Enhancing mobile data services performance via online reviews

• DOI: 10.1007/s10796-017-9763-1
• Publication Date: 2017-05-09T17:12:45Z
• Authors: Hua (Jonathan) Ye; Cecil Eng Huang Chua; Jun Sun
• Keywords: 0502 economics and business; 05 social sciences

The prevalence of portable computational devices like smartphones and tablets has increased the popularity and importance of mobile data services (MDS). However, the flood of new MDS in the market has caused hyper-competition among MDS providers and only a few of them profit. Past studies suggest that online reviews can help MDS providers gain market attention and provide information for improving MDS applications. As a result, MDS providers can leverage reviews to innovate and profit. However, little research has empirically investigated the influences of online reviews on MDS innovation and profitability. This paper studies MDS profitability (popularity) from two angles. We posit that one strategic advantage of certain MDS providers is their ability to rapidly innovate and that innovation inspiration can be derived from reviews ubiquitous in MDS download sites. Our results show that online reviews positively impact MDS popularity directly and indirectly via increasing MDS innovation.