Abstract: A burning question for information systems (IS) researchers and practitioners is whether and how IT can build a competitive advantage in turbulent environments. To address this question, this study focuses on the business process level of analysis and introduces the construct of IT leveraging competence---the ability to effectively use IT functionalities. This construct is conceptualized in the context of new product development (NPD). IT leveraging competence is shown to indirectly influence competitive advantage in NPD through two key mediating links: functional competencies (the ability to effectively execute operational NPD processes) and dynamic capabilities (the ability to reconfigure functional competencies to address turbulent environments). Environmental turbulence is also shown to moderate the process by which IT leveraging competence influences competitive advantage in NPD. Empirical data were collected from 180 NPD managers. Through the construct of IT leveraging competence, the study shows that the effective use of IT functionalities, even generic functionalities, by business units can help build a competitive advantage. The study also shows that the strategic effect of IT leveraging competence is more pronounced in higher levels of environmental turbulence. This effect is not direct: It is fully mediated by both dynamic capabilities and functional competencies. Taken together, these findings suggest that IS researchers should look beyond the direct effects of firm-level IT infrastructures and focus their attention on how business units can leverage IT functionalities to better reconfigure and execute business processes. In turbulent environments, focusing on these aspects is even more vital.

Abstract: Although DeLone, McLean, and others insist that system usage is a key variable in information systems research, the system usage construct has received little theoretical scrutiny, boasts no widely accepted definition, and has been operationalized by a diverse set of unsystematized measures. In this article, we present a systematic approach for reconceptualizing the system usage construct in particular nomological contexts. Comprising two stages, definition and selection, the approach enables researchers to develop clear and valid measures of system usage for a given theoretical and substantive context. The definition stage requires that researchers define system usage and explicate its underlying assumptions. In the selection stage, we suggest that system usage be conceptualized in terms of its structure and function. The structure of system usage is tripartite, comprising a user, system, and task, and researchers need to justify which elements of usage are most relevant for their study. In terms of function, researchers should choose measures for each element (i.e., user, system, and/or task) that tie closely to the other constructs in the researcher's nomological network. To provide evidence of the viability of the approach, we undertook an empirical investigation of the relationship between system usage and short-run task performance in cognitively engaging tasks. The results support the benefits of the approach and show how an inappropriate choice of usage measures can lead researchers to draw opposite conclusions in an empirical study. Together, the approach and the results of the empirical investigation suggest new directions for research into the nature of system usage, its antecedents, and its consequences.

Abstract: For online marketplaces to succeed and prevent a market of lemons, their feedback mechanism (reputation system) must differentiate among sellers and create price premiums for trustworthy sellers as returns to their reputation. However, the literature has solely focused on numerical (positive and negative) feedback ratings, alas ignoring the role of feedback text comments. These text comments are proposed to convey useful reputation information about a seller's prior transactions that cannot be fully captured with crude numerical ratings. Building on the economics and trust literatures, this study examines the rich content of feedback text comments and their role in building a buyer's trust in a seller's benevolence and credibility. In turn, benevolence and credibility are proposed to differentiate among sellers by influencing the price premiums that a seller receives from buyers. This paper utilizes content analysis to quantify over 10,000 publicly available feedback text comments of 420 sellers in eBay's online auction marketplace, and to match them with primary data from 420 buyers that recently transacted with these 420 sellers. These dyadic data show that evidence of extraordinary past seller behavior contained in the sellers' feedback text comments creates price premiums for reputable sellers by engendering buyer's trust in the sellers' benevolence and credibility (controlling for the impact of numerical ratings). The addition of text comments and benevolence helps explain a greater variance in price premiums (R2 = 50%) compared to the existing literature (R2 = 20%--30%). By showing the economic value of feedback text comments through trust in a seller's benevolence and credibility, this study helps explain the success of online marketplaces that primarily rely on the text comments (versus crude numerical ratings) to differentiate among sellers and prevent a market of lemon sellers. By integrating the economics and trust literatures, the paper has theoretical and practical implications for better understanding the nature and role of feedback mechanisms, trust building, price premiums, and seller differentiation in online marketplaces.

