Search

Empowerment, creativity, and organizational memory are constructs that have been researched in MIS. While each construct has received individual attention, we have found relatively little research linking them. One of the major edicts of empowerment is delegation of decision making authority to lower-level employees. Increased authority allows employees more freedom to be creative. However, if creative thought is generated but not captured, innovative ideas may be lost. Organizational memory can capture creative ideas as they are generated so that empowered teams can draw upon positive creative experiences. We developed a theoretical model to illuminate the relationships between organizational memory, worker empowerment, and creativity. The model portrays the linkages between empowerment and creativity, creativity and organizational memory, and organizational memory and empowerment. The model was developed based on the literature in each respective area and an interview-based study concerning “empowered” systems development project teams and organizational memory. Analysis of the interview data revealed that empowered workers generate creative solutions to problems. However, creative solutions can only be used for future projects if they are somehow recorded into organizational memory. Organizations that empowered their workforce and embraced creativity reported increased customer satisfaction, waste reduction, and some quality gains. In contrast, those that did not empower reported little or no change. Organizations that recorded creative solutions to problems believe that retrieval of this information could be potentially useful for future projects. Potential challenges faced by organizations classified into each cell are also presented. This classification scheme should prove useful as a guide to organizations examining the potential benefits and pitfalls of worker empowerment and organizational memory.

Problem definition: Contrary to classic applications of matching theory, in most contemporary on-demand service platforms, matches can not be enforced because workers are flexible – they choose their tasks. Such flexibility makes it difficult to manage workers while keeping customers satisfied. We build a framework to compare platform matching policies with less flexible and more flexible workers, and empirically quantify by how much worker flexibility hurts customer satisfaction and customer equity. Academic/Practical relevance: In academic literature, there is no established framework that allows for the comparison of matching policies in on-demand platforms. Further, the link between worker flexibility and customer satisfaction is understudied. Methodology: We propose a tripartite framework for empirical evaluation and comparison of the operational policies with different degrees of worker flexibility. Step 1: Predictive modeling of customer satisfaction based on estimation of individual unobservable characteristics: customer difficulty and worker ability (item-response theory model). Step 2: Evaluation of the effect of matching policy (under a given level of flexibility) on customer satisfaction (bipartite matching). Step 3: Quantification of the associated monetary impact (customer lifetime value model). Results: We apply our framework to the dataset of one of the world's largest on-demand platforms for residential cleanings. We find that customer difficulty and cleaner ability are good predictors of customer satisfaction. Granting full flexibility to workers reduces customer satisfaction by 3% and customer lifetime revenue by 0.2%. We propose a family of matching policies that provide sufficient flexibility to workers, while alleviating 75% of the detrimental effect of worker flexibility on customer satisfaction. Managerial implications: Our results suggest that, in platforms with flexible workforce, the presence of worker and customer heterogeneity reduces customer satisfaction through matching inefficiency. Our empirical framework helps practitioners to decide on the right level of worker flexibility and the means for achieving it.