Herding and Social Media Word-of-Mouth: Evidence from Groupon

X. LI, L. WU

MIS Quarterly

A paraître

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Herding, word-of-mouth, social media, interaction effect, complementarity

Modern online retailing practices provide consumers with new types of real-time information that can potentially increase demand. In particular, showing past product sales information can reduce uncertainty about product quality, inducing consumers to herd. This effect could be particularly salient for experience goods due to their inherent high uncertainty about product quality. Social media word-of-mouth (WOM) can increase product awareness as product information spreads via social media, increasing demand directly and also amplifying existing quality signals such as past sales. This study examines the mechanisms behind the strategy of facilitating herding and the strategy of integrating social media platforms to understand the potential complementarities between the two strategies. We conduct empirical analysis using data from which sells goods in a fast cycle format of “daily deals”. We find that facilitating herding and integrating social media platforms are complements in generating sales, supporting that it is beneficial to combine the two strategies on social media-driven platforms. Furthermore, we find that herding is more salient for experience goods, consistent with our hypothesized mechanisms, while the effect of social media WOM does not differ between experience goods and search goods

Impact of Average Rating on Social Media Endorsement: The Moderating Role of Rating Dispersion and Discount Threshold


Information Systems Research

A paraître

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Social Presence in Virtual World Collaboration: An Uncertainty Reduction Perspective Using a Mixed Methods Approach


MIS Quarterly

A paraître

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Virtual worlds, uncertainty reduction theory, institutional trust, sequential mixed methods

The life-like collaborative potential offered by virtual worlds (VWs) has sparked significant interest for companies to experiment with VWs in order to organize convenient, cost-effective virtual global workplaces. Despite the initial hype, recent years have witnessed a rather stagnant use of VWs for collaboration in organizations. Previous research recognizes that the inherent uncertainties within the VW environment are factors limiting their utilization by businesses. Hence, grounding this research in uncertainty reduction theory (URT), we aim to understand the modalities and mechanisms for mitigating the uncertainties and fostering user trust within VWs so that they can be effectively utilized as a workplace collaboration tool. With this end in view, we propose contextualizing and extending McKnight et al.’s (2002) institutional trust framework to the context of VWs by examining the significant role that social presence has in influencing the efficacy of the institution-based trust-building factors of situational normality and structural assurance in VWs. Using a sequential mixed methods approach (Venkatesh et al. 2013; Venkatesh et al. 2016), this research integrates results from a quantitative study with findings from a qualitative study to arrive at rich and robust inferences and meta-inferences, with the qualitative method first corroborating the inferences obtained from the quantitative research and then complementing them by identifying boundary conditions that may limit the use of VWs in organizations for workplace collaboration. The results together suggest not only the direct, but also the interactional (complementary and substitutive) influences of social presence on the relationships of the two institutional-trust-building factors to user trust in VWs

Analyzing Degree of Parallelism for Concurrent Timed Workflow Processes With Shared Resources

Yanhua DU, Li WANG, X. LI

IEEE Transactions on Engineering Management

février 2017, vol. 64, n°1, pp.42 - 56

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Business, Servers, Computational modeling, Uncertainty, Analytical models, Processor scheduling, workflow management, Business process management, degree of parallelism, Petri net (PN), timed workflow net (TWF-Net)

Degree of parallelism is an important factor in workflow process management, because it is useful to accurately estimate the server costs and schedule severs in workflow processes. However, existing methods that are developed to compute degree of parallelism neglect to consider activities with uncertain execution time. In addition, these methods are limited in dealing with the situation where activities in multiple concurrent workflow processes use shared resources. To address the limitations, we propose a new approach to analyzing degree of parallelism for concurrent workflow processes with shared resources. Superior over the existing methods, our approach can compute degree of parallelism for multiple concurrent workflow processes that have activities with uncertain execution time and shared resources. Expectation degree of parallelism is useful to estimate the server costs of the workflow processes, and maximum degree of parallelism can guide managers to allocate severs or virtual machines based on the business requirement. We demonstrate the application of the approach and evaluate the effectiveness in a real-world business scenario.

Developing knowledge from entrepreneurial actions – toward a taxonomy


Journal of Small Business and Enterprise Development

2017, vol. 24, n°4, pp.793-813

Départements : GREGHEC (CNRS), Information Systems and Operations Management

Mots clés : Experiential learning, Qualitative method, Knowledge development, Entrepreneurial learning

Purpose – The purpose of this paper is to enrich our understanding of entrepreneurs’ daily deeds, tasks and activities. The research investigates the ways in which entrepreneurs seize opportunities and gain knowledge from the start to the expansion of their ventures.Design/methodology/approach – Two case studies were developed based on a longitudinal fine-grained analysis of two ventures over two years. Entrepreneurs’ success and learning were modeled in line with grounded theory methodology. Data were collected from both primary and secondary sources in the form of semi-structured interviews and archival documentation.Findings – The authors develop an original conceptual framework that consists of ten entrepreneurial learning opportunities and four knowledge development modes. There are ten generic types of actions that entrepreneurs take. There are then four distinctive ways to transform these experiences into knowledge. The model is assessed in absolute terms and relatively to existing taxonomies.Research limitations/implications – The findings question the premises on which entrepreneurial learning research traditionally relies. Opportunities can be open-ended rather than purely instrumental. Similarly, knowledge can be emerging as much as it can be espoused. This opens-up space for further research.Practical implications – For practitioners, the findings suggest new ways for making sense of the daily experience of their entrepreneurial endeavor. The learning modes suggested can be used by coaches and mentors when helping entrepreneurs in their venture.Originality/value – The research provides empirical evidence of what entrepreneurs do. This may help cast traditional debates about what there is to do (logical necessity) and what there is to know (a priori knowledge) in a new light.

