Elsevier

Decision Support Systems

Volume 63, July 2014, Pages 67-80
Decision Support Systems

Understanding the paradigm shift to computational social science in the presence of big data

https://doi.org/10.1016/j.dss.2013.08.008Get rights and content

Abstract

The era of big data has created new opportunities for researchers to achieve high relevance and impact amid changes and transformations in how we study social science phenomena. With the emergence of new data collection technologies, advanced data mining and analytics support, there seems to be fundamental changes that are occurring with the research questions we can ask, and the research methods we can apply. The contexts include social networks and blogs, political discourse, corporate announcements, digital journalism, mobile telephony, home entertainment, online gaming, financial services, online shopping, social advertising, and social commerce. The changing costs of data collection and the new capabilities that researchers have to conduct research that leverages micro-level, meso-level and macro-level data suggest the possibility of a scientific paradigm shift toward computational social science. The new thinking related to empirical regularities analysis, experimental design, and longitudinal empirical research further suggests that these approaches can be tailored for rapid acquisition of big data sets. This will allow business analysts and researchers to achieve frequent, controlled and meaningful observations of real-world phenomena. We discuss how our philosophy of science should be changing in step with the times, and illustrate our perspective with comparisons between earlier and current research inquiry. We argue against the assertion that theory no longer matters and offer some new research directions.

Introduction

With the rapid advances in technology, business interactions involving consumers and suppliers now generate vast amounts of information, which make it much easier to implement the kinds of data analytics that Gary Loveman, current CEO of Caesar's Entertainment, discussed in a 2003 Harvard Business Review article on data mining [70]. Today, this is referred to as the big data revolution in the popular press, and viewed as creating challenges and opportunities for business leaders and interdisciplinary researchers. The world's volume of data doubles every eighteen months, for example, and enterprise data are predicted to increase by about 650% over the next few years [45], [54]. Today, most firms have more data than they can handle, and managers recognize the potential for value, but the promise of big data still has not been realized, according to the leading academic [35], [78] and business media sources [38], [79].3 The potential arises from the use of data to support the way organizations operate and serve their stakeholders. A recent article in MIT Sloan Management Review [62] described the use of big data by an Atlanta-based public school, for example. High school graduation rates increased due to better-informed policy decisions that were based on the application of advanced analytics capabilities to student performance data. Likewise, organizations now are embedding analytics in their operations to support data-intensive strategies.

A recent McKinsey report has referred to big data as “data sets whose size is beyond the ability of typical database software tools to capture, store, manage, and analyze” [71].4 Such data come from everywhere: pictures and videos, online purchase records, and geolocation information from mobile phones. Big data are not just about sheer volume in terabytes though. Other important aspects have been emphasized in addition to volume, including variety, velocity and value [76]. Big data may be unstructured too: examples are text with social sentiments, audio and video, click streams, and website log files. Such data may flow in real-time streams for analysis, which can enable a firm to maximize business value by supporting business decisions in near to real-time. This new trend in decision support is evocative of what we saw in the 1990s with the emergence of data mining, and the new emphasis on data with a large number of dimensions and much higher complexity (e.g., spatial, multimedia, XML and Internet data). Most of the data sets were “one off” opportunities, rather than data that had become available due to systemic and technological advances.

Considerable challenges are present in the quest to capture the full potential of big data. The shortage of analytics and managerial talent is a significant and pressing problem, for example. CIO Magazine [72] and the Corporate Executive Board [79] have reported that it is difficult for firms to find the right people. The U.S. alone is reported to face a shortage of 140,000 to 190,000 people with deep analytical skills, as well as 1.5 million managers and analysts to make effective decisions [71]. (See Fig. 1.)

New perspectives in social science are now tracking the developments in big data. For example, computational organization science has broadened researchers' perspectives on social, organizational and policy systems, by adopting computational models that combine social science, computer science, and network science [22]. Other related developments have occurred, including the emergence of computational social science and e-social science [37], [63]. Computational social science involves interdisciplinary fields that leverage capabilities to collect and analyze data with an unprecedented breadth, depth, and scale. Computational modeling approaches now can predict the behavior of sociotechnical systems, such as human interactions and mobility, that were previously not studied with one-time snapshots of data for very many people [83]. We see a paradigm shift in scientific research methods — and one that prompts new directions for research. A useful perspective in this context is attributable to Runkel and McGrath [75], who characterized research methodologies based on three goals: generality, control and realism. They distinguished between their obtrusiveness and unobtrusiveness for the subjects of research.

