Knowledge that Transforms

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An Experimental Comparison of Linear and Nonlinear Price Combinatorial Auctions

Information Systems Research 2011 22(2), 346-368
Combinatorial auctions are used for the efficient allocation of heterogeneous goods and services. They require appropriate software platforms that provide automated winner determination and decision support for bidders. Several promising ascending combinatorial auction formats have been developed throughout the past few years based on primal-dual algorithms and linear programming theory. The ascending proxy auction and iBundle result in Vickrey payoffs when the coalitional value function satisfies buyer submodularity conditions and bidders bid their best responses. These auction formats are based on nonlinear and personalized ask prices. In addition, there are a number of designs with linear prices that have performed well in experiments, the approximate linear prices auction, and the combinatorial clock auction. In this paper, we provide the results of lab experiments that tested these different auction formats in the same setting. We analyze aggregate metrics such as efficiency and auctioneer revenue for small- and medium-sized value models. In addition, we provide a detailed analysis not only of aggregate performance metrics but also of individual bidding behaviour under alternative combinatorial auction formats.

Evolving Work Routines: Adaptive Routinization of Information Technology in Healthcare

Information Systems Research 2011 22(3), 565-585
Despite the significant potential for performance gains from health IT (HIT), there has been limited study of the mechanisms underlying successful HIT implementations. We conducted an extensive longitudinal field study to gain an understanding of the interplay between technology and patterns of clinical work embodied in routines. We use the analytical device of narrative networks to identify where and how HIT influences patterns of work. We further draw upon adaptive structuration theory to conceptualize HIT as an intervention that alters the flow of events in a narrative network. Our findings suggest that the key to successful implementation is to manage the co-evolution process between routines and HIT and to actively orchestrate a virtuous cycle through agentic action. We propose a dynamic process model of adaptive routinization of HIT that delineates the major channels through which HIT and routines interact, identifies the different stages in the dynamic co-evolution process, and isolates the pivotal role of two forms of agency in enabling the virtuous cycle of co-evolution. This is one of the first studies to offer a processual, microlevel analysis of HIT implementation in a clinical setting.

The Effect of Online Privacy Information on Purchasing Behavior: An Experimental Study

Information Systems Research 2011 22(2), 254-268
Although online retailers detail their privacy practices in online privacy policies, this information often remains invisible to consumers, who seldom make the effort to read and understand those policies. This paper reports on research undertaken to determine whether a more prominent display of privacy information will cause consumers to incorporate privacy considerations into their online purchasing decisions. We designed an experiment in which a shopping search engine interface clearly and compactly displays privacy policy information. When such information is made available, consumers tend to purchase from online retailers who better protect their privacy. In fact, our study indicates that when privacy information is made more salient and accessible, some consumers are willing to pay a premium to purchase from privacy protective websites. This result suggests that businesses may be able to leverage privacy protection as a selling point.

Addressing Digital Inequality for the Socioeconomically Disadvantaged Through Government Initiatives: Forms of Capital That Affect ICT Utilization

Information Systems Research 2011 22(2), 233-253
Digital inequality, or unequal access to and use of information and communication technologies (ICT), is a severe problem preventing the socioeconomically disadvantaged (SED) from participating in a digital society. To understand the critical resources that contribute to digital inequality and inform public policy for stimulating initial and continued ICT usage by the SED, we drew on capital theories and conducted a field study to investigate: (1) the forms of capital for using ICT and how they differ across potential adopters who are SED and socioeconomically advantaged (SEA); (2) how these forms of capitals are relatively impacted for the SEA and the SED through public policy for ICT access; and (3) how each form of capital influences the SED's intentions to use initially and to continue to use ICT. The context for our study involved a city in the southeastern United States that offered its citizens free ICT access for Internet connectivity. Our results show that SED potential adopters exhibited lower cultural capital but higher social capital relative to the SEA. Moreover, the SED who participated in the city's initiative realized greater positive gains in cultural capital, social capital, and habitus than the SEA. In addition, we find that the SED's initial intention to use ICT was influenced by intrinsic motivation for habitus, self-efficacy for cultural capital, and important referents' expectations and support from acquaintances for social capital. Cultural capital and social cultural capital also complemented each other in driving the SED's initial use intention. The SED's continued use intention was affected by both intrinsic and extrinsic motivations for habitus and both knowledge and self-efficacy for cultural capital but was not affected by social capital. We also make several recommendations for future research on digital inequality and ICT acceptance to extend and apply the proposed capital framework.

Environmental Uncertainty and IT Infrastructure Governance: A Curvilinear Relationship

Information Systems Research 2011 22(2), 389-399
Extant research considers the IT governance choice to be a trade-off between the cost-efficiency of centralization and the responsiveness provided by local information processing. This view predicts that firms tend to decentralize IT governance in more uncertain environments. We investigate this issue by studying the relationship between environmental uncertainty and IT infrastructure governance in a sample of business units from Fortune 1000 companies. The key proposition in this paper is that the relationship between environmental uncertainty and decentralization in IT infrastructure governance is best characterized as a curvilinear relationship. That is, when environmental uncertainty increases from low to high, firms tend to first decentralize their IT infrastructure decisions to the business units to enhance their responsiveness; and then centralize their IT infrastructure decisions to the headquarters as uncertainty increases further, to achieve the benefits of coordination and to mitigate the potential agency problem in uncertain environments. Moreover, the study proposes that business unrelatedness between business units and their headquarters moderates the curvilinear relationship between environmental uncertainty and IT infrastructure governance. We find that both the propositions are supported by the data.

Conceptualizing and Testing a Social Cognitive Model of the Digital Divide

Information Systems Research 2011 22(1), 170-187
The digital divide has loomed as a public policy issue for over a decade. Yet, a theoretical account for the effects of the digital divide is currently lacking. This study examines three levels of the digital divide. The digital access divide (the first-level digital divide) is the inequality of access to information technology (IT) in homes and schools. The digital capability divide (the second-level digital divide) is the inequality of the capability to exploit IT arising from the first-level digital divide and other contextual factors. The digital outcome divide (the third-level digital divide) is the inequality of outcomes (e.g., learning and productivity) of exploiting IT arising from the second-level digital divide and other contextual factors. Drawing on social cognitive theory and computer self-efficacy literature, we developed a model to show how the digital access divide affects the digital capability divide and the digital outcome divide among students. The digital access divide focuses on computer ownership and usage in homes and schools. The digital capability divide and the digital outcome divide focus on computer self-efficacy and learning outcomes, respectively. This model was tested using data collected from over 4,000 students in Singapore. The results generate insights into the relationships among the three levels of the digital divide and provide a theoretical account for the effects of the digital divide. While school computing environments help to increase computer self-efficacy for all students, these factors do not eliminate knowledge the gap between students with and without home computers. Implications for theory and practice are discussed.