The double-edged sword of delivery guarantee in E-commerce

2023 | Decision Support Systems | Citations: 0

Authors: Yang, Hu; Zhang, Yu; Chen, Kedong; Li, Ji

Abstract: E-commerce retailers (e-tailers) are increasingly competing in order fulfillment ... Expand

Abstract: E-commerce retailers (e-tailers) are increasingly competing in order fulfillment to win over customers. Delivery guarantee emerges as a key competitive factor. Prior studies have examined the relationship between delivery performance and consumer satisfaction, but little attention was paid to the practice of delivery guarantee itself. This study examines delivery guarantee as a decision support tool provided by e-tailers. Particularly, we draw on the signaling theory, expectation disconfirmation theory, and attribution theory to investigate whether it is worth to offer delivery guarantee, who (what kind of e-tailers) can benefit more from it, and how e-tailers should manage the order fulfillment process when they offer delivery guarantee. Through analyzing data from Alibaba using the Heckman Ordered Probit Model, we show that delivery guarantee can be a double-edged sword. That is, offering and meeting a delivery guarantee leads to higher consumer satisfaction towards order fulfillment than not offering one, but failing to meet the guarantee lowers consumer satisfaction more than not providing it. We further show that large e-tailers are more negatively affected by failed guarantees than small ones, and that the “middle mile” (delivery en route) of order fulfillment significantly reduces consumer satisfaction if failed. Taken together, this study generates implications for e-tailers that consider providing delivery guarantee. Large e-tailers should be especially cautious and assess their capability and commitment. The middle mile should receive enough managerial attention in addition to the widely concerned last mile. Collapse

Topics: logistics management decision support system decision making electronic commerce decision support

Methods: robustness check causality analysis statistical hypothesis test propensity score method experimental group

Theories: signaling theory attribution theory expectation disconfirmation theory lemon market theory

Understanding IT Value at the Managerial Level: Managerial Ambidexterity, Seizing Opportunities, and the Moderating Role of Information Systems Use

2021 | ACM SIGMIS Database | Citations: 0

Authors: Roberts, Nicholas; Qahri-Saremi, Hamed; Vijayasarathy, Leo R.

Abstract: Managerial ambidexterity is an important precursor to managerial seizing ability ... Expand

Abstract: Managerial ambidexterity is an important precursor to managerial seizing ability. However, ambidexterity can impose substantial costs. Yet information systems may help reduce these costs. We develop a model that includes an inverted U-shaped relationship between managerial ambidexterity and seizing ability. We propose that a manager's effective use of management support systems will mitigate the decline in seizing ability at higher levels of ambidexterity. We test our model with data collected over two time periods from 172 managers. Our results support our model, thereby generating implications for research and practice in IT value, managerial ambidexterity, and dynamic managerial capabilities. Collapse

Topics: information system use IS value top management support organizational innovation value creation

Methods: survey ordered probit regression statistical hypothesis test descriptive statistic survey design

Theories: theory of effective use dynamic capabilities theory

EXPLAINING THE STARS: ASPECT-BASED SENTIMENT ANALYSIS OF ONLINE CUSTOMER REVIEWS

2019 | European Conference On Information Systems | Citations: 0

Authors: Binder, Markus; Heinrich, Bernd; Klier, Mathias; Obermeier, Andreas Alexander; Schiller, Alexander

Abstract: The importance of online customer reviews for the success of products and servic ... Expand

Abstract: The importance of online customer reviews for the success of products and services has been recognized in both research and practice. Therefore, the ability to explain and interpret customer assessments expressed by the assigned overall star ratings is an important and interesting research field. Existing approaches for explaining the overall star ratings, however, often do not address methodical issues associated with these ratings (e.g., ordinal scale). Moreover, they often ignore the review texts which contain valuable information on the customers’ assessments of different aspects of the rated items (e.g., price or quality). To contribute to both research gaps, we propose a generalized ordered probit model using aspect-based sentiments as independent variables to explain the overall star ratings of online customer reviews. For measuring the explanatory power of our model, we suggest a likelihood-based pseudo R-squared measure. By evaluating our approach using a large real-world dataset of restaurant reviews we show, that, in contrast to other regression models, the generalized ordered probit model can address the methodical issues associated with the star ratings. Moreover, the evaluation shows that the results of the proposed model are easy to interpret and valuable for analysing customer assessments. Collapse

Topics: competitive advantage Python accounting quality management customer satisfaction

Methods: regression analysis method product review literature study linear regression analysis supervised learning

