Kexin Zhao

Diffusion dynamics of open source software: An agent-based computational economics (ACE) approach

The rising popularity of open source software (OSS) calls for a better understanding of the drivers of its adoption and diffusion. In this research, we propose an integrated framework that simultaneously investigates a broad range of social and economic factors on the diffusion dynamics of OSS using an Agent Based Computational Economics (ACE) approach. We find that interoperability costs, variability of OSS support costs, and duration of PS upgrade cycle are major determinants of OSS diffusion. Furthermore, there are interaction effects between network topology, network density and interoperability costs, which strongly influence the diffusion dynamics of OSS. The proposed model can be used as a building block to further investigate complex competitive dynamics in software markets.

The sustainability of B2B e-marketplaces: Ownership structure, market competition, and prior buyer-seller connections

B2B e-marketplaces alter the structure of buyer-seller trading networks. To study the network-level structural changes caused by the emergence of e-marketplaces, we develop a multiple-player noncooperative game, where rational firms select optimal interfirm connections and the network is endogenously formed and evolved. We examine the conditions under which both neutral and biased B2B e-markets will sustain, when previous buyer-seller connections exist. We test our model in both the oligopoly market and the oligopsony market. Our analysis explains how ownership structures and market competition interact with each other to affect e-market sustainability. We also identify other critical factors for sustainable e-markets and their social welfare implications.

Forming Interoperability Through Interorganizational Systems Standards

Interoperability is a crucial organizational capability that enables firms to manage information systems (IS) from heterogeneous trading partners in a value network. While interoperability has been discussed conceptually in the IS literature, few comprehensive empirical studies have been conducted to conceptualize this construct and examine it in depth. For instance, it is unclear how interoperability is formed and whether it can improve organizational performance. To fill the gap, we argue that interorganizational systems (IOS) standards are a key information technology infrastructure facilitating formation of interoperability. As an organizational ability to work with external trading partners, interoperabilitys development depends not only on capability building within firm boundaries but also on community readiness across firm boundaries. Using data collected from 194 organizations in the geospatial industry, we empirically confirm that interoperability is formed via these two different paths. Furthermore, our results show that interoperability acts as a mediator by enabling firms to achieve performance gains from IOS standards adoption. Our study sheds new light on formation mechanisms as well as the business value of interoperability.

The efficacy of mobile e-procurement: a pilot study

This paper reports on an empirical study to assess the impacts, benefits, and critical success factors of mobile applications to enhance an electronic procurement system. For different user groups, we analyze the role of the work environment for the usage and, ultimately, the benefits of the mobile applications. The study provides a basis for a broader framework to improve the design and management of business applications based on emerging technologies.

Sources and impacts of social influence from online anonymous user reviews

Abstract Consumers increasingly rely on online reviews to make purchase decisions. However, the process through which consumers are influenced by online reviews is not well understood. To fill the gap, we apply the social influence theory to theoretically explain and analyze this opinion change process. Specifically, we identify antecedents and consequences of two types of social influence from online user reviews: informational and value-expressive influence. From a survey conducted in a controlled laboratory environment, we found that perceived review quality positively impacts informational influence, while perceived review quality, consistency, and social presence jointly impact value-expressive influence. Interestingly, informational influence impacts both perceived decision quality and perceived usefulness of the website, while value-expressive influence only impacts perceived usefulness of the website. Surprisingly, consumer characteristics, including prior product expertise and self-monitoring, do not have significant effects on the formation of social influence online.

Impact of IT Governance and IT Capability on Firm Performance

ABSTRACT Based on resource-based and strategic choice theory, this research empirically validates that IT governance is an important antecedent of IT capability, which in turn results in improved firm performance. This article contributes to the IS literature by proposing a comprehensive measure of IT governance based on secondary data, and simultaneously examining the impact of IT governance and IT capability on firm performance.

Impact of Interorganizational Relationships on Technology Diffusion: An Agent-Based Simulation Modeling Approach

Interorganizational relationships are an integral part of an organizations decision-making process. The reason is that an organizations decision affects and is affected by the decision of its partners, particularly in the context of technology adoption and diffusion. Therefore, it is important to explore the role of this social network of organizations in shaping the process of technology diffusion. We conduct a series of experiments using the agent-based simulation modeling technique to identify strategically located firms in a network that can significantly influence the process of software diffusion. Our findings suggest that: 1) structural location of organizations does significantly influence the process of diffusion; and 2) the criteria for identifying strategically located firms depend on contextual factors, such as network topology, network density, and interoperability costs. To illustrate the practical use of these results, we propose a “network-aware” pricing strategy that takes advantage of information regarding organizational social networks. We illustrate that contrary to prevalent practice in the enterprise software market, where firms are generally targeted on the basis of their size, network-aware pricing has the potential to facilitate the development of a more effective market penetration strategy.

The Impact of Firm Characteristics and IT Governance on IT Material Weaknesses

Accurateandtimelyreportingoforganizationalperformanceisbecomingincreasinglyimportantand highlyregulated.However,organizationsfaceavarietyofchallengesinseekingtoprovideaccurate andreliableinformationduetotheexistenceofITcontrolproblems.Henceitisimportantforend usersincludingauditorsandmanagerstounderstandhowtomanageITmaterialweaknesses(ITMWs). Whilethereisextensiveaccountingresearchongeneralmaterialweaknesses(MWs),ITMWsare underresearched.ThisarticleidentifieskeyfirmcharacteristicsthatappeartoberelatedtoITMWs. Inaddition,theauthorssuggestthatITgovernancemayhelpfirmsmitigatesuchproblems.Togain adeeperunderstandingofITgovernanceeffects,thisarticleproposesamodelwhichincludesan innovativeconstruct,ITGOV,operationalizedusingsecondarydata.Theauthorsempiricallyvalidate theproposedmodelbasedonadatasetof1,112firms.Theirstudyillustratesthedifferencesbetween ITMWsandgeneralMWs.Theseresultscanalsohelpenduserscomputingbyofferinginsightsinto bettermanagementofITMWs. KEyWORdS IT Governance, IT Internal Controls, IT Material Weaknesses, SOX 404

Using Text Mining Analytics to Understand IT Internal Control Weaknesses

This study aims to examine the antecedents and consequences of IT Internal Control Weaknesses (ITICWs). Specifically, we propose a comprehensive model to examine the impact of IT governance on ITICWs as well as effects of ITICWs on firm performance. To gain deep insight into ITICWs, we propose to apply text mining analytics to categorize different types of ITICWs. This allows us to examine the impact of different categories of ITICWs on firm performance. We are in the process of collecting the data.

Collaborative standards development and adoption with network externalities

We study industry-based collaborative standard development and adoption by firms in a consortium setting, when the standard is open and free. We present a game-theoretical model that recognizes the fact that 1) firms decision to develop or adopt is endogenous, e.g. firms only participate in the development if doing so dominates being a passive adopter of the standard or not adopting at all; 2) the standard is jointly developed by all participating firms; 3) the standard adoption has network externalities, i.e. the more firms use the standard, the more valuable it is to all adopters; 4) developing firms have insider benefit based on their involvement in the standardization, which results in lower adoption cost. We find that 1) no firm want to be a passive adopter if there is no benefit of waiting in adoption; 2) when the benefit of waiting is lower than a threshold, there are no passive adopters and 3) developing firms contribution is not a function of the network externalities.