Toward a Theory of Whistleblowing Intentions: A Benefit‐to‐Cost Differential Perspective*

In order to rescue information technology (IT) projects when they go awry, it is critical to understand the factors that affect bad news reporting. Whistleblowing theory holds promise in this regard and a number of salient factors that may influence whistleblowing intentions have been identified. However, an integrative theory that explains how they influence whistleblowing intentions has been conspicuously absent. In this research, we introduce and test a middle‐range theory of whistleblowing that can explain how and why a variety of factors may influence an individual's whistleblowing intentions. Drawing on the social information processing perspective, we propose that individuals holistically weigh the perceived “benefit‐to‐cost differential” and that this mediates the relationship between whistleblowing factors and whistleblowing intentions. Tests using data collected from 159 experienced IT project managers largely support our theoretical perspective, in which the central explanatory variable (benefit‐to‐cost differential) significantly mediates a majority of the proposed relationships. Implications of these findings for research and practice are discussed.     

The Influence of Forward‐Looking Antecedents,Uncertainty, and Anticipatory Emotions on Project Escalation*

This study extends research on the escalation of commitment phenomenon by investigating decision makers' tendency to look forward to project completion and develop anticipatory perceptions and emotions concerning goal attainment. We examine the influence of two project‐specific predictors of escalation (level of progress and presence of an alternative project) on perceived uncertainty and the extent to which anticipatory emotions (i.e., current affective reactions to possible future events) mediate the influence of uncertainty on levels of commitment to a failing project. Results indicated that level of progress and the presence of an alternative project affected uncertainty, which influenced anticipatory emotions. Lower levels of uncertainty and higher levels of positive anticipatory emotions increased the tendency to escalate commitment.     

Examining the Impact of Pre‐Implementation Expectations on Post‐Implementation Use of Enterprise Systems: A Longitudinal Study

This article builds upon the technology acceptance model and theories of technology sensemaking to explore pre‐enterprise system adoption expectations and post‐enterprise system adoption outcomes in a longitudinal setting. Building on the exploitation and exploration paradigm, we propose that task productivity and task innovation expectations are the key drivers of users’ pre‐adoption enterprise system usage intention. Further, we argue that the enterprise system facilitates generation of a common knowledge base that may encourage a more integrated organizational culture and promote shared understanding among employees. Considering the distinction between mandatory and voluntary contexts, we propose that user acceptance of the enterprise system at the pre‐ and post‐adoption stages will mediate these relationships in a mandatory context. The results show that the influence of pre‐adoption expectations regarding task productivity and task innovation on intention to use an enterprise system is mediated by user acceptance of the enterprise system. Intention to use an enterprise system is positively related to actual use. At the post‐adoption stage, the influence of actual use on shared understanding is mediated by user acceptance of an enterprise system and enterprise system use has a direct negative impact on task efficiency in the initial period after implementation. Overall, the results highlight that user acceptance at both pre‐ and post‐adoption stages are critical factors when usage is mandatory. These findings suggest a number of important implications for research and for managerial action.     

Supply Chain Inventory Replenishment: The Debiasing Effect of Declarative Knowledge

Previous experimental research demonstrates that inefficient replenishment decision making in the supply chain can be caused by specific judgment and decision biases. Based on the literature we use controlled experiments involving both student subjects and supply chain managers to test debiasing interventions that provide declarative knowledge, which is theorized to enhance the acquisition of procedural knowledge. We first investigate the effects of three debiasing components in a single‐echelon setting: knowledge of bullwhip, inventory position (IP), and use of a target order‐up‐to quantity. Experiment 1 (N = 1,608 decisions by 67 student subjects) using a 2 × 2 × 2 factorial design for the three components finds that the conceptual understanding of IP is salient for efficient replenishment decisions. We next examine the effects of the components in a simulated, multi‐echelon, serial supply chain, which introduces the additional complexity of coordination risk. Experiment 2 (N = 3,072 decisions by 128 student subjects) using a 2 × 2 × 2 factorial design finds that although subjects benefit from training components, there is evidence of cognitive overload with an increased quantity of information. Finally we test whether these debiasing components may be an effective training program for practicing supply chain managers who can be expected to have higher levels of procedural knowledge through experience gained in the field. Experiment 3 (N = 864 decisions by 36 supply chain managers) using a 2 × 1 design investigates the effects of an instructional training intervention which includes all three debiasing components and finds the intervention to reduce costs by 14%. We provide avenues for future research and successful practice.     

