IS

Whinston, Andrew B.

Research Interests (102)

List of Topics (102)

Topic Weight Topic Terms
1.538 services service network effects optimal online pricing strategies model provider provide externalities providing base providers
1.390 consumer consumers model optimal welfare price market pricing equilibrium surplus different higher results strategy quality
0.983 network networks social analysis ties structure p2p exchange externalities individual impact peer-to-peer structural growth centrality
0.843 media social content user-generated ugc blogs study online traditional popularity suggest different discourse news making
0.790 service services delivery quality providers technology information customer business provider asp e-service role variability science
0.764 market trading markets exchange traders trade transaction financial orders securities significant established number exchanges regulatory
0.735 contract contracts incentives incentive outsourcing hazard moral contracting agency contractual asymmetry incomplete set cost client
0.702 information environment provide analysis paper overall better relationships outcomes increasingly useful valuable available increasing greater
0.671 advertising search online sponsored keywords sales revenue advertisers ads keyword organic advertisements selection click targeting
0.651 social networks influence presence interactions network media networking diffusion implications individuals people results exchange paper
0.571 decision accuracy aid aids prediction experiment effects accurate support making preferences interaction judgment hybrid perceptual
0.569 research information systems science field discipline researchers principles practice core methods area reference relevance conclude
0.569 knowledge sharing contribution practice electronic expertise individuals repositories management technical repository knowledge-sharing shared contributors novelty
0.529 knowledge transfer management technology creation organizational process tacit research study organization processes work organizations implications
0.523 information processing needs based lead make exchange situation examined ownership analytical improved situations changes informational
0.511 set approach algorithm optimal used develop results use simulation experiments algorithms demonstrate proposed optimization present
0.497 online users active paper using increasingly informational user data internet overall little various understanding empirical
0.493 content providers sharing incentive delivery provider net incentives internet service neutrality broadband allow capacity congestion
0.493 users user new resistance likely benefits potential perspective status actual behavior recognition propose user's social
0.487 empirical model relationships causal framework theoretical construct results models terms paper relationship based argue proposed
0.461 structure organization structures organizational centralized decentralized study organizations forms decentralization processing communication sharing cbis activities
0.453 auctions auction bidding bidders bid combinatorial bids online bidder strategies sequential prices design price using
0.453 pricing services levels level on-demand different demand capacity discrimination mechanism schemes conditions traffic paper resource
0.417 supply chain information suppliers supplier partners relationships integration use chains technology interorganizational sharing systems procurement
0.396 data predictive analytics sharing big using modeling set power inference behavior explanatory related prediction statistical
0.395 model research data results study using theoretical influence findings theory support implications test collected tested
0.393 performance results study impact research influence effects data higher efficiency effect significantly findings impacts empirical
0.386 dynamic time dynamics model change study data process different changes using longitudinal understanding decisions develop
0.383 dimensions electronic multidimensional game transactions relative contrast channels theory sustained model predict dimension mixture evolutionary
0.368 electronic markets commerce market new efficiency suppliers internet changes marketplace analysis suggests b2b marketplaces industry
0.367 product products quality used characteristics examines role provide goods customization provides offer core sell key
0.352 outsourcing transaction cost partnership information economics relationships outsource large-scale contracts specificity perspective decisions long-term develop
0.344 research researchers framework future information systems important present agenda identify areas provide understanding contributions using
0.341 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry
0.323 price buyers sellers pricing market prices seller offer goods profits buyer two-sided preferences purchase intermediary
0.320 business digital strategy value transformation economy technologies paper creation digitization strategies environment focus net-enabled services
0.320 effects effect research data studies empirical information literature different interaction analysis implications findings results important
0.318 capabilities capability firm firms performance resources business information technology firm's resource-based competitive it-enabled view study
0.306 resource resources allocation chargeback manager effectiveness problem firms case gap allocating diverse dependence just bridge
0.295 online uncertainty reputation sellers buyers seller marketplaces markets marketplace buyer price signaling auctions market premiums
0.289 risk risks management associated managing financial appropriate losses expected future literature reduce loss approach alternative
0.276 decision making decisions decision-making makers use quality improve performance managers process better results time managerial
0.268 decision support systems making design models group makers integrated article delivery representation portfolio include selection
0.264 satisfaction information systems study characteristics data results using user related field survey empirical quality hypotheses
0.263 information systems paper use design case important used context provide presented authors concepts order number
0.258 community communities online members participants wikipedia social member knowledge content discussion collaboration attachment communication law
0.254 attention utilization existing codification model received does limitations theories receiving literature paying causes additional building
0.248 governance relational mechanisms bpo rights process coordination outsourcing contractual arrangements technology benefits view informal business
0.246 learning model optimal rate hand domain effort increasing curve result experts explicit strategies estimate acquire
0.244 channel distribution demand channels sales products long travel tail new multichannel available product implications strategy
0.242 information management data processing systems corporate article communications organization control distributed department capacity departments major
0.237 human awareness conditions point access humans images accountability situational violations result reduce moderation gain people
0.233 feedback mechanisms mechanism ratings efficiency role effective study economic design potential economics discuss profile recent
0.233 arguments retailers manufacturers retailer internet claim manufacturer consumer argumentation referral agency store third-party upstream argument
0.221 costs cost switching reduce transaction increase benefits time economic production transactions savings reduction impact services
0.220 design artifacts alternative method artifact generation approaches alternatives tool science generate set promising requirements evaluation
0.215 internet peer used access web influence traditional fraud world ecology services impact cases wide home
0.211 collaboration support collaborative facilitation gss process processes technology group organizations engineering groupware facilitators use work
0.210 security information compliance policy organizations breach disclosure policies deterrence breaches incidents results study abuse managed
0.208 behavior behaviors behavioral study individuals affect model outcomes psychological individual responses negative influence explain hypotheses
0.204 architecture scheme soa distributed architectures layer discuss central difference coupled service-oriented advantages standard loosely table
0.202 memory support organizations information organizational requirements different complex require development provides resources organization paper transactive
0.198 distributed agents agent intelligent environments environment smart computational environmental scheduling human rule using does embodied
0.193 approach analysis application approaches new used paper methodology simulation traditional techniques systems process based using
0.190 intelligence business discovery framework text knowledge new existing visualization based analyzing mining genetic algorithms related
0.190 adoption diffusion technology adopters innovation adopt process information potential innovations influence new characteristics early adopting
0.183 database language query databases natural data queries relational processing paper using request views access use
