Knowledge that Transforms

Internet-based interactive multimedia technologies enable online firms to employ a variety of formats to present and promote their products: They can use pictures, videos, and sounds to depict products, as well as give consumers the opportunity to try out products virtually. Despite the several previous endeavors that studied the effects of different product presentation formats, the functional mechanisms underlying these presentation methods have not been investigated in a comprehensive way. This paper investigates a model showing how these functional mechanisms (namely, vividness and interactivity) influence consumers' intentions to return to a website and their intentions to purchase products. A study conducted to test this model has largely confirmed our expectations: (1) both vividness and interactivity of product presentations are the primary design features that influence the efficacy of the presentations; (2) consumers' perceptions of the diagnosticity of websites, their perceptions of the compatibility between online shopping and physical shopping, and their shopping enjoyment derived from a particular online shopping experience jointly influence consumers' attitudes toward shopping at a website; and (3) both consumers' attitudes toward products and their attitudes toward shopping at a website contribute to their intentions to purchase the products displayed on the website.

Virtual communities are a significant source of information for consumers and businesses. This research examines how users value virtual communities and how virtual communities differ in their value propositions. In particular, this research examines the nature of trade-offs between information quantity and quality, and explores the sources of positive and negative externalities in virtual communities. The analyses are based on more than 500,000 postings collected from three large virtual investing-related communities (VICs) for 14 different stocks over a period of four years. The findings suggest that the VICs engage in differentiated competition as they face trade-offs between information quantity and quality. This differentiation among VICs, in turn, attracts users with different characteristics. We find both positive and negative externalities at work in virtual communities. We propose and validate that the key factor that determines the direction of network externalities is posting quality. The contributions of the study include the extension of our understanding of the virtual community evaluation by users, the exposition of competition between virtual communities, the role of network externalities in virtual communities, and the development of an algorithmic methodology to evaluate the quality (noise or signal) of textual data. The insights from the study provide useful guidance for design and management of VICs.

This study examines how capabilities of information systems (IS) applications deployed in the context of interfirm relationships contribute to business performance. We propose that these capabilities augment the relational value that a firm derives from its business partners—channel partners and customer enterprises—in the context of the distribution channel. Two cospecialized relational assets are considered as key to realization of relational value—knowledge sharing and process coupling. Hypotheses linking two IS capabilities (IS flexibility and IS integration) to the relational asset dimensions, and ultimately to firm performance, are proposed. The research model is tested based on data collected through a survey of business units of enterprises embedded in customer and channel partner ties in the high-tech and financial services industries. We find that IS integration with channel partners and customers contributes to both knowledge sharing and process coupling with both types of enterprise partners, whereas IS flexibility is a foundational capability that indirectly contributes to value creation in interfirm relationships by enabling greater IS integration with partner firms. We find that two types of relational assets are significantly associated with business performance—knowledge sharing with channel partners and process coupling with customers—pointing to underlying mechanisms that differentially leverage resources of different types of channel partners. Implications for theory development and practice based on these findings are proposed.

This paper examines the antecedents and consequences of Internet use in the procurement process. Drawing upon the resource-based view (RBV) of the firm and the technology, organization, and environment framework, we develop an integrative model that examines the antecedents and consequences of Internet use in two stages—the search stage and the order initiation and completion (OIC) stage—of the procurement process. The model enables us to deconstruct both the usage and the performance aspects of information technology (IT) in business processes, and to provide insights into the enablers of use and business value. The model is estimated with survey data from 412 firms. Our results suggest that while some resources, such as procurement-process digitization, influence Internet use in both the procurement stages, other resources, such as the diversity of organizational procurement knowledge, impact Internet use in only one stage. We also find that Internet use in the OIC stage has a more significant impact on procurement-process performance than use in search. This study extends the digital capabilities and firm performance literature in the context of electronic procurement. This study also contributes to the small but emerging stream of literature that investigates antecedents, the extent, and implications of IT use holistically.

Despite calls for improving current approaches to conceptualizing and measuring the construct of information system use, theoretical advances in this regard are still insufficient. The present paper proposes to expand the focus of existing conceptualizations that exclusively focus on technology interaction behaviors via the construct of IS use-related activity. Based on task-technology fit and activity theory, IS use-related activity is conceptualized as a second-order aggregate construct that comprises both technology interaction behaviors, as well as activities users undertake to adapt the task-technology-individual system. A multiple-indicators and multiple-causes analysis of data collected from 190 users in 21 organizations is found to support the proposed conceptualization.