and difficult to verify. We tested our hypotheses in a longitudinal experiment linking individual-level factors with organizational-level practices of routine adaptation. Experienced managers, paired in 80 groups, developed routines in a first round of a simulation game; in a second round, we then introduced a discontinuous change making previous routines obsolete in order to observe how they adapted. The data show that priming type 1 processing facilitates organizational adaptation more than type 2 processing by providing faster, more routinized, efficiently coordinated, and optimal responses. In addition, type 1 appears to be more functional in highly ambiguous environments, whereas type 1 and type 2 processes yield similar levels of performance under low levels of ambiguity. Overall, our study advances the understanding of the nondeliberative dimension of organizational adaptation to discontinuous change.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: This work was supported by Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (Finance Code 001).Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1517. Collapse

Topics: decision making strategic management innovation management problem solving task productivity

Methods: experiment longitudinal research parametric test ANOVA statistical hypothesis test

Theories: dual-system theory dynamic capabilities theory

Similar Affordances, Different Use Practices? An Investigation of Socio-Cultural Contexts in Facebook, Instagram and Twitter

2023 | International Conference on Information Systems | Citations: 0

Authors: Arslan, Kader; Trier, Matthias

Abstract: ... Expand

Abstract: Collapse

Topics: Twitter Instagram Facebook affordance user experience

Methods: survey robustness check survey design nonparametric test literature study

Theories: theory of affordance

Expl(AI)ned: The Impact of Explainable Artificial Intelligence on Users’ Information Processing

2023 | Information Systems Research | Citations: 0

Authors: Bauer, Kevin; von Zahn, Moritz; Hinz, Oliver

Abstract: Because of a growing number of initiatives and regulations, predictions of moder ... Expand

Abstract: Because of a growing number of initiatives and regulations, predictions of modern artificial intelligence (AI) systems increasingly come with explanations about why they behave the way they do. In this paper, we explore the impact of feature-based explanations on users’ information processing. We designed two complementary empirical studies where participants either made incentivized decisions on their own, with the aid of opaque predictions, or with explained predictions. In Study 1, laypeople engaged in the deliberately abstract investment game task. In Study 2, experts from the real estate industry estimated listing prices for real German apartments. Our results indicate that the provision of feature-based explanations paves the way for AI systems to reshape users’ sense making of information and understanding of the world around them. Specifically, explanations change users’ situational weighting of available information and evoke mental model adjustments. Crucially, mental model adjustments are subject to the confirmation bias so that misconceptions can persist and even accumulate, possibly leading to suboptimal or biased decisions. Additionally, mental model adjustments create spillover effects that alter user behavior in related yet disparate domains. Overall, this paper provides important insights into potential downstream consequences of the broad employment of modern explainable AI methods. In particular, side effects of mental model adjustments present a potential risk of manipulating user behavior, promoting discriminatory inclinations, and increasing noise in decision making. Our findings may inform the refinement of current efforts of companies building AI systems and regulators that aim to mitigate problems associated with the black-box nature of many modern AI systems. History: Alessandro Acquisti, senior editor; Jason Chan, associate editor. Funding: This work was supported by the Deutsche Forschungsgemeinschaft (DFG) (Projek 449023539), Volkswagen Foundation (ML2MT), and LeibnizInstitute for Financial Research SAFE. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2023.1199. Collapse

Topics: explainable artificial intelligence artificial intelligence shapley additive explanation local interpretable model agnostic explanation decision making

Methods: F-test regression analysis method experiment field study robustness check

Empowering Users to Create Augmented Reality-Based Solutions – Deriving Design Principles for No-Code AR Authoring Tools

2023 | International Conference on Information Systems | Citations: 0

Authors: Bräker, Julia; Hertel, Julia; Semmann, Martin

Abstract: Grounded on an experimental study with 18 participants, we derive 15 design pri ... Expand

Abstract: Grounded on an experimental study with 18 participants, we derive 15 design principles for no-code AR authoring tools in an organizational setting. The study consists of two distinct treatments that aim to augment lightweight processes with AR. The outcomes are two interactive tutorials utilizing AR instructions. Following the no-code approach, the participants were empowered to create relevant AR content using a reduced interface and no need for advanced configurations or coding. The study thus combines two research streams with the aim of better understanding mechanisms for AR use in a professional context. As prior work has shown, despite the potential benefits, the adoption of AR authoring tools is limited because ramping up AR to productive use is heavily dependent on consulting and custom software solutions. Our novel approach bears the potential to broaden application domains and empower professionals to apply AR. Collapse

