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ISSUES & OPINIONS

WHEN STATISTICAL SIGNIFICANCE IS NOT ENOUGH:


INVESTIGATING RELEVANCE, PRACTICAL SIGNIFICANCE,
1
AND STATISTICAL SIGNIFICANCE
Kaveh Mohajeri
IESEG School of Management, 3 rue de la Digue,
59000 Lille, FRANCE {k.mohajeri@ieseg.fr}

Mostafa Mesgari
College of Business Administration, Loyola Marymount University, 1 LMU Drive,
Los Angeles, CA 90045-2659 U.S.A. {mostafa.mesgari@lmu.edu}

Allen S. Lee
School of Business, Virginia Commonwealth University, 301 West Main Street,
Richmond, VA 23208-4000 U.S.A. {allenslee@alum.mit.edu}

The notions of significance and relevance have provoked much controversy and confusion among those who
conduct and those who are intended to be informed by quantitative research in the information systems (IS)
field. The history of quantitative research in the IS field and beyond reveals not only disputes over the
adequacy of statistical significance to warrant the scientific merits of research, but also pleas for drawing
attention to practical significance, as well as a lack of distinction between relevance and practical significance.
This essay offers a remedial, overarching account. We establish the position that statistical significance,
practical significance, and relevance are distinct qualities, where the latter two transcend mere statistical
concerns and respectively refer to the distinct matters of research impressiveness and real-world usefulness.
Furthermore, we draw attention to the importance of proper communication of quantitative/statistical analyses
through a detailed examination of published IS research. Our examination gives rise to three major issues.
The three issues are concerned with the proper communication of (1) research rigor, (2) practical significance,
and (3) research relevance. We express our opinions with respect to the three issues and provide a number
of recommendations.

Keywords: Research communication, rigor, relevance, nonacademic stakeholders, practical significance,


statistical significance

Introduction1 sion/factor analysis, to structural equation modeling (SEM),


and nowadays, to advanced data analytics. The practice of
Quantitative research has a long history in the information quantitative research, however, has remained vastly un-
systems (IS) field. The methods employed by quantitative IS changed over the course of the field’s history in terms of at
researchers have significantly evolved from simple regres- least one particular aspect: the quest for statistical signifi-
cance. Quantitative IS researchers, as with their peers in
many other social science fields, have been used to con-
1
Jason Thatcher was the accepting senior editor for this paper. Stacie Petter
sidering statistical significance a cornerstone of “scientific”
served as the associate editor. inference (e.g., Boudreau et al. 2001; Gefen et al. 2000;

DOI: 10.25300/MISQ/2020/13932 MIS Quarterly Vol. 44 No. 2 pp. 525-559/June 2020 525
Mohajeri et al./Investigating Relevance, Practical Significance, & Statistical Significance

Straub 2009; Straub et al. 2004). Nevertheless, the debates conceptual confusion concerning the three concepts of statis-
over the notion of statistical significance have long estab- tical significance, practical significance and relevance. For
lished that statistical significance has little, or nothing, to do instance, we searched for the usage of the term practical signi-
with scientific inference, and researchers need to change their ficance throughout the history of MIS Quarterly and found
perspective toward what statistical significance is and what it that, out of 24 papers and editorials mentioning the term, only
really indicates (e.g., Daniel 1977; Kirk 1998; Nickerson 10 papers2 use it in the context of statistical analysis and in
2000; Selvin 1957). In the IS field, the mere reliance on contrast to statistical significance, and the rest mostly use the
statistical significance and p-values has been seriously ques- term to imply the real-world usefulness of research in contrast
tioned as well, particularly over the past few years with the to its theoretical importance. On this basis, we believe there
increasing popularity of data analytics research, where the is still considerable misunderstanding in the IS community
issue described as “the deflated p-value problem” (Lin et al. with respect to such fundamental questions as: What does
2013, p. 907) has drawn much attention. The issue is that statistical significance have to do with scientific inference?
large datasets, which are common in data analytics research, What is practical significance? Why is reporting on practical
almost always lead to statistically significant p-values for significance a necessary practice in all forms of statistically
research results (e.g., Abbasi et al. 2016; George et al. 2014; conducted research (not merely data analytics)? What should
Lin et al. 2013; Müller et al. 2016). appropriate reporting on practical significance in a research
study look like? And, why does obtaining and reporting
There have been remedies suggested to address the situation research results bearing practical significance not necessarily
portrayed above. In particular, drawing on the concept of mean that a research study bears relevance to the real world?
practical significance (in contrast to statistical significance),
quantitative researchers have long been encouraged in many Against the outlined backdrop, the contribution that the cur-
disciplines (e.g., Chatfield 1995; Cohen 1977; Daniel 1977; rent essay makes is twofold. On the one hand, this essay
Fisher 1925; Kerlinger and Pedhazur 1973; Kirk 1996; offers illustrative, yet critical, material concerning the three
Nickerson 2000; Pearson 1900; Selvin 1957) to supplement, notions of statistical significance, practical significance and
if not replace, their reporting of statistical significance with relevance, all in one place, in order to clarify the conceptual
interpretations or judgments of the magnitude (and corre- distinctions among them for IS researchers. On the other
sponding confidence intervals) of their obtained research hand, the current essay advances a coherent account on the
results. In the IS field, this turn toward practical significance proper communication of practical significance and, espe-
is much more evident, again, over the past few years with the cially, research relevance, in the context of quantitative IS
prevalence of data analytics research. Based on long- research. In the next two sections, we make distinctions
established lessons from other disciplines, data analytics IS among the three concepts of statistical significance, practical
researchers are now strongly advised to convey the scientific significance and relevance in quantitative research, so that IS
merits of their research studies through giving, as much as researchers may consider this essay a reference point for their
possible, objective and clear presentations and interpretations understanding of the three concepts—including the distinction
of their obtained effect sizes, reporting confidence intervals, between relevance and practical significance. Next, we
and employing graphical charts (see Abbasi et al. 2016; Lin examine the extent to which practical significance and
et al. 2013; Müller et al. 2016). relevance have been considered in the published IS research.
Finally, in the fifth section, we discuss three major issues
Despite the seemingly positive developments in the IS litera- arising from our review of published IS research and highlight
ture with respect to encouraging quantitative researchers to go additional considerations and tasks that IS researchers must
beyond statistical significance, the observations we share in take into account as a part of modern, rigorous quantitative
the current essay indicate that the status-quo research practice, research practice.
widespread among quantitative IS researchers, is still far from
satisfactory. We observe that, in either the more traditional
statistical research involving comparatively small samples or
the recent data analytics research utilizing large samples, the
majority of IS research studies still tend to only focus on
reporting the statistical significance of the results. In other
words, the majority of IS research studies still delegate the 2
task of interpreting the magnitude of results to their academic Adams et al. (1992), Banerjee et al. (1998), Bapna et al. (2017); Brown and
Venkatesh (2005), Chan et al. (1993), Hong et al. (2013), Igbaria et al.
or nonacademic audience. In our view, this unpleasant situa- (1994), Kettinger et al. (1994), Petter et al. (2007), and Venkatesh and Morris
tion in quantitative IS research can be partially attributed to (2000).

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Some Background on Significance discernible5 (i.e., significant) in statistical terms. On this


and Relevance basis, one may tend to say that, in the history of statistics, the
notion of significance was initially and mainly perceived as
The work in this essay essentially revolves around two statistical significance.
general notions we consider to be pertinent to statistically
conducted IS research: significance3 and relevance.4 These Controversy around the notion of statistical significance is
two notions, however, have developed in two separate intel- almost as old as the notion itself (see Berkson 1938). Statis-
lectual traditions. On the one hand, the notion of significance tical significance has long been shown to be an inadequate
(covering both statistical significance and practical signi- measure for scientific reasoning and credibility due to a
ficance) has developed in the statistical school of thought variety of reasons. However, our aim here is not to bring in
exclusively concerning the quantitative results of statistical all the prolonged and detailed debates on the notions of
analyses. On the other hand, the notion of relevance, as far as statistical significance and null hypothesis significance testing
the management-school disciplines are concerned, has devel- (for a coherent account see Nickerson 2000). Yet, it is critical
oped in connection with much broader concerns regarding the for our purpose in this essay to emphasize a very fundamental
real-world usefulness of management research (including criticism of statistical significance. As explained by Kirk
research models, constructs, variables, and results)—where (1996), a major criticism is that statistical significance, and
research employing statistical analysis is only one form—both the procedure to establish it in statistically conducted
in practice and for society in general. We review the back- research, do not “tell researchers what they want to know” (p.
ground of these two notions in the following paragraphs. 747). According to Kirk (p. 747):

One major issue that led to the emergence of the notion of [N]ull hypothesis significance testing and scientific
significance was to address the issue that researchers con- inference address different questions. In scientific
ducting inferential statistical analysis had to make sure that inference, what we want to know is the probability
results induced from only a sample of a population are suffi- that the null hypothesis (H0) is true given that we
ciently reliable to show that hypothesized effects/relationships have obtained a set of data (D); that is, p(H0|D).
actually exist in the population. Although the idea of statis- What null hypothesis significance testing tells us is
tical significance tests dates back to the 1700s (see Hacking the probability of obtaining these data or more
1965), most of the developments happened in the early 1900s. extreme data if the null hypothesis is true, p(D|H0).
Fisher (1921, 1925) and Neyman and Pearson (1928) are
considered pioneers who worked out the underlying ideas, As Falk (1998) argues, p(H0|D) and p(D|H0) can be equal, but
concepts, and methods in order to enable researchers to show that happens only under rare mathematical conditions. There-
whether their reported results can be considered sufficiently fore, as Kirk (p. 747) explains:

Researchers reason incorrectly that if the p value


3
associated with a test statistic is suitably small, say,
Different forms of significance are discussed/envisaged in the literature
less than .05, the null hypothesis is probably false.
(e.g., economic significance or theoretical significance). However, in the
context of statistically conducted research, statistical significance and This form of deductive reasoning has been referred
practical significance are the only two forms of significance that have long to by Falk and Greenbaum (1995) as the “illusion of
been recognized and established among the majority of statisticians and those probabilistic proof by contradiction.”
who conduct quantitative research in many disciplines. Therefore, in the
current essay, we only focus on these two forms of significance.
In the IS field, reactions to the inadequacy of statistical signi-
4
In our view, the notion of relevance offers the general case of which some
ficance have emerged much more recently (e.g., Abbasi et al.
other notions such as clinical significance only represent a special form. In 2016; Lin et al. 2008, 2013; Müller et al. 2016; Shmueli and
particular, as for the notion of clinical significance (e.g., Campbell 2005; Koppius, 2011). What has triggered IS researchers to attend
Kazdin 1999; Thompson 2002), it is known that the notion “refers to the to the matter seems to stem chiefly from one of the classic
practical or applied value or importance of the effect of” (Kazdin 1999, p. criticisms of statistical significance, namely, the issue that
332) therapeutic interventions. To extrapolate to the world of IS research, we
know that not all forms of quantitative IS research involve real-world inter-
ventions. On the other hand, clinical significance, as conceived of in the
5
fields of counseling, medicine and clinical psychology, is merely associated This term comes from Wonnacott and Wonnacott (1984, pp. 259-261).
with the results of research, not the model(s) or variables employed in a Basically, the authors suggest that the term statistically significant be
research. On this basis, when it comes to the real-world usefulness of quan- replaced by statistically discernible. That is, a theorized difference (e.g.,
titative IS research, we prefer to adhere to the long established notion of between two means or between a particular value and zero) would be said to
relevance in order to offer a broad enough account on the matter. be statistically discernible through a sample.

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research results nearly always turn out to be statistically signi- In the IS field, as with many other disciplines, the effort to
ficant when the sample size is large enough (see Chatfield encourage researchers to address practical significance is
1995; Nickerson 2000). This classic criticism has drawn mainly focused on promoting the practice of reporting and
much attention in the IS field particularly because of the interpreting effect sizes (and their corresponding confidence
increasing prevalence of what is known as data analytics intervals)7 (e.g., Abbasi et al. 2016; Aguirre-Urreta and
research. In data analytics research, IS researchers usually Rönkkö 2018; Lee and Mohajeri 2012; Lin et al. 2013). This
exploit datasets—drawn from the web, social media, mobile was once described as “the effect size movement” (Robinson
devices, or sensor networks—that contain a huge number of et al. 2003, p. 51). For instance, in the case of large-sample
observations. Relying on very large sample sizes bears many studies in IS, Lin et al. (2013, p. 909)
advantages, but comes at the high price of encountering what
is termed the deflated p-value problem (see Lin et al. 2013). suggest that in addition to the traditional statistical
In other words, in research studies that employ large datasets, tests, researchers should, as much as possible, be
the p-values associated with research results can go quickly objective and clear in helping readers understand the
to zero, creating the illusion that the research results are scien- meaning of the coefficient estimates [i.e., effect size
tifically supported, while the magnitude of the research results values] within the study context.
may have no particular meaning or significance in research or
real-world terms. To do so, the authors discuss the utility of what they call
“marginal analysis,” through which the sensitivity of a depen-
Most of the remedies offered in the IS field and beyond with dent variable to changes in an independent variable may be
respect to the inadequacy of statistical significance revolve reported by researchers. The same kind of analysis is advo-
around another form of the notion of significance (i.e., cated by Lee and Mohajeri (2012). Furthermore, along the
practical significance). Historically speaking, along with same lines, Aguirre-Urreta and Rönkkö (2018) argue that IS
placing emphasis on the statistical discernibility of results, researchers should offer interpretations of their obtained
statisticians were also aware of another demanding issue of a research results (i.e., effect sizes and their corresponding con-
different nature: the research impressiveness6 of results. In fidence intervals) in terms of what those results mean for the
other words, researchers conducting inferential statistical literature under examination. However, as stated earlier, we,
analysis also had to make sure that the magnitude of their in this essay, make a contribution by distinguishing between
reported results are sufficiently impressive so that they could practical significance (i.e., research impressiveness of statis-
consider their hypothesized effects/relationships to actually tical results) and relevance (i.e., real-world usefulness of
matter in the research area they are concerned about. Kirk research and its results). In fact, despite what seems to be a
(1996) explains that Pearson (1900) and then Fisher (1925) major turn toward practical significance in the IS literature, it
were among the first to react to the issue of practical signifi- appears that what is referred to as practical significance in our
cance. In particular, field is vastly conflated with the notion of relevance (as
indicated in the “Introduction” section).
Fisher (1925) proposed that researchers supplement
the [statistical] significance test in analysis of Reviewing the background of the notion of relevance suggests
variance with the correlation ratio or eta, which that Koontz (1961) is perhaps one of the earliest works
measures the strength of the association between the reacting to the issue of usefulness of management research.
independent and dependent variables (Kirk 1996, p. Koontz, arguing for the clarification of management theory,
748). emphasized the usefulness and understandability that such
theory should have in the eyes of practitioners. Thirty two
Later reactions to this issue can also be identified in the years later, Hambrick (1994), in his Academy of Management
behavioral and educational literatures (e.g., Cohen 1977; presidential address,8 voiced substantially similar concerns,
Daniel 1977; Kerlinger and Pedhazur 1973), and the socio- criticized the minimal innovation, visibility, and impact of
logical literature (e.g., Selvin 1957), among others. management research, and called for making “a significant
contribution to the solution of major problems facing our

7
A full elaboration on effect size measures as offered in such fields as
6 statistics and psychology is beyond the scope of this essay. For a coherent
We acknowledge the fact that “in some cases effect sizes are most
impressive by being as small as possible” (Kelley and Preacher 2012, p. account on effect size measures see Breaugh (2003), Huberty (2002), Kelley
148). Therefore, we prefer to use the term impressiveness (as suggested by and Preacher (2012), and Vacha-Haase and Thompson (2004).
Kelley and Preacher 2012) in lieu of the term largeness, when referring to the
8
concept of practical significance. The presidential address was given in 1993.

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society and its value-creating enterprises” (p. 15). Concerns data to decide whether the effects are trivial or not.
for the usefulness or impact of management research are still It is a curious anomaly that researchers are trusted to
raised in the 21st century, where reports, such as one from the make a variety of complex decisions in the design
AACSB International (2008), draw our attention again to the and execution of an experiment, but in the name of
criticality of enhancing the value and visibility of manage- objectivity they are not expected to nor even encour-
ment scholarship and research. In the IS field, the most aged to decide whether the effects are practically
notable works on the notion of relevance, in our view, are the significant.
1999 MIS Quarterly essays on “rigor vs. relevance” where IS
scholars provide their own definitions of the concept of On the other hand, in accordance with our review presented
relevance, argue for or against the lack of relevance in IS above, we attribute judgments about research relevance to
research, and recommend ways by which IS research rele- nonacademic research stakeholders. Nevertheless, there
vance could be improved. Prior to, and following, the 1999 seems to be a common perspective in the literature that does
MIS Quarterly discussion, we also have some invaluable not recognize the distinction between the two different types
works and commentaries such as the ones by Dennis (2001), of entities (i.e., academics vs. nonacademics) in relation to
Desouza et al. (2006), Hassan (2014), Robey and Markus making judgments about practical significance and relevance.
(1998), Rosemann and Vessey (2008), and Straub and Ang For instance, Aguinis et al. (2010), drawing on Vaske et al.
(2008, 2011). Although our review of the notion of relevance (2002), point out that “practical significance involves a value
in the IS literature shows maturation in the perspectives judgment made by the consumer of research” (p. 530). It is
developed on the notion over time (see Mohajeri and Leidner clear from Aguinis et al. that “the consumer of research” in
2017), we did not find any coherent account particularly fact refers to “practitioners” (see p. 530). Another example,
addressing relevance in the context of statistically conducted from the IS literature, is Lin et al. (2013), where the authors
research. indicate that the practical significance of research results
depends on the point of view of the general readership (i.e.,
The foregoing review supports our position that there exist nonacademics) of a research study (see p. 909). As men-
major distinctions among the concepts of statistical signi- tioned before, we see this as an opportunity for us to make a
ficance, practical significance and relevance. To better illus- contribution by making explicit the difference between
trate our contention, we highlight all the key distinctions relevance and practical significance.
among the three concepts in Table 1.
The last point, again on the distinction between practical
significance and relevance, is that there exists a tendency in
As demonstrated in Table 1, besides the fact that statistical
the literature (e.g., Kelley and Preacher 2012; Kirk 1996) to
significance, practical significance and relevance each refer
equate the research impressiveness of quantitative results with
to a different quality, it is clear based on our review that
the real-world usefulness of research or its results, and hence
whereas the first two concepts are only concerned with the
not to make a full distinction between practical significance
quantitative results of a particular form of research (i.e., statis-
and relevance. One might speculate this occurs, in part, due
tically conducted research), the third concept is concerned
to the fact that the relevance of the conceptual aspects (e.g.,
with research as a whole not just its results, whether that
research models, hypotheses, variables, etc.) of statistically
research is statistically conducted or not.
conducted research is often a taken-for-granted quality among
statisticians. On this basis, statisticians mostly presume that
To develop a more nuanced view on the distinction between the only remaining condition to achieve relevance for the
practical significance and relevance, another point we wish to entire research is to obtain impressive results. In the next
emphasize is the difference in the entities making judgments section, by illustrating the distinction between relevance and
about practical significance and relevance. As shown in practical significance, we indicate that such a presumption
Table 1, making judgments about practical significance falls can be questionable.
upon the shoulders of researchers. This can be inferred from
the effort statisticians have been historically making to scale
practical significance (e.g., certain thresholds specified for
small, medium, and large effects; see Cohen 1992; Kirk An Illustration of Relevance,
1996). Kirk (2001, p. 214) has a well-expressed statement in Practical Significance, and
this regard: Statistical Significance
I believe that researchers have an obligation to make In principle, a given academic study may bear any one, any
this kind of judgment. No one is in a better position two, or all three of the qualities of statistical significance,
than the researcher who collected and analyzed the practical significance and relevance (although a condition for