Effect of Friends’ Churn on Consumer Behavior in Mobile Networks

2019 | Journal of Management Information Systems | Citations: 0

Authors: Ferreira, Pedro; Telang, Rahul; De Matos, Miguel Godinho

Abstract: We study how consumers decide which tariff plan to choose and whether to churn w ... Expand

Abstract: We study how consumers decide which tariff plan to choose and whether to churn when their friends churn in the mobile industry. We develop a theoretical model showing conditions under which users remain with their carrier and conditions under which they churn when their friends do. We then use a large and rich anonymized longitudinal panel of call detailed records to characterize the consumers’ path to death with unprecedented level of detail. We explore the structure of the network inferred from these data to derive instruments for friends’ churn, which is typically endogenous in network settings. This allows us to econometrically identify the effect of peer influence in our setting. On average, we find that each additional friend that churns increases the monthly churn rate by 0.06 percent. The observed monthly churn rate across our dataset is 2.15 percent. We also find that firms introducing the pre-paid tariff plans that charge the same price to call users inside and outside the carrier help retain consumers that would otherwise churn. In our setting, without this tariff plan the monthly churn rate could have been as high as 8.09 percent. We perform a number of robustness checks, in particular to how we define friends in the social graph, and show that our results remain unchanged. Our paper shows that the traditional definition of customer lifetime value underestimates the value of consumers and, in particular, that of consumers with more friends due to the effect of contagious churn and, therefore, managers should actively take into account the structure of the social network when prioritizing whom to target during retention campaigns. Collapse

Topics: social network consumer behavior price discrimination user behavior

Methods: instrumental variables estimation robustness check descriptive statistic ordered probit regression theory development

Information Technology Investments and Firm Risk Across Industries: Evidence from the Bond Market

2017 | Management Information Systems Quarterly | Citations: 22

Authors: Kim, Keongtae; Mithas, Sunil; Kimbrough, Michael

Abstract: This study documents variation across industries in creditors’ perceptions of th ... Expand

Abstract: This study documents variation across industries in creditors’ perceptions of the risk of information technology (IT) investments. The associations we document between IT investments and both initial bond ratings and yield spreads suggest that credit-rating agencies and bond investors consider IT investments in automate and informate industries less risky than those in transform industries. We document that IT investments are associated with more volatile future cash flows in transform industries than in automate or informate industries. The findings indicate that bond investors prefer IT investments in automate industries, where the cash flow payoffs to IT investment are smaller but more stable than in transform industries. Overall, these findings provide the important insight that bondholders’ perceptions of IT investments vary across industries based on bondholders’ aversion to the riskiness and the lack of collateralizability of IT investments. Senior managers should recognize that IT investments have implications for both operational performance and financing costs (e.g., costs of debt) of the firm, and they should consider the potential financial benefits of increased IT capabilities, such as the willingness of corporate bond investors to accept lower financing costs. Collapse

Topics: IT investment research and development IS impact real option database system

Methods: Compustat ordered probit regression instrumental variables estimation descriptive statistic robustness check

Theories: real options theory options theory

Educational Mismatch, Work Outcomes, and Entry Into Entrepreneurship

2016 | Organization Science | Citations: 18

Authors: Stenard, Briana Sell; Sauermann, Henry

Abstract: A growing body of research explores how employees’ organizational context shapes ... Expand

Abstract: A growing body of research explores how employees’ organizational context shapes their entrepreneurial activity. We add to this work by examining how “educational mismatch”—when a job does not utilize the skills an employee has acquired during education—relates to subsequent transitions into entrepreneurship. While prior research has focused on mismatch due to labor market frictions, workers may also enter mismatches for other reasons, such as family obligations or a change in career interests. Different reasons, in turn, may relate in distinct ways to wages and job satisfaction and thus to the opportunity costs of entering entrepreneurship. Moreover, mismatch may also affect human capital development, including the formation of a broader range of skills that is beneficial in entrepreneurship. Using longitudinal data from over 25,000 scientists and engineers, we document a broad range of reasons for educational mismatch and show that the relationships between educational mismatch and wages, job satisfaction, and skill variety differ significantly depending upon the reason for a mismatch. Mismatched individuals are more likely to enter into entrepreneurship in a subsequent period, an effect that goes beyond higher labor mobility per se. Both lower opportunity costs—primarily low job satisfaction—and greater skill variety appear to link educational mismatch to subsequent entrepreneurship. We discuss implications for research, managers, and policy makers. Collapse

Topics: entrepreneurship research and development job satisfaction IT career individual characteristic

