Abstract
This study set out to investigate how personal user traits and behavior and information cues influence the acquisition of online information for actionable decisions. The relationship between personal traits (risk propensity and individual information absorptive capacity), behavioral factors (perceived risk and willingness-to-pay) and informational cues (scenario risk level) was examined by conducting an experiment with 125 mid-level managers. Participants were exposed to high- and low-risk scenarios, given the opportunity to consume free and fee-based competitive information sources, and asked to make a managerial decision. Results of the Willingness-to-Pay (WTP) for information sources indicate: (i) a significant correlation between the perceived risk and WTP, (ii) a significant correlation between the perceived risk and the number of competitive intelligence information items bought, (iii) individual absorptive capacity has high internal reliability, and (iv) investment risk propensity and individual information absorptive capacity did not influence WTP or willingness-to-consume competitive intelligence information. Informational cues rather than personal traits impact decision makers' WTP and willingness to-consume competitive intelligence information. This suggests that best practices should be developed for the use of online information sources in decision-making calibrated to the risk level. Risk level indication may also aid to avoid biases stemming from under- or overuse of information.
References
Andreou, A. N., & Bontis, N. (2007). A model for resource allocation using operational knowledge assets. The Learning Organization, 14(4), 345-374.10.1108/09696470710749272Search in Google Scholar
Ashton, W. B., & Stacey, G. S. (1995). Technical intelligence in business: Understanding technology threats and opportunities. International Journal of Technology Management, 10(1), 79-104.Search in Google Scholar
Azvine, B., Cui, Z., Nauck, D., & Majeed, B. (2006). Real time business intelligence for the adaptive enterprise. Paper presented at the 8th IEEE International Conference on Enterprise Computing, E-Commerce, and E-Services , San Francisco, CA. 29-39.10.1109/CEC-EEE.2006.73Search in Google Scholar
Baldwin, N. S., & Rice, R. E. (1997). Information-seeking behavior of securities analysts: Individual and institutional influences, information sources and channels and outcomes. Journal of the American Society for Information Science, 48(8), 674-693.10.1002/(SICI)1097-4571(199708)48:8<674::AID-ASI2>3.0.CO;2-PSearch in Google Scholar
Brouwer, R., Brander, L., & Van Beukering, P. (2008). “A convenient truth”: Air travel passengers’ willingness to pay to offset their CO 2 emissions. Climatic Change, 90(3), 299-313.10.1007/s10584-008-9414-0Search in Google Scholar
Calof, J., Arcos, R., & Sewdass, N. (2017). Competitive intelligence practices of european firms. Technology Analysis & Strategic Management, , 1-14.Search in Google Scholar
Chen, S. Y., Magoulas, G. D., & Dimakopoulos, D. (2005). A flexible interface design for web directories to accommodate different cognitive styles. Journal of the American Society for Information Science and Technology, 56(1), 70-83.10.1002/asi.20103Search in Google Scholar
Cho, J., & Lee, J. (2006). An integrated model of risk and risk-reducing strategies. Journal of Business Research, 59(1), 112-120.10.1016/j.jbusres.2005.03.006Search in Google Scholar
Choo, C. W. (1993). Environmental scanning: Acquisition and use of information by managers. Paper presented at the In ME Williams (Ed.), Annual Review of Information Science and Technology (Vol. 28),Search in Google Scholar
Choo, C. W., Detlor, B., & Turnbull, D. (2000). Web work: Information seeking and knowledge work on the world wide web. Dordecht, The Netherlands: Kluwer Academic Publishing.10.1007/978-94-015-9405-9Search in Google Scholar
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128-152.10.2307/2393553Search in Google Scholar
Comai, A., & Tena, J. (2007). Early warning systems for your competitive landscape. Competitive Intelligence Magazine, 10(3), 7-11.Search in Google Scholar
Dachraoui, K., Dionne, G., Eeckhoudt, L., & Godfroid, P. (2004). Comparative mixed risk aversion: Definition and application to self-protection and willingness to pay. Journal of Risk and Uncertainty, 29(3), 261-276.10.1023/B:RISK.0000046146.97495.9eSearch in Google Scholar
Delmas, M., Hoffmann, V. H., & Kuss, M. (2011). Under the tip of the iceberg: Absorptive capacity, environmental strategy, and competitive advantage. Business & Society, 50(1), 116-154.10.1177/0007650310394400Search in Google Scholar