Understanding the Role of Individual Innovativeness in the Acceptance of IT‐Based Innovations: Comparative Analyses of Models and Measures*

As new technological innovations are rapidly introduced and changed, identifying an individual characteristic that has a persistent effect on the acceptance decisions across multiple technologies is of substantial value for the successful implementation of information systems. Augmenting prior work on individual innovativeness within the context of information technology, we developed a new measure of adopter category innovativeness (ACI) and compared its effectiveness with the existing measure of personal innovativeness in IT (PIIT). Further, we examined two alternative models in which the role of individual innovativeness was theorized differently—either as a moderator of the effects the perceived innovation characteristics of usefulness, ease of use, and compatibility have on future use intention (moderator model) or as a direct determinant of the innovation characteristics (direct determinant model). To ensure the generalizability of the study findings, two field studies (N= 634) were conducted, each of which examined the two models (moderator and direct determinant) and measured individual innovativeness using the two measures (ACI and PIIT). Study 1 surveyed the online buying practices of 412 individuals, and Study 2 surveyed personal digital assistant adoption of 222 healthcare professionals. Across the markedly different adoption contexts, the study results consistently show that individual innovativeness is a direct determinant of the innovation characteristics, and the two measures share many commonalities. The new measure offers some additional utilities not found in the PIIT measure by allowing individuals to be directly classified and mapped into adopter categories. Implications are drawn for future research and practice.     

The Role of Innovation Characteristics and Perceived Voluntariness in the Acceptance of Information Technologies

The often paradoxical relationship between investment in information technology and gains in productivity has recently been attributed to a lack of user acceptance of information technology innovations. Diverse streams of research have attempted to explain and predict user acceptance of new information technologies. A common theme underlying these various research streams is the inclusion of the perceived characteristics of an innovation as key independent variables. Furthermore, prior research has utilized different outcomes to represent user acceptance behavior. In this paper we focus on individual's perceptions about the characteristics of the target technology as explanatory and predictive variables for acceptance behavior, and present an empirical study examining the effects of these perceptions on two frequently used outcomes in the context of the innovation represented by the World Wide Web. The two outcomes examined are initial use of an innovation and intentions to continue such use in the future, that is, to routinize technology use. Two research questions motivated and guided the study. First, are the perceptions that predict initial use the same as those that predict future use intentions? Our results confirm, as hypothesized by prior research, that innovation characteristics do explain acceptance behavior. The results further reveal that the specific characteristics that are relevant for each acceptance outcome are different. The second research question asks if perceived voluntariness plays a role in technology acceptance. Results show that external pressure has an impact on adopters' acceptance behavior. Theoretical and practical implications that follow are presented.     

Managers' Innovations as 'Sense-making'

Interpretations related to the social construction of innovation, derived from data provided by managers in an IT company, are placed within a conceptual framework of 'sense-making', modified to take account of power relationships. The discussion in the body of the paper, illustrated and structured by reference to three case studies, deals with how innovators rely on experience in securing and shaping their identities in the face of disruptive events and how, from these origins, innovations are socially enacted within the organizational context, infused by power relations. In the concluding section it is proposed that the novelty of 'an innovation', and the degree of individual and social creativity required to achieve it, depend on the difficulty of making sense of disruptive events within the constraints of social relationships in their organizational context. It seems sensible, therefore, that a research agenda concerned with enhancing understanding of innovation processes should focus on the social construction of innovations, driven by the need individuals experience to make sense of disturbing stimuli in ways which protect and, preferably, enhance self-identity.     

