a b s t r a c tSocial broadcasting networks such as Twitter in the U.S. and "Weibo" in China are transforming the way online word of mouth (WOM) is disseminated and consumed in the digital age. In the present study, we investigated whether and how Twitter WOM affects movie sales by estimating a dynamic panel data model using publicly available data and well-known machine learning algorithms. We found that chatter on Twitter does matter; however, the magnitude and direction of the effect depend on whom the WOM is from and what the WOM is about. Incorporating the number of followers the author of each WOM message had into our study, we found that the effect of WOM from users followed by more Twitter users is significantly larger than those followed by less Twitter users. In support of some recent findings about the importance of WOM valence on product sales, we also found that positive Twitter WOM is associated with higher movie sales, whereas negative WOM is associated with lower movie sales. Interestingly, we found that the strongest effect on movie sales comes from those tweets in which the authors expressed their intention to watch a certain movie. We attribute this finding to the dual effects of such intention tweets on movie sales: the direct effect through the WOM author's own purchase behavior, and the indirect effect through either the awareness effect or the persuasive effect of the WOM on its recipients. Our findings provide new perspectives to understand the effect of WOM on product sales and have important managerial implications. For example, our study reveals the potential values of monitoring people's intentions and sentiments on Twitter and identifying influential users for companies wishing to harness the power of social broadcasting networks.
P rior research has generated considerable knowledge on information systems design from software engineering and user-acceptance perspectives. As organizational processes are increasingly embedded within information systems, one of the key considerations of many business processes-organizational incentives-should become an important dimension of any information systems design and evaluation, which we categorize as the third dimension: incentive alignment. Incentive issues have become important in many IS areas, including distributed decision support systems (DSS), knowledge management, and e-business supply chain coordination. In this paper we outline why incentives are important in each of these areas and specify requirements for designing incentive-aligned information systems. We identify and define important unresolved problems along the incentive-alignment dimension of information systems and present a research agenda to address them.
Organizations today outsource diverse business processes to achieve a wide variety of business objectives ranging from reduction of costs to innovation and business transformation. We build on the information processing view of the firm to theorize that performance heterogeneity across business process outsourcing (BPO) exchanges is a function of the design of information capabilities (IC) that fit the unique information requirements (IR) of the exchange. Further, we compare performance effects of the fit between IR and IC across dominant categories of BPO relationships to provide insights into the relative benefits of enacting such fit between the constructs. Empirical tests of our hypotheses using survey data on 127 active BPO relationships find a significant increase (decrease) in satisfaction as a result of the fit (misfit) between IR and IC of the relationship. The results have implications for how BPO relationships must be designed and managed to realize significant performance gains. The study also extends the IPV to identify IC that provide the incen tives and means to process information in an interfirm relationship.
A collection of technologies termed social computing is driving a dramatic evolution of the Web, matching the dot-com era in growth, excitement, and investment. All of these share a high degree of community formation, user level content creation, and a variety of other characteristics. We provide an overview of social computing and identify salient characteristics. We argue that social computing holds tremendous disruptive potential in the business world and can significantly impact society, and outline possible changes in organized human action that could be brought about. Social computing can also have deleterious effects associated with it, including security issues. We suggest that social computing should be a priority for researchers and business leaders and illustrate the fundamental shifts in communication, computing, collaboration, and commerce brought about by this trend.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.