When Less Is More: How Statistical Discrimination Can Decrease Predictive Accuracy

2023 | Organization Science | Citations: 0

Authors: Csaszar, Felipe A.; Jue-Rajasingh, Diana; Jensen, Michael

Abstract: Discrimination is a pervasive aspect of modern society and human relations. Stat ... Expand

Abstract: Discrimination is a pervasive aspect of modern society and human relations. Statistical discrimination theory suggests that profit-maximizing employers should use all the information about job candidates, including information about group membership (e.g., race or gender), to make accurate predictions. In contrast, research on heuristics in psychology suggests that using less information can be better. Drawing on research on heuristics, we show that even small amounts of inconsistency can make predictions using group membership less accurate than predictions that do not use this information. That is, whereas statistical discrimination theory implies that better predictions can be achieved by using all available information about an individual (including group characteristics that may be correlated with but do not cause performance), our model shows that using all available information only improves predictive accuracy under a very specific set of conditions, thus suggesting that statistical discrimination often results in worse predictions. By understanding when statistical discrimination improves or worsens predictions, our work cautions decision makers and uncovers paths toward reducing the occurrence of situations in which statistical discrimination benefits predictive accuracy, thus reducing its pervasiveness in society. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1626. Collapse

Topics: productivity individual productivity decision making environmental uncertainty accounting

Methods: machine learning descriptive statistic theoretical contribution survey

Theories: organizational theory

Blockchain-based Governance, Risk Management, and Compliance for Fractional Ownership: Design and Implementation of A Decentralized Autonomous Agent System

2023 | HICSS | Citations: 0

Authors: Cu, Mina; Peko, Gabrielle; Chan, Johnny; Sundaram, David

Abstract: Fractional ownership makes homeownership more affordable. But there are challeng ... Expand

Abstract: Fractional ownership makes homeownership more affordable. But there are challenges in a fractional ownership real estate transaction (FORET) regarding governance, risk management and compliance (GRC) processes. Centralized GRC solutions are less effective in managing the tiered structure of communications in a FORET, which can lead to principal-agent problems such as information asymmetry, risk aversion, and moral hazard. In this research we investigate how these principal-agent problems in FORET could be mitigated. Using an agency theory perspective, we adopt a design science multimethodological research approach. We propose conceptual and system artefacts to support the design and implementation of a decentralized autonomous agent system. These artefacts deliver a formal problem representation structure related to centralized GRC in fractional ownership. We illustrate our solution with a system prototype and implementation. We evaluate the research outputs and compare them with existing GRC systems. This paper contributes to the understanding of GRC in supporting fractional ownership decision making. Collapse

Topics: blockchain decision making cloud computing smart contract moral hazard

Methods: design artifact design artifact testing design science field study theory development

Theories: agency theory lemon market theory

Unpacking the Societal and Institutional Risks of Crypto Assets: The Policy-Innovation Nexus

2023 | International Conference on Information Systems | Citations: 0

Authors: Currie, Wendy; seddon, jonathan

Abstract: The Crypto Winter of 2022 exposed multi-dimensional risks in the crypto ecosyst ... Expand

Abstract: The Crypto Winter of 2022 exposed multi-dimensional risks in the crypto ecosystem which extend beyond technical imperatives to include societal and institutional factors. A domino effect saw several major crypto firms losing large amounts of investor cash or becoming bankrupt. This practitioner focused study adopts a grounded methodology to gather empirical data from regulators, crypto firms, and investors on developing a policy framework for crypto assets. The case study context is the US regulatory environment. Findings show regulatory agencies face ideological, operational, and technical obstacles, as they engage in debates about the efficacy of competing regulatory scenarios. The paper presents two major tensions which require the attention of policy makers and legislators to mitigate future societal and institutional risks from crypto assets. Collapse

Topics: cryptoasset innovation management decision making

Methods: qualitative interview grounded theory participant observation archival research qualitative coding

The Design of Social Inclusion Interventions: A Paradox Approach

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

Authors: Curto-Millet, Daniel; Cañibano, Almudena

Abstract: Are social inclusion and social exclusion opposed? Through a three-year ethnogr ... Expand

Abstract: Are social inclusion and social exclusion opposed? Through a three-year ethnography of an open source civic crowdsourcing platform aiming for generalized social inclusion, we show they are not. We argue that social inclusion and exclusion have a paradoxical relationship: ongoing tensions exist between them, and information systems shape those tensions. We find that design choices have crucial influence over the capacity of information system interventions to include and exclude and propose a framework for designing IS-based social inclusion interventions. The framework encompasses four types of strategies (positive discrimination, integrative oscillation, equitability and iterative inclusivity) for managing the paradoxical link between inclusion and exclusion through IS design. We also present the notion of "collectives" as a new way of thinking about exclusion criteria. Collapse

Topics: systems design crowdsourcing mobile application software developer open source

Methods: qualitative coding qualitative interview ethnography personal interview longitudinal research

Theories: sociomaterialism theory

The sustainability of open source commons

2023 | European Journal of Information Systems | Citations: 0

Authors: Curto-Millet, Daniel; Corsín Jiménez, Alberto

Abstract: The sustainability of commons has benefited from Elinor Ostrom´s analysis of sha ... Expand