Dervin, B. (2005). What methodology does to theory: Sense-making methodology as exemplar. In K. E. Fisher, S. Erdelez & L. (. F. ). McKechnie (Eds.), Theories of information behavior (pp. 25-30). Medford, New Jersey: Information Today.Search in Google Scholar
Desouza, K. C., & Evaristo, J. R. (2006). Project management offices: A case of knowledge-based archetypes. International Journal of Information Management, 26(5), 414-423.10.1016/j.ijinfomgt.2006.07.002Search in Google Scholar
Dillingham, I., Dykes, J., & Wood, J. (2012). Characterising locality descriptions in crowdsourced crisis information. Paper presented at the GIS Research UK 20th Annual Conference, Lancaster University, UK.Search in Google Scholar
Dishman, P. L., & Calof, J. L. (2008). Competitive intelligence: A multiphasic precedent to marketing strategy. European Journal of Marketing, 42(7/8), 766-785.10.1108/03090560810877141Search in Google Scholar
Fischhoff, B., & Kadvany, J. (2011). Risk: A very short introduction Oxford University Press.10.1093/actrade/9780199576203.001.0001Search in Google Scholar
Fisher, K. E., & McKechnie, L. (2005). Theories of information behavior. Medford, New Jersey: Information Today, Inc.Search in Google Scholar
Fleisher, C. S., & Blenkhorn, D. L. (2001). Managing frontiers in competitive intelligence Greenwood Publishing Group.Search in Google Scholar
Ford, N., Miller, D., & Moss, N. (2001). The role of individual differences in internet searching: An empirical study. Journal of the American Society for Information Science and Technology, 52(12), 1049-1066.10.1002/asi.1165Search in Google Scholar
Ford, N., Wilson, T., Foster, A., Ellis, D., & Spink, A. (2002). Information seeking and mediated searching. part 4. cognitive styles in information seeking. Journal of the American Society for Information Science and Technology, 53(9), 728-735.10.1002/asi.10084Search in Google Scholar
Forlani, D., Mullins, J. W., & Walker, O. C. (2002). New product decision-making: How chance and size of loss influence what marketing managers see and do. Psychology & Marketing, 19(11), 957-981.10.1002/mar.10046Search in Google Scholar
Frias-Martinez, E., Chen, S. Y., & Liu, X. (2007). Automatic cognitive style identification of digital library users for personalization. Journal of the American Society for Information Science and Technology, 58(2), 237-251.10.1002/asi.20477Search in Google Scholar
Gilad, B. (2004). Early warning: Using competitive intelligence to anticipate market shifts, control risk, and create powerful strategies. NY: Amacom.Search in Google Scholar
Gupta, A. K., & Govindarajan, V. (2000). Knowledge flows within multinational corporations. Strategic Management Journal, 21(4), 473-496.10.1002/(SICI)1097-0266(200004)21:4<473::AID-SMJ84>3.0.CO;2-ISearch in Google Scholar
Hanoch, Y., Johnson, J. G., & Wilke, A. (2006). Domain specificity in experimental measures and participant recruitment: An application to risk-taking behavior. Psychological Science, 17(4), 300-304.10.1111/j.1467-9280.2006.01702.xSearch in Google Scholar PubMed
Heinstrom, J. (2010). From fear to flow: Personality and information interaction. Oxford, UK: Chandos Publishing.10.1533/9781780630366Search in Google Scholar
Jones-Lee, M. (1974). The value of changes in the probability of death or injury. The Journal of Political Economy, 82(4), 835-849.10.1086/260238Search in Google Scholar
Keil, M., Tan, B. C., Wei, K., Saarinen, T., Tuunainen, V., & Wassenaar, A. (2000). A cross-cultural study on escalation of commitment behavior in software projects. Mis Quarterly, 24(2), 299-325.10.2307/3250940Search in Google Scholar
Knetsch, J. L., & Sinden, J. A. (1984). Willingness to pay and compensation demanded: Experimental evidence of an unexpected disparity in measures of value. The Quarterly Journal of Economics, 99(3), 507-521.10.2307/1885962Search in Google Scholar
Kuhlthau, C. C. (1993). A principle of uncertainty for information seeking. Journal of Documentation, 49(4), 339-355.10.1108/eb026918Search in Google Scholar
Lane, P. J., Koka, B. R., & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of Management Review, 31(4), 833-863.10.5465/amr.2006.22527456Search in Google Scholar
Maritz, R., & du Toit, A. (2018). The practice turn within strategy: Competitive intelligence as integrating practice. South African Journal of Economic and Management Sciences, 21(1), 14.10.4102/sajems.v21i1.2059Search in Google Scholar
Markovich, A., Efrat, K., & Raban, D. R. (2016). The impact of perceived quality of web information on information use and company performance: A knowledge-based view. Paper presented at the Euram 2016, Paris.Search in Google Scholar
Miller, K. M., Hofstetter, R., Krohmer, H., & Zhang, Z. J. (2011). How should consumers’ willingness to pay be measured? an empirical comparison of state-of-the-art approaches. Journal of Marketing Research, 48(1), 172-184.10.1509/jmkr.48.1.172Search in Google Scholar
