Dan Song, Zhaohua Deng and Bin Wang
As more firms adopted AI-related services in recent years, AI service failures have increased. However, the potential costs of AI implementation are not well understood…
Abstract
Purpose
As more firms adopted AI-related services in recent years, AI service failures have increased. However, the potential costs of AI implementation are not well understood, especially the effect of AI service failure events. This study examines the influences of AI service failure events, including their industry, size, timing, and type, on firm value.
Design/methodology/approach
This study will conduct an event study of 120 AI service failure events in listed companies to evaluate the costs of such events.
Findings
First, AI service failure events have a negative impact on the firm value. Second, small firms experience more share price declines due to AI service failure events than large firms. Third, AI service failure events in more recent years have a more intensively negative impact than those in more distant years. Finally, we identify different types of AI service failure and find that there are order effects on firm value across the service failure event types: accuracy > safety > privacy > fairness.
Originality/value
First, this study is the initial effort to empirically examine market reactions to AI service failure events using the event study method. Second, this study comprehensively considers the effect of contextual influencing factors, including industry type, firm size and event year. Third, this study improves the understanding of AI service failure by proposing a novel classification and disclosing the detailed impacts of different event types, which provides valuable guidance for managers and developers.
Details
Keywords
Dan Luo, Xiewen Ni, Eugene Cheng-Xi Aw and Garry Wei-Han Tan
This study aims to propose and validate a research framework pertaining to the willingness to disclose information in the context of mobile banking apps. The interrelationships…
Abstract
Purpose
This study aims to propose and validate a research framework pertaining to the willingness to disclose information in the context of mobile banking apps. The interrelationships between privacy protection, perceived personalization, social presence, design aesthetics, consumer empowerment, parasocial interactions and privacy concerns are assessed as antecedents of willingness to disclose information.
Design/methodology/approach
Based on a self-administered survey, this study gathered data from 450 Chinese consumers. The data were analyzed using structural equation modeling via SmartPLS 4 software.
Findings
The findings indicate that (1) privacy concerns are negatively related to willingness to disclose information, (2) parasocial interaction reduces privacy concerns, (3) consumer empowerment is positively influenced by privacy protection and perceived personalization and (4) social presence and design aesthetics positively contribute to the formation of parasocial interaction.
Originality/value
The current study serves to reinforce a theoretical understanding of the willingness to disclose information in mobile banking apps, which is underresearched. The findings offer alternative psychological mechanisms (i.e. consumer empowerment and parasocial interaction) and relevant mobile banking app attributes to explain the willingness to disclose information.
Details
Keywords
Gheorghe-Ilie Fârte, Daniel Rareș Obadă, Alexandra-Niculina Gherguț-Babii and Dan-Cristian Dabija
This research explores the impact of trust in online information, parasocial interaction, online flow experience, sharing fake news and corporate credibility on companies’…
Abstract
Purpose
This research explores the impact of trust in online information, parasocial interaction, online flow experience, sharing fake news and corporate credibility on companies’ resilience to negative information.
Design/methodology/approach
A conceptual research model was developed, employing the flow theory to fill gaps in the literature. A cross-sectional national online survey was conducted among 1,550 respondents aged 16–74 in an emerging market, utilizing a quantitative-based approach; the data were then analyzed using structural equation modeling.
Findings
Trust in online information and parasocial interactions was found to impact the online flow experience, with parasocial interaction positively affecting it optimally. The sharing of fake news is affected by parasocial interaction and the online flow experience, which in turn affects corporate credibility.
Originality/value
Corporate credibility is shown to be an antecedent of resilience to negative information and word-of-mouth communication in companies, the former having a direct influence on the latter. The study hence has significant theoretical and managerial implications for communication and marketing.
Details
Keywords
It is widely acknowledged that the ability of a firm to develop and exploit their innovative capabilities is a critical determinant that maintains their competitive advantage. The…
Abstract
Purpose
It is widely acknowledged that the ability of a firm to develop and exploit their innovative capabilities is a critical determinant that maintains their competitive advantage. The purpose is to evaluate the research and development (R&D) inputs and outcomes on the performance of firms in different stages.
Design/methodology/approach
Drawing on a sample of 30 firms over 8 years (2009–2016), the results from a three-stage Bayesian stochastic frontier analysis model support were used.
Findings
Some interesting findings were discovered. First, the R&D intensity is positively associated with the number of patents granted, which is negatively associated with the number of new drug approvals (NDAs). Second, R&D inputs, including expenditures and human resources, are negatively related to the number of NDAs and firm performance. Third, state-owned firms perform better and have more patents granted than private-owned firms in China. Finally, the traditional Chinese medicine firms and non-coastal firms both gain fewer profits, but they generate more new drugs than chemical drug firms and coastal firms in terms of policy support.
Originality/value
It is revealed that there are no common factors among Chinese pharmaceutical firms except for ownership, and this heterogeneous behavior indicates that there is no common factor for enhancing the efficiency of all Chinese pharmaceutical firms.