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Mohajeri et al./Investigating Relevance, Practical Significance, & Statistical Significance

Table 1. The Key Distinctions among Statistical Significance, Practical Significance and Relevance
Corresponding Quality Applicability Scope Primary Adjudicator
Researchers/
Statistical Significance Statistical Discernibility Only Quantitative Findings
Academic Audience
Researchers/
Practical Significance Research Impressiveness Only Quantitative Findings
Academic Audience
Research Findings
plus Practitioners/
Relevance Real-World Usefulness
Research Models/ Nonacademic Audience
Constructs/Variables

Figure 1. The Distinctions and Overlaps among Relevant, Practically Significant, and Statistically
Significant Research

academic publication has traditionally been that statistical X1: organizational role of BI user9
significance be present). This idea is illustrated in the Venn X2: length of BI user training
diagram shown as Figure 1. å: the error term

We use two running examples to illustrate different scenarios Region 1: The research study falls in Region 1 in Figure 1 if
where academic research studies would fall under the seven it has the profile shown in Table 2.
regions shown in the Venn diagram. Such an examination
also allows us to elaborate on the distinctions among statis- The scenario represented by Region 1 is useful for illustrating
tical significance, practical significance and relevance. that while research results can bear statistical significance,
practical significance, and relevance at the same time, the
Consider the following statistical model (Model A) posited in three qualities are in fact distinct in terms of what they refer
a study that a firm commissions researchers to conduct for the to.
purpose of investigating factors associated with the individual
proficiency in the usage of the firm’s business intelligence Regarding statistical significance, the research study reports
(BI) program. (We will later put forward an alternative, that the probability of obtaining results equal to, or more
Model B.) extreme than, â^1 and â^2 is very low (e.g., below 5%) “if there
[are] no factors operating but chance” (Nickerson 2000, p.
Model A: Y = â0 + â1 X1 + â2 X2 + å 263) and if the null hypothesis (H0) is true (Kirk 1996, pp.

Where:
Y: individual BI usage proficiency 9
X1 is a binary categorical variable with two possible values: 1 for mana-
gerial roles, and 0 for non-managerial roles.

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Table 2. The Profile of the Example Research Study in Region 1


The research is statistically significant because the p-values corresponding to the
T statistical significance ^ and â ^ are both small (p < .05).
estimated coefficients â 1 2

^ and â
The research is practically significant because the estimated coefficients â ^ have
1 2

T practical significance certain magnitudes to constitute what the researchers consider to be impressive effect
size values.
The research is relevant to the firm because:
• For the firm, “individual BI usage proficiency” is an understandable and noteworthy*
matter.
• For the firm, “organizational role of BI user” and “length of BI user training” are
T relevance
understandable and actionable factors.
• For the firm, the magnitudes of the research results corresponding to “organizational
role of BI user” and “length of BI user training” are satisfactory to make a difference
to its question of interest, which pertains to “individual BI usage proficiency.”

*This means that “individual BI usage proficiency,” for whatever reason, is a matter worth paying attention to from the firm’s perspective.

746-747; Nickerson 2000, p. 262). As indicated earlier, this Regarding Model A, the researchers conducting the statistical
probability, which is the measured level of statistical signi- study consider the research results to lack practical signi-
ficance, can be stated as p(D|H0), or what is commonly known ficance because the estimated coefficients â^1 and â^2 do not
as the p-value; here, it is the probability of obtaining results have magnitudes to constitute what the researchers consider
(D) equal to, or more extreme than, â^i if the null hypothesis to be impressive effect size values with regard to the
(H0) is true, where one null hypothesis is â1 = 0 and the other dependent variable.
is â2 = 0. In other words, the research study is ruling out
chance as a likely factor producing the values obtained for â^1 In this scenario, the firm nonetheless considers the research to
and â^2, so that the “organizational role of BI user” and the be relevant. Not only does the firm consider Model A to be
“length of BI user training” are most likely related to understandable and actionable, but also, despite the lack of
“individual BI usage proficiency.” In this way, the research what the researchers consider to be an impressive effect size
can be considered to have statistical significance. value, the firm deems the magnitude of research results corre-
sponding to “organizational role of BI user” and “length of BI
Regarding practical significance, the researchers consider the user training” to be satisfactory to make a difference to
magnitude of each of the estimated coefficients â^1 and â^2 to “individual BI usage proficiency.”
denote a sufficiently impressive effect size value for the
Regions 3 and 4: These two regions, which also apply Model
research also to claim practical significance.
A, involve reasoning similar to the reasoning just presented
for Regions 1 and 2. The full text of the reasoning pertaining
Regarding relevance, the firm deems the magnitude of the
to Regions 3 and 4 can be found in Appendix A.
research findings corresponding to “organizational role of BI
user” and “length of BI user training” to be satisfactory to
Now, as for illustrating the scenarios under the remaining
make a difference to “individual BI usage proficiency” and
regions in Figure 1, suppose that the research study hypothe-
overall considers the research model’s variables to be under-
sizes the following statistical model, Model B, in place of
standable, noteworthy, and actionable. Model A:
Region 2: The research study falls in Region 2 in Figure 1 if Model B: Y = â0 + â1 X1 + â2 X2 + å
it has the profile shown in Table 3.
Where:
The case of Region 2 illustrates the situation in which statis- Y: individual BI usage proficiency
tical significance and relevance can be present, even when X1: BI user’s age
practical significance is absent. X2: BI user’s gender
å: the error term

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Table 3. The Profile of the Example Research Study in Region 2


The research is statistically significant because the p-values corresponding to the
T statistical significance ^ and â ^ are both small (p < .05).
estimated coefficients â 1 2
^ and â
The research is not practically significant because the estimated coefficients â ^
1 2
X practical significance do not have magnitudes to constitute what the researchers consider to be impressive
effect size values.
The research is relevant to the firm because:
• For the firm, “individual BI usage proficiency” is an understandable and
noteworthy matter.
• For the firm, “organizational role of BI user” and “length of BI user training” are
T relevance understandable and actionable factors.
• For the firm, the magnitudes of the research results corresponding to “organiza-
tional role of BI user” and “length of BI user training” are satisfactory to make a
difference to its question of interest, which pertains to “individual BI usage
proficiency.”

Table 4. The Profile of the Example Research Study in Region 5


The research is statistically significant because the p-values corresponding to the
T statistical significance ^ and â ^ are both small (p < .05).
estimated coefficients â 1 2
^ and â
The research is practically significant because the estimated coefficients â ^
1 2
T practical significance have certain magnitudes to constitute what the researchers consider to be impressive
effect size values.
The research is not relevant.

The firm does not consider the factors, indicated by the independent variables, to be
X relevance
actionable. Specifically, the firm does not consider it feasible to change an em-
ployee’s age or gender, or consider it ethical to select an employee based on age or
gender.

Region 5: The research study, which involves Model B, falls The scenario represented by Region 5 is helpful for demon-
in Region 5 in Figure 1 if it has the profile shown in Table 4. strating the fact that practically significant results do not
necessarily imply that research bears real-world usefulness or
Region 5 highlights the general situation where the commis- relevance. This fact goes against many definitions of practi-
sioned researchers have conducted research that yields cal significance offered in the statistics literature where the
statistically and practically significant results, but the research usefulness is assumed to unquestionably follow from the
involves a model (here, “individual BI usage proficiency” = practical significance of research results (e.g., Kirk 1996), or
â0 + â1 “BI user’s age” + â2 “BI user’s gender” + å) whose where real-world noteworthiness or actionability is assumed
relationships, variables, or parameters the firm does not to immediately follow from academic judgments on the
accept to be able to inform any action. In other words, even magnitude of results (e.g., Kelley and Preacher 2012).
if the research is statistically significant and practically signi-
ficant in the eyes of the researchers, the research can still lack Regions 6 and 7: These two regions, which also apply Model
relevance. In this scenario, the firm does not consider it B, involve reasoning similar to the reasoning just presented
feasible to change an employee’s age or gender, or consider for Region 5. The full text of the reasoning pertaining to
it ethical to select an employee based on age or gender. 10 Regions 6 and 7 can be found in Appendix A.

10
It is possible that a different firm could interpret the results differently. For
instance, a different firm might use the results to institute a training program, individual BI usage proficiency. Of course, the point remains that relevance,
targeting participants by age and gender, with the goal of enhancing their however construed, is a different matter from practical significance.

