How synchronous participation affects the willingness to subscribe to social live streaming services: the role of co-Interactive behavior on Twitch

2023 | European Journal of Information Systems | Citations: 0

Authors: Bründl, Simon; Matt, Christian; Hess, Thomas; Engert, Simon

Abstract: Social computing has transformed the content industry. Content providers have ch ... Expand

Abstract: Social computing has transformed the content industry. Content providers have changed from providing merely content to offering social content experiences that allow users not only to passively consume content but also to actively participate. As the latest development, social live streaming services (SLSS) have emerged that enable so-called co-interactive behaviour, i.e., the live interplay between users while co-experiencing content. Yet, it remains unclear how co-interactive behaviour affects the monetisation of social live content. Based on a data set of 868,940 users from 59 gaming channels of the freemium-based SLSS Twitch, we empirically show that co-interactive behaviour has a stronger effect on users’ willingness to subscribe (WTS) than passive and active behaviour. Since we find that a user’s reciprocated interactions also directly increase other users’ WTS, our results call for dismantling the current dichotomy of user participation and social influences in IS research. We suggest a social-experiential perspective that integrates social influences as an inherent part of users’ participation experiences. This novel interactive second-person perspective contributes to research on user engagement and value capture on social content platforms, and it allows SLSS providers to obtain a more precise picture of user value to better develop or adapt their monetisation strategies. Collapse

Topics: participatory design social influence user behavior Twitch application programming interface

Methods: design methodology propensity score matching experimental group descriptive statistic logistic regression

Theories: general systems theory

The Cost of Free: The Effects of “Wait-for-Free” Pricing Schemes on the Monetization of Serialized Digital Content

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Choi, Angela; Rhee, Ki-Eun; Yoon, Chamna; Oh, Wonseok

Abstract: Leveraging a combination of analytical frameworks and empirical assessments, th ... Expand

Abstract: Leveraging a combination of analytical frameworks and empirical assessments, this study investigates the effects of wait-for-free (WFF) pricing schemes on the monetization of serialized, digital entertainment content, which has become increasingly pervasive on online platforms. WFF pricing is a strategy in which consumers are given the option to either wait a certain amount of time to acquire digital content at no cost or pay to consume it immediately. We evaluate the extent to which habit formation and presentbiased preferences driven by the consumption of addictive stock affect individual consumers' willingness to wait (or pay) for content, which, in turn, determines the efficacy of WFF pricing. We also examine the conditions under which consumers switch from waiting for free content to instantaneously purchasing content. Our findings indicate that WFF pricing increases the sales of serialized digital content, generating new demand from customers who would otherwise forgo participation in the market. In addition, the pricing design effectively generates sustained profits in the long run. We found that most consumers who initiate a purchase either upon initial market entry or upon switching continue to purchase as new episodes become available. Moreover, the results indicate that as a user accumulates free episodes of a specific series, given extended waiting periods, the likelihood of their conversion from a wait-for-free customer to an instant-purchase customer increases. In particular, WFF pricing effectively augments the willingness to pay of low-valuation consumers as habit formation builds up through time with the free consumption of serialized content. One free episode can elevate the likelihood of consumer purchase by up to 13%. However, as the number of free episodes consumed goes beyond a threshold, the likelihood of conversion decreases. We conclude with a discussion of managerial implications that can help content providers monetize their serialized digital content products. Collapse

Topics: price management consumer behavior advertising management digital good customer satisfaction

Methods: mathematical model robustness check econometric modeling proportional hazards model survival analysis

Theories: behavioral economics

Let Artificial Intelligence Be Your Shelf Watchdog: The Impact of Intelligent Image Processing-Powered Shelf Monitoring on Product Sales

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Deng, Yipu; Zheng, Jinyang; Huang, Liqiang; Kannan, Karthik

Abstract: We collaborated with a leading fast-moving consumer goods (FMCG) manufacturer t ... Expand

