IDEAS home Printed from https://ideas.repec.org/a/spr/infsem/v14y2016i4d10.1007_s10257-014-0257-0.html
   My bibliography  Save this article

Designing and evaluating business process models: an experimental approach

Author

Listed:
  • Yuecheng Yu

    (Singapore Management University)

  • Alexander Pelaez

    (CUNY)

  • Karl R. Lang

    (CUNY)

Abstract

This paper presents an experimental approach to compare the performance of alternative business process designs. We use an example case of an electronic group buying setting to demonstrate how our approach can be applied in practice. More specifically, we chose a standard business process, the sales process as implemented on a group buying platform, to illustrate how a business process may be redesigned in order to better meet the needs of customers. For that purpose, we introduce a social technology feature to support cooperation among buyers in the sales process and then analyze the performance impact of the proposed business process redesign. We combine principles from design science and experimental economics to aid the business redesign process. To allow for an experimental evaluation in a controlled laboratory setting, we implement a simplified prototype model and an experimental electronic group-buying platform in the laboratory. We then employ the methods of experimental economics to generate process performance data and evaluate the effectiveness of the new process model design in the lab that can provide valuable insights to platform managers for redesigning the real-world system. We posit that combining the principles of design science and experimental economics offers researchers a useful and cost-effective method to systematically evaluate theoretical predictions about process model design.