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The seven different regions in Figure 1 using two research academic stakeholder can use as action levers. For example,
models illustrate the differences among the concepts of statis- a statistical study establishing that telemedicine is beneficial
tical significance, practical significance and relevance. Two to patients can be considered relevant, even though the non-
points are worthy of some elaboration. academic stakeholder (a patient) has no control over the
presence or absence of the independent variable (tele-
The first point is that, across the seven regions, any determin- medicine).
ation of statistical significance, practical significance, and/or
relevance requires human judgment; there is no purely objec-
tive rule that can render the determination by itself. Even in
the case of statistical significance, the reliance on a level of The Consideration of Practical Signi-
significance of .05 or .01 is only a convention and, therefore, ficance and Relevance in Published
is itself only a judgment. As for practical significance, inter- IS Research
pretation of obtained effect sizes is a matter of human judg-
ment and also relies on convention. “Researchers study In the previous sections, we examined the concepts of sta-
varied phenomena using a plethora of paradigms and method- tistical significance, practical significance and relevance from
ologies” (Cortina and Landis, 2009, p. 306). Consequently, a theoretical standpoint in an effort to shed light on the dis-
depending on the context and research domain/design, there tinctions among them, as well as to explicate situations under
can certainly be situations where a small effect size can which research may bear any one, any two or all three of
denote a large practical impact and vice versa (e.g., see Hsieh them. However, when thinking of published research, a dis-
et al. 2012; Lewandowsky and Maybery 1998; Prentice and tinction needs to be made between whether a research study
Miller 1992; Rosenthal 1990; Rosenthal and Rubin 1979). On bears statistical significance, practical significance and rele-
this basis, factors such as population and sample size, the vance, on the one hand, and how the same research study
particular effect size measures involved, and the nature of the actually reports or communicates the statistical significance,
phenomenon in question, are in fact determinants of how the practical significance and relevance, on the other hand. For
magnitude of effect sizes obtained in a given research study instance, a research study could have yielded very large statis-
should be interpreted.11 Therefore, as Grissom and Kim tical results that are of practical significance, but the paper
(2005) state, “knowledge of a result’s effect size can [only] reporting that research might not consider and discuss the
inform a judgment about practical significance” (p. 4). More- practical significance of the research’s results at all. In this
over, not a convention but nonetheless requiring judgment light, we take an empirical stance in the current section in
across the seven regions are decisions made by the non- order to investigate the extent to which published IS research
academic stakeholder about relevance, namely, whether the considers and communicates the two critical qualities of prac-
dependent variable is understandable and noteworthy, tical significance and relevance. Our investigation is
whether the independent variables are understandable and primarily focused on all statistically conducted research
actionable, and whether the magnitudes of the associations published in MIS Quarterly in 2015, where published IS
between the latter and the former are satisfactory to make a research is well represented. The protocol we use to review
difference to their question of interest. the MIS Quarterly papers involves two steps. In the first step,
we present a bird’s-eye view of a total of 27 MIS Quarterly
The second point is that the seven regions are sufficient for papers published in 2015. The outcome of the first step is
illustrating the concepts of practical significance and rele- presented in Table 5 below. Then, in the second step, we pick
vance, but do not necessarily exhaust all possible cases or three papers (the ones shown with a gray background in Table
scenarios. For instance, the seven regions illustrate just one 5) reviewed during the first step in order to offer an in-depth
form of relevance, which we name “action lever” relevance. review of them, and to highlight pivotal lessons we have
We are referring to Robey and Markus (1998) who define learned from our review. In addition, we supplement, and
“action levers” as “factors that decision-makers can influence provide further support for the results of, our investigation
through direct action, example, or policy” (p. 13)—where the using randomly picked examples of research published in MIS
action levers are the independent variables. In addition, there Quarterly, Information Systems Research, and Journal of the
is at least one other form of relevance, which we name Association for Information Systems in 2016. Finally, we
“general” relevance; it is a quality of research that makes a provide extra evidence from the only identified review of the
difference to the nonacademic stakeholder’s question of communication of practical significance in published IS
interest even without any independent variables that the non-
research (i.e., Lin et al. 2013).

11
For interesting examples of small effect sizes that tell a “big story” and of As shown in Table 5, the 27 MIS Quarterly papers are evalu-
large effect sizes that do not, see Cortina and Landis (2009). ated in terms of seven aspects (i.e., seven columns) which we

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Table 5. The Consideration of Practical Significance and Relevance in MIS Quarterly 2015 Articles
The Consideration of
Practical Significance The Consideration of Relevance
Does the paper
indicate how its Does the
independent paper indicate
Does the paper (including how the
indicate how its moderating) magnitude of
dependent and mediating the RES w ould
Are there variables are variables are make a
Statistically Does the paper offer any separate paper relevant in the relevant in the difference in
Conducted Research judgment, w ith supporting sections on eyes of the eyes of the the eyes of the
Published in MISQ rationale, indicating W ho are the identified implications for identified identified identified
2015 w hether the RES are nonacademic nonacademic nonacademic nonacademic nonacademic
(Vol. 39) W hat are the reported effect sizes (RES)? practically significant? stakeholders? stakeholders? stakeholders? stakeholders? stakeholders?
Correlation Coefficients † , Total R≤, ÷≤,
Maruping and Magni Deviance, Path Coefficients, Indirect Effect No Managers Yes No No No
Coefficients
Managers, Industrial
Tian and Xu Regression Coefficients, Adj. R≤, Cohen’s ƒ≤ Only for Cohen’s ƒ≤ values Consortia, and Yes No No No
Policymakers
Only for one
Correlation Coefficients, Regression Only for one regression Health Policy Makers, IS
Salge et al. No No independent No
Coefficients, W ald ÷≤, R≤ coefficient Professionals
variable
Only for one
W ang et al. Regression Coefficients, Hazard Ratios No Security Managers Yes No Yes
hazard ratio
R≤, Path Coefficients, Cohen’s ƒ≤, Correlation Managers, Security
Johnston et al. No Yes No No No
Coefficients Managers
R 2pv , R 2pe , Regression Coefficients, AIC, Log-
Scherer et al. No Managers Yes No No No
Likelihood
Correlation Coefficients, Path Coefficients, R≤,
Park et al. ÷≤, ÷≤/df, NFI, CFI, RMSEA, AIC, Indirect Effect No Hospital Managers Yes No No No
Coefficients, Cohen’s ƒ≤
For the coefficients related
Vance et al. Direct Effect Coefficients, AIC, BIC Managers No No No No
to the research hypotheses
Correlation Coefficients, Regression
Faraj et al. No Firms No No No No
Coefficients, Log-Likelihood, W ald ÷≤
GFI, RMSEA, SRMR, CFI, NFI, TLI, Practitioners, Companies,
Hoehle and Venkatesh Correlation Coefficients, R≤, Unique Variance No Mobile Application Yes No No No
Explained, Path Coefficients Developers
Sykes Correlation Coefficients, R≤, Path Coefficients No Practitioners, Organizations Yes No No No
W u et al. R≤, Path Coefficients, Formative Item W eights No Managers Yes No No No
Correlation Coefficients, Regression Only for one regression Healthcare Policy Makers,
Gao et al. Yes Yes Yes No
Coefficients, R≤ coefficient Patients
Miranda et al. Correlation Coefficients, R≤ No Managers, Vendors Yes No No No
Executives, Firms,
RMSEA, AIC, BIC, CFI, TLI, R≤, SRMR, CD, ÷≤,
Iyengar et al. No Franchisees, and No No No No
Ä÷≤, Correlation Coefficients, Path Coefficients
Franchisors
Correlation Coefficients, Path Coefficients,
Only for two ÄCFI
Kankanhalli et al. Formative Item W eights, R≤, ÷≤, IFI, NNFI, CFI, Firms, Administrators Yes No No No
measurements
ÄCFI, RMSEA
Companies, W ebsite
Shen et al. Regression Coefficients, Log-Likelihood, R≤ No No No No No
Designers, Retailers
Path Coefficients, R≤, Correlation Coefficients, Organizations, HR
Armstrong et al. No No Yes Yes No
Cohen’s ƒ≤, VAF Managers, IS Professionals
Leonardi Regression Coefficients, fi≤, R≤, Adj. R≤ No None N/A N/A N/A N/A
Healthcare Organizations,
Healthcare Practitioners,
Yeow and Goh Regression Coefficients, ÷≤, Log-Likelihood No Yes No Yes No
Managers of Telemedicine
Systems
Regression Coefficients, Correlation Software Development
Ramasubbu et al. No Yes No No No
Coefficients, Adj. R≤, ÷≤ Organizations
Senior Business and IT
Sabherwal and Jeyaraj Regression Coefficients, R≤, Adj. R≤, ÄR≤ No Yes No No No
Executives
RMSEA, CFI, TLI, R≤, CD, ÷≤, ÷≤/df, Correlation
Boss et al. No Practitioners Yes No No No
Coefficients, Path Coefficients
Borrowers who use Peer-to-
Odds Ratio Coefficients, Pseudo R≤, Log-
Peer Lending Platforms,
Liu et al. Likelihood, W ald ÷≤, Adj. R≤, Correlation No No No No No
Peer-to-Peer Lending
Coefficients
Platforms
Correlation Coefficients, Regression
IT Executives and Sourcing
Rai et al. Coefficients, R≤, ÄR≤, Partial R≤, ÷≤, Log- No Yes No No No
Managers
Likelihood
Correlation Coefficients, Regression Venture Capital Industry,
Singh et al. No No No No No
Coefficients, Adj. R≤, Adj. R≤/Log-Likelihood Venture Capitalists
Regression Coefficients, W ald ÷≤, Odds Ratio University Administrators,
Han et al. Coefficients, Log-Likelihood, ÷≤, Nagelkerke No Campus Emergency No No No No
R≤, Mean Contrasts Managers
Yes: 65% No: 92% No: 81% No: 96%
Total: 27 No: 81% (22) None: 4% (1)
(17/26*) (24/26*) (21/26*) (25/26*)

†In our review of all the papers, we only considered the reported pairwise correlation coefficients between independent/mediating and dependent variables.
*Leonardi (2015) is not counted.

