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.

Comments

Innovation

Share

COinS
 
Jul 2nd, 12:00 AM

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.

When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.