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Impatience Characteristics in Cloud-Computing-Services Procurement: Effects of Delay Horizon and Situational Involvement

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Abstract

Cloud computing has transformed the decision-making processes involved in the procurement of information-technology services. Not only has it brought about tremendous speed-ups to computing jobs, but also, the flexibility it provides in terms of availability and pricing options now enables a consumer to make trade-offs between price and time, based on the situation on-hand and the turnaround-time requirements. These price-time trade-offs have been studied in the behavioral-economic literature, but have not been considered formally in the procurement and the cloud-system bodies of literature. We fill this gap, by taking up the question of how the impatience characteristics of the procurer (and in turn his/her procurement decisions) get affected by two behavioral factors, namely, delay horizon and situational involvement. We test the model using a factorial experiment with 180 participants and find that impatience degree and type are affected by delay horizon and situational involvement. We discuss practical implications for a cloud-service provider, as well as implications for the intertemporal and IS literature.

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Notes

  1. For brevity, we will henceforth use cloud-service instead of cloud-computing-service.

  2. The literature is known as intertemporal choice or time-preference.

  3. Thaler (1981) describes the common-difference non-stationarity as: “a person might prefer one apple today to two apples tomorrow, but at the same time prefer two apples in 51 days to one apple in 50 days”.

  4. We recognize that what is given above is different from the results in other works (e.g., Kirby and Marakovic 1996; Benzion, et al. 1989; Hesketh 2000), the empirical results are different from what is given in the literature cited above. But, in the latter literature, the time frames are in years as compared to very short duration pertaining to cloud-services.

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Authors and Affiliations

  1. Indian Institute of Management Kashipur, Kashipur, Uttarakhand, 244713, India

    Venkataraghavan Krishnaswamy

  2. Indian Institute of Technology Madras, Sardar Patel Road, Chennai, Tamil Nadu, 600036, India

    R. P. Sundarraj

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  1. Venkataraghavan Krishnaswamy
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Krishnaswamy, V., Sundarraj, R.P. Impatience Characteristics in Cloud-Computing-Services Procurement: Effects of Delay Horizon and Situational Involvement. Group Decis Negot 28, 961–990 (2019). https://doi.org/10.1007/s10726-019-09629-2

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