Category Archives: Information Systems

Business Analytics, Information Systems, Marketing

Perceived risk and e-banking services: An analysis from the perspective of the consumer

Cunningham, Lawrence F.; Gerlach, James; and Harper, Michael D.
Journal of Financial Services Marketing Vol. 10 Issue 2, pp. 165-178.

Abstract This research investigates the premise that purchasing e-banking services is perceived to be riskier than purchasing traditional banking services. Unlike previous studies on perceived risk that typically focused on the relationship of perceived risk and information search, this exploratory study examines the dynamics of perceived risk throughout the various stages of the consumer buying process. A survey of 159 respondents reveals a risk premium for e-banking services that follows a systematic pattern throughout the consumer buying process. When viewed as a dynamic process, perceived risk for e-banking services shows more radical changes in risk levels than traditional banking services. The analyses indicate that financial risk drives the risk premium while psychological, physical and time risk play ancillary roles as risk drivers at certain stages of the consumer buying process. A major implication of this study is that there is a risk premium for e-banking services and the risk premium permeates all stages of the consumer buying process. Risk mitigation strategies are addressed.

Business Analytics, Information Systems, Marketing

Perceived Risk and the Consumer Buying Process: Internet Airline Reservations

Cunningham, Lawrence F., James H. Gerlach, Michael D. Harper, and Clifford E. Young
International Journal of Service Industry Management Vol. 16 Issue 4, pp. 357-372.

Purpose: This research investigates the premise that the use of Internet airline reservation systems is perceived to be riskier than traditional airline reservation shopping.

Methodology: A survey or 263 respondents investigated perceived risk at various stages of the consumer buying process.

Findings: The results reveal that perceived risk for airline reservation services follows a pattern throughout the consumer buying process. When viewed as a dynamic process, perceived risk for Internet airline services shows more radical changes in risk levels than the traditional service. The analyses indicate that performance, physical, social, and financial risk are related to perceived risk at certain stages of the consumer buying process.

Practical Implications: A major finding of this study is that there is a risk premium for Internet airline reservation services and the risk premium permeates all stages of the consumer buying process. It is further demonstrated that the Internet risk premium does affect usage levels; implying that the Internet risk premium is consequential and warrants the implementation of risk mitigation strategies.

Originality: Unlike previous studies on perceived risk that typically focused on the relationship of perceived risk and information search, this study examines the dynamics of perceived risk throughout the various stages of the consumer buying process.

Information Systems

Organizational knowledge management structure

Walczak, Steven
The Learning Organization Vol. 12 Issue: 4 pp. 330 – 339.

Purpose – To propose and evaluate a novel management structure that encourages knowledge sharing across an organization.

Design/methodology/approach – The extant literature on the impact of organizational culture and its link to management structure is examined and used to develop a new knowledge sharing management structure. Roadblocks to implementing a new management structure and methods for overcoming these impediments are discussed. The efficacy of the proposed management structure is evaluated empirically by examining its effect on organizations that have implemented portions of the proposed structure.

Findings – The foundational ideas behind the proposed knowledge management organizational structure and the structure itself have been implemented in parts at various organizations located both in the USA and internationally. While the full management structure model has not been evaluated, the portions implemented in various organizations have enabled these organizations to assume leading roles in their respective industries.

Research limitations/implications – The proposed knowledge sharing management structure has not been fully implemented under controlled circumstances. The empirical evaluation is performed on portions of the proposed model, thus the full impact of the proposed management structure may well exceed the described benefits and additional structural-shift roadblocks may limit the realization of the proposed benefits.

Practical implications – The proposed knowledge sharing management structure gives managers a practical way to approach cross organizational knowledge sharing, which is frequently identified as a theoretical benefit of knowledge management. Means for diminishing or circumventing recognized impediments to organizational change are described to further facilitate the implementation of the proposed cross-organizational knowledge sharing structure.

Originality/value – The proposed knowledge sharing management structure is organized around knowledge-based teams of knowledge workers, but further extends this concept to include larger knowledge groups to transform an organization into a knowledge-based organization. If an organization’s functional structure can be successfully transformed, then this enables the maximization of competitive advantage realized through knowledge management initiatives, more specifically through knowledge sharing. Upper level management, who are responsible for organizational change are the primary audience, though the principals described may be implemented through a more grass roots approach by lower level management.

Information Systems

Post-implementation usability of ERP training manuals: The user’s perspective

Scott, Judy E.
Information Systems Management Vol. 22, Issue 2, p. 67-77

Training users is critical to the success of ERP implementations. An important aspect of training is documentation in the form of training manuals. However, the effectiveness of the training manuals will depend on their perceived usability. In this study, data on users’ perceptions of ERP training manuals, more than two years post-implementation, are analyzed for usability dimensions of task support, learnability, navigation, and presentation.

