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Discovering the Impact of Regulation Changes on Processes: Findings from a Process Science Study in Finance
Proceedings of the 59th Hawaii International Conference on System Sciences (2026)

Discovering the Impact of Regulation Changes on Processes: Findings from a Process Science Study in Finance

Antonia Wurzer, Sophie Hartl, Sandro Franzoi, Jan vom Brocke
This study investigates how regulatory changes, once embedded in a company's information systems, affect the dynamics of business processes. Using digital trace data from a European financial institution's trade order process combined with qualitative interviews, the researchers identified patterns between the implementation of new regulations and changes in process performance indicators.

Problem In highly regulated industries like finance, organizations must constantly adapt their operations to evolving external regulations. However, there is little understanding of the dynamic, real-world effects that implementing these regulatory changes within IT systems has on the execution and performance of business processes over time.

Outcome - Implementing regulatory changes in IT systems dynamically affects business processes, causing performance indicators to shift immediately or with a time delay.
- Contextual factors, such as employee experience and the quality of training, significantly shape how processes adapt; insufficient training after a change can lead to more errors, process loops, and violations.
- Different types of regulations (e.g., content-based vs. function-based) produce distinct impacts, with some streamlining processes and others increasing rework and complexity for employees.
- The study highlights the need for businesses to move beyond a static view of compliance and proactively manage the dynamic interplay between regulation, system design, and user behavior.
Process Science, Regulation, Change, Business Processes, Digital Trace Data, Dynamics
Education and Migration of Entrepreneurial and Technical Skill Profiles of German University Graduates
International Conference on Wirtschaftsinformatik (2025)

Education and Migration of Entrepreneurial and Technical Skill Profiles of German University Graduates

David Blomeyer and Sebastian Köffer
This study examines the supply of entrepreneurial and technical talent from German universities and analyzes their migration patterns after graduation. Using LinkedIn alumni data for 43 universities, the research identifies key locations for talent production and evaluates how effectively different cities and federal states retain or attract these skilled workers.

Problem Amidst a growing demand for skilled workers, particularly for startups, companies and policymakers lack clear data on talent distribution and mobility in Germany. This information gap makes it difficult to devise effective recruitment strategies, choose business locations, and create policies that foster regional talent retention and economic growth.

Outcome - Universities in major cities, especially TU München and LMU München, produce the highest number of graduates with entrepreneurial and technical skills.
- Talent retention varies significantly by location; universities in major metropolitan areas like Berlin, Munich, and Hamburg are most successful at keeping their graduates locally, with FU Berlin retaining 68.8% of its entrepreneurial alumni.
- The tech hotspots of North Rhine-Westphalia (NRW), Bavaria, and Berlin retain an above-average number of their own graduates while also attracting a large share of talent from other regions.
- Bavaria is strong in both educating and attracting talent, whereas NRW, the largest producer of talent, also loses a significant number of graduates to other hotspots.
- The analysis reveals that hotspot regions are generally better at retaining entrepreneurial profiles than technical profiles, highlighting the influence of local startup ecosystems on talent mobility.
Entrepreneurship, Location factors, Skills, STEM, Universities
Towards the Acceptance of Virtual Reality Technology for Cyclists
International Conference on Wirtschaftsinformatik (2025)

Towards the Acceptance of Virtual Reality Technology for Cyclists

Sophia Elsholz, Paul Neumeyer, and Rüdiger Zarnekow
This study investigates the factors that influence cyclists' willingness to adopt virtual reality (VR) for indoor training. Using a survey of 314 recreational and competitive cyclists, the research applies an extended Technology Acceptance Model (TAM) to determine what makes VR appealing for platforms like Zwift.

Problem While digital indoor cycling platforms exist, they lack the full immersion that VR can offer. However, it is unclear whether cyclists would actually accept and use VR technology, as its potential in sports remains largely theoretical and the specific factors driving adoption in cycling are unknown.

Outcome - Perceived enjoyment is the single most important factor determining if a cyclist will adopt VR for training.
- Perceived usefulness, or the belief that VR will improve training performance, is also a strong predictor of acceptance.
- Surprisingly, the perceived ease of use of the VR technology did not significantly influence a cyclist's intention to use it.
- Social factors, such as the opinions of other athletes and trainers, along with a cyclist's general openness to new technology, positively contribute to their acceptance of VR.
- Both recreational and competitive cyclists showed similar levels of acceptance, indicating a broad potential market, but both groups are currently skeptical about VR's ability to improve performance.
Technology Acceptance, TAM, Cycling, Extended Reality, XR
Designing Change Project Monitoring Systems: Insights from the German Manufacturing Industry
International Conference on Wirtschaftsinformatik (2025)

Designing Change Project Monitoring Systems: Insights from the German Manufacturing Industry

Bastian Brechtelsbauer
This study details the design of a system to monitor organizational change projects, using insights from an action design research project with two large German manufacturing companies. The methodology involved developing and evaluating a prototype system, which includes a questionnaire-based survey and an interactive dashboard for data visualization and analysis.

