Maintaining or Altering the Status Quo in the Nonmarket Arena: Theory and Evidence from Government Contract Disputes

2023 | Organization Science | Citations: 0

Authors: Abdurakhmonov, Mirzokhidjon; Hasija, Dinesh; Ridge, Jason W.; Hill, Aaron D.

Abstract: We develop a theory that considers important differences in competition in the p ... Expand

Abstract: We develop a theory that considers important differences in competition in the political arena based on whether firms are attempting to maintain or alter the status quo. Particularly, we argue that although investing resources and time to build relationships with politicians and government officials fosters trust, solidarity, and reciprocity, likely producing desired outcomes for both firms attempting to maintain the status quo and those trying to alter it, such relationships are more strongly positive for firms maintaining the status quo. As the effectiveness of relational strategies may differ based on firms’ political strategies and firm characteristics, we then theorize that the effects of a more relational approach on ”winning” these desired outcomes for firms seeking to maintain or alter the status quo will be moderated by (1) prior targeting in the political arena where the competition unfolds and (2) a firm’s social reputation. Specifically, we argue that knowledge and relationships from prior targeting in a political domain where competition unfolds, and a firm’s better social reputation will strengthen the effect of a more relational approach on securing desired outcomes for both firms seeking to maintain and alter the status quo. We expect the moderating effect for a firm’s targeting and social reputation will be stronger for firms seeking to maintain the status quo compared with firms seeking to alter the status quo. Our study contributes to corporate political activity literature and notably to the research on political markets by advancing a more nuanced but realistic understanding of interfirm rivalry for governmental outcomes. Collapse

Topics: resource allocation database system competitive advantage legal context anonymity

Methods: theory development statistical hypothesis test chi squared test cluster analysis Compustat

Theories: resource based view of the firm

Input control and its signalling effects for complementors' intention to join digital platforms

2023 | Information Systems Journal | Citations: 2

Authors: Adam, Martin; Croitor, Evgheni; Werner, Dominick; Benlian, Alexander; Wiener, Martin

Abstract: Existing information systems (IS) research on platform control has largely focus ... Expand

Abstract: Existing information systems (IS) research on platform control has largely focused on examining how input control (i.e., the mechanisms used to control platform access) affects complementors' intentions and behaviours after their decision to join a digital platform. Yet, our understanding of how input control is perceived before this decision and how such perceptions influence prospective complementors' intention to join a platform is still nascent. In this regard, our study views input control as a salient signal that shapes prospective complementors' expected benefits and costs (i.e., their performance and effort expectancy), and ultimately their decision to join a digital platform. Drawing on signalling theory and the antecedent-benefit-cost (ABC) framework, we conducted a randomized online experiment in the context of donation-based crowdfunding. The experiment results offer empirical support for this view by showing that input control has distinct and complex signalling effects for prospective complementors. In particular, our findings reveal curvilinear and competing signalling effects, with perceived input control increasing both performance expectancy (at a decreasing rate) and effort expectancy (at an increasing rate). Also, we find that performance expectancy linearly increases prospective complementors' intention to join a platform, whereas effort expectancy linearly decreases their intention to do so. These findings imply that the overall relationship between perceived input control and intention to join follows an inverted U-shape curve, which means that neither a low nor a high, but a moderate degree of perceived input control maximizes prospective complementors' intention to join. In sum, the results of our study provide novel and important insights into the signalling role that perceived input control plays in shaping prospective complementors' decision to join a digital platform. Collapse

Topics: digital platform crowdsourcing crowdfunding behavioral intention digital ecosystem

Methods: experiment mediation analysis survey survey design theory development

Theories: signaling theory

P2P lending and Natural Disasters: Is Altruistic Behavior conditional?

