Herding and Software Adoption: A Reexamination Based on Post-Adoption Software Discontinuance

Posted: 13 Dec 2018

See all articles by Xia Zhao

Xia Zhao

University of Georgia

Jing Tian

School of Management, Fudan University

Ling Xue

Georgia State University

Date Written: December 4, 2018

Abstract

A salient phenomenon in software adoption is herding, i.e., users imitate others’ behavior without regard to their own information. The extant literature has investigated the issue of herding based on users’ initial adoption behavior. Herding can lead to post-adoption regret or dissatisfaction and consequently discontinuance of software usage. In this research, we use a unique data set on post-adoption discontinuance of app usage to revisit the herding issue in software adoption. We find that with the download of apps being controlled, a higher software ranking is associated with more post-adoption discontinuance of app usage, which empirically confirms the negative consequences of herding. Moreover, this association is stronger for apps with higher ratings, supporting the existence of social bias in app ratings. Our study also reveals a dual role of software complexity in herding. A higher level of app complexity may strengthen or weaken the association between app ranking and post-adoption discontinuance.

Keywords: Herding, software adoption, software discontinuance, informational cascades, software ranking, online rating, online reputation, software complexity, e-commerce

JEL Classification: C23; D82; L86; M21; M15; O33

Suggested Citation

Zhao, Xia and Tian, Jing and Xue, Ling, Herding and Software Adoption: A Reexamination Based on Post-Adoption Software Discontinuance (December 4, 2018). Available at SSRN: https://ssrn.com/abstract=3295792

Xia Zhao (Contact Author)

University of Georgia ( email )

610 S. Lumpkin St.
Benson C404
Athens, GA 30602
United States

Jing Tian

School of Management, Fudan University ( email )

Beijing West District Baiyun Load 10th
Shanghai, 100045
China

Ling Xue

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

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