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believe are pertinent to the issues of practical significance and section or implications section. Based on curiosity, we
relevance. These seven aspects along with the results of our reviewed the MIS Quarterly papers to find out the per-
review are discussed in the following paragraphs. centage of papers which devote separate paper section(s)
to implications for nonacademic stakeholders. The result
1. What are the reported effect sizes (RES)? In order for a of our review indicates that 65% (17 out of 26) of articles
paper to consider the issue of practical significance, one contain separate paper sections covering the nonaca-
or more effect sizes must be stated in the first place. demic implications.
Following Kirk (1996) and Kelley and Preacher (2012),
we consider a broad range of statistical measures as 5. Does the paper indicate how its dependent variables are
effect size measures. This includes path/regression coef- relevant in the eyes of the identified nonacademic stake-
ficient, correlation coefficient, fit indices, measures of holders? We reviewed the MIS Quarterly papers to find
variance explained and so forth.12 According to Table 5, out the percentage of papers that offer content (e.g.,
all of the papers have reported effect sizes of at least two statements from interviews with nonacademic stake-
different types. holders) on how nonacademic stakeholders find the
papers’ dependent variables (as operationally defined
2. Does the paper offer any judgment, with supporting measured) relevant. Consistent with the conceptualiza-
rationale, indicating whether the RES are practically tion offered in the section with the Venn diagram illus-
significant? To merely report effect sizes, as captured by tration, we consider the relevance of a dependent variable
the first aspect, however, does not suffice if a paper to be concerned with the understandability and note-
intends to consider the issue of practical significance. As worthiness of the variable in the eyes of nonacademic
explained in the previous sections, researchers should research stakeholders. As seen in Table 5, despite the
offer judgments on the magnitude of effect sizes as well. fact that almost all of the papers target at least one non-
A quick look at Table 5 shows that, in fact, no paper academic stakeholder group and the majority of them
offers this kind of judgment with respect to all the effect devote separate paper sections to implications for non-
sizes that it reports. The table also shows that while 81% academic stakeholders, our review shows that 92% (24
of papers give no consideration to the issue of practical out of 26) of papers do not indicate how their dependent
significance at all, most of the remaining papers consider variables are relevant in the eyes of the identified non-
and discuss the issue of practical significance with regard academic stakeholders.
to only a small portion of their reported effect sizes.
6. Does the paper indicate how its independent (including
3. Who are the identified nonacademic stakeholders? In moderating) and mediating variables are relevant in the
order for a paper to consider the issue of relevance, one eyes of the identified nonacademic stakeholders? We
or more nonacademic research stakeholders should be included this aspect in order to find out the percentage of
identified in the paper in the first place. In our review of MIS Quarterly papers that offer content (e.g., statements
MIS Quarterly papers, we noticed that the vast majority from interviews with nonacademic stakeholders) on how
of papers (i.e., 96%) identify, and target, at least one nonacademic stakeholders find the papers’ independent
group of nonacademic stakeholders. (including moderating) and mediating variables (as
operationally defined/measured) relevant. Consistent
4. Are there separate paper section(s) on implications for with the conceptualization offered in the section with the
nonacademic stakeholders? The fact that almost all of Venn diagram illustration, we consider the relevance of
the papers we reviewed identify at least one nonacademic an independent/mediating variable to be concerned with
stakeholder should be viewed as a result of the editorial the understandability, and when appropriate, action-
policies in effect at MIS Quarterly (and also some other ability, of the variable in the eyes of nonacademic stake-
leading IS academic journals) which have established the holders. Actionability, as mentioned, was a contingent
expectation that IS research studies, including statisti- criterion in our review of the MIS Quarterly papers due
cally conducted ones, should identify one or more non- to the possibility of invoking a “general” relevance, as
academic stakeholders and provide some implications for opposed to an “action lever” relevance (see the section
them (e.g., see Straub and Ang, 2008, 2011; Te’eni et al. with the Venn diagram). Table 5 shows that, despite the
2015). These implications can be presented in separate fact that almost all of the papers target at least one non-
paper section(s), or can be part of a general discussion academic stakeholder group and the majority of them
devote separate paper sections to implications for non-
12
academic stakeholders, 81% (21 out of 26) of papers do
For an exhaustive record on effect size measures see Kelley and Preacher not indicate how their independent/mediating variables
(2012).

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are relevant in the eyes of the identified nonacademic factors” on the individual’s “perceived usefulness of hospital
stakeholders. information systems (HIS).” The authors also posit that the
aforementioned effect is moderated by the “individual’s
7. Does the paper indicate how the magnitude of the RES disaster experience” (i.e., whether a person has had an experi-
would make a difference in the eyes of the identified non- ence of natural or human-made disasters in the past when
academic stakeholders? Aspect 7 was another review working with an HIS). The individual’s “perceptions of
aspect we employed to examine the consideration of the sociotechnical safety factors” in fact is an umbrella term for
issue of relevance in the MIS Quarterly papers. What the three distinct independent variables that the study
motivated us to include this aspect was the recognition, incorporates “perceived system risk,” “perceived resilience”
as explained in all three preceding sections of this essay, and “perceived information assurance.”
that nonacademic stakeholders may have different judg-
ments compared to researchers on whether the magni- Park et al. administer three surveys: a survey distributed
tudes of effect sizes reported in a research study make among hospital personnel who have had an experience of a
any difference in real-world terms. Nonacademic stake- snowstorm in the past when working with an HIS (i.e., the
holders’ judgments can be different in part because they experience group), a second survey distributed among the
might consider other criteria, which may not be of same group of people but after showing them a message that
interest to researchers. For instance, nonacademic stake-
stimulated the personnel to recall the snowstorm they had
holders might apply a financial cost-benefit criterion,
experienced (i.e., the recall group), and finally, a survey
which may often have no place in the researchers’ inter-
among hospital personnel who had not experienced the
pretation of the practical significance of effect size
snowstorm (i.e., the no-experience group). Using the survey
measurements. Our review of the MIS Quarterly papers
data, Park et al. report many different types of effect sizes (as
suggests that, despite the fact that almost all of the papers
shown in Table 5). Primary among these effect sizes are path
target at least one nonacademic stakeholder group and
the majority of them devote separate paper sections to coefficients estimated using PLS, R2 measurements, and
implications for nonacademic stakeholders, 25 out of 26 varying types of statistical fit measurements.
papers (i.e., 96%) do not provide any content on the rele-
vance of the magnitude of their reported effect sizes. We will not summarize Park et al.’s entire analysis here, but
Only one paper provides such content, albeit only for one instead focus on some particular observations we have made
of the effect size measurements that the paper reports. in relation to the consideration of the issues of practical
significance and relevance.
What is presented so far is concerned with the overall profile
of the MIS Quarterly papers in terms of the consideration of It is clear that Park et al. offer a comprehensive and appro-
the issues of practical significance and relevance. A more in- priately conducted statistical analysis. Nevertheless, we argue
depth view however is needed to reveal the nuances of this that the authors could have made a much greater contribution
kind of consideration in the published IS research. For that to their research area of interest by addressing the practical
purpose, we selected the three papers shown with a gray back- significance of the results they have obtained. We found that,
ground in Table 5. This essay, however, is not intended to be, beyond simply reporting numerous effect sizes, the authors
and should not be taken as, a negative criticism of the three give no additional consideration to the issue of practical
excellent articles. In this essay, we are synthesizing ideas that significance. This is particularly evident when Park et al.
were not synthesized at the publication time of those papers; discuss their obtained path coefficients. The authors provide
therefore, it would not be reasonable to hold the authors of the statements such as “systems risk had negative effects on
three articles to the standards or criteria implied in a frame- perceived usefulness (â = -0.240, p < 0.001 and -0.160, p <
work that was not even proposed at the time of their research. 0.01)” (p. 331), or “the effect of perceived information
Rather, we regard these papers as providing a solid foundation assurance (H2) was also significant for the perceived
upon which to provide more details on the underlying logic resilience (â = 0.249, p < 0.001 and 0.318, p < 0.001) in both
we used to review the 27 MIS Quarterly papers, as well as to the experience and recall groups” (p. 331). In other words,
highlight some critical observations we have made. the authors merely draw attention to the sign and statistical
significance of the path coefficients, without providing any
interpretation of their own regarding the magnitude of those
The Case of Park, Sharman, and Rao coefficients. This of course does not necessarily mean that
the path coefficients obtained by Park et al. are not of prac-
The study by Park, Sharman, and Rao (2015) investigates the tical significance. The point we make here only is that the
effect of an individual’s “perceptions of sociotechnical safety authors, in their writing, could have addressed the issue of

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practical significance as well.13 Moreover, we notice that As the results of the present study show, perception
Park et al. (2015) in many places, including the second state- of the strength of information assurance increases
ment quoted above, use the term “significant” in an ambig- belief in resilience.
uous way, insofar as the term can connote an effect with
considerable magnitude, whereas what the authors actually The above quotations are examples highlighting the fact that
mean is a statistically significant effect. there was an opportunity for Park et al. to make references to
the magnitude of their obtained effect sizes in order to
With respect to the issue of relevance, our review suggests precisely specify why the factors they are concerned about are
that Park et al. target a highly-regarded nonacademic stake- actually important in the practice of managing hospitals, or
holder group (i.e., hospital managers). They well elaborate on why levels of increase/decrease in such factors can actually
the “practical implications” of their study for hospital make a difference in the eyes of hospital managers. Again,
managers in more than a full page. In the “practical impli- our intention here is not to imply that the study by Park et al.
cations” section, the authors legitimately argue that the is not relevant. The point is that, in order for the nonacademic
findings of their study “suggest that hospitals seeking to stakeholders (i.e., hospital managers) to acknowledge the
increase their successful HIS implementation may pursue” (p. novelty and importance of Park et al.’s paper, the authors
338) some strategies such as focusing “on managing em- could have considered and discussed the relevance of their
ployees’ attitudes toward and perceptions of risk and work in greater depth and specificity.14
resilience in a normal context” (p. 338), or adopting “one
process to enhance resilience, and a separate process to The above observations regarding the issues of practical
reduce perceived system risk” (p. 338). Nevertheless, the significance and relevance, however, are not unique to the
authors could have provided a much stronger basis for their Park et al.’s paper. We have made many similar observations
recommendations by indicating how the independent vari- of other MIS Quarterly papers also appearing in Table 5.
ables (i.e., “perceived system risk,” “perceived resilience,”
and “perceived information assurance”), upon which hospital
managers are encouraged to act, are understandable and The Case of Armstrong, Brooks,
actionable in their eyes in the first place. More importantly, and Riemenschneider
the authors could have indicated the empirical basis on which
they presume that their dependent variable of interest (i.e., the The second article we examine is by Armstrong, Brooks, and
research construct, “perceived usefulness of HIS”) is a matter Riemenschneider (2015). In their article, they draw attention
of interest or importance to, or even understandable by, to what they call an individual’s “exhaustion from IS career
hospital managers. On a side note, we argue that the rele- experience (EISCE)” and investigate its effect on what is
vance of the study by Park et al. would have been better called the individual’s “intention to turn away from an IS
established if the authors could have shown how, and at what career” (i.e., turn-away intention or TAI). Furthermore, Arm-
level, the magnitude of the effect sizes they obtained can strong et al. incorporate in their study four other independent
actually support assertions such as the following ones and variables as antecedents to EISCE. The variables are
make them important in the eyes of hospital managers. On “perceived workload” (PW), “career–family conflict” (CFC),
page 338, the authors state that: “fairness” (FAIR), and “control of career” (CTRL). The
authors also posit that the relationship between EISCE and
The findings of our studies suggest that employees’ TAI can be mediated by another variable called “affective
perceptions of risks and information assurance are commitment to the IS profession” (ACISP).
important not only for maintaining resilience and
effective operation of HIS, but also for facilitating In our view, Armstrong et al. present a very well-conducted
employees’ HIS related work. study. As shown in Table 5, the authors estimate and report
many types of effect sizes. The case of Armstrong et al.
Or, on the same page, the authors argue that: shows considerable similarity to the case of Park et al., where
the authors merely draw attention to the sign and/or statistical
significance of their obtained effect sizes. The case of Arm-
strong et al. is, however, useful for highlighting another prac-

13 14
In the “Discussion and Recommendations” section, we will demonstrate Again, in the “Discussion and Recommendations” section, we will
how Park et al. could have done a better job communicating the practical demonstrate how Park et al. could have done a better job communicating the
significance of their research findings. relevance of their research.