2023 | International Conference on Information Systems | Citations: 0

Authors: Agrawal, Lavlin; Sharman, Raj; Tiu, Christian; Joenväärä, Juha

Abstract: In the aftermath of natural disasters, borrowers seeking credit from traditiona ... Expand

Abstract: In the aftermath of natural disasters, borrowers seeking credit from traditional sources, such as banks, may encounter higher interest rates than in pre-disaster periods. We examine the lending behavior of peer-topeer (P2P) platforms in the wake of disasters. Since P2P platforms involve individual investors in making lending decisions, they accommodate both profit motives and empathetic responses. Empirical evidence from psychology suggests that empathy can lead to prosocial behavior. Consistent with this assertion, we find that loans affected by natural disasters have lower interest rates than comparable loans not issued in the wake of disasters. Our study finds that lenders are involved in a prosocial behavior and are ready to give away some part of their interest income to help the communities in need. Collapse

Topics: crowdsourcing natural hazard peer-to-peer lending peer-to-peer model LendingClub

Methods: instrumental variables estimation experimental group sensitivity analysis ordinary least square robustness check

Too Tired and in Too Good of a Mood to Worry About Privacy: Explaining the Privacy Paradox Through the Lens of Effort Level in Information Processing

2023 | Information Systems Research | Citations: 0

Authors: Alashoor, Tawfiq; Keil, Mark; Smith, H. Jeff; McConnell, Allen R.

Abstract: The confluence of digital transactions, growing cybersecurity threats, and the i ... Expand

Abstract: The confluence of digital transactions, growing cybersecurity threats, and the internet of the future (e.g., web 3.0 and the metaverse) have made information privacy increasingly important to consumers and companies that rely on consumers willingly sharing their personal information. Although information privacy has been of interest to researchers for decades and much has been learned, one thing that perplexes scholars is the privacy paradox, which we define as a mismatch between stated privacy concerns and actual disclosure behaviors. In this paper, we shed light on this phenomenon and show that low-effort information processing triggered by cognitive depletion (Experiment 1), positive mood (Experiment 2), or both (Experiment 3) significantly attenuates the association between stated privacy concerns and disclosure behaviors. These findings do not indicate that individuals do not care about privacy because we find consistent evidence in the three experiments for a significant negative association between stated privacy concerns and disclosure behaviors when individuals have sufficient cognitive capacity (Experiment 1), experience a negative (or neutral) mood (Experiment 2), or have sufficient cognitive capacity coupled with a negative mood state (Experiment 3). Our findings reveal that the paradox is neither an absolute phenomenon nor a myth, but its existence is conditional on contextual factors, including psychological factors related to information processing. We discuss our contribution to privacy theory and provide implications for consumers, companies, and policymakers. History: Alessandro Acquisti, Senior Editor; Idris Adjerid, Associate Editor. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1182. Collapse

Topics: information privacy concern privacy decision making mobile application task productivity

Methods: experiment descriptive statistic statistical hypothesis test theory development Student's t-test

Theories: elaboration likelihood model

Impressionable or Immune? Examining the Influence of Marquee Sellers in B2B Secondary Market Platforms for IT Products

2023 | Information Systems Research | Citations: 0

Authors: Alhauli, Abdullah; Elmaghraby, Wedad J.; Gopal, Anandasivam

Abstract: Although digital platforms have become mainstream, there still remain some unans ... Expand

Abstract: Although digital platforms have become mainstream, there still remain some unanswered questions pertaining to managing platform ecosystems. One such unexplored question pertains to the effect of marquee sellers on the platform—marquee sellers arguably attract other sellers and buyers to the platform, thereby enhancing the platform’s value. In this paper, we study how adding a marquee seller to a business-to-business (B2B) secondary-market platform for IT products affects other sellers, in terms of the prices they obtain for comparable products. Using proprietary data on B2B secondary-market auctions obtained from a platform provider, we show that the entry of a marquee seller has a positive effect on the prices obtained by other sellers on the platform, reflecting a reference-price effect. We further show that this positive effect on final prices is moderated by the extent to which bidders are active on multiple seller sites on the same platform and the extent to which bidders participate in the marquee seller site. We explain these effects using theory in multihoming and involvement, in terms of how reference prices are set. Our work extends the platforms literature by considering the specific influence of a marquee seller on other sellers, thereby informing platform owners on the implications of the advice to add more marquee sellers to platforms. We also contribute to the literature on secondary markets for durable, used IT products, which are instrumental in reducing electronic waste and mitigating the environmental damage done by electronic products in landfills.History: Raghu Santanam, Senior Editor; Pallab Sanyal, Associate Editor.Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1137. Collapse