Abstract: We have come to a stage when information technology (IT) innovations have permeated every walk of life. Many new technologies can be used for many different purposes and in different contexts other than the workplace. The current study attempts to understand individual adoption of IT innovations that are used beyond work settings. We define a new class of IT innovations called multipurpose information appliances, which are personal, universally accessible, and multipurpose. The ubiquitous nature of these appliances has led to a constant permeability between the separate contexts of social life. An adoption model that reflects the unique characteristics and usage contexts of multipurpose information appliances was developed. The model consists of five sets of adoption factors and was tested using data collected on mobile data services adoption. Our findings show that the determinants of multipurpose information appliance adoption decisions are not only different from those in the workplace, but are also dependent on the nature of the target technology and its usage context. Theoretical and practical implications of the findings are discussed.

Abstract: This study examines the role of information quality in the success of initial phase interorganizational (I-O) data exchanges. We propose perceived information quality (PIQ) as a factor of perceived risk and trusting beliefs, which will directly affect intention to use the exchange. The study also proposes that two important system design factors---control transparency and outcome feedback---will incrementally influence PIQ. An empirical test of the model demonstrated that PIQ predicts trusting beliefs and perceived risk, which mediate the effects of PIQ on intention to use the exchange. Thus, PIQ constitutes an important indirect factor influencing exchange adoption. Furthermore, control transparency had a significant influence on PIQ, while outcome feedback had no significant incremental effect over that of control transparency. The study contributes to the literature by demonstrating the important role of PIQ in I-O systems adoption and by showing that information cues available to a user during an initial exchange session can help build trusting beliefs and mitigate perceived exchange risk. For managers of I-O exchanges, the study implies that building into the system appropriate control transparency mechanisms can increase the likelihood of exchange success.

Abstract: Recommendations and consumer reviews are universally acknowledged as significant features of a business-to-consumer website. However, because of the well-documented obstacles to measuring the causal impact of these artifacts, there is still a lack of empirical evidence demonstrating their influence on two important outcome variables in the shopping context: perceived usefulness and social presence. To test the existence of a causal link between information technology (IT)-enabled support for the provision of recommendations and consumer reviews on the usefulness and social presence of the website, this study employs a novel approach to generate the experimental conditions by filtering the content of Amazon.com in real time. The results show that the provision of recommendations and consumer reviews increases both the usefulness and social presence of the website.

Abstract: This study contributes to the growing body of literature on the value of enterprise resource planning (ERP) investments at the firm level. Using an organization integration lens that takes into account investments in complementary resources as well as an options thinking logic about the value of an ERP platform, we argue that not all ERP purchases have the same potential impact at the firm level due to ERP project decisions made at the time of purchase. Based on a sample of 116 investment announcements in United Statesbased firms between 1997 and 2001, we find support for our hypotheses that ERP projects with greater functional scope (two or more value-chain modules) or greater physical scope (multiple sites) result in positive, higher shareholder returns. Furthermore, the highest increases in returns (3.29) are found for ERP purchases with greater functional scope and greater physical scope; negative returns are found for projects with lesser functional scope and lesser physical scope. These findings provide empirical support for prior theory about the organizational integration benefits of ERP systems, the contribution of complementary resource investments to the business value of IT investments, and the growth options associated with IT platform investments. The article concludes with implications of our firm-level findings for this first wave of enterprise systems.