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tice we found common in our reviewed MIS Quarterly papers. implications of their research. In the “Discussion and Recom-
The practice is to offer interpretations, without solid sup- mendations” section, we demonstrate how this could have
porting rationales, of the magnitude of obtained effect sizes. been achieved in Armstrong et al.’s paper.
In our review of the MIS Quarterly papers, we did not count
such interpretations as adequate discussions of practical
significance. For instance, Armstrong et al. offer an interpre- The Case of Liu, Brass, Lu, and Chen
tation of the magnitude of one R2 measurement, which
corresponds to the TAI variable and has the magnitude of The study by Liu, Brass, Lu, and Chen (2015) examines the
0.555. Referring to this R2 measurement, Armstrong et al. effect of online/offline friendship relationships on lending
state that “the model had reasonable explanatory power decisions in a large peer-to-peer (P2P) lending website. The
accounting for just over half of the variance in TAI” (p. 720). authors’ main argument is that whether or not to offer a loan
Strictly speaking, this statement constitutes only a partial on P2P lending websites “is affected by the friendship
treatment of the issue of practical significance with respect to between the potential lender and the borrower (the pipe
the concerned R2 measurement. Although Armstrong et al. effect), by a bid from the borrower’s friend (the prism effect),
offer a judgment on the magnitude of the R2 measurement by and by a bid from the potential lender’s friend (the relational
using the term “reasonable,” which may connote “medium in herding effect)” (p. 730). The study by Liu et al. is distinct
size,” the authors do not provide any supporting rationale on from the previous two cases as it belongs to the growing body
why 0.555 might indicate a “reasonable explanatory power” of data analytics research in the IS field. The authors ob-
within the authors’ research domain/context. tained a large dataset from PPDai, one of the largest P2P
lending platforms in China. The dataset includes all the bid-
With regard to the issue of relevance, we notice that, different ding activities of more than 2,100 lenders, 7,800 borrowers,
from Park et al., Armstrong et al. do not devote a separate and 12,500 listings, and incorporates a total of 2,546,799
paper section to implications for nonacademic stakeholders. lending decisions.
However, we believe Armstrong et al. provide a better treat-
ment of the issue of relevance. The reason is that the authors Liu et al. present a solid statistical analysis. They estimate a
are concerned about the relevance of their variables of total of eight different conditional logit models and conduct
interest, at least in the eyes of one of the nonacademic stake- Wald tests, using nearly 50% of their obtained dataset (N =
holder groups they target, namely, IS professionals. 1,250,426 lending decisions). As shown in Table 5, the
Armstrong et al. report on focus group interviews with 29 IS authors report various types of effect sizes including odds
professionals, conducted with the aim of determining the ratio coefficients, log-likelihood, Pseudo R2, Wald ÷2,
applicability of their research model to the particular context Adjusted R2, and correlation coefficients. Unsurprisingly
of an IS career. Armstrong et al. point out (p. 715): (considering the volume of data), almost all of the statistical
results reported by the authors are statistically significant.
Based on the comments from the focus group However, the audience of data analytics studies (like the one
interviews, we realized the importance of con- conducted by Liu et al.) often look for qualities far beyond
sidering an individual’s career instead of a specific mere statistical significance. Data analytics studies are gener-
job when looking at TAI. Individuals in the focus ally expected to leverage large amounts of data in order to
groups highlighted the importance of exhaustion and “detect smaller, subtler, and more complex effects” (Lin et al.
turn-away for IS professionals and identified several 2013, p. 906), as well as generate novel understandings of
of Ahuja et al.’s [2007] constructs [the main litera- real-world phenomena (see Lycett 2013; Sharma et al. 2014)
ture’s constructs on which Armstrong et al. draw] as on a broad empirical landscape, which is usually not available
relevant across their ISCE [IS career experience]. to the classic, survey-based quantitative studies. On this
The exploratory focus group sessions revealed the basis, the proper communication of results in data analytics
need to study the concepts and helped identify key research demands that researchers supply, among other
constructs that were then complemented with our material, sound interpretations of the magnitudes of estimated
own understanding of the literature. effects as well as justified explanations on the importance of
those magnitudes.
Nevertheless, we believe the authors could have avoided the
same pitfall, as we encountered in Park et al.’s paper, when it Contrary to our expectation from a data analytics study, our
comes to the discussion of implications for nonacademic review of Liu et al. shows that the research communication
stakeholders. Precisely speaking, Armstrong et al. could have language adopted by the authors predominantly relies on the
drawn attention to the magnitudes of obtained effect sizes issue of statistical significance. This is in fact similar to what
when making assertions with respect to the nonacademic we observed previously in the two rather classic cases of

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statistically conducted IS research (i.e., the papers by Park et With respect to the relevance issue, the paper correctly
al. and Armstrong et al.). Liu et al. discuss their obtained identifies P2P lending platforms and the borrowers who use
odds ratio coefficients (reported in the paper’s Table 3), for them as major groups of a nonacademic audience. Moreover,
the most part, based on the two criteria of statistical signifi- the authors raise interesting implications and “suggest that …
cance and whether the coefficients are greater or less than 1. [P2P platforms] can increase bidding activities by making it
The authors, for instance, make the following inferences (p. easy for lenders to follow their offline friends,” or state that
739): “P2P lending platforms may prioritize loan and friend-bid
notifications by friendship types” (p. 740). However, the
As shown in Table 3, the lending probability in- paper’s recommendations could have had more impact if the
creases with the number of days passed, the percent- authors could have shown that the variables they studied are
age funded, the number of prior bids, and co- in fact understandable, noteworthy and/or actionable in the
location of the borrower and the lender in the same eyes of the nonacademic stakeholders they identify for their
city. The lending probability decreases with 100 paper. The authors could have demonstrated the relevance of
percent funding status, gender (female), education, the study by providing quotations or other evidence from
and the number of friends the lender has.…The practitioners to report their reactions to the employed depen-
number of large bids has a [statistically] significant dent and independent variables. Additionally, as just recom-
negative effect on subsequent lending probabilities. mended for the other two papers, in order to present a much
more objective and convincing case as to why Liu et al.’s
What the authors conclude based on their reported results is study might be important for P2P lending platforms and the
statistically appropriate. However, we argue that the paper borrowers who use them, the authors could have made
could have yielded a much greater contribution if, instead of reference to, and discussed, the significance of the magnitude
using such terms as “increase,” “decrease,” or “[statistically] of the results they obtained. Indeed, it is particularly impor-
significant negative effect” and so forth, the authors could tant for data analytics studies (due to the highly sophisticated
have explicitly mentioned the magnitude of the effects they analytics models and algorithms they often employ) to discuss
estimated and offered their own judgments (along with their findings in a way that is conveniently interpretable for
corresponding rationale) on those magnitudes. the nonacademic, nonexpert audience. As a matter of fact, the
interpretability of research results has regularly been brought
The authors also provide three relatively short paragraphs (on
up as a critical aspect of communicating data analytics
page 739) to address the results associated with the three
research in a number of recent commentaries in the IS litera-
hypothesized effects in the study (i.e., the pipe effect, the
ture (e.g., see Abbasi et al. 2016; Lycett 2013; Müller et al.
prism effect, and the relational herding effect). A constructive
2016; Sharma et al. 2014).
practice the authors pursue here though is that they convert
the obtained odds ratio coefficients (reported in the paper’s
Table 3) to percentages. For example, the authors point out Additional Cases
(p. 739):
Apparently, what we have observed in the case of papers
Each prior bid increases the likelihood of lending by published in MIS Quarterly in 2015 is not exceptional at all.
2.1 percent (Model 3), suggesting an anonymous In other words, the lack of attention to the communication of
herding effect among potential lenders (H4 is practical significance and relevance in quantitative IS
supported).
research seems to be an issue spanning a range of different
outlets and a series of years. The support for this contention
To mention the magnitude of statistical results in the form of
follows.
percentages is certainly helpful because it makes the results
more comprehensible and transparent in the eyes of the audi-
In addition to our review of 2015 MIS Quarterly papers, we
ence of the research. However, the authors could have
did an extra investigation of published IS research. We ran-
contributed to greater appreciation of the statistical results by
domly selected papers published in 2016, two each from the
the audience if they could have offered, in addition, an assess-
journals of MIS Quarterly, Information Systems Research,
ment (with supporting rationale) of the magnitude of the
and Journal of the Association for Information Systems.15
estimated effect sizes such as “2.1 percent” in the research
area concerning P2P lending platforms. As indicated before, These randomly selected papers present outstanding statistical
to address the magnitude of estimated effect sizes (and hence
to address practical significance) is particularly important in 15
The randomly selected papers are Benaroch et al. (2016); Greenstein and
the case of data analytics studies due to the possibility of the
Zhu (2016); Goh et al. (2016); Tripp et al. (2016); Venkatesh et al. (2016);
existence of the deflated p-value problem. and Wang et al. (2016).