0.180 information types different type sources analysis develop used behavior specific conditions consider improve using alternative
0.180 firms firm financial services firm's size examine new based result level including results industry important
0.178 results study research information studies relationship size variables previous variable examining dependent increases empirical variance
0.177 process problem method technique experts using formation identification implicit analysis common proactive input improvements identify
0.168 structural modeling scale equation implications economies large future framework perspective propose broad scope resulting identified
0.159 strategic benefits economic benefit potential systems technology long-term applications competitive company suggest additional companies industry
0.154 trust trusting study online perceived beliefs e-commerce intention trustworthiness relationships benevolence initial importance trust-building examines
0.153 infrastructure information flexibility new paper technology building infrastructures flexible development human creating provide despite challenge
0.148 process business reengineering processes bpr redesign paper research suggests provide past improvements manage enable organizations
0.147 value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics
0.146 learning mental conceptual new learn situated development working assumptions improve ess existing investigates capture advanced
0.146 framework model used conceptual proposed given particular general concept frameworks literature developed develop providing paper
0.145 alignment strategic business strategy performance technology value organizational orientation relationship information misalignment matched goals perspective
0.145 design systems support development information proposed approach tools using engineering current described developing prototype flexible
0.144 theory theories theoretical paper new understanding work practical explain empirical contribution phenomenon literature second implications
0.141 design designs science principles research designers supporting forms provide designing improving address case little space
0.137 business large organizations using work changing rapidly make today's available designed need increasingly recent manage
0.134 effect impact affect results positive effects direct findings influence important positively model data suggest test
0.130 evaluation effectiveness assessment evaluating paper objectives terms process assessing criteria evaluations methodology provides impact literature
0.126 impact data effect set propensity potential unique increase matching use selection score results self-selection heterogeneity
0.124 technologies technology new findings efficiency deployed common implications engineers conversion change transformational opportunity deployment make
0.119 level levels higher patterns activity results structures lower evolution significant analysis degree data discussed implications
0.116 innovation innovations innovative organizing technological vision disruptive crowdsourcing path implemented explain base opportunities study diversity
0.115 affective concepts role questions game gaming production games logic play shaping frames future network natural
0.115 options real investment option investments model valuation technology value analysis uncertainty portfolio models using context
0.113 knowledge application management domain processes kms systems study different use domains role comprehension effective types
0.113 likelihood multiple test survival promotion reputation increase actions run term likely legitimacy important rates findings
0.112 phase study analysis business early large types phases support provided development practice effectively genres associated
0.111 applications application reasoning approach cases support hypertext case-based prototype problems consistency developed benchmarking described efficient
0.110 results study research experiment experiments influence implications conducted laboratory field different indicate impact effectiveness future
0.106 time use size second appears form larger benefits combined studies reasons selected underlying appear various
0.105 qualitative methods quantitative approaches approach selection analysis criteria used mixed methodological aspects recent selecting combining
0.102 quality different servqual service high-quality difference used quantity importance use measure framework impact assurance better
0.102 negative positive effect findings results effects blog suggest role blogs posts examined period relationship employees
0.101 structure integration complex business enhancement effects access extent analyzing volatile capture requires occurs pattern enables

Coauthor Network

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List of Coauthors (45)

Barua, Anitesh 7 Geng, Xianjun 5 Qiu, Liangfei 3 Rui, Huaxia 3
Stallaert, Jan 3 Susarla, Anjana 3 Zhang, Han 3 Ba, Sulin 2
Chen, Jianqing 2 Duan, Wenjing 2 Fan, Ming 2 Gupta, Alok 2
Gu, Bin 2 Konana, Prabhudev 2 Liu, De 2 Lin, Lihui 2
Lin, Mei 2 Ramesh, Ram 2 Ray, Gautam 2 Shi, Zhan 2
Tang, Qian 2 Barua, Anitesh, 1 Du, Anna Ye 1 Gopal, Ram D. 1
Guo, Zhiling 1 Hu, Xiaorui 1 Huang, Yun 1 Jukic, Boris 1
Koehler, Gary J. 1 Kumar, Subodha 1 Ke, Xuqing 1 Lee, C.H. Sophie 1
Lin, Zhangxi 1 Lee, Byungtae 1 Li, Shaojin 1 Mani, Deepa 1
Pick, Roger Alan 1 Ravindran, Sury 1 Stahl, Dale O. 1 Wu, Dazhong 1
Xia, Mu 1 Xu, Hong 1 Xue, Ling 1 Yin, Fang 1
Zhao, Xia 1

Article Keywords (195)

Electronic Commerce 4 Knowledge Management 4 game theory 3 social networks 3
complementarity 2 E-Commerce 2 evolutionary game theory 2 economic analysis 2
Knowledge transfer 2 outsourcing 2 prediction markets 2 reputation 2
simulation 2 social media 2 trusted third party 2 argument theory 1
Auction 1 applications software 1 asymmetric information 1 advertising 1
application service providers 1 ad-supported business models 1 Business Value 1 BPO 1
business process alignment 1 Business value of IT 1 bidding 1 Coordination Mechanism 1
capacity provision networks 1 codification 1 computational experiment 1 contractual structure 1
coordination 1 causality 1 causal models 1 computer charging 1
computing equipment selection. 1 channel management 1 contract choice 1 content contribution 1
contribution motivation 1 cyberinsurance 1 Content sharing 1 controlled experiment 1
decision-making 1 Distributed Decision Support Systems 1 Decentralized Information System 1 dynamic game 1
distributed computation 1 digitization 1 decision making 1 dynamic process 1
digital media 1 distribution strategies 1 distribution strategy 1 dynamic structural model 1
escrow service 1 electronic markets and auctions 1 endogeneity 1 exogeneity 1
empirical research 1 expectation disconfirmation theory 1 electronic shopping 1 electronic community 1
electronic markets 1 evolutionarily stable equilibrium 1 experience goods 1 fraud 1
free rider 1 free riding 1 groups 1 Google 1
governance 1 gray area 1 herding 1 Information Services 1
Incentive Alignment 1 Information Systems Design 1 infrastructure investment 1 Internet pricing 1
investment incentives 1 IRC 1 information processing 1 information structure 1
IS discipline 1 IT artifact 1 incomplete information 1 Informational cascades 1
Internet 1 information goods pricing 1 investment under uncertainty 1 information technology 1
innovation 1 information security 1 interdependent risks 1 information diffusion 1
information exchange 1 insider information 1 knowledge representation 1 keyword advertising 1
keyword auctions 1 knowledge-sharing network 1 logit models 1 location-based social network 1
learning network effects 1 minimum bid 1 music sharing 1 manipulative account 1
MIS research methodology 1 Management Information Systems 1 market evolution 1 modularity 1
multitask agency 1 moderation 1 managed security services 1 matrix factorization 1
nonmonotonic logic 1 numerical study 1 net neutrality 1 net-enabled business transformation 1
network effects 1 organization 1 Organizational Design 1 online auction 1
optimum pricing 1 online market 1 online informational capability 1 online communities 1
online user review 1 online channels 1 organizational learning 1 online community 1
online advertising 1 observational learning 1 peer-to-peer networks 1 public good 1
performance 1 path analysis 1 product characteristics 1 pricing 1
product information 1 price competition 1 quality of service 1 queuing 1
Radical Change 1 Reengineering 1 Real-Time Databases 1 Response Time 1
resource sharing 1 resource allocation 1 resource-based view 1 revenue sharing 1
risk management 1 risk pooling 1 structured modeling 1 systems integration 1
Supermodularity 1 Supply Chain Coordination 1 Supply Chain 1 sponsored links 1
sharing potential 1 sharer 1 satisfaction 1 strategic ambiguity 1
sender-receiver game 1 software download 1 search mechanisms 1 sequential evaluation 1
supplier selection. 1 stochastically stable equilibrium 1 search cost 1 signal jamming 1
service science 1 services 1 social effect 1 social broadcasting 1
social contagion 1 Transfer pricing 1 truthful voting 1 trust in e-commerce 1
trust status 1 transaction channel 1 transaction cost economics 1 two-sided markets 1
Twitter 1 User Preference 1 user-generated content 1 voluntary contribution 1
vertical differentation 1 weighted unit-price auctions 1 weighting scheme 1 word-of-mouth 1
weak tie 1 Yahoo! 1 YouTube 1