Problem Effectively managing organizational change is crucial for company survival, yet it is notoriously difficult to track and oversee. There is a significant research gap and lack of practical guidance on how to design information technology systems that can successfully monitor change projects to improve transparency and support decision-making for managers.

Outcome - Developed a prototype change project monitoring system consisting of surveys and an interactive dashboard to track key indicators like change readiness, acceptance, and implementation.
- Identified four key design challenges: balancing user effort vs. insight depth, managing standardization vs. adaptability, creating a realistic understanding of data quantification, and establishing a shared vision for the tool.
- Proposed three generalized requirements for change monitoring systems: they must provide information tailored to different user groups, be usable for various types of change projects, and conserve scarce resources during organizational change.
- Outlined eight design principles to guide development, focusing on both the system's features (e.g., modularity, intuitive visualizations) and the design process (e.g., involving stakeholders, communicating a clear vision).
Change Management, Monitoring, Action Design Research, Design Science, Industry
Bias Measurement in Chat-optimized LLM Models for Spanish and English
International Conference on Wirtschaftsinformatik (2025)

Bias Measurement in Chat-optimized LLM Models for Spanish and English

Ligia Amparo Vergara Brunal, Diana Hristova, and Markus Schaal
This study develops and applies a method to evaluate social biases in advanced AI language models (LLMs) for both English and Spanish. Researchers tested three state-of-the-art models on two datasets designed to expose stereotypical thinking, comparing performance across languages and contexts.

Problem As AI language models are increasingly used for critical decisions in areas like healthcare and human resources, there's a risk they could spread harmful social biases. While bias in English AI has been extensively studied, there is a significant lack of research on how these biases manifest in other widely spoken languages, such as Spanish.

Outcome - Models were generally worse at identifying and refusing to answer biased questions in Spanish compared to English.
- However, when the models did provide an answer to a biased prompt, their responses were often fairer (less stereotypical) in Spanish.
- Models provided fairer answers when the questions were direct and unambiguous, as opposed to indirect or vague.
LLM, bias, multilingual, Spanish, AI ethics, fairness
Algorithmic Management: An MCDA-Based Comparison of Key Approaches
International Conference on Wirtschaftsinformatik (2025)

Algorithmic Management: An MCDA-Based Comparison of Key Approaches

Arne Jeppe, Tim Brée, and Erik Karger
This study employs Multi-Criteria Decision Analysis (MCDA) to evaluate and compare four distinct approaches for governing algorithmic management systems: principle-based, rule-based, risk-based, and auditing-based. The research gathered preferences from 27 experts regarding each approach's effectiveness, feasibility, adaptability, and stakeholder acceptability to determine the most preferred strategy.

Problem As organizations increasingly use algorithms to manage workers, they face the challenge of governing these systems to ensure fairness, transparency, and accountability. While several governance models have been proposed conceptually, there is a significant research gap regarding which approach is empirically preferred by experts and most practical for balancing innovation with responsible implementation.

Outcome - Experts consistently and strongly preferred a hybrid, risk-based approach for governing algorithmic management systems.
- This approach was perceived as the most effective in mitigating risks (like bias and privacy violations) while also demonstrating good adaptability to new technologies and high stakeholder acceptability.
- The findings suggest that a 'one-size-fits-all' strategy is ineffective; instead, a pragmatic approach that tailors the intensity of governance to the level of potential harm is most suitable.
- Purely rule-based approaches were seen as too rigid and slow to adapt, while purely principle-based approaches were considered difficult to enforce.
Algorithmic Management, Multi-Criteria Decision Analysis (MCDA), Risk Management, Organizational Control, Governance, AI Ethics
AI Agents as Governance Actors in Data Trusts – A Normative and Design Framework
International Conference on Wirtschaftsinformatik (2025)

AI Agents as Governance Actors in Data Trusts – A Normative and Design Framework

Arnold F. Arz von Straussenburg, Jens J. Marga, Timon T. Aldenhoff, and Dennis M. Riehle
This study proposes a design theory to safely and ethically integrate Artificial Intelligence (AI) agents into the governance of data trusts. The paper introduces a normative framework that unifies fiduciary principles, institutional trust, and AI ethics. It puts forward four specific design principles to guide the development of AI systems that can act as responsible governance actors within these trusts, ensuring they protect beneficiaries' interests.