Suggested Citation

  • Yuecheng Yu & Alexander Pelaez & Karl R. Lang, 2016. "Designing and evaluating business process models: an experimental approach," Information Systems and e-Business Management, Springer, vol. 14(4), pages 767-789, November.
  • Handle: RePEc:spr:infsem:v:14:y:2016:i:4:d:10.1007_s10257-014-0257-0
    DOI: 10.1007/s10257-014-0257-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10257-014-0257-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10257-014-0257-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rothschild, Michael, 1974. "Searching for the Lowest Price When the Distribution of Prices Is Unknown," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 689-711, July/Aug..
    2. Krishnan S. Anand & Ravi Aron, 2003. "Group Buying on the Web: A Comparison of Price-Discovery Mechanisms," Management Science, INFORMS, vol. 49(11), pages 1546-1562, November.
    3. Nelson Granados & Alok Gupta & Robert J. Kauffman, 2010. "Research Commentary---Information Transparency in Business-to-Consumer Markets: Concepts, Framework, and Research Agenda," Information Systems Research, INFORMS, vol. 21(2), pages 207-226, June.
    4. Mary R. Lind & Robert W. Zmud, 1991. "The Influence of a Convergence in Understanding Between Technology Providers and Users on Information Technology Innovativeness," Organization Science, INFORMS, vol. 2(2), pages 195-217, May.
    5. Vital Anderhub & Simon Gächter & Manfred Königstein, 2002. "Efficient Contracting and Fair Play in a Simple Principal-Agent Experiment," Experimental Economics, Springer;Economic Science Association, vol. 5(1), pages 5-27, June.
    6. Hammer, Michael & Champy, James, 1993. "Reengineering the corporation: A manifesto for business revolution," Business Horizons, Elsevier, vol. 36(5), pages 90-91.
    7. Michael Rothschild, 1974. "Searching for the Lowest Price When the Distribution of Prices Is Unknown: A Summary," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 3, number 1, pages 293-294, National Bureau of Economic Research, Inc.
    8. Smith, Vernon L, 1989. "Theory, Experiment and Economics," Journal of Economic Perspectives, American Economic Association, vol. 3(1), pages 151-169, Winter.
    9. Rasmusen Eric Bennett, 2006. "Strategic Implications of Uncertainty over One's Own Private Value in Auctions," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 6(1), pages 1-24, November.
    10. John D. Hey & Andrea Morone, 2018. "Do Markets Drive Out Lemmings—or Vice Versa?," World Scientific Book Chapters, in: Experiments in Economics Decision Making and Markets, chapter 21, pages 467-489, World Scientific Publishing Co. Pte. Ltd..
    11. Carol Collier Kuhlthau, 1999. "The role of experience in the information search process of an early career information worker: Perceptions of uncertainty, complexity, construction, and sources," Journal of the American Society for Information Science, Association for Information Science & Technology, vol. 50(5), pages 399-412.
    12. Xiaoqing Jing & Jinhong Xie, 2011. "Group Buying: A New Mechanism for Selling Through Social Interactions," Management Science, INFORMS, vol. 57(8), pages 1354-1372, August.
    13. Eric Overby, 2008. "Process Virtualization Theory and the Impact of Information Technology," Organization Science, INFORMS, vol. 19(2), pages 277-291, April.
    14. Bradley J. Ruffle, 2000. "Some factors affecting demand withholding in posted-offer markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 16(3), pages 529-544.
    15. repec:bla:econom:v:71:y:2004:i:284:p:637-659 is not listed on IDEAS
    16. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Han, Min Chung, 2023. "Checkout button and online consumer impulse-buying behavior in social commerce: A trust transfer perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    2. Xu Chen & Yingliang Wu & Rujie Zhong, 2021. "Research on Competitiveness of China’s Social Commerce Enterprises Based on Macro- and Micro-Niche," Sustainability, MDPI, vol. 13(1), pages 1-20, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dmitry Ryvkin & Danila Serra, 2016. "The Industrial Organization of Corruption: Monopoly, Competition and Collusion," Working Papers wp2016_10_01, Department of Economics, Florida State University.
    2. Ryvkin, Dmitry & Serra, Danila, 2020. "Corruption and competition among bureaucrats: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 439-451.
    3. De los Santos, Babur & Kim, In Kyung & Lubensky, Dmitry, 2018. "Do MSRPs decrease prices?," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 429-457.
      • Babur De los Santos & In Kyung Kim & Dmitry Lubensky, 2013. "Do MSRPs Decrease Prices?," Working Papers 2013-13, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    4. Kiyohiko G. Nishimura & Hiroyuki Ozaki, 2001. "Search under the Knightian Uncertainty," CIRJE F-Series CIRJE-F-112, CIRJE, Faculty of Economics, University of Tokyo.
    5. Keller, Godfrey & Novák, Vladimír & Willems, Tim, 2019. "A note on optimal experimentation under risk aversion," Journal of Economic Theory, Elsevier, vol. 179(C), pages 476-487.
    6. Zheng, Kaiming & Wang, Xiaoyuan & Ni, Debing, 2021. "Reciprocity information and wage personalization," China Economic Review, Elsevier, vol. 68(C).
    7. Dmitry Lubensky, 2017. "A model of recommended retail prices," RAND Journal of Economics, RAND Corporation, vol. 48(2), pages 358-386, May.
    8. Nuzzo, Simone & Morone, Andrea, 2017. "Asset markets in the lab: A literature review," Journal of Behavioral and Experimental Finance, Elsevier, vol. 13(C), pages 42-50.
    9. Laura J. Kornish & Karl T. Ulrich, 2011. "Opportunity Spaces in Innovation: Empirical Analysis of Large Samples of Ideas," Management Science, INFORMS, vol. 57(1), pages 107-128, January.
    10. Brown, David P., 2017. "New characterizations of increasing risk," Journal of Mathematical Economics, Elsevier, vol. 69(C), pages 7-11.
    11. David, Israel, 1998. "Explicit results for a class of asset-selling problems," European Journal of Operational Research, Elsevier, vol. 110(3), pages 576-584, November.
    12. Marianna Kudlyak & Damba Lkhagvasuren & Roman Susuyev, 2012. "Sorting by Skill over the Course of Job Search," Working Papers 12011, Concordia University, Department of Economics, revised 18 Apr 2012.
    13. Böheim, Renè & Horvath, Gerard Thomas & Winter-Ebmer, Rudolf, 2011. "Great expectations: Past wages and unemployment durations," Labour Economics, Elsevier, vol. 18(6), pages 778-785.
    14. Edward A. Baryla & Leonard V. Zumpano, 1995. "Buyer Search Duration in the Residential Real Estate Market: The Role of the Real Estate Agent," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 1-14.
    15. Amelie F. Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2017. "Reservation wages of first- and second-generation migrants," Applied Economics Letters, Taylor & Francis Journals, vol. 24(13), pages 945-949, July.
    16. Barrero, Jose Maria & Bloom, Nick & Davis, Steven J., 2020. "Why Working From Home Will Stick," SocArXiv wfdbe, Center for Open Science.
    17. Alexei Parakhonyak, 2014. "Oligopolistic Competition and Search Without Priors," Economic Journal, Royal Economic Society, vol. 0(576), pages 594-606, May.
    18. Annamaria Fiore & Andrea Morone, 2005. "Is playing alone in the darkness sufficient to prevent informational cascades?," Experimental 0503002, University Library of Munich, Germany.
    19. Martin Spann & Bernd Skiera & Björn Schäfers, 2005. "Reverse-Pricing-Verfahren und deren Möglichkeiten zur Messung von individuellen Suchkosten und Zahlungsbereitschaften," Schmalenbach Journal of Business Research, Springer, vol. 57(2), pages 107-128, March.
    20. Sjur Didrik Flåm & Alf Erling Risa, 2003. "Ability, Self-Confidence, and Search," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(3), pages 439-456, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:infsem:v:14:y:2016:i:4:d:10.1007_s10257-014-0257-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.