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analyses. However, our review suggests that there still are two, or all three of the qualities of statistical significance,
major overlooked opportunities for the papers to address prac- practical significance and relevance (as shown in the section
tical significance and relevance. Overall, despite the fact that with the Venn diagram). The second theme relates to the
a large number of various effect sizes such as regression position, which we developed in the preceding section, where
coefficients, correlation coefficients, R2, adjusted R2, AIC, we argued that it is not sufficient for research to bear statis-
and BIC are reported in the papers, the practical significance tical significance, practical significance and relevance, but it
of research results receives partial, minimal, or no attention. is also critical for research to address another issue of a
In our view, out of the six papers, only one (i.e., Greenstein different nature, namely, to explicitly communicate the status
and Zhu 2016) offers a partial treatment of the issue of the of its statistical significance, practical significance and rele-
practical significance of research results. The rest of the vance. Finally, the third theme, regarding our findings from
papers, as with the 2015 MIS Quarterly papers, primarily rely reviewing published IS research, is that the issues of practical
on statistical significance and the sign of obtained effect sizes significance and relevance have been considered, and reported
for the matter of discussing research results. On the other on, far less than the issue of statistical significance.
hand, as for the issue of relevance, we found that all of the
studies identify at least one nonacademic stakeholder group The third theme concerns us the most in that it shows, in our
as their audience, and each offers statements on how the view, the need for raising awareness about some critical
identified nonacademic stakeholder group(s) may benefit from issues concerning statistical practice in IS research. In the
the research study. Still, our review suggests that none of the following paragraphs, and in line with our purpose in the
papers draw attention in a meaningful way to the relevance of current essay, we will enumerate three issues we believe are
the employed variables and the magnitude of reported results of high importance followed by our opinions on how future IS
in the eyes of the identified nonacademic stakeholder groups. research can deal with the issues and communicate their
significance and relevance in a much more adequate manner.
As a matter of fact, the findings from the above review of
published IS research (i.e., the 2015 MIS Quarterly papers as Issue 1: Communicating rigor transcends merely reporting
well as the six additional papers), particularly with respect to statistical significance and also requires addressing practical
the issue of practical significance, are in accordance with the significance.
indications made in the only relevant review of published IS
research we found in the literature (i.e., Lin et al. 2013). Lin The predominant exclusive reliance on statistical significance,
et al. (2013) conduct a survey of large-sample papers (n > as our review of high quality published IS research suggests,
10,000) published in leading IS journals and conferences from can imply that there is still a widespread notion-in-use in our
2004 to 2010. Based on the survey, the “overall conclusion community presuming that reporting statistical significance
is that information systems research that is based on large alone is sufficient to establish and communicate research
samples might be over-relying on p-values to interpret rigor. However, reviewing the literature and history of statis-
findings” (p. 908). Lin et al. also indicate that “about half of tics indicates otherwise. Statistical significance and null
the recent papers with large samples rely almost exclusively hypothesis significance testing have been criticized for many
on low p-values and the sign of the coefficient” (p. 908). decades and from several different angles as misunderstood
Furthermore, as shown by Lin et al., only one out of four and misplaced concepts incapable of satisfying the require-
reviewed MIS Quarterly papers, and only two out of eight ments of scientific practice in general (e.g., see Kirk 1996;
reviewed Information Systems Research papers, offer conclu- Nickerson 2000, 2011).
sions that rely on practical significance.
Our opinion is that a shift in perspective should occur with
regard to how IS researchers perceive and practice quanti-
tative research. The long history of controversy around the
Discussion and Recommendations notion of statistical significance, and the respective remedies
offered in the literature, offer a clear message for IS
There have been three interrelated themes in this essay. The researchers. The message is that if IS researchers want to
first theme pertains to the position that there are unques- pursue rigorous quantitative research that matters to their own
tionably distinctions among statistical significance, practical self-chosen questions of interest, whether the research is of a
significance and relevance. These distinctions proved to be classic statistical type or data analytics type, they should view
completely recognizable and valid both when one examines practical significance not as an optional notion to be taken
the literature concerning the notions of significance and into account, or as an antithesis to statistical significance, but
relevance (as shown in our review of the background of these as a necessary and complementary quality for their research
notions), as well as when one ponders some hypothetical to address. Practical significance is as equally important a
examples/scenarios where research may bear any one, any measure as statistical significance when it comes to rigorous

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quantitative research. Thus, addressing practical significance (i.e., the deflated p-value problem), the practical significance
can be regarded a major step toward broadening the notion-in- of the findings, as a distinct matter from their statistical
use of “rigor” in statistically/computationally conducted IS significance, cannot be taken for granted and certainly
research. In other words, we posit that rigor should be per- demands an explicit and justifiable treatment (see George et
ceived as composed of at least the two equally important al. 2014; Lin et al. 2013).
measures of statistical significance and practical significance
among those who practice statistically/computationally con-
ducted IS research. Recommendations on the Proper Commu-
nication of Practical Significance
Nonetheless, our position by no means should be interpreted
as a call for obtaining the largest possible statistical results In general, we recommend that IS researchers offer clear
with regard to practical significance. We once again empha- interpretations about the magnitude of research results and
size the fact that the matter of practical significance, and the bring those interpretations to the fore, making them explicit
matters of statistical significance and relevance, refer to in their research articles. This in our view is essential to make
qualities heavily dependent on human judgment, research sure that the findings and conclusions drawn from our
context and conventions. What we do want to promote quantitative IS scholarship are transparently interpretable. In
through this essay however is the practice of communicating practice, we believe that the proper communication of the
practical significance, however large or small the obtained practical significance of results (particularly, those that are
research results are. directly associated with research hypotheses) should incor-
porate the following four elements: effect magnitudes, confi-
Issue 2: Communicating practical significance transcends dence intervals, interpretations of magnitude, and rationales
merely presenting effect magnitudes and also requires their supporting the interpretations of magnitude.
interpretation in context.
(I) Effect Magnitudes: The proper communication of practi-
We acknowledge that many researchers in IS do recognize the cal significance begins with an explicit presentation of effect
importance of the notion of practical significance and its role size measurements. We particularly emphasize this for all
in conducting sound statistical analysis. However, there effect sizes (e.g., path coefficients) directly related to research
seems to be a prevailing issue about how one can, or should, hypotheses. The measurements can be presented in a variety
communicate the practical significance of research results. of different ways such as in the text, in tables, or on charts
With the advent of statistical/computational software pack- graphs. The important point is that the quantitative magnitude
ages that provide advanced functionalities, researchers of effect sizes should be stated clearly. Authors should avoid
nowadays, particularly in the data analytics domain, can using such vague terms as “positive impact” or “non-zero
conveniently and effortlessly generate and report many effect.” Our review of published IS research suggests that all
different types of effect sizes. A dubious belief, however, is of the papers pursue our recommendation and provide quan-
that as long as numbers known as “effect size” are reported in titative magnitudes of all effect sizes they deal with.
the text or tables of a research paper, the task of commu-
nicating the practical significance of research results is (II) Confidence Intervals: Whenever the data and statistical
accomplished. analysis warrant the calculation of confidence intervals, we
emphasize the need for IS researchers to present confidence
Scientific research goes much beyond simply reporting intervals in their papers. In fact, within the context of com-
numbers. Researchers are also expected to deliver interpre- municating practical significance, the reporting of confidence
tations and insights on the basis of quantitative research intervals “has been advocated as an alternative, or adjunct, to
results. This is an essential task given the fact that one’s NHST [null hypothesis significance testing] by many writers,
interpretations of the magnitude of the same effect size including both critics and proponents of NHST” (Nickerson
measure can dramatically change from one research study to 2000, p. 278). A confidence interval delivers all the same
another depending on the particular circumstances under information provided by NHST (Kirk 1996, 2001). A confi-
which the research is conducted. Therefore, to communicate dence interval (surrounding the point estimate of an effect
the practical significance of research results is more a matter size) that includes 0 (where 0 is the point corresponding to the
of offering interpretations about the magnitude of research null hypothesis) suggests that the null hypothesis cannot be
results, rather than merely reporting them. The proper com- rejected. In other words, “the smaller the confidence interval
munication of the practical significance of findings is even of that includes 0, the stronger the evidence for the null
much higher importance in data analytics research. As stated hypothesis” (Nickerson 2000, p. 261). However, a confidence
earlier, whereas large datasets common in data analytics interval provides more important information than what is
research can comfortably turn findings statistically significant afforded by NHST. A confidence interval shows “a range of

