Nurturing resource availability of ridesharing platforms by priming goal-oriented operational effectiveness

Avishek Lahiri, Orhan Bahadır Doğan and V. Kumar

Journal of Business Research, 2023, vol. 168, issue C

Abstract: Ridesharing platforms test incentive schemes with variable commissions where drivers are compensated proportionate to their inputs. The operational effectiveness implications of these incentives, however, remain largely unexplored. We test the differential effects of operational effectiveness parameters of drivers’ service quality, service failure, and monetary value on drivers’ referral and churn behaviors. At a process level, we demonstrate the beneficial effects of goal-oriented (versus informational) feedback on drivers’ monetary value and service performance outcomes. Further, we investigate the moderating role of drivers’ organizational justice perceptions on these relationships. Using exogenous data from a cluster-randomized field experiment with 1,698 ridesharing drivers across 8 cities, we show that goal-oriented feedback improves operational effectiveness parameters. Additionally, these parameters improve the platform’s resource availability with drivers’ higher referrals and lower churn. Comprehensively, platforms can derive benefits in operational effectiveness and resource availability by priming drivers using goal-oriented feedback in tandem with a variable commission.

Keywords: Ridesharing; Sharing economy; Platform economy; Operational effectiveness; Service quality; Goal-oriented feedback (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296323004800
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:168:y:2023:i:c:s0148296323004800

DOI: 10.1016/j.jbusres.2023.114121

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().