Topics: Apple iPhone business-to-business willingness to pay network effect mobile system

Methods: robustness check descriptive statistic statistical hypothesis test post-hoc analysis ordinary least square

Theories: involvement theory

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

Value Implications of Sourcing Electronic Health Records: The Role of Physician Practice Integration

2023 | Information Systems Research | Citations: 0

Authors: Bardhan, Indranil R.; Bao, Chenzhang; Ayabakan, Sezgin

Abstract: Should hospitals source electronic health records (EHR) systems from a single ve ... Expand

Abstract: Should hospitals source electronic health records (EHR) systems from a single vendor or multiple vendors to deliver high-value care? We study hospitals’ EHR sourcing strategies based on their degree of integration with physician practices and its impact on the value of healthcare delivered. We propose a novel framework to define healthcare value as the extent to which a hospital effectively expends clinical resources to deliver services that improve patient outcomes. Drawing on modular systems and transaction cost economics theories, we propose a moderated-mediation model that explores the pathways through which EHR sourcing strategies can create value in healthcare. We test our research hypotheses on a large, longitudinal sample of U.S. hospitals and observe that hospitals with EHR configurations closer to single sourcing strategies exhibit greater health information sharing compared with hospitals with multisourced EHR systems. Furthermore, we find that hospital-physician practice integration moderates the impact of single sourcing on health information sharing, which in turn, improves value. Specifically, tighter integration between hospitals and physician practices can create greater value if it is aligned with hospitals’ EHR sourcing strategies. As the healthcare industry moves toward value-based payment reform, our findings provide a useful roadmap to practitioners and policy makers to improve the performance of hospitals and healthcare providers. History: Rajiv Kohli, Senior Editor; Sunil Wattal, Associate Editor. Funding: I.R. Bardhan thanks the Foster Parker Centennial Professorship and the Dean’s Research Excellence Grant at the McCombs School of Business at UT Austin for generous financial support. C. Bao thanks the Spears Fellowship at Oklahoma State University for financial support. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1183. Collapse

Topics: information exchange healthcare data health information system accounting database system

Methods: longitudinal research survey robustness check econometric modeling design artifact

Theories: transaction cost economics general systems theory institutional theory

Incentivizing Effort Allocation Through Resource Allocation: Evidence from Scientists’ Response to Changes in Funding Policy

2023 | Organization Science | Citations: 0

Authors: Blomfield, Michael; Vakili, Keyvan

Abstract: Prior research in management and economics has predominantly focused on how mana ... Expand

Abstract: Prior research in management and economics has predominantly focused on how managers or policymakers can shape workers’ allocation of effort using output-based or effort-based incentives. In many settings, however, managers may seek to influence workers’ effort choices through resource allocation—that is, changing the cost of securing resources for different projects or activities. In this paper, we develop a formal model to investigate how a worker changes the allocation of a fixed amount of effort across different projects in response to changes in the cost of securing resources for each project. Our model shows how cutting resources available to one project, under certain circumstances, can inadvertently reduce the share of effort allocated to other projects and vice versa. We use the insights from the model to explore the effectiveness of funding strategies designed to influence the research direction of academic scientists. We specifically examine how U.S. scientists working in stem cell research responded to a 2001 policy change that restricted access to federal funding for research in the human embryonic stem cell (hESC) area. In line with our model’s predictions, we find that cutting resources for hESC research inadvertently reduced U.S. scientists’ output in non-hESC areas of stem cell research—an effect that is strongest among the highest-ability scientists. Our findings highlight the complexities of incentivizing effort allocation using resource-based incentives. In particular, we show how altering resource-based incentives in one area can have unforeseen spillover effects on effort allocation in other areas. Funding: Financial support from the London Business School is gratefully acknowledged. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1565. Collapse