Abstract: The sustainability of commons has benefited from Elinor Ostrom´s analysis of shared resources. In her work, sustainability was described in a univocal manner–successful or not–depending on the common’s long-term capacity to survive within an uncertain environment. In recent years, this view of sustainability has been applied to the study of digital commons, including open source. Building on more recent work on sustainability, this paper challenges this univocal conception of sustainability in open source. Through a critical review of the literature, it unveils the coexistence of multiple notions of sustainability in open source and proposes a typology of sustainabilities (resource-based, infrastructural, and interactional). We propose that the degree and quality of the interrelationship between these different types of sustainability need to be explored, leading to the theorisation of three possible scenarios (trade-offs, synergy, and independence). We discuss and put forward a research agenda. Collapse

Topics: open source Sustainable Development Goal innovation management open source software project

Methods: theory development literature study interpretative method

Of Founders and Contributors: The Construction of Authority through Personal Data Digitalization

2023 | International Conference on Information Systems | Citations: 0

Authors: Curto-Millet, Daniel; Tona, Olgerta

Abstract: ... Expand

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Topics: open source open source software project digital platform decision making Linux

Methods: archival research literature sample digital trace data theory development case study

Augmented Facilitation: Designing a multi-modal Conversational Agent for Group Ideation

2023 | International Conference on Information Systems | Citations: 0

Authors: Cvetkovic, Izabel; Gierlich-Joas, Maren; Tavanapour, Navid; Debowski-Weimann, Nicole; Bittner, Eva

Abstract: Human facilitators face the challenge to structure and collect relevant insight ... Expand

Abstract: Human facilitators face the challenge to structure and collect relevant insights from collaborative creative work sessions, which can suffer if they face a high workload. Hence, for effective value co-creation in organizational ideation we suggest an facilitation augmentation with a conversational agent (CA). CAs have the ability to support respective collaborative work by documenting and analyzing unstructured data. Following the design science research paradigm, and based on the literature about facilitation and human-AI collaboration, we derive design principles to develop a CA prototype that collects ideas from a group ideation session and displays them back in a structured (multi-modal) manner. We evaluate the CA by conducting four focus groups. Key findings show that the CA successfully distills and enriches information. Our study contributes to understanding the role of CA in augmenting facilitation and it provides guidance for practice on how to integrate these technologies in group meetings. Collapse

Topics: SWOT analysis artificial intelligence human AI collaboration human computer interaction participatory design

Methods: design artifact qualitative interview design principle group interview qualitative content analysis

Navigating AI in Personnel Selection: A Scenario-based Study on Applicants' Perceptions

2023 | International Conference on Information Systems | Citations: 0

Authors: Czernietzki, Charlotte; Märtins, Julian; Westmattelmann, Daniel; Grotenhermen, Jan-Gerrit; Oldeweme, Andreas; Baumeister, Viktoria; Schewe, Gerhard

Abstract: AI-based systems are increasingly deployed on organizational tasks, such as per ... Expand

Abstract: AI-based systems are increasingly deployed on organizational tasks, such as personnel selection decisions. As existing research indicates that applicants generally react negatively to the use of AI in personnel selection, this study examines how organizations can mitigate adverse reactions to fully exploit the benefits of AI. To obtain robust results, we recruited an online sample of German participants (N = 1,852) and presented them with various selection scenarios. Using a between-subject design, the process stage (preselection vs. interview) and the degree of process automation (augmented vs. automated) were manipulated. By employing a multidimensional conceptualization of transparency, we show that disclosure and accuracy positively impact procedural justice perceptions, a strong predictor of process quality assessment. This relationship is robust across selection contexts. Results indicate that applicants prefer AI for pre-selection and as human decision support, thus offering overall insights into design choices for AI in selection, optimizing applicant reactions. Collapse

Topics: artificial intelligence business process automation data quality electronic mail virtual reality

Methods: qualitative interview partial least squares path modeling survey parametric test ANOVA

Theories: procedural justice theory organizational justice theory

Introduction to the Minitrack on Metaverse

2023 | HICSS | Citations: 0

Authors: Da Cunha, Paulo; Treiblmaier, Horst; Themistocleous, Marinos

Abstract: ... Expand

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Topics: virtual reality extended reality blockchain

Methods: literature sample

Conducting Design Science Research in Society 5.0 – Proposal of an Explainable Artificial Intelligence Research Methodology

2023 | DESRIST | Citations: 0

Authors: Daase, Christian; Turowski, Klaus

Abstract: Every technological or scientific advance is accompanied by a change in social s ... Expand

Abstract: Every technological or scientific advance is accompanied by a change in social structures, moral concepts, laws and education. As more and more people gain access to the digital world and the technical possibilities increase at the same rate, the excitement to carry out computer-based engineering projects increases. This in turn leads to an elevated demand for appropriate design-oriented methodologies, especially from the field of design science research (DSR), which in a sense democratize digital engineering. The idea of Society 5.0 is one of the major shifts in perspective on the role of technology, humans and their interaction in a shared living world. As a core component, artificial intelligence (AI), together with the Internet of things and big data analytics, is expected to have the most significant impact on the transformation toward smart societies. In this study, a systematic literature review of a total of 137 published articles addressing AI projects using DSR methodologies is conducted with the purpose of establishing a unified methodology for explainable AI-focused DSR projects. The proposed methodology further takes into account the particularities of AI at the varying advanced levels of artificial narrow intelligence (ANI) to the presumed necessities for approaching artificial general intelligence (AGI), which has not yet been fully realized. By allowing AI researchers to rely on a generalized methodological approach, the gap between behavioral science and design science is bridged, with the former laying the foundation for understanding living reality and the latter developing the means to mimic that reality as part of artificiality. Collapse

Topics: artificial intelligence explainable artificial intelligence database system artificial general intelligence

Methods: design science design methodology structured literature research literature sample