Conference proceedings article
The Shifts of Fortune Test the Reliability of Friends – The Brittle Nature of Signal Reliability in Cloud Service Markets

Publication Details
Lins, S.; Schneider, D.; Benlian, A.; Sunyaev, A.
South Korea
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Proceedings of the Thirty Eighth International Conference on Information Systems (ICIS 2017)


Signaling theory has compellingly
demonstrated that embedding internet signals (i.e., web assurance seals, privacy
policies, consumer feedback) by cloud service providers can be considered as
credible indicators of provider’s attributes, thereby reducing uncertainties
and information asymmetries in cloud service markets. However, cloud service
providers are operating in a dynamic environment characterized by fast
technology life cycles, ongoing service improvements, and a steady emergence of
new environmental vulnerabilities. Those dynamics might threaten the long-term
reliability of embedded internet signals. We believe that traditional
assumptions of signaling theory might not be necessarily applicable to cloud
service markets, and thus try to investigate how signal reliability can be
ensured in the long run in dynamic environments. In particular, we argue that signal
reliability will decline over time as cloud service providers constantly have to
cope with emerging changes in the market environment resulting in a low
signaling fit or low signaler’s honesty.

Last updated on 2019-25-07 at 16:39

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