Information Systems

Activity consolidation to improve responsiveness

Rummel, Jeffrey L.; Walter, Zhiping; Dewan, Rajiv; & Seidmann, Abraham
European Journal of Operational Research, Vol. 161 Issue 3, p. 683-703

There is a long history of modeling projects to meet time and cost objectives. Most of these models look at adjusting the level of resources available to the project in order to crash the time required to complete certain activities. These models usually take the activities and the graph structure of the project as given and fixed, but in practice there is often significant discretion in how activities are defined. This is especially important when there are information flows and time delays associated with the hand-off between an activity and its successor. This paper models the choice of how to meet the time and cost objectives through combining multiple activities into one while maintaining the original activity precedence relationships. A mixed-integer linear programming model is developed for the problem, and an implicit enumeration and a tabu search heuristic are tested with a suite of problem examples.

Information Systems

Risk profile and consumer shopping behavior in electronic and traditional channels

Alok Gupta, Bo-chiuan Su and Zhiping Walter
Decision Support Systems Vol. 38, Issue 3, Pages 347-367

This paper develops an economic model that captures consumer shopping channel choices based on shopping channel characteristics and consumer risk profiles – risk-neutral or risk-averse. Analyses of results show that after making purchases through one channel, electronic or traditional, risk-averse consumers tend to be more loyal customers than risk-neutral consumers. Further, the two types of consumers may exhibit split channel behavior – risk-neutral consumers prefer one channel and risk-averse consumers prefer the other. However, risk-neutral consumers are not always more likely to prefer electronic channel than risk-averse consumers. Implications for retailer pricing strategies are discussed.

Information Systems

On models for the operation of a class of electronic marketplaces

Scott, Carlton H. and Scott, Judy E.
Omega Vol. 32 Issue 5, p. 373-383

Innovation in information technology and the use of the Internet have enabled electronic marketplaces to become an important mechanism for linking suppliers and customers in a cost-efficient fashion. Previous research has generally focused on the benefits of electronic marketplaces from transaction cost economics and strategic perspectives. Yet very little academic research has addressed how to actually operate such a marketplace. In this paper, after reviewing the status of electronic marketplaces research, we focus on an operational perspective. A model of an electronic marketplace linking customers and suppliers either directly or via an intermediary is given and solved under various scenarios. This model uses a single cost-minimizing objective and the extensions address issues such as (1) a physical presence for the electronic marketplace, which can provide value-added services and preserve anonymity; and (2) sole sourcing or dual sourcing. An additional model explicitly represents the diverse objectives of the multiple players in the market using goal programming. The contribution of this research to practitioners is to offer a cost-effective alternative to current forms of allocating supply and demand. The cost-minimizing and multiple criteria models and extensions in this study make a contribution to research by expanding the horizons of previous studies on the operation of electronic marketplaces.

Information Systems

Comparing Knowledge Management in Healthcare and Technical Support Organizations

Ghosh, Bishwadip (Ph.D. candidate) and Scott, Judy E.

IEEE Transactions on IT and Biomedicine, Vol. 9 , Issue 2, pp. 162 – 168

Although knowledge management (KM) tools are well established in technical support organizations, healthcare organizations have only recently become aware of their benefits. This research investigates whether healthcare should adopt the same tools taking into account the different KM requirements in the two industries. This study analyzes narratives from key personnel in a technical support organization and a healthcare organization to understand and compare their KM process components and facilitating information technology. The empirical data reveal that healthcare needs a personalization approach to KM focusing on new problem identification using interactive knowledge webs, while technical support relies on a codification approach for problem resolution using interpretive knowledge and a chain structure.

Information Systems

Impact of Environmental Uncertainty and Task Characteristics on User Satisfaction with Data

Karimi, Jahangir, Somers, Toni M. and Gupta, Yash P.
Information Systems Research Vol. 15 Issue 2, p. 175-191

Today, more than ever before, organizations are faced with the task of processing volumes of information under more uncertain and more competitive environments. This study investigates the impact of environmental uncertainty and task characteristics on user satisfaction with data by using IS and organizational theories. Responses were matched from 77 CEOs and 166 senior managers, who were end users of IS. The partial least squares technique indicated that environmental uncertainty has a positive impact on task characteristics. Task characteristics have a direct and mediating impact on user satisfaction with data. Our findings also demonstrated that user satisfaction with data could be better understood by overlapping IS and organizational theories, rather than by treating the subject matter in disjoint fields. The paper concludes with discussions and implications for researchers and practitioners.

Information Systems

Measuring Dimensions of Perceived e-Business Risks

Scott, Judy E.
Journal of Information Systems and e-Business Vol. 2, Issue 1, p. 31-56

The risks to e-business from breaches of security and privacy are well known. However, research has given very little attention to other important e-business risks. Using a socio-technical approach, in this study we survey a diverse sample of almost 200 participants to rate their perception of 16e-business risks, compiled from the research and practitioner literature. Strategic risks, organizational risks and e-business policy risks emerged as the three underlying dimensions of e-business risk. In terms of the sociotechnical model, strategic risks focus on the actor-structure component, and policy risks focus on the task-structure component. Organizational risks cover a wide spectrum of socio-technical components such as technology, actor-technology, technology structure and task-actor. The main contribution of this study is a multi dimensional scale of e-business risk perception. Practitioners can benefit by focusing their risk management efforts on the three dimensions of e-business risk, which are easier to manage than a long checklist of unrelated risks. Researchers benefit from a raised awareness on the importance of strategic and organizational risk factors in addition to policy risk factors for e-business risk management. A model that incorporates the three dimensions of e-business risks and shows theoretically based relationships with control mechanisms, trust, perceived uncertainty and profitability is proposed for testing in future research.

