Paper Type
Complete
Paper Number
PACIS2026-1846
Description
Managing wait times is a critical challenge in service industries and firm revenue. Virtual queue services have emerged as a strategic solution enabling customers to reserve their place in line via mobile platforms. Despite their growing adoption, the broader spatial implications for surrounding local businesses remain underexplored. This study examines spillover effects of virtual queue adoption on nearby businesses using a difference-in-differences framework applied to 288 restaurants in Busan, South Korea. Drawing on time geography theory, we propose that virtual queues reconfigure consumer mobility during waiting periods, directing foot traffic toward surrounding establishments. Our results show that virtual queue adoption significantly increases sales in neighboring areas up to 950 meters away, substantially beyond the 300 meter range documented in prior literature. These spillovers primarily reflect competitive substitution across restaurant categories rather than complementary consumption. The findings offer insights for businesses and policymakers on how digital technologies reshape local economic activity.
Recommended Citation
Ju, Hyeonju; Han, Jin Soo; Kwon, Hyeokkoo Eric; and Lee, Gunwoong, "Spatial Spillover Effects of Virtual Queue Services on Local Businesses" (2026). PACIS 2026 Proceedings. 9.
https://aisel.aisnet.org/pacis2026/iot_smartcity/iot_smartcity/9
Spatial Spillover Effects of Virtual Queue Services on Local Businesses
Managing wait times is a critical challenge in service industries and firm revenue. Virtual queue services have emerged as a strategic solution enabling customers to reserve their place in line via mobile platforms. Despite their growing adoption, the broader spatial implications for surrounding local businesses remain underexplored. This study examines spillover effects of virtual queue adoption on nearby businesses using a difference-in-differences framework applied to 288 restaurants in Busan, South Korea. Drawing on time geography theory, we propose that virtual queues reconfigure consumer mobility during waiting periods, directing foot traffic toward surrounding establishments. Our results show that virtual queue adoption significantly increases sales in neighboring areas up to 950 meters away, substantially beyond the 300 meter range documented in prior literature. These spillovers primarily reflect competitive substitution across restaurant categories rather than complementary consumption. The findings offer insights for businesses and policymakers on how digital technologies reshape local economic activity.
Comments
10-IoT