The interplay between psychometric and sociometric data and the willingness to adopt innovations

Due to high failure rates of new products, marketers are seeking ways to actively manage the diffusion of innovations. It is well accepted that individuals, who exert a remarkably strong influence on others and are usually called opinion leaders, play an important role in the diffusion process. In marketing, such opinion leaders are typically identified by self-designation, which can be biased. A second option to identify opinion leaders is the use of sociometric data which becomes increasingly available. In this paper we examine the effect of social position on the perceived opinion leadership and the resulting behavioral intention in terms of adoption behavior. In an empirical study, we examine the adoption of a new drug called “Byetta” and find that sociometric opinion leadership is an antecedent of the psychometric characteristic. Our results also confirm that such opinion leaders are more likely to adopt innovations. We also find that opinion seekers, individuals who often sought information or opinions from interpersonal sources, can be more easily identified with psychometric data. They are more restrictive in terms of adoption. Interestingly, both types are active as market mavens and thus may either advocate the adoption of the innovation or may be frankly conservative regarding the new product adoption. If opinion seekers can, however, be persuaded to adopt the innovation, they may also serve as an important multiplier. This has several implications for pharmaceutical firms that try to optimize their sales force—influencing opinion leaders may indeed start and fasten the adoption process of innovative products. But it is also necessary to allay opinion seekers’ doubts since they might slow down the adoption process. The identification of opinion leaders might not only be based on difficult to obtain psychometric data, but also on sociometric data from social networks, which is becoming more and more available.     

Innovation Strategy,Human Resource Policy,and Firms' Revenue Growth: The Roles of Environmental Uncertainty and Innovation Performance*

This study investigates the interactions of innovation strategy execution and innovation‐focused human resource (HR) policy adoption on innovation performance and revenue growth. In addition, we investigate the moderating role of environmental uncertainty on the effects of innovation strategy execution and innovation‐focused HR policy on innovation performance. Results show that the interaction of innovation strategy execution and innovation‐focused HR policy is positively related to innovation performance. Results also show that environmental uncertainty positively moderates the innovation strategy execution–innovation performance relationship. Finally, innovation performance mediates the interaction of innovation strategy execution and environmental uncertainty on firms’ revenue growth. Implications of these findings for theory and practice are discussed.     

Why Doesn't Technology Flow From Rich to Poor Countries?

What is the role of a country's financial system in determining technology adoption? To examine this, a dynamic contract model is embedded into a general equilibrium setting with competitive intermediation. The terms of finance are dictated by an intermediary's ability to monitor and control a firm's cash flow, in conjunction with the structure of the technology that the firm adopts. It is not always profitable to finance promising technologies. A quantitative illustration is presented where financial frictions induce entrepreneurs in India and Mexico to adopt less‐promising ventures than in the United States, despite lower input prices.     

Multilevel Social Dynamics Considerations for Project Management Decision Makers: Antecedents and Implications of Group Member Tie Development

Successful projects represent the effective culmination of management skills, planning, and individual project member strengths. In operations management, such strengths are often viewed predominantly from the perspective of skill base. However, it has become increasingly evident that behavioral traits associated with individuals play a very significant, if not ultimately dominating, role in the effectiveness of certain group projects. Our aim in this study is to look into how certain individual attributes viewed as relevant to these project contexts may lead to social networking decisions that have impacts spanning multiple levels of analysis. Such insights are likely to prove valuable to decision makers managing project teams as well. We employ a controlled 4‐month investigation of multiple projects, for which we are able to consider both objective, and subjective pre‐, in situ, and postproject data. Our results demonstrate that the issues of perceived control, confidence, and conscientiousness are relevant not only in driving individual perceptions of the value of within‐group interactions, and hence the development of associated ties, but are also ultimately relevant in helping to drive higher levels of group performance.     

Technology Acceptance Model 3 and a Research Agenda on Interventions

Prior research has provided valuable insights into how and why employees make a decision about the adoption and use of information technologies (ITs) in the workplace. From an organizational point of view, however, the more important issue is how managers make informed decisions about interventions that can lead to greater acceptance and effective utilization of IT. There is limited research in the IT implementation literature that deals with the role of interventions to aid such managerial decision making. Particularly, there is a need to understand how various interventions can influence the known determinants of IT adoption and use. To address this gap in the literature, we draw from the vast body of research on the technology acceptance model (TAM), particularly the work on the determinants of perceived usefulness and perceived ease of use, and: (i) develop a comprehensive nomological network (integrated model) of the determinants of individual level (IT) adoption and use; (ii) empirically test the proposed integrated model; and (iii) present a research agenda focused on potential pre‐ and postimplementation interventions that can enhance employees' adoption and use of IT. Our findings and research agenda have important implications for managerial decision making on IT implementation in organizations.     