Abstract: Information systems and the Internet have facilitated the creation of used-product markets that feature a dramatically wider selection, lower search costs, and lower prices than their brick-and-mortar counterparts do. The increased viability of these used-product markets has caused concern among content creators and distributors, notably the Association of American Publishers and Authors Guild, who believe that used-product markets will significantly cannibalize new product sales. This proposition, while theoretically possible, is based on speculation as opposed to empirical evidence. In this paper, we empirically analyze the degree to which used products cannibalize new-product sales for booksone of the most prominent used-product categories sold online. To do this, we use a unique data set collected from Amazon.coms new and used book marketplaces to measure the degree to which used products cannibalize new-product sales. We then use these estimates to measure the resulting first-order changes in publisher welfare and consumer surplus. Our analysis suggests that used books are poor substitutes for new books for most of Amazons customers. The cross-price elasticity of new-book demand with respect to used-book prices is only 0.088. As a result, only 16 of used-book sales at Amazon cannibalize new-book purchases. The remaining 84 of used-book sales apparently would not have occurred at Amazons new-book prices. Further, our estimates suggest that this increase in book readership from Amazons used-book marketplace increases consumer surplus by approximately 67.21 million annually. This increase in consumer surplus, together with an estimated 45.05 million loss in publisher welfare and a 65.76 million increase in Amazons profits, leads to an increase in total welfare to society of approximately 87.92 million annually from the introduction of used-book markets at Amazon.com.

Abstract: Workflow technology has become a standard solution for managing increasingly complex business processes. Successful business process management depends on effective workflow modeling and analysis. One of the important aspects of workflow analysis is the data-flow perspective because, given a syntactically correct process sequence, errors can still occur during workflow execution due to incorrect data-flow specifications. However, there have been only scant treatments of the data-flow perspective in the literature and no formal methodologies are available for systematically discovering data-flow errors in a workflow model. As an indication of this research gap, existing commercial workflow management systems do not provide tools for data-flow analysis at design time. In this paper, we provide a data-flow perspective for detecting data-flow anomalies such as missing data, redundant data, and potential data conflicts. Our data-flow framework includes two basic components: data-flow specification and data-flow analysis; these components add more analytical rigor to business process management.

Abstract: A trust-assuring argument refers to “a claim and its supporting statements used in an Internet store to address trust-related issues.” Although trust-assuring arguments often appear in Internet stores, little research has been conducted to understand their effects on consumer trust in an Internet store. The goals of this study are (1) to investigate whether or not the provision of trust-assuring arguments on the website of an Internet store increase consumer trust in that Internet store and (2) to identify the most effective form of trust-assuring arguments to provide guidelines for their implementation. Toulmin's (1958) model of argumentation is proposed as a basis to identify the elements of an argument and to strengthen the effects of trust-assuring arguments on consumer trust in an Internet store. Based on Toulmin's (1958) model of argumentation, three elements of arguments that commonly appear in daily communication; namely, claim, data, and backing, are identified. Data refers to the grounds for a claim, while backing is used for providing reasons for why the data should be accepted. By combining these three elements, three forms of trust-assuring arguments (claim only, claim plus data, and claim plus data and backing) are developed. The effects of these three forms of trust-assuring arguments on consumer trust in an Internet store are tested by comparing them to a no trust-assuring argument condition in a laboratory experiment with 112 participants. The results indicate (1) providing trust-assuring arguments that consist of claim plus data or claim plus data and backing increases consumers' trusting belief but displaying arguments that contain claim only does not and (2) trust-assuring arguments that include claim plus data and backing lead to the highest level of trusting belief among the three forms of arguments examined in this study. Based on the results, we argue that Toulmin's (1958) model of argumentation is an effective basis for website designers to develop convincing trust-assuring arguments and to improve existing trust-assuring arguments in Internet stores.

