TY - GEN
T1 - The app updating conundrum
T2 - 40th International Conference on Information Systems, ICIS 2019
AU - Gutt, Dominik
AU - Neumann, Jürgen
AU - Jabr, Wael
AU - Kundisch, Dennis
N1 - Funding Information:
In this paper we study a unique reputation update mechanism where app updating is tied with reputation resetting. Reputation mechanisms in online platforms have been credited as a source of success in online marketplaces (Luca 2016; Tadelis 2016). Centered around user reviews, these reputation mechanisms help reduce information uncertainty about purchases and became the focus of a long stream of research 1 This work has been partially supported by the German Research Foundation (DFG) within the Collaborative Research Center 901 “On-The-Fly Computing” under the project number 160364472-SFB901.
PY - 2020
Y1 - 2020
N2 - Given the importance of online reviews, digital platforms regularly redesign review systems to enhance platform performance. A unique platform governance aspect of the Apple App Store review system is their resetting of apps' overall ratings each time app developers release an update. This means that with each update apps have to rebuild their reputation from scratch. Using panel data from the Apple App Store, we analyze the effects of developers' updating behavior and of the rating resetting on subsequent app performance. Using an instrumental variable approach, we distinguish between feature and maintenance updates, and whether the app update is the developer's choice or driven by the platform. We find strong indications for divergent effects on app performance subject to the type of update and its source. This suggest that developers can use updating as a strategic instrument and that platform governance has an impact on the strategic importance of this instrument.
AB - Given the importance of online reviews, digital platforms regularly redesign review systems to enhance platform performance. A unique platform governance aspect of the Apple App Store review system is their resetting of apps' overall ratings each time app developers release an update. This means that with each update apps have to rebuild their reputation from scratch. Using panel data from the Apple App Store, we analyze the effects of developers' updating behavior and of the rating resetting on subsequent app performance. Using an instrumental variable approach, we distinguish between feature and maintenance updates, and whether the app update is the developer's choice or driven by the platform. We find strong indications for divergent effects on app performance subject to the type of update and its source. This suggest that developers can use updating as a strategic instrument and that platform governance has an impact on the strategic importance of this instrument.
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M3 - Conference contribution
AN - SCOPUS:85084711951
T3 - 40th International Conference on Information Systems, ICIS 2019
BT - 40th International Conference on Information Systems, ICIS 2019
PB - Association for Information Systems
Y2 - 15 December 2019 through 18 December 2019
ER -