Abstract: We collaborated with a leading fast-moving consumer goods (FMCG) manufacturer to investigate how intelligent image processing (IIP)-based shelf monitoring aids manufacturers' shelf management by using data from a quasi-experiment and a field experiment. We discovered that such artificial intelligence (AI) assistance significantly and consistently improves product sales. Several underlying mechanisms were revealed by our quantitative and qualitative analysis. First, retailers are more likely to comply due to the greater monitoring effectiveness enabled by AI assistance. Second, the positive effect of IIP-based shelf monitoring partially persists after it is terminated, implying that human learning takes place. Third, the value of IIP-based shelf monitoring can be attributed to independent retailers rather than chain retailers. Since the degree of contract heterogeneity is the major difference between these retailers in terms of monitoring, this finding further suggests that AI is relatively more scalable when coping with more heterogeneous instances. Apart from these great benefits, we demonstrate the low marginal costs of implementing IIP-powered shelf monitoring, which indicates its long-term applicability and potential to generate incremental value. Our research contributes to several literature streams and provides managerial insights for practitioners who consider AI-assisted operational models. Collapse

Topics: artificial intelligence organizational value cost benefit analysis mobile application human AI collaboration

Methods: experimental group field experiment qualitative interview experiment quasi experiment

“Who Am I When Everything has Changed?” The Impact of Scaled-agile Organizations on Professional Role Identity

2023 | International Conference on Information Systems | Citations: 0

Authors: Finze, Nikola; Frey, Julian; Hund, Axel; Beimborn, Daniel; Wagner, Heinz-Theo

Abstract: As digital technology continues to advance, organizations require more flexibil ... Expand

Abstract: As digital technology continues to advance, organizations require more flexibility to meet the needs of their customers and remain competitive. To do so, many incumbent organizations fundamentally change their established structures and processes to implement scaled-agile organizations (SAO), emulating digital organizations and leveraging development speed and customer focus. However, when everything changes, there are significant effects on the employees' identities. Thus, we explore how implementing an SAO affects employees' professional role identities (PRI). The paper follows a case study approach analyzing two cases with 21 interviews, observational, and secondary data collected over a period of 18 months. We contribute to the literature by identifying three effects of an SAO implementation on PRI (threat, empowerment, and extension) and describing how individuals react based on the effect on their PRI. We inform practitioners on the overall SAO implementation process and consequences for professionals, offering a new perspective on organizational transformation challenges. Collapse

Topics: organizational change productivity digital transformation project management new product development

Methods: qualitative interview theoretical contribution personal interview company material case study

Theories: organizational theory information systems theory

The Power of Identity Cues in Text-Based Customer Service: Evidence from Twitter

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Gao, Yang; Rui, Huaxia; Sun, Shujing

Abstract: Text-based customer service is emerging as an important channel through which c ... Expand

Abstract: Text-based customer service is emerging as an important channel through which companies can assist customers. However, the use of few identity cues may cause customers to feel limited social presence and even suspect the human identity of agents, especially in the current age of advanced algorithms. Does such a lack of social presence affect service interactions? We studied this timely question by evaluating the impact of customers' perceived social presence on service outcomes and customers' attitudes toward agents. Our identification strategy hinged on Southwest Airlines' sudden requirement to include a first name in response to service requests on Twitter, which enhanced customers' perceived level of social presence. This change led customers to become more willing to engage and more likely to reach a resolution upon engagement. We further conducted a randomized experiment to understand the underlying mechanisms. We found that the effects were mainly driven by customers who were ex ante uncertain or suspicious about the human identity of agents, and the presence of identity cues improved service outcomes by enhancing customers' perceived levels of trust and empathy. Additionally, we found no evidence of elevated verbal aggression from customers toward agents with identity cues, although a mechanism test revealed the moderating role of customers' emotional states. Our study highlights the importance of social presence in text-based customer service and suggests a readily available and almost costless strategy for firms: signal humanization through identity cues. Collapse

Topics: customer service Twitter social presence social media customer satisfaction

Methods: experiment computational algorithm synthetic control method survey support vector machine

Theories: social presence theory big five model

Collateral Damage: The Relationship Between High-Salience Events and Variation in Racial Discrimination

2023 | Organization Science | Citations: 0

Authors: Gorbatai, Andreea; Younkin, Peter; Burtch, Gordon

Abstract: To what extent are individual or organizational biases affected by racially sali ... Expand