Articles (38)

Two Formulas for Success in Social Media: Learning and Network Effects (Journal of Management Information Systems, 2015)
Authors: Abstract:
    Recent years have witnessed an unprecedented explosion in information technology that enables dynamic diffusion of user-generated content in social networks. Online videos, in particular, have changed the landscape of marketing and entertainment, competing with premium content and spurring business innovations. In the present study, we examine how learning and network effects drive the diffusion of online videos. While learning happens through informational externalities, network effects are direct payoff externalities. Using a unique data set from YouTube, we empirically identify learning and network effects separately, and find that both mechanisms have statistically and economically significant effects on video views; furthermore, the mechanism that dominates depends on the video type. Specifically, although learning primarily drives the popularity of quality-oriented content, network effects also make it possible for attention-grabbing content to go viral. Theoretically, we show that, unlike the diffusion of movies, it is the combination of both learning and network effects that generate the multiplier effect for the diffusion of online videos. From a managerial perspective, providers can adopt different strategies to promote their videos accordingly, that is, signaling the quality or featuring the viewer base depending on the video type. Our results also suggest that YouTube can play a much greater role in encouraging the creation of original content by leveraging the multiplier effect. > >
Effects of Social Networks on Prediction Markets: Examination in a Controlled Experiment (Journal of Management Information Systems, 2014)
Authors: Abstract:
    This paper examines the effect of a social network on prediction markets using a controlled laboratory experiment that allows us to identify causal relationships between a social network and the performance of an individual participant, as well as the performance of the prediction market as a whole. Through a randomized experiment, we first confirm the theoretical predictions that participants with more social connections are less likely to invest in information acquisition from outside information sources, but perform significantly better than other participants in prediction markets. We further show that when the cost of information acquisition is low, a social network-embedded prediction market outperforms a nonnetworked prediction market. We find strong support for peer effects in prediction accuracy among participants. These results have direct managerial implications for the business practice of prediction markets and are critical to understanding how to use social networks to improve the performance of prediction markets.
The Impact of Social Network Structures on Prediction Market Accuracy in the Presence of Insider Information (Journal of Management Information Systems, 2014)
Authors: Abstract:
    This paper examines the effects of social network structures on prediction market accuracy in the presence of insider information through a randomized laboratory experiment. In the experiment, insider information is operationalized as signals on the state of nature with high precision. Motivated by the literature on insider information in the context of financial markets, we test and confirm two characterizations of insider information in the context of prediction markets: abnormal performance and less diffusion. Experimental results suggest that a more balanced social network structure is crucial to the success of prediction markets, whereas network structures akin to star networks are ill suited to prediction markets. As compared with other network structures, insider information has less positive effects on prediction market accuracy in star networks. We also find that the bias of the public information has a larger negative effect on prediction market accuracy in star networks.
Content Sharing in a Social Broadcasting Environment: Evidence from Twitter (MIS Quarterly, 2014)
Authors: Abstract:
    The rise of social broadcasting technologies has greatly facilitated open access to information worldwide, not only by powering decentralized information production and consumption, but also by expediting information diffusion through social interactions like content sharing. Voluntary information sharing by users in the context of Twitter, the predominant social broadcasting site, is studied by modeling both the technology and user behavior. A detailed data set about the official content-sharing function on Twitter, called retweet, is collected and the statistical relationships between users’ social network characteristics and their retweeting acts are documented. A two-stage consumption-sharing model is then estimated using the conditional maximum likelihood estimatio (MLE) method. The empirical results convincingly support our hypothesis that weak ties (in the form of unidirectional links) are more likely to engage in the social exchange process of content sharing. Specifically, we find that after a median quality tweet (as defined in the sample) is consumed, the likelihood that a unidirectional follower will retweet is 3.1 percentage point higher than the likelihood that a bidirectional follower will do so.
Managing Interdependent Information Security Risks: Cyberinsurance, Managed Security Services, and Risk Pooling Arrangements. (Journal of Management Information Systems, 2013)
Authors: Abstract:
    The interdependency of information security risks often induces firms to invest inefficiently in information technology security management. Cyberinsurance has been proposed as a promising solution to help firms optimize security spending. However, cyberinsurance is ineffective in addressing the investment inefficiency caused by risk interdependency. In this paper, we examine two alternative risk management approaches: risk pooling arrangements (RPAs) and managed security services (MSSs). We show that firms can use an RPA as a complement to cyberinsurance to address the overinvestment issue caused by negative externalities of security investments; however, the adoption of an RPA is not incentive-compatible for firms when the security investments generate positive externalities. We then show that the MSS provider serving multiple firms can internalize the externalities of security investments and mitigate the security investment inefficiency. As a result of risk interdependency, collective outsourcing arises as an equilibrium only when the total number of firms is small.
Network Structure and Observational Learning: Evidence from a Location-Based Social Network. (Journal of Management Information Systems, 2013)
Authors: Abstract:
    In recent years, there has been stellar growth of location-based/enabled social networks in which people can "check in" to physical venues they are visiting and share with friends. In this paper, we hypothesize that the "check-ins" made by friends help users learn the potential payoff of visiting a venue. We argue that this learning-in-a-network process differs from the classic observational learning model in a subtle yet important way: Rather than from anonymous others, the agents learn from their network friends, about whose tastes in experience goods the agents are better informed. The empirical analyses are conducted on a unique data set in which we observe both the explicit interpersonal relationships and their ensuing check-ins. The key result is that the proportion of checked-in friends is not positively associated with the likelihood of a new visit, rejecting the prediction of the conventional observational learning model. Drawing on the literature in sociology and computer science, we show that weighting the friends' check-ins by a parsimonious proximity measure can yield a more intuitive result than the plain proportion does. Repeated check-ins by friends are found to have a pronounced effect. Our empirical result calls for the revisiting of observational learning in a social network setting. It also suggests that practitioners should incorporate network proximity when designing social recommendation products and conducting promotional campaigns in a social network.
To Continue Sharing or Not to Continue Sharing? An Empirical Analysis of User Decision in Peer-to-Peer Sharing Networks. (Information Systems Research, 2012)
Authors: Abstract:
    Peer-to-peer sharing networks have seen explosive growth recently. In these networks, sharing files is completely voluntary, and there is no financial reward for users to contribute. However, many users continue to share despite the massive free-riding by others. Using a large-scale data set of individual activities in a peer-topeer music-sharing network, we seek to understand users' continued-sharing behavior as a private contribution to a public good. We find that the more benefit users "get from" the network, in the form of downloads, browses, and searches, the more likely they are to continue sharing. Also, the more value users "give to" the network, in the form of downloads by other users and recognition by the network, the more likely they are to continue sharing. Moreover, our findings suggest that, overall, "getting from" is a stronger force for the continued-sharing decision than "giving to."