Problem Data trusts are frameworks for responsible data management, but integrating powerful AI systems creates significant ethical and security challenges. AI can be opaque and may have goals that conflict with the interests of data owners, undermining the fairness and accountability that data trusts are designed to protect. This creates a critical need for a governance model that allows organizations to leverage AI's benefits without compromising their fundamental duties to data owners.

Outcome - The paper establishes a framework to guide the integration of AI into data trusts, ensuring AI actions align with ethical and fiduciary responsibilities.
- It introduces four key design principles for AI agents: 1) Fiduciary alignment to prioritize beneficiary interests, 2) Accountability through complete traceability and oversight, 3) Transparent explainability for all AI decisions, and 4) Autonomy-preserving oversight to maintain robust human supervision.
- The research demonstrates that AI can enhance efficiency in data governance without eroding stakeholder trust or ethical standards if implemented correctly.
- It provides actionable recommendations, such as automated audits and dynamic consent mechanisms, to ensure the responsible use of AI within data ecosystems for the common good.
Data Trusts, Normative Framework, AI Governance, Fairness, AI Agents
Generative AI Value Creation in Business-IT Collaboration: A Social IS Alignment Perspective
International Conference on Wirtschaftsinformatik (2025)

Generative AI Value Creation in Business-IT Collaboration: A Social IS Alignment Perspective

Lukas Grützner, Moritz Goldmann, Michael H. Breitner
This study empirically assesses the impact of Generative AI (GenAI) on the social aspects of business-IT collaboration. Using a literature review, an expert survey, and statistical modeling, the research explores how GenAI influences communication, mutual understanding, and knowledge sharing between business and technology departments.

Problem While aligning IT with business strategy is crucial for organizational success, the social dimension of this alignment—how people communicate and collaborate—is often underexplored. With the rapid integration of GenAI into workplaces, there is a significant research gap concerning how these new tools reshape the critical human interactions between business and IT teams.

Outcome - GenAI significantly improves formal business-IT collaboration by enhancing structured knowledge sharing, promoting the use of a common language, and increasing formal interactions.
- The technology helps bridge knowledge gaps by making technical information more accessible to business leaders and business context clearer to IT leaders.
- GenAI has no significant impact on informal social interactions, such as networking and trust-building, which remain dependent on human-driven leadership and engagement.
- Management must strategically integrate GenAI to leverage its benefits for formal communication while actively fostering an environment that supports crucial interpersonal collaboration.
Information systems alignment, social, GenAI, PLS-SEM
Exploring the Design of Augmented Reality for Fostering Flow in Running: A Design Science Study
International Conference on Wirtschaftsinformatik (2025)

Exploring the Design of Augmented Reality for Fostering Flow in Running: A Design Science Study

Julia Pham, Sandra Birnstiel, Benedikt Morschheuser
This study explores how to design Augmented Reality (AR) interfaces for sport glasses to help runners achieve a state of 'flow,' or peak performance. Using a Design Science Research approach, the researchers developed and evaluated an AR prototype over two iterative design cycles, gathering feedback from nine runners through field tests and interviews to derive design recommendations.

Problem Runners often struggle to achieve and maintain a state of flow due to the difficulty of monitoring performance without disrupting their rhythm, especially in dynamic outdoor environments. While AR glasses offer a potential solution by providing hands-free feedback, there is a significant research gap on how to design effective, non-intrusive interfaces that support, rather than hinder, this immersive state.

Outcome - AR interfaces can help runners achieve flow by providing continuous, non-intrusive feedback directly in their field of view, fulfilling the need for clear goals and unambiguous feedback.
- Non-numeric visual cues, such as expanding circles or color-coded warnings, are more effective than raw numbers for conveying performance data without causing cognitive overload.
- Effective AR design for running must be adaptive and customizable, allowing users to choose the metrics they see and control when the display is active to match personal goals and minimize distractions.
- The study produced four key design recommendations: provide easily interpretable feedback beyond numbers, ensure a seamless and embodied interaction, allow user customization, and use a curiosity-inducing design to maintain engagement.
Flow, AR, Sports, Endurance Running, Design Recommendations
Workarounds—A Domain-Specific Modeling Language
International Conference on Wirtschaftsinformatik (2025)

Workarounds—A Domain-Specific Modeling Language

Carolin Krabbe, Agnes Aßbrock, Malte Reineke, and Daniel Beverungen
This study introduces a new visual modeling language called Workaround Modeling Notation (WAMN) designed to help organizations identify, analyze, and manage employee workarounds. Using a design science approach, the researchers developed this notation and demonstrated its practical application using a real-world case from a manufacturing company. The goal is to provide a structured method for understanding the complex effects of these informal process deviations.

