Paper Type
Short
Paper Number
1456
Description
We study how demand uncertainty influences the operating performance effects of two digital service portfolio design decisions —digital channel assortment size, and digitized service assortment size. We develop two hypotheses. First, we hypothesize that demand uncertainty strengthens the positive effect of digital channel assortment size on firm operating performance. Second, we hypothesize that demand uncertainty weakens the positive effect of digitized service assortment size on firm operating performance. We test our hypotheses using objective, archival, firm-level quarterly panel data of over 9500 firms in U.S. credit union industry across twenty-eight quarters in a seven-year timeframe. Our study contributes by uncovering the conditions under which demand uncertainty may manifest as a threat or an opportunity in a digital context. Our study highlights the importance of making appropriate decisions in the structural design of two elements of the digital service portfolio in the face of demand uncertainty.
Recommended Citation
Kathuria, Abhishek; Andrade, Mariana; Saldanha, Terence; and Konsynski, Benn, "Janus Redux: Designing Digital Service Portfolios in the Era of Uncertainty" (2024). PACIS 2024 Proceedings. 4.
https://aisel.aisnet.org/pacis2024/track05_dibusmod/track05_dibusmod/4
Janus Redux: Designing Digital Service Portfolios in the Era of Uncertainty
We study how demand uncertainty influences the operating performance effects of two digital service portfolio design decisions —digital channel assortment size, and digitized service assortment size. We develop two hypotheses. First, we hypothesize that demand uncertainty strengthens the positive effect of digital channel assortment size on firm operating performance. Second, we hypothesize that demand uncertainty weakens the positive effect of digitized service assortment size on firm operating performance. We test our hypotheses using objective, archival, firm-level quarterly panel data of over 9500 firms in U.S. credit union industry across twenty-eight quarters in a seven-year timeframe. Our study contributes by uncovering the conditions under which demand uncertainty may manifest as a threat or an opportunity in a digital context. Our study highlights the importance of making appropriate decisions in the structural design of two elements of the digital service portfolio in the face of demand uncertainty.
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