A Computational Analysis of Bundle Trading Markets Design for Distributed Resource Allocation. (Information Systems Research, 2012)
Authors: Abstract:
    Online auction markets play increasingly important roles for resource allocations in distributed systems. This paper builds upon a market-based framework presented by Guo et al. (Guo, Z., G. J. Koehler, A. B. Whinston. 2007. A market-based optimization algorithm for distributed systems. Management Sci. 53(8) 1345-1458), where a distributed system optimization problem is solved by self-interested agents iteratively trading bundled resources in a double auction market run by a dealer. We extend this approach to a dynamic, asynchronous Internet market environment and investigate how various market design factors including dealer inventory policies, market communication patterns, and agent learning strategies affect the computational market efficiency, market liquidity, and implementation. We prove finite convergence to an optimal solution under these various schemes, where individual rational and budget-balanced trading leads to an efficient auction outcome. Empirical investigations further show that the algorithmic implementation is robust to a number of dealer and agent manipulations and scalable to larger sizes and more complicated bundle trading markets. Interestingly, we find that, though both asynchronous communication and asymmetric market information negatively affect the speed of market convergence and lead to more agent welfare loss, agents' ability to predict market prices has a positive effect on both. Contrary to conventional wisdom that a dealer's intertemporal liquidity provisions improve market performance, we find that the dealer's active market intervention may not be desirable in a simple market trading environment where an inherent market liquidity effect dominates, especially when the dealer owns a significant amount of resources. Different from the traditional market insight, our trading data suggest that high trading volume does not correlate to low price volatility and quicker price discovery.
An Empirical Analysis of the Contractual and Information Structures of Business Process Outsourcing Relationships. (Information Systems Research, 2012)
Authors: Abstract:
    The emergence of information-intensive business process outsourcing (BPO) relationships calls for the study of exchange performance beyond traditional considerations of the contractual structure that facilitates cooperative intent to include the information structure that facilitates the mutual exchange of information to enact cooperative intent and coordinate actions between the user firm and the service provider. Yet, there has been little analysis of the drivers and performance effects of the information structure of BPO relationships, including its linkages to the underlying contractual structure. This study integrates perspectives in neo-institutional economics and information processing to develop and test the theoretical argument that the extent of use and performance effects of the information structure of the BPO relationship are greater in time and materials BPO contracts than in fixed-price BPO contracts. Survey data on 134 BPO relationships provide empirical support for our hypotheses. The synergistic impact of incentives and information on BPO performance emphasizes that their joint assessment is necessary to enhance the explanatory power of extant theories of organization. This result also has implications for achieving maximum benefits from complex BPO arrangements that are more likely to be characterized by time and material contracts.
Vertical Differentiation and a Comparison of Online Advertising Models. (Journal of Management Information Systems, 2012)
Authors: Abstract:
    Designing business models that take into consideration the role of advertising support is critical to the success of online services. In this paper, we address the challenges of these business model strategies and compare different ad revenue models. We use game theory to model vertical differentiation in both monopoly and duopoly settings, in which online service providers may offer an ad-free service, an ad-supported service, or a combination of these services. Offering both ad-free and ad-supported services is the optimal strategy for a monopolist because ad revenues compensate for the cannibalistic effect of vertical differentiation. In a duopoly equilibrium, exactly one firm offers both services when the ad revenue rate is sufficiently high. Furthermore, we find that a higher ad revenue rate may lead to lower service prices. Consistently across both monopoly and duopoly settings, such price reductions are more severe in the cost-per-thousand-impressions model than in the cost-per-click model. Our findings emphasize the role of advertising revenues in vertical differentiation and offer strategic guidance for monetizing online services.
Content Contribution for Revenue Sharing and Reputation in Social Media: A Dynamic Structural Model. (Journal of Management Information Systems, 2012)
Authors: Abstract:
    This study examines the incentives for content contribution in social media. We propose that exposure and reputation are the major incentives for contributors. Besides, as more and more social media Web sites offer advertising-revenue sharing with some of their contributors, shared revenue provides an extra incentive for contributors who have joined revenue-sharing programs. We develop a dynamic structural model to identify a contributor's underlying utility function from observed contribution behavior. We recognize the dynamic nature of the content-contribution decision-that contributors are forward-looking, anticipating how their decisions affect future rewards. Using data collected from YouTube, we show that content contribution is driven by a contributor's desire for exposure, revenue sharing, and reputation and that the contributor makes decisions dynamically.
An Analysis of Incentives for Network Infrastructure Investment Under Different Pricing Strategies. (Information Systems Research, 2011)
Authors: Abstract:
    The Internet is making a significant transition from primarily a network of desktop computers to a network variety of connected information devices such as personal digital assistants and global positioning system-based devices. On the other hand, new paradigms such as overlay networks are defining service-based logical architecture for the network services that make locating content and routing more efficient. Along with Internet2' s proposed service-based routing, overlay networks will create a new set of challenges in the provision and management of content over the network. However, a lack of proper infrastructure investment incentive may lead to an environment where network growth may not keep pace with the service requirements. In this paper, we present an analysis of investment incentives for network infrastructure owners under two different pricing strategies: congestion-based negative externality pricing and the prevalent flat-rate pricing. We develop a theoretically motivated gradient-based heuristic to compute maximum capacity that a network provider will be willing to invest in under different pricing schemes. The heuristic appropriates different capacities to different network components based on demand for these components. We then use a simulation model to compare the impact of dynamic congestion-based pricing with flat-rate pricing on the choice of capacity level by the infrastructure provider. The simulation model implements the heuristic and ensures that near-optimal level of capacity is allocated to each network component by checking theoretical optimality conditions. We investigate the impact of a variety of factors, including the per unit cost of capacity of a network resource, average value of the users' requests, average level of users' tolerance for delay, and the level of exogenous demand for services on the network. Our results indicate that relationships between these factors are crucial in determining which of the two pricing schemes results in a higher level of socially optimal network capacity. The simulation results provide a possible explanation for the evolution of the Internet pricing from time-based to flat-rate pricing. The results also indicate that regardless of how these factors are related, the average stream of the net benefits realized under congestion-based pricing tends to be higher than the average net benefits realized under flat-rate pricing. These central results point to the fallacy of the arguments presented by the supporters of net neutrality that do not consider the incentives for private investment in network capacity.