Risk Uncertainty and Supply Chain Decisions: A Real Options Perspective

Supply chain risk uncertainty can create severe repercussions, thus it is not surprising that research interest in supply chain risk has been growing. While extant inquiry is informative, there is a lack of investigations that center on supply chain investment decisions when facing high levels of risk uncertainty. Given the potential dollar value involved in these decisions, an understanding of how these supply chain decisions are made is of significant theoretical and practical importance. Real options theory, with its focus on decision making under conditions of uncertainty, is an appealing theoretical lens for this endeavor. In essence, real options theory asserts that managerial decisions center on creating and then exercising or not exercising certain opportunities. To date, theorizing about and investigations of real options have used firms as their focus. Not yet examined are real options within supply chains that cross firm boundaries and drive much of the competitive activity in the modern economy. Accordingly, we extend real options theory to the supply chain context by examining how different types of options are approached relative to supply chain project investments. Specifically, we theorize how the options will be related to perceived value under conditions of high supply chain risk uncertainty. Overall, our investigation builds knowledge by extending real options theory to the supply chain context and by providing evidence suggesting some options operate differently in supply chains than they do in firms.     

Determinants and Mapping of Collective Perceptions of Technological Risk: The Case of the Second Nuclear Power Plant in Taiwan

Nuclear power is a highly controversial and salient example of environmental risk. The siting or operating of a nuclear power plant often faces widespread public opposition. Although studies of public perceptions of nuclear power date back to 1970s, little research attempts to explain the spatial heterogeneity of risk attitude toward nuclear power among individuals or communities. This article intends to improve the knowledge about the major factors contributing to nuclear power plant risk perceptions by mapping the geographical patterns of local risk perception and examining the determinants in forming the nature and distribution of the perceived risk among potentially affected population. The analysis was conducted by a case study of the Second Nuclear Power Plant (SNPP) in Taiwan by using a novel methodology that incorporates a comprehensive risk perception (CRP) model into an ethnographic approach called risk perception mapping (RPM). First, we examined the determinants of local nuclear power risk perceptions through the CRP model and multivariate regression analysis. Second, the results were integrated with the RPM approach to map and explain the spatial pattern of risk perceptions. The findings demonstrate that the respondents regard the nuclear power plant as an extremely high‐risk facility, causing them to oppose the SNPP and reject the compensation payment to accept its continuing operation. Results also indicate that perceptions of nuclear power risk were mainly influenced by social trust, psychological and socioeconomic attributes, proximity, and the perceived effects of the SNPP on the quality of everyday life.     

Adoption of WAP-enabled mobile phones among Internet users

This paper examines the attitudinal, social and perceived behavior control factors that are associated with the adoption of WAP-enabled mobile phones among Internet users. An online questionnaire is used to gather data. The results show that attitudinal and social factors rather than perceived behavioral control factors play a significant role in influencing intentions to adopt a WAP-enabled mobile phone. In particular, perceptions of relative advantage, risk, and image are found to influence adoption intentions. In addition, reference groups too play an important role in shaping adoption intentions. Implications of results and directions for future research are examined.     

Equilibria in Health Exchanges: Adverse Selection versus Reclassification Risk

This paper studies regulated health insurance markets known as exchanges, motivated by the increasingly important role they play in both public and private insurance provision. We develop a framework that combines data on health outcomes and insurance plan choices for a population of insured individuals with a model of a competitive insurance exchange to predict outcomes under different exchange designs. We apply this framework to examine the effects of regulations that govern insurers' ability to use health status information in pricing. We investigate the welfare implications of these regulations with an emphasis on two potential sources of inefficiency: (i) adverse selection and (ii) premium reclassification risk. We find substantial adverse selection leading to full unraveling of our simulated exchange, even when age can be priced. While the welfare cost of adverse selection is substantial when health status cannot be priced, that of reclassification risk is five times larger when insurers can price based on some health status information. We investigate several extensions including (i) contract design regulation, (ii) self‐insurance through saving and borrowing, and (iii) insurer risk adjustment transfers.     

