It is by now almost accepted as a stylized fact that offering deal promotion (such as via Groupon or LivingSocial) deteriorates local merchants' online reputations (e.g., the average of Yelp review ratings). However, in this paper we show that the stylized fact is not true in certain circumstances. We theorize that the valence and volume of prior reviews can play an important moderating role in the effect of deal promotion. Empirically, we show that restaurants with a relatively low prior average rating and a relatively small review volume have improved their online reputations by offering Groupon promotion. The proportion of such restaurants is substantial. The findings are robust to multiple identification strategies and econometric specifications. The results underscore the substantial heterogeneity in the effect of deal promotion on local merchants' online reputations. Merchants need to understand the moderating role of prior reviews (e.g., the valence and volume of prior reviews) and design appropriate strategies to maximize the returns from offering deal promotion. > >
Despite the potential benefits, many organizations have failed in service-oriented architecture (SOA) implementation projects. Prior research often used a variance perspective and neglected to explore the complex interactions and timing dependencies between the critical success factors. This study adopts a process perspective to capture the dynamics while providing a new explanation for the mixed outcomes of SOA implementation. We develop a system dynamics model and use simulation analysis to demonstrate the phenomenon of Òtipping point.Ó That is, under certain conditions, even a small reduction in the duration of normative commitment can dramatically reverse, from success to failure, the outcome of an SOA implementation. The simulation results also suggest that (1) the duration of normative commitment can play a more critical role than the strength, and (2) the minimal duration of normative commitment for a successful SOA implementation is associated positively with the information delay of organizational learning of SOA knowledge. Finally, we discuss the theoretical causes and organizational traps associated with SOA implementation to help IT managers make better decisions about their implementation projects. > >