Problem Employees often create 'workarounds' to bypass inefficient or problematic standard procedures, but companies lack a systematic way to assess their impact. This makes it difficult to understand the complex chain reactions these workarounds can cause, leading to missed opportunities for innovation and unresolved underlying issues. Without a clear framework, organizations struggle to make consistent decisions about whether to adopt, modify, or prevent these employee-driven solutions.

Outcome - The primary outcome is the Workaround Modeling Notation (WAMN), a domain-specific modeling language designed to map the causes, actions, and consequences of workarounds.
- WAMN enables managers to visualize the entire 'workaround-to-innovation' lifecycle, treating workarounds not just as deviations but as potential bottom-up process improvements.
- The notation uses clear visual cues, such as color-coding for positive and negative effects, to help decision-makers quickly assess the risks and benefits of a workaround.
- By applying WAMN to a manufacturing case, the study demonstrates its ability to untangle complex interconnections between multiple workarounds and their cascading effects on different organizational levels.
Workaround, Business Process Management, Domain-Specific Modeling Language, Design Science Research, Process Innovation, Organizational Decision-Making
Systematizing Different Types of Interfaces to Interact with Data Trusts
International Conference on Wirtschaftsinformatik (2025)

Systematizing Different Types of Interfaces to Interact with Data Trusts

David Acev, Florian Rieder, Dennis M. Riehle, and Maria A. Wimmer
This study conducts a systematic literature review to analyze the various types of interfaces used for interaction with Data Trusts, which are organizations that manage data on behalf of others. The research categorizes these interfaces into human-system (e.g., user dashboards) and system-system (e.g., APIs) interactions. The goal is to provide a clear classification and highlight existing gaps in research to support the future implementation of trustworthy Data Trusts.

Problem As the volume of data grows, there is an increasing need for trustworthy data sharing mechanisms like Data Trusts. However, for these trusts to function effectively, the interactions between data providers, users, and the trust itself must be seamless and standardized. The problem is a lack of clear understanding and systematization of the different interfaces required, which creates ambiguity and hinders the development of reliable and interoperable Data Trust ecosystems.

Outcome - The study categorizes interfaces for Data Trusts into two primary groups: Human-System Interfaces (user interfaces like GUIs, CLIs) and System-System Interfaces (technical interfaces like APIs).
- A significant gap exists in the current literature, which often lacks specific details and clear definitions for how these interfaces are implemented within Data Trusts.
- The research highlights a scarcity of standardized and interoperable technical interfaces, which is crucial for ensuring trustworthy and efficient data sharing.
- The paper concludes that developing robust, well-defined interfaces is a vital and foundational step for building functional and widely adopted Data Trusts.
Data Trust, user interface, API, interoperability, data sharing
Gender Bias in LLMs for Digital Innovation: Disparities and Fairness Concerns
International Conference on Wirtschaftsinformatik (2025)

Gender Bias in LLMs for Digital Innovation: Disparities and Fairness Concerns

Sumin Kim-Andres¹ and Steffi Haag¹
This study investigates gender bias in large language models (LLMs) like ChatGPT within the context of digital innovation and entrepreneurship. Using two tasks—associating gendered terms with professions and simulating venture capital funding decisions—the researchers analyzed ChatGPT-4o's outputs to identify how societal gender biases are reflected and reinforced by AI.

Problem As businesses increasingly integrate AI tools for tasks like brainstorming, hiring, and decision-making, there's a significant risk that these systems could perpetuate harmful gender stereotypes. This can create disadvantages for female entrepreneurs and innovators, potentially widening the existing gender gap in technology and business leadership.