Abstract: Although information systems (IS) problem solving involves knowledge of both the IS and application domains, little attention has been paid to the role of application domain knowledge. In this study, which is set in the context of conceptual modeling, we examine the effects of both IS and application domain knowledge on different types of schema understanding tasks: syntactic and semantic comprehension tasks and schema-based problem-solving tasks. Our thesis was that while IS domain knowledge is important in solving all such tasks, the role of application domain knowledge is contingent upon the type of understanding task under investigation. We use the theory of cognitive fit to establish theoretical differences in the role of application domain knowledge among the different types of schema understanding tasks. We hypothesize that application domain knowledge does not influence the solution of syntactic and semantic comprehension tasks for which cognitive fit exists, but does influence the solution of schema-based problem-solving tasks for which cognitive fit does not exist. To assess performance on different types of conceptual schema understanding tasks, we conducted a laboratory experiment in which participants with high- and low-IS domain knowledge responded to two equivalent conceptual schemas that represented high and low levels of application knowledge (familiar and unfamiliar application domains). As expected, we found that IS domain knowledge is important in the solution of all types of conceptual schema understanding tasks in both familiar and unfamiliar applications domains, and that the effect of application domain knowledge is contingent on task type. Our findings for the EER model were similar to those for the ER model. Given the differential effects of application domain knowledge on different types of tasks, this study highlights the importance of considering more than one application domain in designing future studies on conceptual modeling.

Abstract: Although its popularity is widespread, the Web is well known for one particular drawback: its frequent delay when moving from one page to another. This experimental study examined whether delay and two other website design variables (site breadth and content familiarity) have interaction effects on user performance, attitudes, and behavioral intentions. The three experimental factors (delay, familiarity, and breadth) collectively impact the cognitive costs and penalties that users incur when making choices in their search for target information. An experiment was conducted with 160 undergraduate business majors in a completely counterbalanced, fully factorial design that exposed them to two websites and asked them to browse the sites for nine pieces of information. Results showed that all three factors have strong direct impacts on performance and user attitudes, in turn affecting behavioral intentions to return to the site, as might be expected. A significant three-way interaction was found between all three factors indicating that these factors not only individually impact a users experiences with a website, but also act in combination to either increase or decrease the costs a user incurs. Two separate analyses support an assertion that attitudes mediate the relationship of the three factors on behavioral intentions. The implications of these results for both researchers and practitioners are discussed. Additional research is needed to discover other factors that mitigate or accentuate the effects of delay, other effects of delay, and under what amounts of delay these effects occur.

Abstract: During the early phase of systems development, systems analysts often conceptualize the domain under study and represent it in one or more conceptual models. One of the most important, yet elusive roles of conceptual models is to increase analysts understanding of a domain. In this paper, we evaluate the ability of the good decomposition model (GDM) (Wand and Weber 1990) to explain the degree to which conceptual models communicate meaning about a domain to analysts. We address the question, Do unified modeling language (UML) analysis diagrams that manifest better decompositions increase analysts understanding of a domain? GDM defines five conditions (minimality, determinism, losslessness, weak coupling, and strong cohesion) deemed necessary to decompose a domain in such a way that the resulting model communicates meaning about the domain effectively. In our evaluation, we operationalized each of these conditions in a set of UML diagrams and tested participants understanding of those diagrams. Our results lend support to GDM across measures of actual understanding. However, the impact on participants perceptions of their understanding was equivocal.

Abstract: Reputation mechanisms have become an important component of electronic markets, helping to build trust and elicit cooperation among loosely connected and geographically dispersed economic agents. Understanding the impact of different reputation mechanism design parameters on the resulting market efficiency has thus emerged as a question of theoretical and practical interest. Along these lines, this note studies the impact of the frequency of reputation profile updates on cooperation and efficiency. The principal finding is that, in trading settings with pure moral hazard and noisy ratings, if the per-period profit margin of cooperating sellers is sufficiently high, a mechanism that does not publish every single rating it receives but rather only updates a trader's public reputation profile every k transactions with a summary statistic of a trader's most recent k ratings can induce higher average levels of cooperation and market efficiency than a mechanism that publishes all ratings as soon as they are posted. This paper derives expressions for calculating the optimal profile updating interval k, discusses the implications of this finding for existing systems, such as eBay, and proposes alternative reputation mechanism architectures that attain higher maximum efficiency than the, currently popular, reputation mechanisms that publish summaries of a trader's recent ratings.