Information Systems

Jungles and Gardens: The Evolution of Knowledge Management at J. D. Edwards

Scott, Judy E., Globe, Alden and Schiffner, Kristen
Management Information Systems Quarterly Executive Vol. 3, Issue 1, p. 37-52

Over a period of eight years, 1995-2003, J.D. Edwards evolved three innovative approaches to knowledge management (KM). The evolution in each started with a grass-roots team effort and grew to become an institutionalized enterprise application. With limited resources, J.D. Edwards has built a Global Web site Community, a sophisticated intranet/extranet (called the Knowledge Garden®), and a content management application (called Content Manager) that allows people to reuse multilingual technical documents, drawing them from a “single source” location. The evolution of these three projects is analyzed using a four-phase stage model and illustrates 12 lessons for others on how to more effectively plan an enterprise KM project, anticipate change, and set appropriate expectations. In the initiation stage, organizations need to identify and encourage an evangelist or champion to gain executive support and sponsorship. In the contagion stage, organizations need to establish content ownership and useful standards, and devise innovative ways of aligning the KM project with revenue generation. In the control stage, organizations need to anticipate the ongoing needs of updating the technologies and improving the governance processes. Finally, in the integration stage, organizations need to find a unifying vision and use techniques that will institutionalize knowledge management. The impact of these enterprise content management initiatives at J.D. Edwards has been considerable. Early ROI studies on the Knowledge Garden indicated an 1811% return, totaling $5 million annually in saved time and reduced paper costs. Content Manager, with a 270% ROI the first year, has been a consistent revenue driver, delivering over $7 million to the bottom line by early 2003?-and an additional $7.5 million from the Web-based training tool and courseware. By February 2002, jdedwards.com was driving over $10 million worth of pipeline leads.

Information Systems

An Empirical Study of Consumer Switching from Traditional to Electronic Channels: A Purchase-Decision Process Perspective

Gupta, Alok; Bo-chiuan Su and Walter, Zhiping
International Journal of Electronic Commerce Vol. 8 Issue 3, p131-161

This paper examines the relationship between purchase decisions and channel-switching intentions. A theoretical model that explains channel-switching intentions was tested with a sample of 337 consumers. The results show a 52 percent tendency to switch from off-line to on-line across four product categories: books, airline tickets, wine, and stereo systems. The order of the switching tendency was consistent with the products’ search and experience attributes. Logistic regression analysis across product categories shows that differences in channel-risk perceptions, price-search intentions, evaluation effort, and waiting time have a significant impact on consumer switching from off-line to on-line shopping. Consumers who purchase on-line perceive significantly lower channel risk, search effort, evaluation effort, and waiting (delivery) time on-line than off-line and express significantly higher price-search intentions on-line than off-line. Consumers attracted to off-line channels also perceive lower search-cost and higher price-search intentions on-line than off-line, but their perceived on-line search effort and price-search intentions are significantly lower than for consumers attracted to on-line channels. These results support the important influence of the examined factors on channel switching. They also suggest that demographics may not be an effective basis for market segmentation.

Business Analytics, Information Systems, Marketing

Assessing Perceived Risk Of Consumers In Internet Airline Reservations Services

Cunningham, Lawrence F., Gerlach, James and Harper, Michael D.
Journal of Air Transportation Vol. 9 Issue 1, p. 21-35

This research investigates the premise that the use of Internet airline reservation systems is perceived to be riskier than traditional airline reservation systems. Unlike previous studies on perceived risk that typically focused on the relationship of perceived risk and information search, this study examines the dynamics of perceived risk throughout the various stages of the consumer buying process. A survey of 159 respondents reveals that perceived risk for both traditional and Internet airline reservation services follows a systematic pattern throughout the consumer buying process. Perceived risk for both traditional and Internet airline reservation systems falls during information search but recovers and rapidly increases as consumers approach the moment of purchase. When viewed as a dynamic process, perceived risk for Internet airline reservation services shows more radical changes in risk levels than the traditional service. Another major finding of this study is the discovery of a risk premium for Internet airline reservation services that permeates all stages of the consumer buying process.

Entrepreneurship, Information Systems

The Rise and Fall of a Dot-Com: Lessons Learned from LivingCo

Scott, Judy E.
Annals of Cases on Information Technology Vol. 6, p. 1-21

LivingCo was founded with a vision of revolutionizing the U.S. furniture industry by exploiting technological opportunities. It won accolades for its innovative website and generated considerable consumer interest, becoming at one stage one of the most highly trafficked sites on the Internet. Oracle named LivingCo a poster child because it was one of the first e-tailers to successfully deploy their software in both the front and back ends of the business. Furthermore, industry analysts considered many of its strategic plans promising. However, LivingCo ran into problems coping with overspending, high traffic on its website, integrating its technology with its subsidiary, suppliers who were wary of channel conflict and customers, who were, in general, slow to adopt the new way of shopping for furniture