Outcome - ChatGPT-4o associated male-denoting terms with digital innovation and tech-related professions significantly more often than female-denoting terms.
- In simulated venture capital scenarios, the AI model exhibited 'in-group bias,' predicting that both male and female venture capitalists would be more likely to fund entrepreneurs of their own gender.
- The study confirmed that LLMs can perpetuate gender bias through implicit cues like names alone, even when no explicit gender information is provided.
- The findings highlight the risk of AI reinforcing stereotypes in professional decision-making, which can limit opportunities for underrepresented groups in business and innovation.
Gender Bias, Large Language Models, Fairness, Digital Innovation, Artificial Intelligence
Acceptance Analysis of the Metaverse: An Investigation in the Paper- and Packaging Industry
International Conference on Wirtschaftsinformatik (2025)

Acceptance Analysis of the Metaverse: An Investigation in the Paper- and Packaging Industry

First Author¹, Second Author¹, Third Author¹,², and Fourth Author²
This study investigates employee acceptance of metaverse technologies within the traditionally conservative paper and packaging industry. Using the Technology Acceptance Model 3, the research was conducted as a living lab experiment in a leading packaging company. The methodology combined qualitative content analysis with quantitative multiple regression modelling to assess the key factors influencing adoption.

Problem While major technology companies are heavily investing in the metaverse for workplace applications, there is a significant research gap concerning employee acceptance of these immersive technologies. This is particularly relevant for traditionally non-digital industries, like paper and packaging, which are seeking to digitalize but face unique adoption barriers. This study addresses the lack of empirical data on how employees in such sectors perceive and accept metaverse tools for work and collaboration.

Outcome - Employees in the paper and packaging industry show a moderate but ambiguous acceptance of the metaverse, with an average score of 3.61 out of 5.
- The most significant factors driving acceptance are the perceived usefulness (PU) of the technology for their job and its perceived ease of use (PEU).
- Job relevance was found to be a key influencer of perceived usefulness, while an employee's confidence in their own computer skills (computer self-efficacy) was a key predictor for perceived ease of use.
- While employees recognized benefits like improved virtual collaboration, they also raised concerns about hardware limitations (e.g., headset weight, image clarity) and the technology's overall maturity compared to existing tools.
Metaverse, Technology Acceptance Model 3, Living lab, Paper and Packaging industry, Workplace
Designing for Digital Inclusion: Iterative Enhancement of a Process Guidance User Interface for Senior Citizens
International Conference on Wirtschaftsinformatik (2025)

Designing for Digital Inclusion: Iterative Enhancement of a Process Guidance User Interface for Senior Citizens

Michael Stadler, Markus Noeltner, Julia Kroenung
This study developed and tested a user interface designed to help senior citizens use online services more easily. Using a travel booking website as a case study, the researchers combined established design principles with a step-by-step visual guide and refined the design over three rounds of testing with senior participants.

Problem As more essential services like banking, shopping, and booking appointments move online, many senior citizens face significant barriers to participation due to complex and poorly designed interfaces. This digital divide can lead to both technological and social disadvantages for the growing elderly population, a problem many businesses fail to address.

Outcome - A structured, visual process guide significantly helps senior citizens navigate and complete online tasks.
- Iteratively refining the user interface based on direct feedback from seniors led to measurable improvements in performance, with users completing tasks faster in each subsequent round.
- Simple design adaptations, such as reducing complexity, using clear instructions, and ensuring high-contrast text, effectively reduce the cognitive load on older users.
- The findings confirm that designing digital services with seniors in mind is crucial for creating a more inclusive digital world and can help businesses reach a larger customer base.
Usability for Seniors, Process Guidance, Digital Accessibility, Digital Inclusion, Senior Citizens, Heuristic Evaluation, User Interface Design
A Survey on Citizens' Perceptions of Social Risks in Smart Cities
International Conference on Wirtschaftsinformatik (2025)

A Survey on Citizens' Perceptions of Social Risks in Smart Cities

Elena Fantino, Sebastian Lins, and Ali Sunyaev
This study identifies 15 key social risks associated with the development of smart cities, such as privacy violations and increased surveillance. It then examines public perception of these risks through a quantitative survey of 310 participants in Germany and Italy. The research aims to understand how citizens view the balance between the benefits and potential harms of smart city technologies.

Problem While the digital transformation of cities promises benefits like enhanced efficiency and quality of life, it often overlooks significant social risks. Issues like data privacy, cybersecurity threats, and growing social divides can undermine human security and well-being, yet citizens' perspectives on these dangers are frequently ignored in the planning and implementation process.

