Understanding the Determinants of Firms' Usage of A/B Testing: A Technology-Organization- Environment Framework

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Tengjian Zou, Fei Xiong, Sihan Li, Weiqi Zhang

2025 IEEE Transactions on Engineering Management Vol. 72 Article Cited by 5 Quartile

Abstract

A/B testing plays an essential role in driving firms' digital product innovation. However, it is astonishing that a majority of the firms around the world have not adopted A/B testing in their digital innovation process. Therefore, what factors can impact firms' usage of A/B testing in their digital product development becomes an important question that merits a deep investigation. To address this issue, in this article, we leverage a technology-organization-environment framework to investigate the specific technological, organizational, and environmental factors that can facilitate or hinder firms' usage of A/B testing. We also explore the mediation paths among these factors and the boundary conditions for these relationships. Based on our analyses of a sample of 555 firms in China, we find support for most of our hypotheses. Our study contributes to a growing literature on A/B testing and offers important implications for managers and policymakers in terms of how to advance firms' usage of A/B testing. © 1988-2012 IEEE.

Affiliations

Zhejiang University, School of Management, Hangzhou, 310058, China; INSEAD, Strategy Department, 138676, Singapore