Organizational Silence and Whistle‐Blowing on IT Projects: An Integrated Model*

An individual's reluctance to report bad news about a troubled information technology (IT) project has been suggested as an important contributor to project failure and has been linked to IT project escalation as well. To date, information systems researchers have drawn from the mum effect and whistle‐blowing literature to gain a better understanding of the factors that influence bad news reporting. More recent theoretical work in the area of organizational silence offers a promising new conceptual lens, but remains empirically untested. In this research note, we integrate key elements of Morrison and Milliken's (2000) model of organizational silence, which has never been empirically tested, with the basic whistle‐blowing model adapted from Dozier and Miceli (1985) . Using a role‐playing experiment, we investigate how organizational structures/policies, managerial practices, and degree of demographic dissimilarity between employees and top managers create a climate of silence and how this climate, in turn, affects an individual's willingness to report. Our results show that all three types of factors contribute to a climate of silence, exerting both direct and indirect influence on willingness to report, as hypothesized. The implications of these findings and directions for future research are discussed.     

Communication With Unknown Perspectives

Consider a group of individuals with unobservable perspectives (subjective prior beliefs) about a sequence of states. In each period, each individual receives private information about the current state and forms an opinion (a posterior belief). She also chooses a target individual and observes the target's opinion. This choice involves a trade‐off between well‐informed targets, whose signals are precise, and well‐understood targets, whose perspectives are well known. Opinions are informative about the target's perspective, so observed individuals become better understood over time. We identify a simple condition under which long‐run behavior is history independent. When this fails, each individual restricts attention to a small set of experts and observes the most informed among these. A broad range of observational patterns can arise with positive probability, including opinion leadership and information segregation. In an application to areas of expertise, we show how these mechanisms generate own field bias and large field dominance.     

The Politicization of Risk: Party Cues,Polarization, and Public Perceptions of Climate Change Risk

Previous research shows that public perceptions of climate change risk are strongly related to the individual willingness to support climate mitigation and adaptation policy. In this article, I investigate how public perceptions of climate change risk are affected by communications from political parties and the degree of polarization among them. Specifically, using survey data from Sweden, Norway, Australia, and New Zealand, I study the relationship between party source cues, perceived polarization, and public perceptions of climate change risk. The results reveal a positive relationship between party cues and perceptions of climate change risk, indicating that individuals adjust their risk perceptions to align with their party preference. Furthermore, a negative relationship between perceived polarization and individual risk perceptions is also discovered, showing that individuals tend to be less concerned with climate change the more polarization they perceive. However, the effect of perceived polarization is found to be limited to more abstract perceptions of risk, while being unrelated to perceptions of concrete risks. Even with some contextual variance, the results generally hold up well across the four countries.     

Strategic Product/Service Innovations of an Online Firm

We study the incentives that drive an online firm to make various types of innovations in a competitive environment. We develop and use a simplified price competition model between two retailers, one online and one offline. A given fraction of consumers, called the Internet penetration, comparison shop online, independent of their customer type, thereby creating two markets for the offline retailer, a captive market and a competitive market. The online product has the steeper of the two linear utility functions, which means that the customers who buy online in our model are high end. We focus on the competitive region in which both retailers are (strictly) profitable in the competitive market and consider innovations that increase high‐end appeal, low‐end appeal, and/or reduce unit cost. We find that the online firm has a strong incentive to invest in innovations that either reduce unit cost and/or, equivalently, increase the appeal to all consumers equally. Investments of this type are strategic complements: implementing one increases the value of another, so the value of two innovations of this type is more than the sum of the values of each individually. We identify a relative strength measure of the online firm such that, as its high‐end appeal increases and/or its unit cost decreases, we say that the online firm is stronger. This strength measure facilitates drawing an explicit dividing line between strong and weak online firms. If Internet penetration increases, the online firm's profits increase if and only if it is strong. If penetration increases over time, it is possible for a strong firm to turn weak and see its profits decrease and possibly disappear completely. A strong online firm has more opportunity to profit from low‐end innovations than does a weak one, while the opposite is true for high‐end innovations. Interestingly, some innovations may actually decrease the online firm's profits. We discuss the implications of our results for existing and future online innovations.