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

Multi-Device Consumption of Digital Goods: Optimal Product Line Design with Bundling

2023 | Journal of Management Information Systems | Citations: 0

Authors: Bhargava, Hemant K.

Abstract: A contemporary business challenge for bundling theory is the distribution of dig ... Expand

Abstract: A contemporary business challenge for bundling theory is the distribution of digital content such as media, entertainment, software, and other information goods. Consumers can use a number of devices to interact with software, online services, music, video, news, and other forms of digital content. For instance, Netflix videos and Kindle ebooks, initially accessed only on television sets and computers, respectively, are now also consumed on smartphones and tablets. Print products are now distributed and consumed both in print and digitally. Firms offer product line designs that include prices for single device access as also bundle discounts for multi-device access, so that consumers can choose a device or even multiple devices. This paper provides guidelines regarding such multi-device product line design and pricing. A starting point is to note that there are many ways to practice bundling, from offering prices for single-device consumption as well as a bundle discount (mixed bundling), to forcing multi-device prices (pure bundling), and designs in between (partial bundling). Picking the best design, and associated prices, is a complex problem due to how single-device demand functions relate to multi-device demand. Recognizing that some dual-device purchases can occur even when there is no bundle discount, the paper develops intuition around the net gain or loss incurred from giving a bundle discount to entice single-device access buyers to dual sales. One surprising finding is that inducing dual sales through bundle discounts can be profitable even when intent to consume multiple times is quite weak, because in this case dual sales would not occur organically. Less surprisingly, such inducement is also profitable when multi-consumption intent is strong, and least attractive when the intent is moderate. When one of the devices is an emerging one or has weak own demand in the short term, then it can be useful to offer a partial bundle, tying sales for the stronger device into a bundle comprising access to both devices. When device valuations are such that consumers generally agree on the rank-ordering of the devices (e.g., if a location-based app offers greater value on a smartphone than on a tablet), then it is best to employ some type of bundling, unless the intent for multi-device consumption is proportionally lower among low-value consumers than for high-value consumers. Collapse

Topics: video game information good price management business model vertical differentiation

Methods: mathematical model theoretical contribution

Team Performance: Nature and Antecedents of Nonnormal Distributions

2023 | Organization Science | Citations: 0

Authors: Bradley, Kyle J.; Aguinis, Herman

Abstract: Team research typically assumes that team performance is normally distributed: t ... Expand

Abstract: Team research typically assumes that team performance is normally distributed: teams cluster around average performance, performance variability is not substantial, and few teams inhabit the upper range of the distribution. Ironically, although most team research and methodological practices rely on the normality assumption, many theories actually imply nonnormality (e.g., performance spirals, team composition, team learning, punctuated equilibrium). Accordingly, we investigated the nature and antecedents of team performance distributions by relying on 274 performance distributions including 200,825 teams (e.g., sports, politics, firefighters, information technology, customer service) and more than 500,000 workers. First, regarding their overall nature, only 11% of the distributions were normal, star teams are much more prevalent than predicted by normality, the power law with an exponential cutoff is the most dominant distribution among nonnormal distributions (i.e., 73%), and incremental differentiation (i.e., differential performance trajectories across teams) is the best explanation for the emergence of these distributions. Second, this conclusion remained unchanged after examining theory-based boundary conditions (i.e., tournament versus nontournament contexts, performance as aggregation of individual-level performance versus performance as a team-level construct, performance assessed with versus without a hard left-tail zero, and more versus less sample homogeneity). Third, we used the team learning curve literature as a conceptual framework to test hypotheses and found that authority differentiation and lower temporal stability are associated with distributions with larger performance variability (i.e., a greater proportion of star teams). We discuss implications for existing theory, future research directions, and methodological practices (e.g., need to check for nonnormality, Bayesian analysis, outlier management). Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1619. Collapse

Topics: team productivity customer service anonymity systems development virtual teamwork

Methods: meta analysis statistical hypothesis test Bayesian analysis descriptive statistic chi squared test

Decide wisely: Interactive videos as appealing educational element to attract students to information security