Abstract: Because of challenges often experienced when deploying software, many firms have embarked on software process improvement (SPI) initiatives. Critical to the success of these initiatives is the transfer of knowledge across individuals who occupy a range of roles in various organizational units involved in software production. Prior research suggests that a portfolio of different mechanisms, employed frequently, can be required for effective knowledge transfer. However, little research exists that examines under what situations differing portfolios of mechanisms are selected. Further, it is not clear how effective different portfolio designs are. In this study, we conceptualize knowledge transfer portfolios in terms of their composition (the types of mechanisms used) and their intensity (the frequency with which the mechanisms are utilized). We hypothesize the influence of organizational design decisions on the composition and intensity of knowledge transfer portfolios for SPI. We then posit how the composition and intensity of knowledge transfer portfolios affect performance improvement. Our findings indicate that a more intense portfolio of knowledge transfer mechanisms is used when the source and recipient are proximate, when they are in a hierarchical relationship, or when they work in different units. Further, a source and recipient select direction-based portfolios when they are farther apart, in a hierarchical relationship, or work in different units. In terms of performance, our results reveal that the fit between the composition and intensity of the knowledge transfer portfolio influences the recipient's performance improvement. At lower levels of intensity direction-based portfolios are more effective, while at higher levels of intensity routine-based portfolios yield the highest performance improvement. We discuss the implications of our findings for researchers and for managers who want to promote knowledge transfer to improve software processes in their organizations.

Abstract: To respond to growing concerns about privacy of personal information, organizations that use their customers' records in data-mining activities are forced to take actions to protect the privacy of the individuals involved. A common practice for many organizations today is to remove identity-related attributes from the customer records before releasing them to data miners or analysts. We investigate the effect of this practice and demonstrate that many records in a data set could be uniquely identified even after identity-related attributes are removed. We propose a perturbation method for categorical data that can be used by organizations to prevent or limit disclosure of confidential data for identifiable records when the data are provided to analysts for classification, a common data-mining task. The proposed method attempts to preserve the statistical properties of the data based on privacy protection parameters specified by the organization. We show that the problem can be solved in two phases, with a linear programming formulation in Phase I (to preserve the first-order marginal distribution), followed by a simple Bayes-based swapping procedure in Phase II (to preserve the joint distribution). Experiments conducted on several real-world data sets demonstrate the effectiveness of the proposed method.

Abstract: Previous research shows that synchronous text discussion through group support systems (GSS) can improve the exchange of information within teams, but this improved information exchange usually does not improve decisions because participants fail to process the new information they receive. This study examined one potential cause for this failure: Dual-task interference caused by the need to concurrently process new information from others while also contributing one's own information to the discussion. Although prior research argues that dual-task interference should be minimal, we found that it significantly reduced participants' information processing and led to lower decision quality. The effect sizes were large, suggesting that dual-task interference is one of a handful of major factors that exert the greatest influence on information processing and decision-making performance. We believe that these results call for an increased emphasis on and understanding of the cognitive underpinnings of GSS and virtual team decision making.

Abstract: This paper reports an analysis of the proportion of faculty publishing articles in premier business journals (i.e., the ratio of authors of premier business journal articles to total faculty of a discipline) across the disciplines of accounting, finance, management, marketing, and information systems (IS) for the years 19942003. This analysis revealed that over this period the management discipline had on average the highest proportion of faculty publishing in premier journals (12.7 authors per 100 management faculty), followed by finance (9.4 authors per 100 faculty), marketing (9.2 authors per 100 faculty), IS (5.5 authors per 100 faculty), and accounting (4.8 authors per 100 faculty). A further analysis examined these ratios for the different disciplines over time, finding that the ratios of authors to faculty have actually decreased for the disciplines of marketing and IS over this time period but have remained stable for the disciplines of accounting, management, and finance. Given steady growth in faculty size of all disciplines, the proportion of faculty publishing articles in premier journals in 2003 for all disciplines is lower than their 10-year averages, with IS having the lowest proportion in 2003. A sensitivity analysis reveals that without substantial changes that would allow more IS faculty to publish in the premier journals (e.g., by increasing publication cycles, number of premier outlets, and so on), IS will continue to lag far below the average of other disciplines. The implications of these findings for IS researchers, for institutions and administrators of IS programs, and for the IS academic discipline are examined. Based on these implications, recommendations for the IS discipline are presented.