Innovation and Price Competition in a Two-Sided Market. (Journal of Management Information Systems, 2011)
Authors: Abstract:
    We examine a platform's optimal two-sided pricing strategy while considering seller-side innovation decisions and price competition. We model the innovation race among sellers in both finite and infinite horizons. In the finite case, we analytically show that the platform's optimal seller-side access fee fully extracts the sellers' surplus, and that the optimal buyer-side access fee mitigates price competition among sellers. The platform's optimal strategy may be to charge or subsidize buyers depending on the degree of variation in the buyers' willingness to pay for quality; this optimal strategy induces full participation on both sides. Furthermore, a wider quality gap among sellers' products lowers the optimal buyer-side fee but leads to a higher optimal seller-side fee. In the infinite innovation race, we perform computations to find the stationary Markov equilibrium of sellers' innovation rate. Our results show that when all sellers innovate, there exists a parameterization under which a higher seller-side access fee stimulates innovation.
Moderated Online Communities and Quality of User-Generated Content. (Journal of Management Information Systems, 2011)
Authors: Abstract:
    Online communities provide a social sphere for people to share information and knowledge. While information sharing is becoming a ubiquitous online phenomenon, how to ensure information quality or induce quality content remains a challenge because of the anonymity of commentators. This paper introduces moderation into reputation systems. We show that moderation directly affects strategic commentators' incentive to generate useful information, and moderation is generally desirable to improve information quality. We find that when being moderated with different probabilities based on their reputations, commentators might display a pattern of reputation oscillation, in which they generate useful content to build up high reputation and then exploit their reputation. As a result, the expected performance from high-reputation commentators can be inferior to that from low-reputation commentators (reverse reputation). We then investigate the optimal moderation resource allocation and conclude that the seemingly abnormal reverse reputation could arise as an optimal result. Our study underscores the importance of moderation and highlights that the frequency of moderation should be properly chosen for better performance of online communities.
Ex Ante Information and the Design of Keyword Auctions. (Information Systems Research, 2010)
Authors: Abstract:
    Keyword advertising, including sponsored links and contextual advertising, powers many of today's online information services such as search engines and Internet-based emails. This paper examines the design of keyword auctions, a novel mechanism that keyword advertising providers such as Google and Yahoo! use to allocate advertising slots. In our keyword auction model, advertisers bid their willingness-to-pay per click on their advertisements, and the advertising provider can weight advertisers' bids differently and require different minimum bids based on advertisers' click-generating potential. We study the impact and design of such weighting schemes and minimum-bid policies. We find that weighting scheme determines how advertisers with different click-generating potential match in equilibrium. Minimum bids exclude low-valuation advertisers and at the same time may distort the equilibrium matching. The efficient design of keyword auctions requires weighting advertisers' bids by their expected click-through-rates, and requires the same minimum weighted bids. The revenue-maximizing weighting scheme may or may not favor advertisers with low click-generating potential. The revenue-maximizing minimum-bid policy differs from those prescribed in the standard auction design literature. Keyword auctions that employ the revenue-maximizing weighting scheme and differentiated minimum bid policy can generate higher revenue than standard fixed-payment auctions. We draw managerial implications for pay-per-click and other pay-for-performance auctions and discuss potential applications to other areas.
The Interaction Between Knowledge Codification and Knowledge-Sharing Networks. (Information Systems Research, 2010)
Authors: Abstract:
    Current knowledge management (KM) technologies and strategies advocate two different approaches: knowledge codification and knowledge-sharing networks. However, the extant literature has paid limited attention to the interaction between them. This research draws on the literature on formal modeling of networks to examine the interaction between knowledge codification and knowledge-sharing networks. The analysis suggests that an increase in codification may damage existing network-sharing ties. Anticipating that, individuals may hoard their knowledge to protect their network ties, even when there are nontrivial rewards for codification. We find that despite the aforementioned tension between the codification and the network approach, a firm may still benefit from combining the two approaches. Specifically, when the future sharing potential between knowledge workers is high, a combination of the two approaches may outperform a codification-only or a network-only approach because the codification reward causes fewer network ties to break down, and the benefit from increased codification can offset the loss of some network ties. However, when the future sharing potential is low, an increase in codification reward can quickly break down the whole network. Thus, firms may be better off by pursuing a codification-only or a network-only strategy.
Multitask Agency, Modular Architecture, and Task Disaggregation in SaaS. (Journal of Management Information Systems, 2010)
Authors: Abstract:
    We examine contract choices in the provision of "software-as-a-service" (SaaS), which is a business innovation that transforms information technology (IT) resources into a continuously provided service. We draw upon agency theory and modularity theory to propose that one of the central challenges in service disaggregation is that of knowledge interdependencies across client and provider organizations. The resulting lack of verifiability of certain tasks results in a multitask agency problem. Our key research questions involve (1) the suitability of high- versus low-powered incentives in SaaS contracts when the outsourced tasks involve business analytics that are difficult to verify, and (2) how such contract choices are affected by the modularity of interfaces between the client and the provider. Analysis of data collected from 154 providers of SaaS offering a range of IT services supports our contention that when contracting for business analytics characterized by knowledge interdependencies across clients and providers, incentives should be "low powered." Modularity in the interfaces of the service provider increases the desirability of high-powered incentives in such situations. Our results are robust after accounting for endogeneity issues arising from unobserved matching between service providers and the nature of IT services outsourced by clients. With the increasing importance of information systems in services, this paper suggests that arm's-length relationships and high-powered incentives may be ineffective in incentivizing providers to perform on complex business analytic tasks, unless accompanied by the modularization of interfaces.
Effects of Organizational Learning and Knowledge Transfer on Investment Decisions Under Uncertainty. (Journal of Management Information Systems, 2009)
Authors: Abstract:
    Because uncertainties around innovative technologies resolve over time, investments in such technologies are often made in stages so that organizations can use the knowledge gained from earlier stages to decide the next step. Previous studies usually assume that once some uncertainty is resolved, it becomes common knowledge within the investing organization. We develop a game-theoretical model to study how different parties within an organization gain and transfer knowledge about new technologies while investing in these technologies, and how the learning process may affect the investment decisions. We show that managers with incentives misaligned with the organization may transfer their knowledge untruthfully and distort the learning process of decision makers. Such behavior may lead to inefficient investment decisions. We also study the effect of uncertainty on the misreporting problem and the investment decisions. Mechanisms to mitigate or prevent untruthful knowledge transfer are also proposed. In particular, powerful incentive schemes may alleviate, but not prevent, the misreporting problem; punishing managers who are caught misreporting may deter the misreporting behavior, but in practice such mechanisms are difficult to implement.
A Transaction Cost Perspective of the "Software as a Service" Business Model. (Journal of Management Information Systems, 2009)
Authors: Abstract:
    Application service providers (ASP), which host and maintain information technology (IT) applications across the Internet, offer an alternative to traditional models of IT service for user firms. We build on prior literature in transaction cost economics (TCE) to argue that the contract design should address ex post transaction costs that result due to contractual incompleteness and opportunism. We argue that contract design is multidimensional, and that it is necessary to design governance structures that can protect user firms from shirking and monitoring costs, as well as provide for efficient adaptation when requirements are incompletely specified at the start of the initiative. Our empirical analysis suggests that factors such as uncertainty in specifying service requirements, interdependence between the ASP application and IT systems in the client organization, and the need for specific investments favor time and materials contracts, whereas fixed prices are desirable when strong incentives are needed for cost reduction. We also find that contracts that are aligned with transaction attributes in a transaction cost--economizing manner are significantly less likely to experience budget overruns and realize better ex post performance than those that are not. These results hold normative implications for both user and provider firms to assess the performance implications of choosing contracts in line with prescriptions of TCE.
