Does Information Technology Investment Influences Firm’s Market Value? The Case of Non-Publicly Traded Healthcare Firms

Managers make informed information technology investment decisions when they are able to quantify how IT contributes to firm performance. While financial accounting measures inform IT’s influence on retrospective firm performance, senior managers expect evidence of how IT influences prospective measures such as the firm’s market value. We examine the efficacy of IT’s influence on firm value combined with measures of financial performance for non-publicly traded (NPT) hospitals that lack conventional market-based measures. We gathered actual sale transactions for NPT hospitals in the United States to derive the q ratio, a measure of market value. Our findings indicate that the influence of IT investment on the firm is more pronounced and statistically significant on firm value than exclusively on the accounting performance measures. Specifically, we find that the impact of IT investment is not significant on return on assets (ROA) and operating income for the same set of hospitals. This research note contributes to research and practice by demonstrating that the overall impact of IT is better understood when accounting measures are complemented with the firm’s market value. Such market valuation is also critical in merger and acquisition decisions, an activity that is likely to accelerate in the healthcare industry. Our findings provide hospitals, as well as other NPT firms, with insights into the impact of IT investment and a pragmatic approach to demonstrating IT’s contribution to firm value

Computer-Aided Tools in Negotiation: Negotiable Issues, Counterfactual Thinking, and Satisfaction

Negotiations research has identified both economic and social-psychological outcomes are important for negotiations. Despite the economic advantages of having multiple issues to negotiate, inconsistencies exist between objective economic outcomes and negotiator satisfaction. Although having more negotiable issues yields better objective payoffs, it can result in more thoughts about different possible outcomes. Such counterfactual thoughts about different outcomes can reduce overall satisfaction due to increased cognitive complexity and thoughts about different outcomes. In this study, we explore how information technology can influence negotiator satisfaction and better manage counterfactual thoughts and post-negotiation satisfaction. Results support the prediction that having a computer aid to better manage cognitively complex issues, even a relatively simple one, reduces participants’ counterfactual thoughts about better possible outcomes. As a result, the use of some type of technology—even a simple technology such as a spreadsheet—may improve overall negotiator satisfaction, while maintaining desirable economic outcomes

Trust and Experience in Online Auctions

This paper aims to shed light on the complexities and difficulties in predicting the effects of trust and the experience of online auction participants on bid levels in online auctions. To provide some insights into learning by bidders, a field study was conducted first to examine auction and bidder characteristics from eBay auctions of rare coins. We proposed that such learning is partly because of institutional-based trust. Data were then gathered from 453 participants in an online experiment and survey, and a structural equation model was used to analyze the results. This paper reveals that experience has a nonmonotonic effect on the levels of online auction bids. Contrary to previous research on traditional auctions, as online auction bidders gain more experience, their level of institutional-based trust increases and leads to higher bid levels. Data also show that both a bidder’s selling and bidding experiences increase bid levels, with the selling experience having a somewhat stronger effect. This paper offers an in-depth study that examines the effects of experience and learning and bid levels in online auctions. We postulate this learning is because of institutional-based trust. Although personal trust in sellers has received a significant amount of research attention, this paper addresses an important gap in the literature by focusing on institutional-based trust

Examining the Impact of Information Technology on Healthcare Performance: A Theory of Swift and Even Flow (TSEF) Perspective

The impact of information technologies on manufacturing operations and performance is well established. However, scant research has been devoted to examining information technology (IT) investment among hospitals and how it influences patient care and financial performance. Using the lens of the Theory of Swift Even Flow (TSEF), we present an operations management-based perspective on the effect of IT in streamlining hospital operations. Specifically, we examined the role of IT on patient flow and its consequences for improved hospital efficiency and performance. Analysis of data from 567 U.S. hospitals shows that IT is associated with swift and even patient flow, which in turn is associated with improved revenues. Interestingly, we find that the improvement in financial performance is not at the expense of quality because we find similar effects of IT and patient flow in improvements in the quality of patient care. Further, we observed differential effects of swift flow and even flow on various measures of hospital performance. Although swift flow affects financial performance, even flow primarily affects quality performance. Taken together, they have a mutually reinforcing overall impact on hospital performance. The implications of these findings for hospital decision makers are that patient flow is an important mediating variable that is affected by IT and can significantly affect the quality of patient care and financial performance

Understanding the Emotional and Informational Influence on Customer Knowledge Contribution through Quantitative Content Analysis

Customer knowledge contribution is a vital source of business value. Existing studies paid limited attention to emotional influence on knowledge contribution. Drawing upon social support theory, this study attempts to elaborate the influence of emotional support and informational support on knowledge contribution of customers in a firm-hosted online community. Through quantitative content analysis including product feature extraction and sentiment analysis, we analyzed content data from 2318 users. A set of research hypotheses were tested via regression analysis of panel data. We found that informational support (information diagnosticity and source credibility) and emotional support (emotional consistency and emotional difference) significantly affect customer knowledge contribution. This study contributes to knowledge contribution literature by showing the emotional and informational influence, and provides insights for community managers