Abstract: A tariff is the total charge payable by a customer for services provided. We study the design of tariffs for a telecommunications service provider. We develop an economic model that captures the negative externalities of the network and the diversity of customers. The tariff is designed so that it reflects the expected response of different customers and the system congestion it would induce. We study a simple tariff structure in wide use by mobile phone carriers---a menu of “fixed-up-to (FUT)” plans like “fixed access fee $35 up to 300 minutes, and $0.40 per minute beyond the limit.” We derive the optimal menu of FUT plans and show that such a simple FUT menu structure delivers as good performance to the monopolistic carrier as any nonlinear pricing schedule.

Abstract: The theory of incomplete contracts has been used to study the relationship between buyers and suppliers following the deployment of modern information technology to facilitate coordination between them. Previous research has sought to explain anecdotal evidence from some industries on the recent reduction in the number of suppliers selected to do business with buyers by appealing to relationship-specific costs that suppliers may incur. In contrast, this paper emphasizes that information technology enables greater completeness of buyer-supplier contracts through more economical monitoring of additional dimensions of supplier performance. The number of terms included in the contract is an imperfect substitute for the number of suppliers. Based on this idea, alternative conditions are identified under which increased use of information technology leads to a reduction in the number of suppliers without invoking relationship-specific costs. We find that a substantial increase in contract completeness due to reduced cost of information technology could increase the cost per supplier even though the cost of coordination and the cost per term monitored decrease. Such an increase in the cost per supplier leads to a reduction in the number of suppliers with whom the buyer chooses to do business. Similarly, we find that if coordination cost is reduced when more information technology is deployed so that the number of suppliers in the buyers pool increases substantially, the buyer might choose to make the supplier contracts less complete, instead relying on a more market-oriented approach to finding a supplier with good fit.

Abstract: During the early phase of systems development, systems analysts often conceptualize the domain under study and represent it in one or more conceptual models. One of the most important, yet elusive ...

Abstract: Prior research suggests that supply chain collaboration has enabled companies to compete more efficiently in a global economy. We investigate a class of collaboration software for product design and development called collaborative product commerce (CPC). Drawing on prior research in media richness theory and organizational science, we develop a theoretical framework to study the impact of CPC on product development. Based on data collected from 71 firms, we test our research hypotheses on the impact of CPC on product design quality, design cycle time, and development cost. We find that CPC implementation is associated with greater collaboration among product design teams. This collaboration has a significant, positive impact on product quality and reduces cycle time and product development cost. Further analyses reveal that CPC implementation is associated with substantial cost savings that can be attributed to improvements in product design quality, design turnaround time, greater design reuse, and lower product design documentation and rework costs.

Abstract: Across the global economy, we are witnessing a dramatic transformation toward a services economy. At the same time, advances in information technologies provide significant opportunities for digitization of services and the development of services management thinking within the information systems community. This note aims to stimulate attention toward the promising research and teaching opportunities for information systems scholars in the domain of digitized services innovation, management, and use.

Abstract: What differentiates successful from unsuccessful open source software projects? This paper develops and tests a model of the impacts of license restrictiveness and organizational sponsorship on two indicators of success: user interest in, and development activity on, open source software development projects. Using data gathered from Freshmeat.net and project home pages, the main conclusions derived from the analysis are that (1) license restrictiveness and organizational sponsorship interact to influence user perceptions of the likely utility of open source software in such a way that users are most attracted to projects that are sponsored by nonmarket organizations and that employ nonrestrictive licenses, and (2) licensing and sponsorship address complementary developer motivations such that the influence of licensing on development activity depends on what kind of organizational sponsor a project has. Theoretical and practical implications are discussed, and the paper outlines several avenues for future research.