Herding and Software Adoption: A Reexamination Based on Post-Adoption Software Discontinuance
Posted: 13 Dec 2018
Date Written: December 4, 2018
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
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