2023 | International Conference on Business Informatics | Citations: 0

Authors: Brehmer, Martin

Abstract: Educational videos play an important role in university education. However, the ... Expand

Abstract: Educational videos play an important role in university education. However, they are often not designed to foster active learning and the learning process is not immersive. Interactive digital storytelling is a promising game design element but requires a rigorous evaluation to avoid negative side effects. Therefore, we adopt a design science research approach to design and evaluate an interactive video that includes interactive storytelling and real-world recordings. The proposed artifact aims to raise information security awareness among bachelor students at a German university for malicious USB sticks and the reporting of incidents. In our evaluation, we focus on learning progress before and after using the video as well as qualitative feedback about the experience with the learning object. Our results show that videos that are based on interactive choice-based storytelling can foster an active and immersive process, and significant learning outcomes. Collapse

Topics: IT security training data security anonymity cybersecurity awareness user experience

Methods: parametric test Student's t-test survey design science descriptive statistic

The multiplexity of diagrams and prototypes in requirements development

2023 | Information and Organization | Citations: 0

Authors: Ciriello, Raffaele Fabio; Richter, Alexander; Schwabe, Gerhard; Mathiassen, Lars

Abstract: Information systems development (ISD) requires dynamic and flexible ways of wor ... Expand

Abstract: Information systems development (ISD) requires dynamic and flexible ways of working, particularly when developing requirements in collaboration with customers. Although prior research has acknowledged the importance of objects to support ISD practices, there has been a lack of frameworks to help discern the multiple overlapping roles objects play to support requirements development in a variety of ways throughout an ISD project. This paper explores and theorizes this phenomenon by leveraging multiplexity as a theoretical lens to analyze an extensive qualitative data set from a case study at a Swiss multinational banking software provider. Results show how diagrams and prototypes both play the roles of epistemic, activity, boundary, and infrastructure objects as a reflection of how they are used in requirements development. Our analysis articulates how two classical requirements specifications play multiple overlapping roles to support dynamic and flexible ISD practices. Based on these findings, we advance a framework for discerning the multiplex role of objects in practice * Corresponding author. Collapse

Topics: banking sytem intranet software developer innovation management systems design

Methods: design artifact qualitative interview case study qualitative coding field study

Theories: boundary objects theory general systems theory

Fame! I wanna stream forever: Analysis and critique of successful streamers' advice to the next generation

2023 | HICSS | Citations: 0

Authors: Consalvo, M.; Boudreau, K.; Bowman, N.; Phelps, A.

Abstract: This paper examines community-created online 'howto' videos that offer advice f ... Expand

Abstract: This paper examines community-created online 'howto' videos that offer advice for video game streamers and content creators. The goal of this study was to investigate how successful streamers encourage newcomers and/or smaller streamers to "grow" on Twitch, examining such factors as the advice they offer, the evidence that such advice works, and their reasons for sharing such information. More critically, how does the creation of such videos further entrench those creators as successful and thus, able to deploy "streaming capital" to buttress their claims? While the initial focus was on Twitch, this research led to a wider-ranging exploration-following the advice of successful streamers was to employ other platforms in combination, as the field of live streaming has extended far beyond Twitch itself. Collapse

Topics: Twitch YouTube video game video streaming service

Methods: computational algorithm

Spillover Effects of Airdrops: Evidence from Tokenization Platforms

2023 | International Conference on Information Systems | Citations: 0

Authors: Guo, Dezhen; Wang, Lizheng; li, yongjun

Abstract: The emergence of tokenization platforms based on blockchain technology has led ... Expand

Abstract: The emergence of tokenization platforms based on blockchain technology has led to the use of free airdrop to replace traditional expensive financial incentives to enhance user engagement. However, critics argue that such incentives may devalue tokens and prompt nonrecipients to panic sell. To investigate the impact of airdrops, we conducted a quasiexperiment on Axie Infinity. Our findings indicate that airdrops significantly enhance engagement among both recipients and nonrecipients. Mechanism analysis shows that cross group spillover effects stems from expectation of another airdrop program and increased market liquidity. While recipients tend to immediately sell tokens and often sell more tokens than received, we did not find evidence of nonrecipients panic selling tokens. Furthermore, we investigated the heterogeneous effects of airdrops. Our work contributes to the ongoing debate of the effectiveness of airdrops and provide insights into the study of tokenization platforms. Collapse

Topics: user behavior cryptocurrency social influence application programming interface blockchain

Methods: experimental group difference in differences longitudinal research statistical hypothesis test regression analysis method

Information Milieu and Play in Lockdown: The Cute, the Ugly, and the… (CC BY-NC-ND 4.0)

2023 | HICSS | Citations: 0

Authors: Hajibayova, L.