With emerging collection techniques for big data sets, there seem to be fundamental changes that are occurring related to research methods, and the ways they can be applied too [58]. In e-business, for example, the contexts include social networks, blogs, mobile telephony, and digital entertainment. The new approaches we see are based on more advantageous costs of data collection, and the new capabilities that researchers have to create research designs that were hard to implement before. The research contexts include human and managerial decision-making, consumer behavior, operational processes, and market interactions. The result is a change in our ability to leverage research methodology to achieve control and precision in measurement, while maintaining realism in application and generality in theory development.

We will discuss the causes of the paradigm shift, and explore what it means for decision support and IS research, and more broadly, for the social sciences. How can we take advantage of big data in our research? What new perspectives are needed? What will the new research practices look like? What kinds of scientific insights and business value can they deliver in comparison to past research? And what research directions are likely to be especially beneficial for the production of new knowledge?

Section 2 reviews traditional methods for research and discusses the key factors that are creating the basis for a paradigm shift. Section 3 describes the new paradigm in the era of big data, and how it relates to decision support, IS and social science research. Section 4 assesses how the research has been changing, through the use of a set of specific comparisons between research that was conducted before and after the emergence of new methods associated with big data. Section 5 offers some new research directions, and section 6 concludes.

Section snippets

How are big data supporting a research paradigm shift?

The move to computational social science in the presence of big data involves a Kuhnian scientific paradigm shift [60]. We will provide a background on the traditions of research inquiry, and then examine the driving forces for the paradigm shift, and why access to large stores of data is speeding the process.

The new paradigm: computational social science with big data

We next discuss the details of the paradigm shift in research, as a by-product of the identified forces.

A comparison of examples of traditional and new paradigm research

A telltale indicator of the changes that are occurring is when we can identify research that introduces fresh research questions associated with longstanding problems and issues that can be studied in ways that were not possible before, and with new depth and insight from the findings. We next explore three representative areas of research that now involve the use of big data and analytics for business, consumer and social insights: Internet-based selling and pricing; social media and social

Research guidelines and practical considerations

We next discuss several new directions for research that have become possible.

Conclusion

The excitement is high around the new opportunities that big data make available in research. We have emphasized the importance in the role it plays to diminish the three-horned dilemma in computational social science research. This change is a paradigm shift that enables us to study a wider range of issues in time and context with unprecedented control and new real-world insights. Still, the challenges for conducting this kind of research are significant, as our discussion of practical

Acknowledgments

The ideas in this article were presented as they were developed at: the 2011 Workshop on E-Business in Shanghai, China; the 2012 International Conference on Information Management in Kaohsiung, Taiwan; the 2012 Wuhan International Conference on E-Business in China; the China University of Geoscience; and included as discussion papers for the 2012 Workshop on Analytics for Business, Consumer and Social Insights, and the 2012 International Conference on Electronic Commerce in Singapore. We

Ray M. Chang is a Research Scientist at the Living Analytics Research Centre, and an Adjunct Faculty in the School of Information Systems at Singapore Management University. He previously served as a Visiting Scholar at the Desautels Faculty of Management at McGill University in Montreal, Canada. He received his Ph.D. from Pohang University of Science and Technology in South Korea, and worked for several years as an R&D analyst and manager at SK Telecom. His research interests include business

References (90)

  • S. Athey et al.

    Position auctions with consumer search

    Quarterly Journal of Economics

    (2011)
  • S. Athey et al.

    A Structural Model of Sponsored Search Advertising Auctions

  • Y. Bakos et al.

    Bundling information goods: pricing, profits, and efficiency

    Management Science

    (1999)
  • Y. Bakos et al.

    Bundling and competition on the Internet

    Marketing Science

    (2000)
  • R. Bapna et al.

    Replicating online Yankee auctions to analyze auctioneers' and bidders' strategies

    Information Systems Research

    (2003)
  • R. Bapna et al.

    User heterogeneity and its impact on electronic auction market design: an empirical exploration

    MIS Quarterly

    (2004)
  • R. Bapna et al.

    Consumer surplus in online auctions

    Information Systems Research

    (2008)
  • S. Bhattacharjee et al.

    The effect of digital sharing technologies on music markets: a survival analysis of albums on ranking charts

    Management Science

    (2007)
  • R.S. Bivand et al.

    Applied Spatial Data Analysis with R

    (2008)
  • J.M. Box-Steffensmeier et al.

    Event History Modeling: A Guide for Social Scientists

    (2004)
  • D. Boyd

    Big data: opportunities for computational and social sciences, blog post, Danah Boyd Apophenia

  • J.J. Brown et al.

    Social ties and word-of-mouth referral behavior

    Journal Consumer Research

    (1987)
  • E. Brynjolfsson et al.

    Strength in numbers: how does data-driven decision-making affect firm performance?