Topics: mobile application usability user experience information system use augmented reality

Methods: design principle design artifact survey cognitive walkthrough design science

Effectiveness of Health Communication Technology on Compliance Disposition of Covid-19 Guidelines

2023 | Communications of the Association for Information Systems | Citations: 0

Authors: Bui, Quang “Neo”; Moriuchi, Emi

Abstract: Recent research has mostly examined the role of health communication technology ... Expand

Abstract: Recent research has mostly examined the role of health communication technology (HCT) in patient empowerment and in producing patient-focused outcomes. This study examines HCT in a larger context where it is used as a tool to improve public health. The objective is to examine how HCT is used to monitor Covid-19's spread, and how social factors affect individual assessment of HCT and individual compliance disposition of Covid-19 guidelines. Analyzing data collected from 360 HCT users suggests that the information and system quality of HCT indeed impact users' assessment of its effectiveness and their compliance disposition. However, such effects are strongly mediated by social factors: Peer influence and government trust can sway an individual's cognitive judgments of Covid-19 regardless of HCT's impacts. The findings highlight the importance of social factors in pandemic management and the need to socialize health informatics to make them more effective. Collapse

Topics: social influence data quality digital dashboard system quality mobile application

Methods: survey mediation analysis partial least squares path modeling post analysis path analysis

Theories: health belief model information systems success model

Divergent Innovation: Directing the Wisdom of Crowd to Tackle Societal Challenges

2023 | International Conference on Information Systems | Citations: 0

Authors: Cao, Chuhan; Zhu, Jiantao; Xiong, Bingqing; Lim, Eric; Liu, Hefu; Cai, Zhao; Tan, Chee-Wee

Abstract: Crowdsourcing is acknowledged as a promising avenue for addressing societal cha ... Expand

Abstract: Crowdsourcing is acknowledged as a promising avenue for addressing societal challenges by drawing on the wisdom of the crowd to offer diverse solutions to complex problems. Advancing a new conceptual framework of 'divergent innovation' which delineates between topic and quality divergence as focal metrics of performance when crowdsourcing for solutions to societal challenges, this study investigates the impacts of four ideation stimuli on divergent innovation. These four stimuli include task description concreteness, resource richness, topic entropy, and judging criteria comprehensiveness. Empirical analysis based on data sourced from an online crowd-ideation platform reveals that task description concreteness negatively affects topic divergence but positively influences quality divergence, whereas resource richness positively affects topic divergence but negatively influences quality divergence. Additionally, the relationship between topic entropy and topic divergence is U-shaped, with no significant impact on quality divergence. These findings contribute to extant literature on crowdsourcing and offer invaluable insights for practitioners. Collapse

Topics: innovation management societal challenge crowdsourcing evaluation criteria media richness

Methods: BERT literature study statistical hypothesis test regression analysis method language model

Excuse Me, Something Is Unfair! - Implications of Perceived Fairness of Service Robots

2023 | European Conference On Information Systems | Citations: 0

Authors: Büttner, Sebastian; Sourkounis, Cora Maria; Gutzmann, Jan; Prilla, Michael

Abstract: Fairness is an important aspect for individuals and teams. This also applies to ... Expand

Abstract: Fairness is an important aspect for individuals and teams. This also applies to human-robot interaction (HRI). Especially if intelligent robots provide services to multiple humans, humans may feel treated unfairly by robots. Most work in this area deals with the aspects of fair algorithms, task allocation, and decision support. This work focuses on a different, yet little-explored perspective, which looks at fairness in HRI from a human-centered perspective in human-robot teams. We present an experiment in which a service robot was responsible for distributing resources among competing team members -in one condition with an efficient (but rather unfair) distribution algorithm and in another condition with an algorithm that was less efficient but could be considered fair. We investigated how the different strategies of distribution influence the perceived fairness and how this perceived fairness influenced the perception of the robot as such. Our study shows that humans might perceive technically efficient algorithms executed by a robot as unfair, especially if humans personally experience negative consequences. Interestingly, this perceived unfairness had a negative impact on human perception of the robot as such, which should be considered in the design of future robots. Collapse

Topics: robotic user acceptance user interface artificial intelligence data quality