Abstract: This study is an investigation of young children's information needs and their ... Expand

Abstract: This study is an investigation of young children's information needs and their seeking and discovery behaviors in the context of playing the popular Nintendo Switch life simulation game, Animal Crossing: New Horizons (AC:NH). The children in this study perceived AC:NH as an ideal escape from the challenges of the COVID-19 lockdown, and effectively utilized the affordances of AC:NH and other related platforms to play, interact, and learn. The appealing AC:NH kawaii design, coupled with the anthropomorphized behaviors, minds, and emotions of the animal characters, encouraged the children to interweave perceptions and expectations, which led them to play out scenarios relevant to their own experiences and lives. Collapse

Topics: YouTube pandemic social media video game

Methods: qualitative interview simulation qualitative coding constant comparative analysis personal interview

Theories: theory of affordance

Flawless victory! Investigating search and experience qualities as antecedent predictors of video game success

2023 | Electronic Markets | Citations: 0

Authors: Heidenreich, Sven; Handrich, Franziska; Kraemer, Tobias

Abstract: In recent years, video games have been on the rise as entertainment goods, leadi ... Expand

Abstract: In recent years, video games have been on the rise as entertainment goods, leading to a growing interest by practitioners, researchers, and, of course, consumers alike. While a few unusually successful video games produce overall high revenues, most released games struggle to break even. Hence, there is an urgent need to better understand what distinguishes financially successful games from nonsuccessful video games. Accordingly, several researchers have called for investigations into the drivers of the financial success of video games. However, empirical studies within this respect are still lacking. Based on longitudinal data of 351 video games, the current study strives to fill this research gap by investigating the relative importance of potential success factors for the short-term and long-term financial success of video games. The results of multiple regression analyses confirm that search qualities such as brand popularity, reviews, and awards as well as experience qualities such as graphics, sound, and game duration significantly drive financial success in terms of the total number of sold video games in Europe. Consequently, managers in the video game industry can boost their chances for the production of a successful video game by focusing on these factors. Collapse

Topics: video game database system ease of use internet technology missing data

Methods: regression analysis method computational algorithm longitudinal research descriptive statistic statistical hypothesis test

Theories: information theory

Coming Back For More: Exploring Three Theoretical Perspectives Influencing IS Resumption

2023 | European Conference On Information Systems | Citations: 0

Authors: Hotter, Nina; Stoeckl, Franziska; Maier, Christian; Eckhardt, Andreas

Abstract: IS resumption describes ex-users returning to an information system (IS) after ... Expand

Abstract: IS resumption describes ex-users returning to an information system (IS) after quitting it beforehand. IS research has conceptualized, operationalized, and defined this behavior and explained some initial causes for ex-users' IS resumption, such as nonuse-related dissatisfaction. We aim to complement that understanding by discussing the influence of three theoretical perspectives: reasoned action, experiential responses, and habitual responses. We use those perspectives to develop hypotheses and offer a comprehensive understanding of the causes of IS resumption intention. We chose a quantitative approach to evaluate our research model, conducting an online survey with 190 ex-users of streaming services. Our findings show that subjective norm and attitude influence IS resumption intention, while higher satisfaction with prior usage influences attitude. We contribute to IS research by carving out how the three theoretical perspectives influence ex-users' IS resumption intention, providing a solid theoretical basis for future studies on IS resumption. Collapse

Topics: streaming service digital service information system use behavioral intention HBO Max

Methods: survey structural equation modeling statistical power analysis partial least squares regression PLS tool