  • E. Brynjolfsson et al.

    Race Against the Machine

    (2011)
  • A.C. Cameron et al.

    Regression Analysis for Count Data

    (2013)
  • D.T. Campbell et al.

    Experimental and Quasi-Experimental Designs for Research

    (1963)
  • K.M. Carley

    Computational organization science: a new frontier

    Proceedings of the National Academy of Sciences

    (2002)
  • B. Castellani et al.

    Sociology and Complexity Science: A New Field of Inquiry

    (2009)
  • R.K. Chellappa et al.

    Price formats as a source of price dispersion: a study of online and offline prices in the domestic U.S. airline markets

    Information System Research

    (2011)
  • H.C. Chen et al.

    Business intelligence and analytics: from big data to big impact

    MIS Quarterly

    (2012)
  • J. Chen et al.

    Auctioning keywords in online search

    Journal of Marketing

    (2009)
  • C.W. Churchman

    The Design of Inquiring Systems

    (1971)
  • E.K. Clemons et al.

    Price dispersion and differentiation in online travel: an empirical investigation

    Management Science

    (2002)
  • L.G. Cooper et al.

    Market Share Analysis: Evaluating Competitive Marketing Effectiveness

    (1988)
  • T.H. Davenport et al.

    Competing on Analytics: The New Science of Winning

    (2007)
  • C. Dellarocas et al.

    The sound of silence in online feedback: estimating trading risks in the presence of reporting bias

    Management Science

    (2008)
  • R. Dhar et al.

    The effect of forced choice on choice

    Journal Marketing Review

    (2003)
  • A. Dimoka et al.

    NeuroIS: the potential of cognitive neuroscience for Information Systems Research

    Information Systems Research

    (2011)
  • C. Doctorow

    Big data: welcome to the petacentre

    Nature

    (2008)
  • K.A. Duliba et al.

    Appropriating value from computerized reservation system ownership in the airline industry

    Organization Science

    (2001)
  • W.H. Dutton et al.

    Experience with new tools and infrastructures of research: an exploratory study of distance from, and attitudes toward e-research

    Prometheus

    (2009)
  • Economist, Data, Data Everywhere, Special Report on Managing, Information

    (February 25 2010)
  • B. Edelman et al.

    Internet advertising and the generalized second-price auction: selling billions of dollars worth of keywords

    The American Economic Review

    (2007)
  • A. Elberse

    Bye-bye bundles: the unbundling of music in digital channels

    Journal of Marketing

    (2010)
  • EMC Data Science Community

    Data science revealed: a data-driven glimpse into the burgeoning new field, DataMiningBlog.com

  • Cited by (285)

    • ON THE EFFECTS OF INFORMATION ASYMMETRY IN DIGITAL CURRENCY TRADING

      2024, Electronic Commerce Research and Applications
    • Targeted delivery of T-cell agonists for enhancing immunotherapy

      2023, Journal of Drug Delivery Science and Technology
    View all citing articles on Scopus

    Ray M. Chang is a Research Scientist at the Living Analytics Research Centre, and an Adjunct Faculty in the School of Information Systems at Singapore Management University. He previously served as a Visiting Scholar at the Desautels Faculty of Management at McGill University in Montreal, Canada. He received his Ph.D. from Pohang University of Science and Technology in South Korea, and worked for several years as an R&D analyst and manager at SK Telecom. His research interests include business analytics and business intelligence, online social networks, open-source software communities, IT innovation and diffusion, and IT market strategy. His research appears in MIS Quarterly and Information Systems Research, with others across the IS, operations, and telecommunications fields.

    Robert J. Kauffman is a Lee Kuan Yew Faculty Fellow for Research Excellence, and Professor of Information Systems at the School of Information Systems at Singapore Management University. He also serves as Associate Dean for Research, and Deputy Director of the Living Analytics Research Center. He recently was a Distinguished Visiting Fellow at the Center for Digital Strategies of the Tuck School of Business, Dartmouth College. He has received awards in multiple disciplines for his research contributions.

    YoungOk Kwon is an Assistant Professor in the Division of Business Administration at the College of Economics and Business Administration, Sookmyung Women's University, Korea. She received the Ph.D. degree in Information and Decision Sciences from the Carlson School of Management, University of Minnesota. Her research interests include knowledge discovery and data mining, personalization technologies, business intelligence, and human decision-making. Her research has been published in IEEE Transactions on Knowledge and Data Engineering, IEEE Intelligent Systems, INFORMS Journal on Computing, and presented at a number of computer science and information systems conferences.

    1

    Tel.: + 65 6808 5227.

    2

    Tel.: + 65 6828 0929.

    View full text