Abstract: To what extent are individual or organizational biases affected by racially salient events? We propose that acts of discrimination and the individual biases that undergird them are sensitive to high-salience events and will oscillate with the salience of the focal attribute. In short, that the propensity to discriminate reflects both individual and environmental differences, and therefore a given person may become more prone to discriminate in the aftermath of a high-salience event. We test our hypothesis in three online experiments that examine how varying the salience of race affects the evaluation of in-group or out-group founders. We find that respondents evaluate their in-group members more favorably, and out-group members less favorably, when exposed to a high-salience event, which translates into a significant disadvantage for the minority (African American) group. We complement these studies with an assessment of how police shootings affect fundraising outcomes on Kickstarter to confirm the external validity of our findings. Together, these studies indicate that racially salient events depress the quality evaluations and success odds of African American entrepreneurs relative to others. Hence, discrimination levels can be affected by salient yet unrelated events, and such events are consequential for the economic fortunes of individuals belonging to minority and disadvantaged groups.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2021.1527. Collapse

Topics: crowdfunding crowdsourcing website criminality application programming interface

Methods: experiment parametric test statistical hypothesis test survey facial recognition system

When Images Backfire: The Effect of Customer-Generated Images on Product Rating Dynamics

2023 | Information Systems Research | Citations: 0

Authors: Guan, Yue; Tan, Yong; Wei, Qiang; Chen, Guoqing

Abstract: Customer-generated images (CGIs) on e-commerce platforms have been widely adopte ... Expand

Abstract: Customer-generated images (CGIs) on e-commerce platforms have been widely adopted as a promotional tool to persuade customers into purchases. Despite their prevalent applications, the effect of CGIs on customer postpurchase satisfaction has not been extensively examined. This study postulates that CGIs could cause expectation disconfirmation and reduce product uncertainty for customers, therefore making their effect on subsequent product ratings complex. We leverage multiple methods and data sets to gain a better understanding of this problem and underlying mechanisms. We employ a difference-in-differences model to empirically test our hypotheses and find that CGIs lead to a decline in subsequent ratings compared with product ratings not exposed to CGIs. Further heterogeneity analyses demonstrate that high CGI review rating and high aesthetic quality exacerbate the negative effect, whereas reviewer face disclosure could alleviate the negative effect. Through cross-product analyses, we find that the negative effect is more prominent for experience goods (e.g., women’s dresses) than for search goods (e.g., lightning cables). Finally, the underlying mechanism is further validated through a laboratory experiment that shows participants experience significantly higher expectation and more negative disconfirmation in the CGI group with high review ratings, whereas uncertainty reduction effect is insignificant, which collectively explains the decline of subsequent product ratings. These findings suggest that platforms and retailers should be aware of the potential negative effect of CGIs on the rating dynamics and take appropriate measures to circumvent it. History: Ravi Bapna, Senior Editor; Gordon Burtch, Associate Editor. Funding: This work was supported in part by National Science Foundation of China [Grants 72202220, 72172070, and 71729001]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2023.1201. Collapse

Topics: online review experience good electronic commerce data breach digital good

Methods: experiment experimental group laboratory experiment computational algorithm product review

Who Gives Back? Evidence from India on Successful Entrepreneurial Exit and Involvement in Philanthropy

2023 | Organization Science | Citations: 0

Authors: Hans, Leena Kinger; Vissa, Balagopal (Bala)

Abstract: Although successful commercial entrepreneurship has beneficial consequences for ... Expand

Abstract: Although successful commercial entrepreneurship has beneficial consequences for the economy, it is unclear whether it is unequivocally good for broader society. We shed light on this macro issue by delving into a specific micropathway linking commercial entrepreneurship with positive spillover effects for broader society. We ask which commercial entrepreneurs who have experienced economic success through a financial exit event from their for-profit venture engage in philanthropy—defined as systematically stimulating, supporting, and shaping social change efforts—after exit. Utilizing the status characteristics framework, we conceptualize how hierarchical positions on ascribed social status characteristics (caste and gender in our setting) and achieved social status characteristics (eliteness of Indian tertiary educational attainment and overseas tertiary educational attainment in our setting) regulate successful commercial entrepreneurs’ subsequent involvement in philanthropy. We argue that successful commercial entrepreneurs from disadvantaged ascribed-status groups or privileged achieved-status groups are more likely to transition to philanthropic activities because they more keenly perceive the need for societal change and are also more motivated to take action. Quantitative analyses on a sample of 673 Indian entrepreneurs who experienced a successful financial exit from their for-profit venture during 2003–2013, supplemented by qualitative interviews, support our theorizing. We advance management research by highlighting founder transitions from successful commercial entrepreneurship to philanthropy as a hitherto understudied mechanism driving positive social change. We thus open up new research avenues around the less-studied exit stage of entrepreneurship that allows for the integration of currently unconnected literatures around corporate philanthropy, elites, entrepreneurship, and social impact. Funding: B. Vissa gratefully acknowledges financial support from INSEAD’s Emerging Markets Institute. Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2022.1572. Collapse