INFORMATIONAL CASCADES AND SOFTWARE ADOPTION ON THE INTERNET: AN EMPIRICAL INVESTIGATION. (MIS Quarterly, 2009)
Authors: Abstract:
    Online users often need to make adoption decisions without accurate information about the product values. An informational cascade occurs when it is optimal for an online user, having observed others' actions, to follow the adoption decision of the preceding individual without regard to his own information. Informational cascades are often rational for individual decision making; however, it may lead to adoption of inferior products. With easy availability of information about other users' choices, the Internet offers an ideal environment for informational cascades. In this paper, we empirically examine informational cascades in the context of online software adoption. We find user behavior in adopting software products is consistent with the predictions of the informational cascades literature. Our results demonstrate that online users' choices of software products exhibit distinct jumps and drops with changes in download ranking, as predicted by informational cascades theory. Furthermore, we find that user reviews have no impact on user adoption of the most popular product, while having an increasingly positive impact on the adoption of lower ranking products. The phenomenon persists after controlling for alternative explanations such as network effects, word-of-mouth effects, and product diffusion. Our results validate informational cascades as an important driver for decision making on the Internet. The finding also offers an explanation for the mixed results reported in prior studies with regard to the influence of online user reviews on product sales. We show that the mixed results could be due to the moderating effect of informational cascades.
Capacity Provision Networks: Foundations of Markets for Sharable Resources in Distributed Computational Economies. (Information Systems Research, 2008)
Authors: Abstract:
    With the rapid growth of rich-media content over the Internet, content and service providers (SP) are increasingly facing the problem of managing their service resources cost-effectively while ensuring a high quality of service (QoS) delivery at the same time. In this research we conceptualize and model an Internetbased storage provisioning network for rich-media content delivery. This is modeled as a capacity provision network (CPN) where participants possess service infrastructures and leverage their topographies to effectively serve specific customer segments. A CPN is a network of SPs coordinated through an allocation hub. We first develop the notion of discounted QoS capabilities of storage resources. We then investigate the stability of the discount factors over time and the network topography using a test-bed on the Internet through a longitudinal empirical study. Finally, we develop a market maker mechanism for optimal multilateral allocation and surplus sharing in a network. The proposed CPN is closely tied to two fundamental properties of Internet service technology: positive network externality among cooperating SPs and the property of effective multiplication of capacity allocation among several distributed service sites. We show that there exist significant incentives for SPs to engage in cooperative allocation and surplus sharing. We further demonstrate that intermediation can enhance the allocation effectiveness and that the opportunity to allocation and surplus sharing can play an important role in infrastructure planning. In conclusion, this study demonstrates the practical business viability of a cooperative CPN market.
Manufacturers' Distribution Strategy in the Presence of the Electronic Channel. (Journal of Management Information Systems, 2008)
Authors: Abstract:
    The Internet provides an additional channel for manufacturers to provide information about and sell their products. The electronic channel has the advantage of reduced search cost and its reach is increasing, but it has limited capability to provide product information. This paper examines how Internet technology affects a monopoly manufacturer's distribution problem in an environment where product information is important for consumers to identify their ideal product. The model suggests that a manufacturer uses the electronic channel in addition to the physical channel when the product information is very valuable and product information is largely about digital attributes, or when the product information is not valuable. The model also suggests that when the manufacturer chooses to sell through both channels, there is an increase in price competition between the two channels such that the manufacturer need not sell through the electronic retailer with the highest reach. Also, when a large proportion of consumers have access to both channels, the manufacturer may sell through only one channel. The paper also examines the case where the manufacturer operates in the electronic channel and the case where the retailers are integrated.
Selling or Advertising: Strategies for Providing Digital Media Online. (Journal of Management Information Systems, 2007)
Authors: Abstract:
    Media and network companies are increasingly providing digital media online. We develop a model to examine optimal strategies for media providers to utilize the online channel to distribute digital media. We examine a number of options for media providers. Our results suggest that media companies should sell programs online when content quality is relative high and online access cost is low. When online access cost is relative high, media providers could use the advertising strategy. Overall, companies are better off providing both pricing and advertising options to consumers. We derive the optimal price and advertising level, and analyze the factors that affect the price and advertising decisions. We find that as advertisement revenue rate increases, advertising level should be kept low. In addition, media companies should set online price and advertising level with consideration of the traditional channel in order to avoid channel cannibalization. We also analyze the advertising level in the traditional channel. Our results suggest that as digital video recorder technologies provide more convenience to consumers, media companies should increase, rather than decrease, revenues from advertising.
Choice of Transaction Channels: The Effects of Product Characteristics on Market Evolution. (Journal of Management Information Systems, 2005)
Authors: Abstract:
    The capabilities of network technologies have facilitated the growth of electronic commerce. Major issues--notably, security and product quality uncertainty--still pose serious challenges to the further adoption of electronic commerce. Traditional market transactions have a long history and well-understood protections for buyers and sellers. In the electronic markets, formal and informal mechanisms such as trusted third parties (TTP) have emerged trying to ensure safe transactions . In this paper, we investigate under what conditions people will stick to the traditional market and face-to-face transactions, and under what conditions electronic transactions will be the convention of the future. Of particular interest is the role of TTPs in facilitating online transactions. Using evolutionary game theory, we present an analytical model of buyer and seller choices and examine which patterns of transactions can be sustained. We further study how the traders' adaptive behavior may influence the outcome of the market evolution. Through this analysis, we demonstrate that the market will show divergence: for commodity products, electronic transactions through TTPs will get established as the convention for market transactions when traders use historical information about other traders' past strategies. For "look and feel" products, the market evolution depends on the initial distribution of the transaction strategies in the population.
A SENDER-RECEIVER FRAMEWORK FOR KNOWLEDGE TRANSFER. (MIS Quarterly, 2005)
Authors: Abstract:
    The shift to more distributed forms of organizations and the prevalence of interorganizational relationships have led to an increase in the transfer of knowledge between parties with asymmetric and incomplete information about each other. Because of this asymmetry and incompleteness, parties seeking knowledge may not be able to identify qualified knowledge providers, and the appropriate experts may fail to be motivated to engage in knowledge transfer. We propose a sender-receiver framework for studying knowledge transfer under asymmetric and/or incomplete information. We outline four types of information structures for knowledge transfer, and focus on the sender-advantage asymmetric information structure and the symmetric incomplete information structure. We develop formal game-theoretical models, show how information incompleteness and asymmetry may negatively influence knowledge transfer, and propose solutions to alleviate these negative impacts. Implications for knowledge transfer research and practice are also discussed.
