Informs Annual Meeting 2017

SB11

INFORMS Houston – 2017

SB11

4 - Putting a Dollar Sign to Retweets – How Startup External Social Capital Improves VC Funding Fujie Jin, Kelley School of Business, Indiana University, Bloomington, IN, Veeresh Thummadi This project looks at how startups can leverage external social capital from social media platforms to improve their VC funding outcomes. We focus on firm social media activities, to see whether retweets or mentions from investors and other established firms serve as quality signals to attract VC funding. Our findings suggest that external social capital from social media platforms provide another source of relevant information for venture capitalists funding decisions and that startups should employ social media strategies that enhance their external social capital on these platforms. 330B Supply Chain Management Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session Chair: Canan Savaskan, SMU Cox School of Business, Dallas, TX, 75275, United States, csavaskan@cox.smu.edu 1 - Enabling Healthcare Delivery through Vehicle Maintenance Li Chen, Cornell University, 321 Sage Hall, Ithaca, NY, 14853, United States, li.chen@cornell.edu, Sang-Hyun Kim, Hau Leung Lee Difficulties in healthcare delivery in developing economies arise from poor road infrastructure of rural communities, where the bulk of the population reside. Riders for Health, a nonprofit social enterprise, has developed specialized capabilities that enable significant enhancements in vehicle maintenance for healthcare delivery. The organization has engaged with the governments and provided its services using different contract schemes. In this paper we develop an analytical model based on reliability theory to compare the outcomes of these contracts, and relate the findings to data collected from a 2.5-year implementation by Riders for Health in Zambia. 2 - A Model of Interplay between Regulation, Time-to-Market, and Quality in New Drug Development Canan Savaskan, SMU. Cox School of Business, P.O. Box 750333, Dallas, TX, 75275, United States, csavaskan@cox.smu.edu, Vishal Ahuja In this paper, we study the interplay between Prescription Drug User Fee Act, firm choice of product innovation, FDA’s product review quality and the product time to market. While the FDA regulation on PDUFA has had positive impact on product approval times, the effect on final product quality has been mixed. IN this paper, using game theoretic modeling, we capture the impact of improved product review times on drug quality in the market. 3 - Optimizing Local Content Requirements under Technology Gaps Lauren Xiaoyuan Lu, University of North Carolina at Chapel Hill, Kenan-Flagler Business School, CB #3490, McColl Building, Chapel Hill, NC, 27599, United States, lauren_lu@unc.edu, Shiliang Cui We study how the government of a developing country optimizes its Local Content Requirement (LCR) policy to maximize social welfare in a setting where foreign OEMs produce and sell final products in the host country and the OEMs’ sourcing costs for components are higher from local suppliers than from global suppliers due to technology gaps. We characterize and compare the optimal product-level and component-level LCR policies imposed on multi-component products. Such policies have not been well studied in prior research but are practically relevant given that most real-world LCR policies regulate multi- component products. 4 - The Impact of Category Captainship on the Retail Competition Alper Nakkas, The University of Texas at Arlington, Arlington, TX, United States, alper.nakkas@novasbe.pt, Mumin Kurtulus Category captainship is a retailing practice where a retailer relies on a leading manufacturer (referred to as captain) on improving the category performance. This paper studies category captainship in the context of retail competition. We find that category captainship can be beneficial for not only the collaborating retailer but also for the competing retailer. SB10

332A Buyer Valuation Uncertainty Sponsored: Manufacturing & Service Oper Mgmt,

Service Operations Sponsored Session Chair: Rachel Rong Chen, University of California-Davis, Davis, CA, 95616, United States, rachen@ucdavis.edu Co-Chair: Jane Gu, University of Connecticut, jane.gu@uconn.edu 1 - When do Givers Take and Takers Give? Reciprocity Styles and Student Interaction on MOOCs Aravinda Garimella, University of Washington, Seattle, WA, United States, aravinda@uw.edu MOOCs are platforms of collaborative learning that heavily rely on student interaction. We show that students are heterogeneous in their reciprocity styles and identify three distinct styles. We show that incentives have different effects on students based on their intrinsic reciprocity styles. Our analysis is conducted on three years of daily interaction data between students on Khan Academy. 2 - Pricing Strategies under Service Competition and Uncertainty We analytically examine the service competition between two online retailers in the presence of consumers’ uncertainty. We consider the impact of online reviews on the profits of the parties in the channel and show their preferences toward agency and reselling models. 3 - Returns, Rebates and Restocking Fee Rachel Rong Chen, UC Davis, Davis, CA, United States, rachen@ucdavis.edu, Paolo Roma Buyers are often uncertain of the product valuation before their purchase. As a result, they might return the product to the retailer. This paper examines the possibility of using product rebates to deter consumer returns, and compare the effectiveness of rebates vs. restocking fee at reducing returns. 4 - Strategic Store Design in a Vertical Channel Jane Gu, University of Connecticut, Storrs, CT, United States, jane.gu@uconn.edu We investigate the strategic implications of a big retailer’s store organization when the retailer sells competing manufacturers’ products. We model consumers’ shopping behavior at the big retailer as a dynamic process of consideration set formation, and investigate how consumers’ consideration set evolves in the battle between a well-known manufacturer’s effort to induce consumers to search for its own product at the retailer’s store and the retailer’s effort to motivate consumers to search for other product alternatives through its store design. Our results show that the retailer has an incentive to withhold from improving store organization as long as its store is not poorly organized. Vashkar Ghosh, vashkar.ghosh@warrington.ufl.edu, Janice Ellen Carrillo, Kyung Sung Jung, Young Kwark

5 - Product Upgrades under Innovation Uncertainty Yiwei Wang, willwangyiwei@gmail.com, Shuya Yin, Vidyanand Choudhary

Firms constantly invest on the development of prospect technologies hoping to improve the performance. However, a potential risk is that the new technologies may be unstable and their performance could be inconsistent from time to time. This project aims to provide conditions under which firms should or should not adopt the prospect technology. These conditions are affected by a number of driving forces, such as the characteristics of the technologies and cost structures.

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