Details
Keywords
Xi Luo, Jun-Hwa Cheah, Xin-Jean Lim, T. Ramayah and Yogesh K. Dwivedi
The increasing popularity of live-streaming commerce has provided a new opportunity for e-retailers to boost sales. This study integrated signaling theory and social exchange…
Abstract
Purpose
The increasing popularity of live-streaming commerce has provided a new opportunity for e-retailers to boost sales. This study integrated signaling theory and social exchange theory to investigate how streamer- and product-centered signals influence customers’ likelihood of making an impulsive purchase in the live-streaming commerce context.
Design/methodology/approach
An online survey was designed and distributed to the target respondents in China using purposive sampling. A total of 735 valid responses were analyzed with partial least square structural equation modeling (PLS-SEM).
Findings
Both streamer-centered signals, i.e. streamer credibility and streamer interaction quality, were discovered to significantly influence product-centered signal, i.e. product information quality. Additionally, streamer interaction quality was found to have a significant impact on streamer credibility. Furthermore, it was observed that customer engagement played a significant mediating role in the relationship between product information quality and impulsive buying tendency. Moreover, the paths between product information quality and customer engagement, as well as the connection between engagement and impulsive buying tendency, were found to be moderated by guanxi orientation.
Originality/value
Despite the prevalence of impulsive purchases in live-streaming commerce, few studies have empirically investigated the impact of streamer and product signals on influencing customers’ impulsive purchase decisions. Consequently, to the best of our knowledge, this study distinguishes itself by offering empirical insights into how streamers use reciprocating relationship mechanisms to communicate signals that facilitate impulsive purchase decisions.
Details
Keywords
Qian Zhou, Shuxiang Wang, Liya Wang and Wei Xu
Open innovation platform has become an effective field through which enterprises can acquire valuable knowledge for incremental and breakthrough innovation. However, as more…
Abstract
Purpose
Open innovation platform has become an effective field through which enterprises can acquire valuable knowledge for incremental and breakthrough innovation. However, as more entities join the innovation platform, the knowledge activities in the platform ecosystem are now facing higher complexity and vulnerability due to the differences in the knowledge demands as well as conflicting interest claims of participants. The lack of mature governance mechanisms has caused opportunistic behaviors like knowledge infringement, leakage and hiding, which seriously hinder the in-depth knowledge sharing and effective utilization. What’s more, the enthusiasm for collaborative innovation also reduced among multi-subjects. Therefore, the purpose of this study is to improve platform participants’ innovation ambidexterity under the guidance of scientific design of platform knowledge governance mechanisms through improved knowledge transformation processes.
Design/methodology/approach
Therefore, based on knowledge governance theory and knowledge transformation model (SECI, socialization-externalization-combination-internalization), the study explored the influence of relationship and contractual knowledge governance on the innovation ambidexterity of platform participants through the mediation effect of knowledge transformation. To better analyze complex causal relationships among variables and the chain multiple mediation effect, structural equation modeling is used, coupled with bootstrap analysis verification.
Findings
Platform contractual governance and relationship governance can positively influence the innovation ambidexterity of participants through knowledge trading and reuse, as well as through knowledge sharing and creation. The findings not only contribute to optimizing the effectiveness of knowledge activities on digital platforms but also provide empirical evidence and practical insights to support enterprises’ incremental and breakthrough innovation according to their own knowledge bases.
Practical implications
The findings offer valuable insights for providing decision-making guidance not only for platform-leading enterprises but also for individual and enterprise users on effectively using open innovation platforms to conduct knowledge seeking, trading or sharing and knowledge reuse or creation to enlarge the incremental innovation value and to trigger breakthrough innovation value in their product and technology developments.
Social implications
Through diverse knowledge governance mechanisms, platform-leading enterprises do not only act as “economic agents” with private attributes to reduce knowledge asymmetry in the public trading market, diffuse knowledge broadly and mitigate cooperation costs to increase economic value; they also serve as “social actors” for multilateral participants to increase the cohesion of knowledge sharing and creation to provide sustainable knowledge fuel for the higher level of breakthrough innovation. Overall, knowledge arrangement efficiency can be optimized, and breakthrough innovation value can be activated in a well-governed platform, gradually escaping the diminishing marginal benefits of exploitative innovation.
Originality/value
This study has extended the views of the knowledge transformation model under the platform context and proposed dualistic knowledge transformation pathways, named “tacit knowledge socialization” and “explicit knowledge combination,” respectively. Besides, it discovered that under the contractual and relationship knowledge governance mechanisms’ guiding, participants in open innovation platforms may choose different knowledge searching and exchange ways according to their knowledge needs and thus trigger the different knowledge transform process. Then, “tacit knowledge socialization” transformation can show larger positive impact on breakthrough innovation, while “explicit knowledge combination” transformation makes larger impact on incremental innovation.
Details
Keywords
Fabrice Ewolo Bitoto, Cerapis Nchinda Mbognou and Romuald Justin Amougou Manga
The purpose of this paper is to assess the direct effect of climate change on income inequality in Sub-Saharan Africa (SSA) and the channels through which it spreads.
Abstract
Purpose
The purpose of this paper is to assess the direct effect of climate change on income inequality in Sub-Saharan Africa (SSA) and the channels through which it spreads.