Hope or Hype: On the Viability of Escrow Services as Trusted Third Parties in Online Auction Environments. (Information Systems Research, 2004)
Authors: Abstract:
    Internet fraud has been on the rise in online consumer-to-consumer (C2C) auction markets, posing serious challenges to people's trust in electronic markets. Among various remedies to promote trust and reduce trader's risk, online escrow service has been proposed as a trusted third party to protect online transactions from Internet fraud. However, whether an escrow service constitutes a viable business model for a trusted third party to effectively block Internet fraud remains an open question. This research proposes a dynamic game model for online traders and a profit maximization model for the escrow service provider. Through the investigation of the optimal strategies of online traders, we explore the relationships among traders' decision making, escrow service fee rates, and adoption rates. We reveal the demand for escrow services and establish the optimal pricing rule for the escrow service provider. A numerical study based on the theoretical analysis is conducted to provide detailed guidelines of the model application for an escrow service provider and to explore if the escrow service is a viable business model in C2C auction markets.
Health of Electronic Communities: An Evolutionary Game Approach. (Journal of Management Information Systems, 2004)
Authors: Abstract:
    Creating electronic communities is a critical venture in the digital economy. However, fraud and misrepresentation have led to widespread skepticism and distrust of electronic communities. We develop an evolutionary model to explore the issue of trust within an electronic community from a dynamic process perspective. This model emphasizes large populations, continuous change in community memberships, and imperfect information and memory. As the term trust is often used in the context of individual interaction, at a group level we propose using the term health to measure the sustained competitive advantages of honest members over cheaters throughout the evolution of a community. We find conditions under which an electronic community is healthy and attracts outside population. We find that many factors, such as information dissemination speed, honest players' payoffs and possible losses, new community members' initial trust status, and the replacement rate of community members, all affect the health of an electronic community, and that some of them also affect a community's size. We then discuss the implications of our research for e-community practices.
AN EMPIRICAL INVESTIGATION OF NET-ENABLED BUSINESS VALUE. (MIS Quarterly, 2004)
Authors: Abstract:
    Many traditional organizations have undertaken major initiatives to leverage the Internet to transform how they coordinate value activities with customers, suppliers, and other business partners with the objective of improving firm performance. This paper addresses processes through which business value is created through such Internet-enabled value chain activities. Relying on the resource-based view of the firm, we propose a model positing that a firm's abilities to coordinate and exploit firm resources (processes, information technology, and readiness of customers and suppliers) create online informational capabilities (a higher order resource) which then leads to improved operational and financial performance. The outcome of a firm's online informational capabilities is reflected in superior operational performance through customer and supplier-side digitization efforts, which reflect the extent to which transactions and external interactions occur electronically. We also hypothesize that increased customer and supplier-side digitization leads to better financial performance. The model is tested with data from over 1,000 firms in the manufacturing, retail, and wholesale sectors. The analysis suggests that while most firms are lagging in their supplier-side initiatives relative to the customer-side, supplier-side digitization has a strong positive impact on customer-side digitization, which, in turn, leads to better financial performance. Further, both customer and supplier readiness to engage in digital interactions are shown to be as important as a firm's internal digitization initiatives, implying that a firm's transformation-related decisions should include its customers' and suppliers' resources and incentives.
OPERATIONALIZING THE ESSENTIAL ROLE OF THE INFORMATION TECHNOLOGY ARTIFACT IN INFORMATION SYSTEMS RESEARCH: GRAY AREA, PITFALLS, AND THE IMPORTANCE OF STRATEGIC AMBIGUITY. (MIS Quarterly, 2004)
Authors: Abstract:
    In this paper we argue that a large gray area of information systems research exists, whose relevance to the information technology artifact is subject to significant debate even among IS scholars who support the essential role of the IT artifact. As we explain, not explicitly addressing this gray area can have negative, although often inadvertent, effects on the innovative nature of IS research; we explore this danger through three pitfalls. We then propose a stance of strategic ambiguity to deal with the gray area. Strategic ambiguity calls for deliberately withholding judgment on the relevance of research in the gray area and acceptance of gray-area research provided it meets the excellence required by professional journals. We believe that strategic ambiguity benefits innovative IS research without harming the essential role of the IT artifact.
Decentralized Mechanism Design for Supply Chain Organizations Using an Auction Market. (Information Systems Research, 2003)
Authors: Abstract:
    Traditional development of large-scale information systems is based on centralized information processing and decision making. With increasing competition, shorter product life-cycle, and growing uncertainties in the marketplace, centralized systems are inadequate in processing information that grows at an explosive rate and are unable to make quick responses to real-world situations. Introducing a decentralized information system in an organization is a challenging task. It is often intertwined with other organizational processes. The goal of this research is to outline a new approach in developing a supply chain information system with a decentralized decision making process. Particularly, we study the incentive structure in the decentralized organization and design a market-based coordination system that is incentive aligned, i.e., it gives the participants the incentives to act in a manner that is beneficial to the overall system. We also prove that the system monotonically improves the overall organizational performance and is goal congruent.
UNDERSTANDING THE SERVICE COMPONENT OF APPLICATION SERVICE PROVISION: AN EMPIRICAL ANALYSIS OF SATISFACTION WITH ASP SERVICES. (MIS Quarterly, 2003)
Authors: Abstract:
    In spite of the promise and potential of improving the way organizations develop, operate and maintain information technology (IT) applications, application service providers (ASPs) have fared poorly in terms of attracting a large client base. Anecdotal evidence in the business press points to limited satisfaction among users of ASP, which calls for an assessment of determinants of satisfaction with ASP. In this paper, we draw upon the consumer satisfaction paradigm widely employed in marketing literature to analyze post-usage satisfaction with ASP services. We develop a conceptual model of satisfaction with ASP and empirically test the predictions using data from 256 firms using ASP services. Expectations about ASP service have a significant influence on the performance evaluation of ASPs, and experience-based norms have only limited significance in explaining satisfaction with ASP. We also find empirical support for the influence of performance and disconfirmation on the satisfaction with ASP. Implications for both ASPs and organizations adopting ASP services are discussed.
Research Commentary: Introducing a Third Dimension in Information Systems Design--The Case for Incentive Alignment. (Information Systems Research, 2001)
Authors: Abstract:
    Prior research has generated considerable knowledge on information systems design from software engineering and user-acceptance perspectives. As organizational processes are increasingly embedded within information systems, one of the key considerations of many business processes--organizational incentives--should become an important dimension of any information systems design and evaluation, which we categorize as the third dimension: incentive alignment.Incentive issues have become important in many IS areas,including distributed decision support systems (DSS), knowledge management, and e-business supply chain coordination. In this paper we outline why incentives are important in each of these areas and specify requirements for designing incentive-aligned information systems. We identify and define important unresolved problems along the incentive-alignment dimension of information systems and present a research agenda to address them.