Mitchell, V. (1999). Consumer perceived risk: Conceptualisations and models. European Journal of Marketing, 33(1/2), 163-195.10.1108/03090569910249229Search in Google Scholar
Nicholson, N., Soane, E., Fenton-O’Creevy, M., & Willman, P. (2005). Personality and domain-specific risk taking. Journal of Risk Research, 8(2), 157-176.10.1080/1366987032000123856Search in Google Scholar
Palmquist, R. A., & Kim, K. (2000). Cognitive style and on-line database search experience as predictors of web search performance. Journal of the American Society for Information Science, 51(6), 558-566.10.1002/(SICI)1097-4571(2000)51:6<558::AID-ASI7>3.0.CO;2-9Search in Google Scholar
Pennings, J. M., & Harianto, F. (1992). The diffusion of technological innovation in the commercial banking industry. Strategic Management Journal, 13(1), 29-46.10.1002/smj.4250130104Search in Google Scholar
Peterson, E. R., Rayner, S. G., & Armstrong, S. J. (2009). Researching the psychology of cognitive style and learning style: Is there really a future? Learning and Individual Differences, 19(4), 518-523.10.1016/j.lindif.2009.06.003Search in Google Scholar
Raban, D. R. (2007). User-centered evaluation of information: A research challenge. Internet Research, 17(3), 306-322.10.1108/10662240710758948Search in Google Scholar
Raban, D. R. (2008). The incentive structure in an online information market. Journal of the American Society for Information Science and Technology, 59(14), 2284-2295.10.1002/asi.20942Search in Google Scholar
Raban, D. R., & Mazor, M. (2013). The willingness to pay for information in digital marketplaces. Lecture Notes in Business Information Processing, 158, 267-277.10.1007/978-3-642-40823-6_21Search in Google Scholar
Regner, T., Barria, J. A., Pitt, J. V., & Neville, B. (2010). Governance of digital content in the era of mass participation. Electronic Commerce Research, 10(1), 99-110.10.1007/s10660-010-9043-3Search in Google Scholar
Rouach, D., & Santi, P. (2001). Competitive intelligence adds value:: Five intelligence attitudes. European Management Journal, 19(5), 552-559.10.1016/S0263-2373(01)00069-XSearch in Google Scholar
Savolainen, R. (2000). Incorporating small parts and gap-bridging: Two metaphorical approaches to information use. The New Review of Information Behaviour Research, 1(January), 35-50.Search in Google Scholar
Shampanier, K., Mazar, N., & Ariely, D. (2007). Zero as a special price: The true value of free products. Marketing Science, 26(6), 742.10.1287/mksc.1060.0254Search in Google Scholar
Sikkens, A. (2013). The joint influence of personality traits and individual absorptive capacity on innovation activities in SME’s. The Netherlands: University of Twente.Search in Google Scholar
Sitkin, S. B., & Pablo, A. L. (1992). Reconceptualizing the determinants of risk behavior. Academy of Management Review, 17(1), 9-38.10.5465/amr.1992.4279564Search in Google Scholar
Taylor, R. N., & Dunnette, M. D. (1974). Influence of dogmatism, risk-taking propensity, and intelligence on decision-making strategies for a sample of industrial managers. Journal of Applied Psychology, 59(4), 420-423.10.1037/h0037343Search in Google Scholar
ter Wal, A., Criscuolo, P., & Salter, A. (2011). Absorptive capacity at the individual level: An ambidexterity approach to external engagement. Paper presented at the DRUID 2011-INNOVATION, STRATEGY, and STRUCTURE-Organizations, Institutions, Systems and Regions, Copenhagen, Denmark.Search in Google Scholar
Tsai, W. (2001). Knowledge transfer in intraorganizational networks: Effects of network position and absorptive capacity on business unit innovation and performance. Academy of Management Journal, 44(5), 996-1004.10.2307/3069443Search in Google Scholar
Vilar, P., & Žumer, M. (2008). Perceptions and importance of user friendliness of IR systems according to users’ individual characteristics and academic discipline. Journal of the American Society for Information Science and Technology, 59(12), 1995-2007.10.1002/asi.20864Search in Google Scholar
Volberda, H., W., Foss, N. J., & Lyles, M. A. (2009). Absorbing the concept of absorptive capacity: How to realize its potential in the organization field.21(4), 931-951.Search in Google Scholar
Wang, P., Hawk, W. B., & Tenopir, C. (2000). Users’ interaction with world wide web resources: An exploratory study using a holistic approach. Information Processing & Management, 36(2), 229-251.10.1016/S0306-4573(99)00059-XSearch in Google Scholar
Zhang, L. (2006). Perspectives on the nature of intellectual styles. New York: Springer Publishing Company.Search in Google Scholar
© 2019 Daphne Ruth Raban et al., published by De Gruyter Open
This work is licensed under the Creative Commons Attribution 4.0 Public License.
