Knowledge that Transforms

We examine the intrafirm resource allocation problem with the following characteristics. The resource exhibits negative externalities, and the benefit of using the resource is known only to the user department and not to top management or other user departments. In addition, the consumption of the resource depends upon the choice of the mechanism for allocating the resource. For this problem, we derive a two-stage mechanism, and show that this proposed mechanism leads to optimal allocation.

Decision support systems (DSS) typically contain data and models to facilitate decision making. DSS users, in response to a particular decision-making situation, often execute a sequence of models, in which inputs to a model in the sequence are obtained from outputs of other models upstream in the sequence and from database retrievals. The problem of generating a sequence of models from the set of available models is known as the model composition problem. In this paper, we propose a new construct called filter spaces to support model composition. We show how filter spaces can significantly facilitate automation of model composition and execution process, and provide effective means to integrate partial solutions from multiple composite models and databases.

Organizations are storing large amounts of data in databases for data mining and other types of analysis. Some of this data is considered confidential and has to be protected from disclosure. When access to individual values of confidential numerical data in the database is prevented, disclosure may occur when a snooper uses linear models to predict individual values of confidential attributes using nonconfidential numerical and categorical attributes. Hence, it is important for the database administrator to have the ability to evaluate security for snoopers using linear models. In this study we provide a methodology based on Canonical Correlation Analysis that is both appropriate and adequate for evaluating security. The methodology can also be used to evaluate the security provided by different security mechanisms such as query restrictions and data perturbation. In situations where the level of security is inadequate, the methodology provided in this study can also be used to select appropriate inference control mechanisms. The application of the methodology is illustrated using a simulated database.

Metrics are sine qua non for solid research, and scientific metrics have now been advanced with new approaches in the arena of Net-enablement (NE), otherwise known as e-commerce. Questions that likely require additional attention include: (1) Where/what is the real value in substituting information for physical processes?, (2) which NE systems effectively support end-to-end fulfillment?, and (3) when should a Net-enabled organization share information? With respect to extant studies in Net-enhancement, the field has been advanced in three methodological dimensions. Multiple methods have been used to validate measures. Approaches to metrics using archival/secondary data have also been initiated. Finally, strong external validity has been established through large scale data gathering.

This work analyzes firm-level investment in information technology and corresponding productivity through the use of a production function over the period from 1995-1997. The results are then compared to previous studies that utilized similar data and methodologies to compare productivity estimates over time. The analysis indicates that investment in IT enhances productivity over the period in question and has illustrated increasing returns over time. These findings are supported by the corresponding empirical analysis which yielded IT capital coefficients in a production function of (0.12, 0.16, 0.18) and IT flow coefficients in a similar function of (0.17, 0.24, 0.22) for the years 1995, 1996, and 1997, respectively. These results reflect the change in firm output given a one-percent change in the natural log of dollars invested in IT capital and flow, and are statistically significant.

Proper measurement is critical to the advancement of theory (Blalock 1979). Adaptive Structuration Theory (AST) is rapidly becoming an important theoretical paradigm for comprehending the impacts of advanced information technologies (DeSanctis and Poole 1994). Intended as a complement to the faithfulness of appropriation scale developed by Chin et al. (1997), this research note describes the development of an instrument to capture the AST construct of consensus on appropriation. Consensus on appropriation (COA) is the extent to which group participants perceive that they have agreed on how to adopt and use a technology. While consensus on appropriation is an important component of AST, no scale is currently available to capture this construct. This research note develops a COA instrument in the context of electronic meeting systems use. Initial item development, statistical analyses, and validity assessment (convergent, discriminant, and nomological) are described here in detail. The contribution of this effort is twofold: First, a scale is provided for an important construct from AST. Second, this report serves as an example of rigorous scale development using structural equation modeling. Employing rigorous procedures in the development of instruments to capture AST constructs is critical if the sound theoretical base provided by AST is to be fully exploited in understanding phenomena related to the use of advanced information technologies.

Metrics for the architectural quality of Internet businesses are essential in gauging the success and failure of e-commerce. This study proposes six dimensions of architectural metrics for Internet businesses: internal stability, external security, information gathering, order processing, system interface, and communication interface. The metrics are based on the three constructs that have been used to evaluate buildings in the real world. The structural construct indicates that Internet businesses need to be stable internally and secure externally. The functional construct implies that Internet businesses should provide convenient functions in the information-gathering and order-processing phases. Finally, the representational construct indicates that they need to provide a pleasant interface both to the systemand to those using it. For each of the six metrics, we have constructed questionnaires to measure the perceived level of architectural quality and identified feature lists that may be closely related to the perceived quality level. Large-scale empirical studies were conducted both to validate the proposed metrics and to explore their relevance across four Internet business domains. The validity of the metrics has been obtained in three ways. First, the content validity of the metrics was assured by pretests and pilot survey. Second, the results from the confirmatory factor analysis showed that the metrics had high convergent and discriminant validities. Finally, the reliability coefficients were found to be high enough to establish the reliability of the proposed metrics. The relevance of the metrics has been explored in two ways. Structural equation models were used to test the causal relations between the three constructs and user satisfaction, as well as customer loyalty, in four domains. Correlation analyses were used to explore the relations between the perceived architectural quality and objective design features in four domains. This paper ends with the implications and limitations of the study results.