Integrating User Preferences and Real-Time Workload in Information Services. (Information Systems Research, 2000)
Authors: Abstract:
    We propose priority pricing as an on-line adaptive resource scheduling mechanism to manage real-time databases within organizations. These databases provide timely information for delay sensitive users. The proposed approach allows diverse users to optimize their own objectives while collectively maximizing organizational benefits. We rely on economic principles to derive priority prices by modeling the fixed-capacity real-time database environment as an economic system. Each priority is associated with a price and a delay, and the price is the premium (congestion toll resulting from negative externalities) for accessing the database. At optimality, the prices are equal to the aggregate delay cost imposed on all other users of the database. These priority prices are used to control admission and to schedule user jobs in the database system. The database monitors the arrival processes and the state of the system, and incrementally adjusts the prices to regulate the flow. Because our model ignores the operational intricacies of the real-time databases (e.g., intermediate queues at the CPU and disks, memory size, etc.) to maintain analytical tractability, we evaluate the performance of our pricing approach through simulation. We evaluate the database performance using both the traditional real-time database performance metrics (e.g., the number of jobs serviced on time, average tardiness) and the economic benefits (e.g., benefits to the organization). The simulation results, under various database workload parameters, show that our priority pricing mechanism not only maximizes organizational benefits but also outperforms in all aspects of traditional performance measures compared to frequently used database scheduling techniques, such as first-come-first-served, earliest deadline first and least slack first.
Efficient Selection of Suppliers over the Internet. (Journal of Management Information Systems, 1997)
Authors: Abstract:
    The Internet has become increasingly important to organizations for certain aspects of electronic commerce. Many organizations have set up Web pages to capture the attention of potential buyers and to develop new business relationships. Others have set up indexing services to provide easy search capabilities to prospective buyers. While the unit search and communication costs have been lowered dramatically by the Internet, the cost of evaluating potential suppliers may still be prohibitive, especially for certain types of products and services. Thus, although the Internet makes it possible to locate a large number of new suppliers, an organizational buyer needs to deploy appropriate supplier-selection strategies (such as sequential evaluation with stopping rules versus bidding systems) that consider all cost elements involved in choosing a vendor. We develop an analytical model that allows a buyer to maximize payoff (net of supplier search, communication, and evaluation costs) from the selection process. We analyze how the nature of the product and the buyer's expectations about supplier characteristics determine whether a sequential evaluation or bidding should be used in the selection process. The Internet, when used in conjunction with the proposed strategies, results in a lower total expected cost to the buyer, even though more suppliers are being evaluated, because a better supplier is selected. We describe how intelligent database searching can further increase the efficiency of the proposed selection strategies. We also develop a minimum requirements announcement mechanism, which makes supplier selection through a bidding strategy economically feasible in situations where legal restrictions may bar the use of sequential evaluation.
Discovery and Representation of Casual Relationships in MIS Research: A Methodological Framework. (MIS Quarterly, 1997)
Authors: Abstract:
    The lack of theories and methodological weakness have been pointed out as two distinct but related problems in empirical management information systems (MIS) research. Reinforcing the existing belief that too much attention has been devoted to "what" as opposed to "why" or "when" relationships exist, this paper focuses on a subset of model building and methodology issues involving the systematic discovery and representation of causal relationships. Our analysis of the existing empirical MIS literature reveals the need to build richer causal models, to increase the flexibility of model representation, to integrate the isolated worlds of pure latent and pure manifested variables, and to provide a tighter linkage between the exploratory and confirmatory research phases. Based on philosophy of science and advances in the fields of experimental economics and sociology, we propose a foundation for developing richer models by explicitly considering the exogeneity and endogeneity of constructs and a manipulative account of causality, and by recognizing the role of incentives, agent, and organizational characteristics in MIS models. Since richer models require more flexible tools and techniques, the paper describes the representational shortcomings and statistical pitfalls of factor-analytic methods commonly deployed in empirical research. We suggest that weak exploratory phase tools and approaches may allow violations of causal assumptions to pass undetected to the confirmatory phase. Since confirmatory tools like LISREL also make factor-analytic assumptions, these violations are not likely to be detected at the confirmatory phase either. We propose using TETRAD, a non-parametric tool, at the exploratory phase for its ability to accommodate a wide variety of causal models. The findings are summarized within an integrated framework, which enhances the likelihood of discovering relationships through richer theoretical support and powerful exploratory analysis.
The Calculus of Reengineering. (Information Systems Research, 1996)
Authors: Abstract:
    Advances in new Information Technologies (IT) and changes in the business environment such as globalization and competitive pressure have prompted organizations to embark on reengineering projects involving significant investments in IT and business process redesign. However, the evidence of payoff from such investments can be classified as mixed as best, a problem we partly attribute to the absence of a strong theoretical foundation to assess and analyze reengineering projects. We seek to apply complementarity theory and a business value modeling approach to address some questions involving what, when, and how much to reengineer. Complementarity theory is based on the notion that the value of having more of one factor increases by having more of another complementary factor. Further, related developments in the optimization of "supermodular" functions provide a useful way to maximize net benefits by exploiting complementary relationships between variables of interest. Combining this theory with a multi-level business value model showing relationships between key performance measures and their drivers, we argue that organizational payoff is maximized when several factors relating to IT, decision authority, business processes and incentives are changed in a coordinated manner in the right directions by the right magnitude to move toward an ideal design configuration. Our analysis further shows that when a complementary reengineering variable is left unchanged either due to myopic vision or self-interest, the organization will not be able to obtain the full benefits of reengineering due to smaller optimal changes in the other variables. We also show that by increasing the cost of changing the levels of design variables, unfavorable preexisting conditions (e.g., too much heterogeneity in the computing environment) can lead to reengineering changes of smaller magnitude than in a setting with favorable conditions.
Claims, Arguments, and Decisions: Formalisms for Representation, Gaming, and Coordination. (Information Systems Research, 1994)
Authors: Abstract:
    Decisions in large corporations continually evolve from several group processes, shaping the focus of business activities overtime. These decisions arise out of a combination of formal analyses and less formal interactions among decision makers. We address the pragmatics of group decision processes from the perspective of argumentation and analysis. We develop formalisms for the representation of argumentative knowledge. gaming the argumentation process and the coordination of the games. The representation formalism provides a framework for organizing the logic underlying the claims and arguments in a group. The gaming formalism provides a framework for conducting and regulating the group interactions. The coordination formalism addresses the issues of scheduling the games and the resolution process. The three formalisms together constitute the basis for designing computer-assisted systems that support argumentation processes in groups. We introduce the term Argumentative Reasoning Facilitation Systems (ARFS), and develop a framework for their design. These systems would serve to record, organize, regulate and coordinate argumentative decision processes in Organizations. The formalisms provide new windows for research on novel applications of decision support systems in organizations. Some of the systemic, organizational and behavioral research issues identified from this work are also presented.
A Computer Charging Mechanism for Revealing User Preferences within a Large Organization. (Journal of Management Information Systems, 1989)
Authors: Abstract:
    The development of effective techniques for allocating computer resources is a major concern in computer center management. Most proposals, while based on concepts originally developed by economists, are based on the assumption that participants provide truthful information. Over the past twenty years, researchers in economics have explored truth-revealing mechanisms. We apply these ideas to charging for computing resources within an organization. The resulting mechanism provides an incentive for users to tell the system administrator their true valuation of a given configuration. Applications of this mechanism to both long-term and short-term situations are outlined. The long-term situation demonstrates how an appropriate computer configuration can be derived from information obtained from its future users. The short-term situation involves setting priorities among jobs.