Methods: experiment nonparametric test computational algorithm Mann Whitney U test survey

Interpretable cost-sensitive regression through one-step boosting

2023 | Decision Support Systems | Citations: 0

Authors: Decorte, Thomas; Raymaekers, Jakob; Verdonck, Tim

Abstract: In most practical prediction problems, such as regression and classification, th ... Expand

Abstract: In most practical prediction problems, such as regression and classification, the different types of prediction errors are not equally costly in the decision-making process. Although there exist numerous real-world costsensitive regression problems, ranging from loan charge-off forecasting to house price predictions, the literature on cost-sensitive learning mainly focuses on classification and only a few solutions are proposed for regression problems. These regressions are typically characterized by an asymmetric cost structure, where over- and underpredictions of a similar magnitude face vastly different costs. In this paper, we present a one-step boosting method (OSB) for cost-sensitive regression. The proposed methodology leverages a secondary learner to incorporate cost-sensitivity into an already trained cost-insensitive regression model. The secondary learner is defined as a linear function of certain variables deemed interesting for cost-sensitivity. These variables do not necessarily need to be the same as in the already trained model. An efficient optimization algorithm is achieved through iteratively reweighted least squares using the asymmetric cost function. The obtained results become interpretable through bootstrapping, enabling decision makers to distinguish important variables for cost-sensitivity as well as facilitating statistical inference. Applying different cost functions and various initial cost-insensitive learning methods on several public datasets consistently yields a significant reduction in the average misprediction cost, illustrating the excellent performance of our approach. Collapse

Topics: Python decision making ease of use operating system Microsoft Windows

Methods: computational algorithm regression analysis method LightGBM boosting method linear regression analysis

USING TRANSACTION COST ECONOMICS SAFEGUARDING TO REDUCE THE DIFFUSION OF DISINFORMATION ON SOCIAL MEDIA

2023 | European Conference On Information Systems | Citations: 0

Authors: Eccles, David; Kurnia, Sherah; Geard, Nicholas; Dingler, Tilman

Abstract: Human users contribute to the spread of disinformation on Social Media. To redu ... Expand

Abstract: Human users contribute to the spread of disinformation on Social Media. To reduce the spread, we apply Transaction Cost Economics (TCE) Safeguarding, which penalises the sharing of disinformation. Using the economic theory TCE positions Social Media platforms as free markets, in which actors are motivated to protect their assets and peer reputation. We conducted a study exploring TCE Safeguarding as a market correction mechanism to change the disinformation diffusion behaviour of users. Our findings show that users will be less likely to post a comment and more likely to correct their previous disinformation diffusion actions when TCE Safeguarding is applied. Focusing on Social Media as a market rather than its individual components may provide a mechanism to address the "fake news" phenomenon. Collapse

Topics: disinformation social media user behavior fake news Facebook

Methods: survey experiment Mann Whitney U test nonparametric test economic model

Theories: economic theory transaction cost economics

Unrevealing the Dynamic Impact of Extended Reality Adoption on Offline Channel Performance

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Fang, Jie; Xiong, Bingqing; Li, Wilson; Song, Xiaofei

Abstract: The substantial attention of extended reality (XR) technology poses challenges ... Expand

Abstract: The substantial attention of extended reality (XR) technology poses challenges for multichannel retailers. On the one hand, retailers' adoption of XR can enhance consumers' online shopping experience and stimulate their purchases. On the other hand, XR technology replace the necessity for multichannel retailers to operate physical stores, which reflects the need to optimize channel structures while adopting XR. To ascertain how the multichannel retailers can outperform under such circumstances, this study combines the data sources of online website information and offline transaction information for over 1,100 global multichannel retailers from 2018 to 2022, thus involves 13497 monthly-brand observations. By using the fixed-effects model, the current study found that XR adoption duration has a non-linear impact on offline store conversion rate, which can initially increase customers' purchase decision in offline stores, but then turns to result in the negative impacts. Moreover, there are nuanced effects for XR with and without the affordance of create-ability. Findings of the paper aims to provide managerial implications for multichannel retailers to optimize channel structure and adopt XR technology for creating positive cross-channel synergy. Collapse

Topics: user experience technology adoption website information system use database system

Methods: Mann Whitney U test nonparametric test instrumental variables estimation difference in differences statistical hypothesis test

Theories: theory of affordance