Topics: IT career human resource management individual characteristic

Methods: longitudinal research robustness check ordinary least square autocorrelation analysis experimental group

Theories: theory of economic development

Organizing Entrepreneurial Teams: A Field Experiment on Autonomy over Choosing Teams and Ideas

2023 | Organization Science | Citations: 1

Authors: Boss, Viktoria; Dahlander, Linus; Ihl, Christoph; Jayaraman, Rajshri

Abstract: Scholars have suggested that autonomy can lead to better entrepreneurial team pe ... Expand

Abstract: Scholars have suggested that autonomy can lead to better entrepreneurial team performance. Yet, there are different types of autonomy, and they come at a cost. We shed light on whether two fundamental organizational design choices—granting teams autonomy to (1) choose project ideas to work on and (2) choose team members to work with—affect performance. We run a field experiment involving 939 students in a lean startup entrepreneurship course over 11 weeks. The aim is to disentangle the separate and joint effects of granting autonomy over choosing teams and choosing ideas compared with a baseline treatment with preassigned ideas and team members. We find that teams with autonomy over choosing either ideas or team members outperform teams in the baseline treatment as measured by pitch deck performance. The effect of choosing ideas is significantly stronger than the effect of choosing teams. However, the performance gains vanish for teams that are granted full autonomy over choosing both ideas and teams. This suggests the two forms of autonomy are substitutes. Causal mediation analysis reveals that the main effects of choosing ideas or teams can be partly explained by a better match of ideas with team members’ interests and prior network contacts among team members, respectively. Although homophily and lack of team diversity cannot explain the performance drop among teams with full autonomy, our results suggest that self-selected teams fall prey to overconfidence and complacency too early to fully exploit the potential of their chosen idea. We discuss the implications of these findings for research on organizational design, autonomy, and innovation.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: The authors are grateful for funding from the Innovation Growth Laboratory, the Peter Curtius Foundation, and the Deutsche Forschungsgemeinschaft [Grant CRC TRR 190].Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1520. Collapse

Topics: team productivity entrepreneurship missing data intrinsic motivation evaluation criteria

Methods: experiment experimental group survey causal mediation analysis field experiment

“Dear CEO and Board”: How Activist Investors’ Confidence in Tone Influences Campaign Success

2023 | Organization Science | Citations: 0

Authors: Brauer, Matthias; Wiersema, Margarethe; Binder, Philipp

Abstract: Activist hedge funds represent the most potent form of financial activism. Yet w ... Expand

Abstract: Activist hedge funds represent the most potent form of financial activism. Yet we do not fully understand how these activist investors, despite holding only a small stake in target firms, are able to influence management and the board to acquiesce to their demands, especially given the large uncertainty that their demands will improve shareholder value. Building on impression management (IM) theory, we propose that activist investors who express their concerns and demands with high confidence in their letters to target firms are likely to be perceived as knowledgeable and competent by the firm’s other shareholders, thus influencing the response of the firm’s management and board. In support of this theoretical proposition, results of our empirical analysis of 475 U.S. activist campaigns against U.S. companies between 2007 and 2019 suggest that confidence in tone in an activist’s letter, as a form of self-promotion, is positively associated with campaign success. We also observe that the positive association between confidence in tone in activist letters and campaign success is less for activists with greater success in prior campaigns and in campaigns with multiple activists. Our paper contributes to financial activism research by showing that activists’ verbal impression management can serve as an effective influence tactic in their campaigns. Our study also contributes to the emerging research stream on verbal IM by introducing a language attribute, confidence in tone, that has not been studied in management research and is distinct from past constructs examined in verbal IM research. Collapse

Topics: corporate governance strategic management organizational productivity decision making database system

Methods: descriptive statistic qualitative content analysis theory development linguistic analysis regression analysis method

Theories: behavioral theory