Pricing and Capacity Allocation for Shared Services


Manufacturing & Service Operations Management

printemps 2017, vol. 19, n°2, pp.230-245

Départements : Information Systems and Operations Management

Mots clés : customer mix; customer interaction; price discrimination; capacity allocation; shared services

We study the pricing and capacity allocation problem of a service provider who serves two distinct customer classes. Customers in each class are inherently heterogeneous in their willingness to pay for service, but their utilities are also affected by the presence of other customers in the system. Specifically, customer utilities depend on how many customers are in the system at the time of service as well as who these other customers are. We find that if the service provider can price discriminate between customer classes, pricing out a class, i.e., operating an exclusive system, can sometimes be optimal and depends only on classes’ perceptions of each other. If the provider must charge a single price, an exclusive system is even more likely. We extend our analysis to a service provider who can prevent class interaction by allocating separate capacity segments to the two customer classes. Under price discrimination, allocating capacity is optimal if the “net appreciation” between classes, as defined in the paper, is negative. However, under a single-price policy, allocating capacity can be optimal even if this net appreciation is positive. We describe in detail how the nature of asymmetry in classes’ perception of each other determines the optimal strategy

Topological network design of closed finite capacity supply chain networks


Journal of Manufacturing Systems

octobre 2017, vol. 45, pp.70-81

Départements : Information Systems and Operations Management

Mots clés : Closed;Finite networks;M/M/1/K;M/G/c/c;M/G/∞ queues

In this paper, we examine the layout, location, and general topological arrangement of queues in a closed finite queueing network environment for supply chains. Since our focus is on manufacturing environments, then maximizing throughput is a worthy performance measure objective. We are given a network topology G(V, E) with a finite set of nodes and edges and we wish to assign the queues to the nodes V ∈ G such a way that the maximum throughput is achieved. This is a nonlinear continuous optimization problem with implicit integer variables so the problem is at least NP-Hard. We also examine the impacts of Additive Manufacturing (AM) on the throughput of the supply chain. Decentralization of the supply chain topology as evidence by the increased dispersal of nodes within the topology tends to increase the throughput of the system, so the AM leaf nodes can have a measurable and significant impact on SCM throughput.

Adaptive use of social networking applications in contemporary organizations: Examining the motivations of Gen Y cohorts


International Journal of Information Management

December 2016, vol. 36, n°6, part A, pp.1111–1123

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Corporate social networking; Adaptive use intention; Technology adoption; Collaboration; Innovation; Generation Y; Motivation

With the entry of the contemporary generation (Gen Y) into the workforce, organizations are interested in leveraging Gen Y’s technological preferences when designing their information systems. Specifically, motivated by Gen Y’s dependence on Social Networking Applications (SNAs) in their private lives, organizations have initiated the implementation of Corporate Social Networks (CSNs) to facilitate closer collaboration and knowledge sharing within organizations. However, these initiatives have not been received with the expected enthusiasm from Gen Y employees. To better understand this apparent anomaly, the current study explores the Gen Y cohort’s intended adaptive use of SNAs in organizational settings, as CSNs. This study uses an enriched Delphi technique to examine the perceptions and concerns of members of Gen Y regarding use of CSNs. In addition, employing a structured qualitative approach and contextualizing the needs hierarchy theory to the specific case of Gen Y employees, this study identifies six organizational requirements for successfully implementing CSNs. This work extends the literature on adaptive use of Enterprise 2.0 systems and delineates a set of useful implications for managers intending to implement such systems for Gen Y employees.

Contributions of Design Thinking to Project Management in an Innovation Context


Project Management Journal

avril-mai 2016, vol. 47, n°2, pp.144-156

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Project management, Design, Innovation, Uncertainty, Design thinking

Researchers have long recognized that standard approaches to project management are ill-suited to address changes in the environment or business needs, particularly in innovative contexts characterized by uncertainty and complexity. Instead of being concerned with the efficient implementation of a deliberate strategy, a project in such a context becomes a process for strategy formulation. Three imperatives for project management arise as a result: managing the explorative phase, managing the involvement of stakeholders in the project, and managing the project in relation to the strategizing process of the firm. We propose that design thinking, a recent evolution in the field of design, can make some important contributions to these imperatives. Design thinking has been highlighted by practitioners as well as academia as a novel methodology that is potentially valuable for improving innovative outcomes, whether they are products, services, or strategies. We examine and articulate these possible contributions through 10 propositions that could form an agenda for future experimentation and empirical research on innovation project management

Could Deal Promotion Improve Merchants' Online Reputations? The Moderating Role of Prior Reviews


Journal of Management Information Systems

2016, vol. 33, n°1, pp.171-201

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Deal promotion, Difference-in-differences, Moderating roles, Online deals, Online group sales, Online reviews, Propensity score matching

It is by now almost accepted as a stylized fact that offering deal promotion (such as via Groupon or LivingSocial) deteriorates local merchants’ online reputations (e.g., the average of Yelp review ratings). However, in this paper we show that the stylized fact is not true in certain circumstances. We theorize that the valence and volume of prior reviews can play an important moderating role in the effect of deal promotion. Empirically, we show that restaurants with a relatively low prior average rating and a relatively small review volume have improved their online reputations by offering Groupon promotion. The proportion of such restaurants is substantial. The findings are robust to multiple identification strategies and econometric specifications. The results underscore the substantial heterogeneity in the effect of deal promotion on local merchants’ online reputations. Merchants need to understand the moderating role of prior reviews (e.g., the valence and volume of prior reviews) and design appropriate strategies to maximize the returns from offering deal promotion