Topics: entrepreneurship Google+ LinkedIn IS economics economic surplus

Methods: qualitative interview conceptual modelling theory development field study robustness check

Do Employees Work Less for Female Leaders? A Multi-Method Study of Entrepreneurial Firms

2023 | Organization Science | Citations: 0

Authors: Kacperczyk, Olenka; Younkin, Peter; Rocha, Vera

Abstract: We propose that female-founded ventures receive a lower amount of employee labor ... Expand

Abstract: We propose that female-founded ventures receive a lower amount of employee labor for equal pay because employees are more likely to decline requests for additional labor by female founders. First, using longitudinal matched employer-employee data covering all founders of new ventures with personnel in Portugal between 2002 and 2012, we confirm that full-time employees contribute fewer regular hours and less overtime work to female-founded firms. Second, using a series of online experiments, we show that this variation in employee labor across female and male-founded firms is partly motivated by a difference in the employee’s expectations of work demands. Specifically, employees perceive female founders’ requests for additional labor to be unfair and more difficult than expected, and both these perceptions explain the lower amount of employee labor supplied in female-founded ventures. Overall, our findings uncover a novel mechanism that helps explain the existence of a gender gap in entrepreneurship beyond the entry stage. Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2022.1611. Collapse

Topics: entrepreneurship IT career database system productivity missing data

Methods: experiment quantitative observational study theory development survey descriptive statistic

Theories: sociological theory

Adjusting Skillset Cohesion in Online Labor Markets: Reputation Gains and Opportunity Losses

2023 | Information Systems Research | Citations: 0

Authors: Kokkodis, Marios

Abstract: In online labor markets, contractors’ ability to charge for their services large ... Expand

Abstract: In online labor markets, contractors’ ability to charge for their services largely depends on their skills. To keep up with shifting labor market needs, contractors often expand their skills with new skills. When the new skills are similar to the contractors’ current skills, they often increase skillset cohesion (i.e., the average similarity of skills in a skillset). However, when the new skills have little similarity with contractors’ current skills, skillset cohesion decreases. Despite the recent surge in research that studies remote contractor behavior, little is known on how such adjustments of skillset cohesion affect contractor value in digital workplaces for short-term work. To investigate, I argue that skillset adjustments affect market value through changes in the contractor’s perceived reputation on the new skills and the additional job opportunities that new skills create. Building on prior work on individual-level exploration-exploitation, I hypothesize that compared with skills that decrease cohesion, skills that increase cohesion result in reputation gains and opportunity losses. If reputation gains are greater than opportunity losses, increasing skillset cohesion will result in higher market value than decreasing skillset cohesion. However, if the opposite is true, increasing skillset cohesion will result in lower market value than decreasing skillset cohesion. Empirically, I measure a contractor’s market value through hourly wages and hiring rates and skillset cohesion through word embeddings. Analysis of a panel data set of 47,638 tasks illustrates these tradeoffs of increasing skillset cohesion: for hourly wages, reputation gains are smaller than opportunity losses; hence, all else being equal, increasing skillset cohesion has a relatively negative effect on wages. However, for hiring rates, the opposite is true: increasing skillset cohesion increases contractor hireability. As the first study to explain the effects of adjusting skillset cohesion in digital workplaces, the work allows contractors to make better-informed decisions and guides managerial interventions. History: Ravi Bapna, Senior Editor; Yuliang Yao, Associate Editor. Supplemental Material: The online appendices are available at https://doi.org/10.1287/isre.2022.1177. Collapse

Topics: online labor market IT career skill acquisition IT supported collaboration remote work

Methods: word embedding mediation analysis longitudinal research quantitative observational study instrumental variables estimation