Outcome - Citizens rate both the probability and severity of social risks in smart cities as relatively high.
- Despite recognizing these significant risks, participants generally maintain a positive attitude towards the concept of smart cities, highlighting a duality in public perception.
- The risk perceived as most probable by citizens is 'profiling', while 'cybersecurity threats' are seen as having the most severe impact.
- Risk perception differs based on demographic factors like age and nationality; for instance, older participants and Italian citizens reported higher risk perceptions than their younger and German counterparts.
- The findings underscore the necessity of a participatory and ethical approach to smart city development that actively involves citizens to mitigate risks and ensure equitable benefits.
smart cities, social risks, citizens' perception, AI ethics, social impact
Ensembling vs. Delegating: Different Types of AI-Involved Decision-Making and Their Effects on Procedural Fairness Perceptions
International Conference on Wirtschaftsinformatik (2025)

Ensembling vs. Delegating: Different Types of AI-Involved Decision-Making and Their Effects on Procedural Fairness Perceptions

Christopher Diebel, Akylzhan Kassymova, Mari-Klara Stein, Martin Adam, and Alexander Benlian
This study investigates how employees perceive the fairness of decisions that involve artificial intelligence (AI). Using an online experiment with 79 participants, researchers compared scenarios where a performance evaluation was conducted by a manager alone, fully delegated to an AI, or made by a manager and an AI working together as an 'ensemble'.

Problem As companies increasingly use AI for important workplace decisions like hiring and performance reviews, it's crucial to understand how employees react. Prior research suggests that AI-driven decisions can be perceived as unfair, but it was unclear how different methods of AI integration—specifically, fully handing over a decision to AI versus a collaborative human-AI approach—affect employee perceptions of fairness and their trust in management.

Outcome - Decisions fully delegated to an AI are perceived as significantly less fair than decisions made solely by a human manager.
- This perceived unfairness in AI-delegated decisions leads to a lower level of trust in the manager who made the delegation.
- Importantly, these negative effects on fairness and trust do not occur when a human-AI 'ensemble' method is used, where both the manager and the AI are equally involved in the decision-making process.
Decision-Making, Al Systems, Procedural Fairness, Ensemble, Delegation
The Value of Blockchain-Verified Micro-Credentials in Hiring Decisions
International Conference on Wirtschaftsinformatik (2025)

The Value of Blockchain-Verified Micro-Credentials in Hiring Decisions

Lyuba Stafyeyeva
This study investigates how blockchain verification and the type of credential-issuing institution (university vs. learning academy) influence employer perceptions of a job applicant's trustworthiness, expertise, and salary expectations. Using an experimental design with 200 participants, the research evaluated how different credential formats affected hiring assessments.

Problem Verifying academic credentials is often slow, expensive, and prone to fraud, undermining trust in the system. While new micro-credentials (MCs) offer an alternative, their credibility is often unclear to employers, and it is unknown if technologies like blockchain can effectively solve this trust issue in real-world hiring scenarios.

Outcome - Blockchain verification did not significantly increase employers' perceptions of an applicant's trustworthiness or expertise.
- Employers showed no significant preference for credentials issued by traditional universities over those from alternative learning academies, suggesting a shift toward competency-based hiring.
- Applicants with blockchain-verified credentials were offered lower minimum starting salaries, indicating that while verification may reduce hiring risk for employers, it does not increase the candidate's perceived value.
- The results suggest that institutional prestige is becoming less important than verifiable skills in the hiring process.
micro-credentials, blockchain, trust, verification, employer decision-making
Evaluating Consumer Decision-Making Trade-Offs in Smart Service Systems in the Smart Home Domain
International Conference on Wirtschaftsinformatik (2025)

Evaluating Consumer Decision-Making Trade-Offs in Smart Service Systems in the Smart Home Domain

Björn Konopka and Manuel Wiesche
This study investigates the trade-offs consumers make when purchasing smart home devices. Using a choice-based conjoint analysis, the research evaluates the relative importance of eight attributes related to performance (e.g., reliability), privacy (e.g., data storage), and market factors (e.g., price and provider).

Problem While smart home technology is increasingly popular, there is limited understanding of how consumers weigh different factors, particularly how they balance privacy concerns against product performance and cost. This study addresses this gap by quantifying which features consumers prioritize when making purchasing decisions for smart home systems.

Outcome - Reliability and the device provider are the most influential factors in consumer decision-making, significantly outweighing other attributes.
- Price and privacy-related attributes (such as data collection scope, purpose, and user controls) play a comparatively lesser role.
- Consumers strongly prefer products that are reliable and made by a trusted (in this case, domestic) provider.
- The findings indicate that consumers are willing to trade off privacy concerns for tangible benefits in performance and trust in the manufacturer.
Smart Service Systems, Smart Home, Conjoint, Consumer Preferences, Privacy
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