Methods: longitudinal research survey regression analysis method mediation analysis ordinary least square

How Strategy and Governance Choices Influence Innovation Success in Software Products and Services

2015 | International Conference on Information Systems | Citations: 3

Authors: Liu, CheWei; Kude, Thomas; Mithas, Sunil

Abstract: This research studies the effect of key strategy and governance choices on chanc ... Expand

Abstract: This research studies the effect of key strategy and governance choices on chances of success of innovation in software products, and we test our hypotheses based on data from more than 150 professionals in the United States who are responsible for new software product development. We find the right balance of onshore and offshore team members to be more salient in influencing innovation success than decisions related to insourced versus outsourced development. Our findings suggest a greater likelihood of innovation when business executives make technical decisions, particularly if firms compete by selling high price margin software products or services. Collapse

Topics: innovation management offshoring onshoring new product development digital innovation

Methods: data transformation statistical hypothesis test robustness check descriptive statistic principal component analysis

Do Experience Effects Vary Across Governance Modes? Evidence from New Product Introduction in the Global Aircraft Industry, 1948–2000

2014 | Organization Science | Citations: 0

Authors: Mulotte, Louis

Abstract: We examine the potential for improved performance through experiential learning ... Expand

Abstract: We examine the potential for improved performance through experiential learning of three modes of new product introduction: internal development, joint development, and licensing. Drawing on the organizational learning literature, we argue that the speed of experiential learning—that is to say, the marginal performance benefit of experience—is higher when firms carry out activities that allow for a clearer understanding of cause–effect relationships, whereas experiential benefits plateau at higher levels of experience when firms are in activities involving higher levels of related task variation. We thus predict that both the speed of learning and the experience threshold are higher in internal development than they are in licensing; the speed of learning and experience threshold in joint development fall in between. This means that the potential for improved performance through experiential learning should be greatest with internal development, moderate with joint development, and rather limited in licensing. We study the performance of 278 new aircraft introductions undertaken by 94 firms between 1948 and 2000 and find support for our hypotheses. Collapse

Topics: organization learning accounting anonymity armed conflict strategic management

Methods: cluster analysis linear regression analysis statistical hypothesis test Wald test robustness check

Icon Design and Game App Adoption

2014 | Americas Conference on Information Systems | Citations: 0

Authors: Shu, Wesley; Lin, Chia-Sheng

Abstract: How do customers make selections from among millions of smartphone apps? In this ... Expand

Abstract: How do customers make selections from among millions of smartphone apps? In this study, we analyzed the relationship between icon attributes and choice of game apps. Based on the literature, 5 icon attributes were identified: active, balance, complexity, depth, and organic. 3 game types were selected: arcade, brain, and casual games. Explicit policy implications were exploited for icon design. For arcade games, icons should be active. For brain games, icons should be organic. For casual games, organic and depth are the preferred criteria for designs. Collapse

Topics: mobile application smartphone group decision support system

Methods: survey Wilcoxon signed-rank test nonparametric test experiment qualitative interview

Impact of Prior Reviews on the Subsequent Review Process in Reputation Systems

2013 | Journal of Management Information Systems | Citations: 108

Authors: Ma, Xiao; Khansa, Lara; Deng, Yun; Kim, Sung S.

Abstract: Reputation systems have been recognized as successful online review communities ... Expand

Abstract: Reputation systems have been recognized as successful online review communities and word-of-mouth channels. Our study draws upon the elaboration likelihood model to analyze the extent that the characteristics of reviewers and their early reviews reduce or worsen the bias of subsequent online reviews. Investigating the sources of this bias and ways to mitigate it is of considerable importance given the previously established significant impact of online reviews on consumers' purchasing decisions and on businesses' profitability. Based on a panel data set of 744 individual consumers collected from Yelp, we used the Markov chain Monte Carlo simulation method to develop and empirically test a system of simultaneous models of consumer review behavior. Our results reveal that male reviewers or those who lack experience, geographic mobility, or social connectedness are more prone to being influenced by prior reviews. We also found that longer and more frequent reviews can reduce online reviews' biases. This paper is among the first to examine the moderating effects of reviewer and review characteristics on the relationship between prior reviews and subsequent reviews. Practically, this study offers businesses effective customer relationship management strategies to improve their reputations and expand their clientele. Collapse

Topics: online review marketing management anonymity customer relationship management user-generated content

Methods: simulation longitudinal research statistical hypothesis test regression analysis method product review

Theories: elaboration likelihood model