Design/methodology/approach
Using a sample of 38 countries, the authors specify and estimate a panel data model using the generalized least squares method over the period 1991–2020. Robustness is achieved through the generalized moment method-system.
Findings
The results show that an increase in vulnerability to climate change is positively and significantly associated with an increase in income inequality. The results also show that the effects of climate change are mediated by gross domestic product/capita, population and agriculture at the 15%, 17% and 24% thresholds, respectively.
Research limitations/implications
The authors suggest the implementation of inclusive development policies consistent with climate mitigation and adaptation objectives; the creation of financial spaces from various sources to finance the social security of the most vulnerable; and the strengthening of agricultural resilience to climate-related adverse events, including financing for greenhouse agriculture.
Originality/value
On the positive side, it contributes to the literature on the analysis of the direct and indirect effects (transmission channels) of climate change on income inequality in SSA. Methodologically, the study goes beyond previous work as it adopts a stepwise methodology, dealing with the endogeneity issue. At the logical level, it offers some non-exhaustive suggestions of potentially interesting economic policies to guide policymakers in their common commitment to “reduce income inequality” (Sustainable Development Goal 10, target 10.1).
Details
Keywords
The purpose of this study is to provide an optimal joint strategy of multi-period pricing and sales effort for a retailer with a logit choice demand in an integrated channel.
Abstract
Purpose
The purpose of this study is to provide an optimal joint strategy of multi-period pricing and sales effort for a retailer with a logit choice demand in an integrated channel.
Design/methodology/approach
Customer demand is characterized by a logit choice model, it varies over time and is influenced by price and sales effort. The multi-period decision model for the retailer is constructed using a discrete-time dynamic programming method to determine the optimal price and sales effort in each period.
Findings
When the inventory level does not exceed a certain threshold, decreasing price and increasing sales effort over time or as inventory level increases are the optimal strategies. However, once the inventory level exceeds the threshold, the optimal strategy is to maintain both price and sales effort constant as the inventory level changes or to increase price and decrease sales effort over time. Additionally, the greater the influence of sales effort on demand or the higher the arrival rate of customers, the higher the optimal price and the greater the optimal sales effort level.
Originality/value
This study contributes to the existing research on dynamic pricing and sales effort in integrated channels by incorporating a logit choice model. Furthermore, it provides valuable management insights for retailers operating in an integrated channel to make pricing and sales effort decisions based on inventory level and time period.
Details
Keywords
Abstract
Purpose
On the premise of verifying whether the platformization organization of DEEs is born, this work aims to explore the evolutionary process of the organizational structure of digital entrepreneurial enterprises (DEEs) and to further reveal the drivers of organizational structure evolution from the perspective of data resources.
Design/methodology/approach
The authors use a longitudinal two-case approach to analyze rich archival and interview data from two DEEs in China.
Findings
The findings reveal that the organizational structure of DEEs evolves from hierarchy, network and flatlization to platformization, that the drivers of evolution include building data flow channels, removing barriers of data flow and forming data rules. Meanwhile, the coordination devices in this process have gradually evolved from hierarchy to standard operating procedures, shared culture, norms, etc. to achieve a balance between commercial and creative success.
Originality/value
This work develops a framework for the evolution of organizational structure of DEEs from organization design theory lens and provide some management insights into the development of DEEs.
Details
Keywords
Yueyong Wang, Tianjiao Liu, Dan Luo, Zunling Du, Liang Yao and Yimin Zhang
This paper aims to investigate the influence of various laser texture parameters (diameter of pit, depth of pit and area density) on the tribological and tribo-vibration…
Abstract
Purpose
This paper aims to investigate the influence of various laser texture parameters (diameter of pit, depth of pit and area density) on the tribological and tribo-vibration characteristics of tapered roller bearings (TRBs) under full oil lubricate conditions.
Design/methodology/approach
The laser surface texture parameters include: the diameter of pit (D: 60 µm, 100 µm, 200 µm), the depth of pit (H: 5 µm, 10 µm, 20 µm) and the area density (S: 6%, 12%, 24%). The outer raceway used laser marking device to prepare many regular pits. The tribological and tribo-vibration characteristics of pitting laser textured TRBs under full oil lubrication were studied by using the MMX-1A universal wear tester machine and vibration testing equipment. Through experiment and analysis, the effects of raceway pitting textures on tribological and tribo-vibration noise performance of TRBs were summarized.
Findings
When pit-textured TRBs operate under full oil, compared with the non-textured bearings, the average coefficient of friction and wear amount are significantly reduced. When D = 100 µm, H = 10 µm, S = 12%, average coefficient of friction = 0.00195 and wear amount = 0.12 mg, they are all at their minimum values. Compared to the same condition of non-textured groups, the coefficient of friction decreases by 66.6%, and the wear amount decreases by 79.3%. The energy from time-frequency and power spectrum analyses is mainly concentrated at high frequencies, with the signal power of pitting textured groups being lower than non-textured when the Y-direction is around 3600 Hz.
Originality/value
The experimental work can provide a reference for the investigation on the pitting textured TRBs.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/ILT-09-2024-0357/