The Upside Of Showrooming: How Online Information Creates Positive Spill-Over For The Brick-And-Mortar Retailer

The ubiquitous nature of mobile internet devices (i.e., smartphones and tablet computers) has led to an increase of their use within the retail environment as a shopping assistive technology. Consumers use them for a variety of shopping-related tasks, the most significant of which is researching product information. The use of these devices has clearly impacted how consumers shop, but what is not clear is how these devices affect shopper satisfaction, trust in the retailer and subsequent shopper intentions. The purpose of this paper is to better understand these relationships and extend existing research on the use of mobile internet devices in the retail industry. Several hypotheses are offered, and survey data from a nationwide random sample of consumers tested the hypotheses using structural equation modeling. Results indicate that shoppers’ satisfaction and trust in an online information source creates a spill-over effect on satisfaction and trust towards the retailer. Additionally, retailer repatronage intentions increase as a result of this spill-over effect. Contributions to emerging mobile marketing literature and theory, managerial implications, and future research recommendations are discussed

Evaluation of Best Supportive Care and Systemic Chemotherapy as Treatment Stratified according to the retrospective Peritoneal Surface Disease Severity Score (PSDSS) for Peritoneal Carcinomatosis of Colorectal Origin

Background: We evaluate the long-term survival of patients with peritoneal carcinomatosis (PC) treated with systemic chemotherapy regimens, and the impact of the of the retrospective peritoneal disease severity score (PSDSS) on outcomes. Methods: One hundred sixty-seven consecutive patients treated with PC from colorectal cancer between years 1987-2006 were identified from a prospective institutional database. These patients either received no chemotherapy, 5-FU/Leucovorin or Oxaliplatin/Irinotecan-based chemotherapy. Stratification was made according to the retrospective PSDSS that classifies PC patients based on clinically relevant factors. Survival analysis was performed using the Kaplan-Meier method and comparison with the log-rank test. Results: Median survival was 5 months (95% CI, 3-7 months) for patients who had no chemotherapy, 11 months (95% CI, 6-9 months) for patients treated with 5 FU/LV, and 12 months (95% CI, 4-20 months) for patients treated with Oxaliplatin/Irinotecan-based chemotherapy. Survival differed between patients treated with chemotherapy compared to those patients who did not receive chemotherapy (p = 0.026). PSDSS staging was identified as an independent predictor for survival on multivariate analysis [RR 2.8 (95%CI 1.5-5.4); p < 0.001]. Conclusion: A trend towards improved outcomes is demonstrated from treatment of patients with PC from colorectal cancer using modern systemic chemotherapy. The PSDSS appears to be a useful tool in patient selection and prognostication in PC of colorectal origin

Which Online Channel Is Right? Online Auction Channel Choice for Personal Computers in the Presence of Demand Decay

Electronic commerce has become a viable marketing channel for many companies as they take advantage of the ease of electronic markets to move merchandise quickly and inexpensively. Researchers have investigated the use of an e-commerce channel in conjunction with traditional channels, but less research has been dedicated to choosing which e-commerce channel to use. In this study, we examine the choices made by Dell, a computer manufacturer, about whether to utilize their own proprietary auction site to sell computers or to use eBay, a popular and well-established third-party auction site, to move excess merchandise. We find that Dell receives a price premium over other vendors of Dell computers, and that DellAuction.com receives a price premium over eBay.com auctions. This price premium is drastically reduced as technology ages and is made obsolete by newer technology-based products. We further find that there is little to no price premium for extremely new technology, which is consistent with a contention that the online auction demand is so high for new technology that Dell cannot realize much of a price premium making a more popular third-party channel a more viable option

WEBVIEW: An SQL Extension for Joining Corporate Data to data Derived from the Web

Using SQL and database technology to seamlessly retrieve information from any corporate or external Web site

Modeling Attitude to Risk in Human Decision Processes: An Application of Fuzzy Measures

Several models of the human decision process have been proposed, classical examples of which are utility theory and prospect 11 theory. In recent times, the theory of fuzzy measures and integrals has emerged as an alternative meriting further investigation. Specifically, we are interested in the degrees of disjunction and conjunction and the veto and favor indices that represent the 13 tolerance measure of the decision maker. Though several theoretical expositions have appeared in contemporary literature, empirical studies applying these concepts to the realworld are scarce. In this paper,we adopt a model of strategic telecommunication investment 15 decisions from a research work involving a survey of executives. In our first study, we built fuzzy models corresponding to each individual decision maker and grouped the results based on the decision makers’ propensity to risk determined by their degrees of 17 disjunction.We then pooled the data sets from each group and analyzed the Shapley indices and the interaction effects. To contrast our approach to those of conventional nomothetic comparisons of decision policies, we grouped the decision makers based on a 19 clustering analysis of the individual linear regression models. For each cluster we pooled the data and analyzed the fuzzy measures learned from the data set. Our study not only serves as a demonstration of fuzzy measure analysis as a viable approach to studying 21 qualitative decision making but also provides useful methodological insights into applying fuzzy measures to strategic investment decisions under risk