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values within which the effect parameter is likely to lie” (Kirk Different computational/statistical software packages such as
2001, p. 214), with the same unit of measurement as the data R, SPSS, STATA or even Excel are available to calculate
(Kirk 1996, 2001). This means that calculating and reporting confidence intervals. As shown in the cases of Ludwig et al.
confidence intervals can significantly boost researchers’ and Saboo et al., it appears a common practice to report 95%
ability to offer meaningful interpretations of magnitude (see confidence intervals, but it should be noted that this is as
element III). On the other hand, the practice of reporting arbitrary a practice as setting 0.05 or 0.01 thresholds for p-
confidence intervals yields a means to develop a common values. Moreover, the manner in which researchers may
thread through which researchers in a community become present confidence intervals in their papers depends on the
able to conduct purposeful synthesis and meta-analysis of particular type of research they conduct and/or the readership
findings across different studies that investigate certain they target. The simplest way to present confidence intervals
variables/phenomena of interest (Cumming and Finch 2001; is perhaps the way we observed in the cases of Ludwig et al.
Lin et al. 2013). Additionally, the frequent reporting of and Saboo et al., where confidence intervals are presented
confidence intervals in a research community allows re- along with effect magnitudes in the text or in tables. How-
searchers to compare the magnitude, and the lower and upper ever, there are other, more sophisticated, suggestions on how
bounds, of their own estimated effect sizes with the ones to present and take advantage of confidence intervals in
reported in similar studies. This therefore can aptly pave the research studies. We offer one example here. In the case of
way to establish the required rationale(s) for the inter- large-sample studies, Lin et al. (2013) argue for the use of a
pretations of magnitude (see element IV). chart called the confidence interval chart. The chart “displays
the confidence interval as a function of the sample size,
The move toward reporting confidence intervals is quite wide- ranging from very small to the maximal large-sample size
spread across research domains and communities. We for itself” (p. 910). According to Lin et al., the chart is useful to
instance know that “medicine has moved away from sole show the effect magnitude and its decreasing standard error.16
reliance on NHSTs” and almost “all medical studies now state
confidence intervals” (Schwab et al. 2011, p. 1111). In addi- (III) Interpretations of Magnitude: Whereas the two pre-
tion, a number of other disciplines have already announced ceding elements of the proper communication of practical
the mandate to report confidence intervals in research studies significance are, so to speak, “hard” elements, conveniently
(e.g., see American Educational Research Association 2006; achievable nowadays with the help of statistical computer
American Psychological Association, 2010). In the IS field, programs, the current element and the next one (i.e., rationales
we found some examples of published research where con- supporting the interpretations of magnitude) are “soft” ele-
fidence intervals have been reported. For instance, Ludwig et ments, which are often challenging to deliver because they
al. (2014) present a research study on user communities where highly depend on researchers’ depth of understanding con-
two mixed multilevel Poisson regression models have been cerning both statistics as well as the research area they are
utilized to conduct text mining on users’ posts in 37 com- dealing with. That is perhaps why the latter two “soft”
munities. The authors show the 95% confidence intervals for elements are often missing in some published research. Not-
an estimated effect size called incidence rate ratio (IRR). The withstanding, our review of published IS research suggests
confidence intervals are presented along with the actual positive examples of presenting interpretations of magnitude.
magnitudes for the IRR effect size in a table (see Ludwig et For instance, Salge et al. (2015), in their study of “behavioral
al. 2014, Table 3). In another IS research study, Saboo et al. and institutional search mechanisms underpinning hospitals’
(2016) investigate the issue of marketing resource allocation IS investment decisions,” state the following regarding an
using a computational model called the time-varying effect obtained regression coefficient (p. 76):
model (TVEM). The authors use “transaction data from a
Fortune 500 retailer [along] with demographic information According to hypothesis 3, we expected the coef-
obtained from Acxiom Corp for over a quarter million cus- ficient of the lagged dependent variable IS invest-
tomers” (p. 911) to develop and test their proposed model. ment intensity in model 3 to be between 0 and 1 and
The authors present 95% confidence intervals for parameter statistically significant. In line with our theoretical
estimates of their independent variables of interest. These arguments for institutionalized search, our analyses
confidence intervals along with the magnitude of estimated yield a [statistically] significant estimate of 0.536,
parameters are presented in three tables (see Saboo et al. indicating moderately high levels of temporal persis-
2016, Tables 3, 4, and 6). According to the authors (p. 925), tence in hospitals’ IS investments.
the confidence intervals are in fact reported to display the
authors’ conservative approach in presenting and interpreting
research results in reaction to “the deflated p-value problem” 16
For more detailed considerations about calculating and reporting confi-
concerning data analytics studies. dence intervals see sources such as Cumming and Finch (2001) and
Nickerson (2000).

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In other words, Salge et al. consider 0.536, on a scale of 0 to present their interpretation of the magnitude of the obtained
1, to constitute a moderately high effect size value. However, coefficient for Äaccountability (p. 357):
the academic audience of the paper might still argue that the
number does not represent a moderately high effect size The size of the effect of Äaccountability can be
value. This all goes back to the presence, or lack thereof, of understood in terms of the scale of the dependent
convincing rationales supporting the interpretations of variable, the range of the difference of the change in
magnitude—a crucial issue that will be discussed later under accountability, and the parameter estimate (-.187) in
element IV. the model. For every unit increase in Äaccount-
ability, intention was reduced by -.187. Because the
The study by Greenstein and Zhu (2016) represents another values for the change in accountability had a range
example of published IS research where interpretations of the of 32, intention could be reduced by up to -5.76
magnitude of obtained effect sizes are proffered to some (-.187 C 32) [-5.98 is correct]. Because intention
extent. The authors’ investigation of “whether the open-con- was measured on a 0 to 10 scale, this represents a
tent production model helps achieve a neutral point of view very large effect size.
(NPOV)” (p. 618) uses data from Wikipedia’s articles on U.S.
politics. In one particular case, the regression analysis run by We should emphasize that, as far as element III alone is con-
Greenstein and Zhu yields estimated coefficients associated cerned, the three IS studies examined above exemplify what
with the two independent variables of “unique contributors” we consider adequacy in the practice of offering interpreta-
tions of magnitude. However, these studies do not necessarily
and “total revisions to date” and a dependent variable, which
satisfy all the requirements we propose in this essay as for the
is the probability of Wikipedia articles having certain “code
proper communication of practical significance. For instance,
words” related to U.S. politics. The authors interpret the
only one of the three studies (i.e., Vance et al.), albeit par-
results this way (p. 630):
tially, reports confidence intervals.
We find that having more unique contributors
With regard to advice to facilitate the task of offering inter-
reduces the probability of having code words, while pretations of magnitude, we wish to draw attention to two
having more revisions works in the opposite direc- particular tactics here. The first tactic deals with utilizing a
tion, increasing the probability of having code type of analysis known as “marginal analysis,” whenever
words. However, the value of the coefficients sug- possible. Indeed, the preceding quote from Vance et al.
gests a small overall effect: a 10% increase in the vividly demonstrates this type of analysis. As stated earlier
number of unique contributors reduces the chance of in this essay, through marginal analysis, the sensitivity of a
having code words by 0.2%, and a 10% increase in dependent variable to changes in an independent variable may
the number of revisions increases the chance by be measured and reported by researchers (see Lee and
0.1%. Mohajeri 2012; Lin et al. 2013; Vittinghoff et al. 2005).
Indeed, in the case of nonlinear models,
It is worth noting that although Greenstein and Zhu offer their
own interpretation (i.e., small overall effect) of the magnitude which are quite common in IS research, marginal
of the two coefficients, the exact basis on which the authors analysis is a more robust way—and sometimes the
offered such an interpretation may still remain an open ques- only way—to interpret effect size, compared to
tion for some segments of the paper’s audience. As stated looking at the p-value or magnitude of the coeffi-
earlier, we discuss the matter of rationales supporting the cient (Lin et al. 2013, p. 909).
interpretations of magnitude under element IV.
Marginal analysis can therefore be instrumental to not only
The third example we draw here is Vance et al. (2015). The deliver an interpretation of magnitude (i.e., element III), but
authors propose a new solution to address the issue of com- also to articulate and present a sound rationale (i.e., element
puter systems access-policy violations. Essentially, Vance et IV) for such an interpretation.
al. offer “four user-interface (UI) design artifacts that raise
users’ accountability perceptions within systems and in turn The other recommended tactic is to calculate and report
decrease access-policy violations” (p. 345). In their statistical unstandardized regression/path coefficients when possible. In
analysis of the matter, the authors investigate the relationship fact, there can be different reasons as to why interpretations
between an independent variable (i.e., Äaccountability) and of the magnitude of obtained effect sizes are often missing in
the main dependent variable (i.e., Intention to Violate the published research. In the case of path coefficients in SEM,
Access Policy), among others. In a footnote, the authors we believe a major reason is that statistical software packages

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usually generate the coefficients in standardized form, which communication of practical significance. Authors should also
hardly lends itself to being meaningfully interpreted. Kirk clearly disclose the rationales with which they make certain
and other statisticians suggest a general remedy, which is to interpretations about the magnitude of their obtained effect
“use the same unit of measurement as the data” (1996, p. sizes. Nevertheless, we found that the IS articles pointing to
754) when calculating research results in order to facilitate the the issue of practical significance—in particular, those which
task of interpreting them. Accordingly, we recommend that promote the practice of addressing practical significance in
IS researchers consider calculating and reporting unstan- data analytics research (e.g., Abbasi et al. 2016; Lin et al.
dardized path/regression coefficients, particularly when the 2013; Müller et al. 2016)—draw little or no attention to this
units of measurement of the data can be familiar to the outside critical aspect. Essentially, the question is: How may
world (e.g., Likert scale,17 financial indicators/ratios, stock researchers establish sound rationales for their interpretations
market indices, etc.). In SEM, this can be achieved by esti- of magnitude? As stated before, the classic statistics literature
mating path coefficients using the covariance matrix, rather has long suggested some conventional rationales to support
than the correlation matrix (Kelley and Preacher 2012, p. the interpretation of practical significance (i.e., to distinguish
144). Also, in regression tables, which are often reported in among small, medium and large magnitudes) in the cases of
papers, separate columns can be used to communicate both certain types of effect sizes such as Cohen’s ƒ2 or Cohen’s d
standardized and unstandardized coefficients. We know that (Cohen 1992; Kirk 1996). However, to draw on such conven-
“this is the way in which SPSS reports the output for linear tions has been severely criticized, particularly over the past
regression analysis, whereas with SAS the option STB in decade (e.g., Aguinis et al. 2010, pp. 529-530; Cortina and
PROC REG yields the same result” (Kelley and Preacher Landis 2009; Ellis, 2010). The reason is that any assessment
2012, p. 148). Even if standardized path/regression coeffi- of the magnitude of obtained effect sizes in a research study—
cients are already obtained, there is a fairly straightforward even for some well-known effect size measures such as R2,
formula to transform them to unstandardized ones when one Cohen’s ƒ2 or Cohen’s d—must take into account the par-
conducts multiple regression or PLS analysis—which is ticular contextual circumstances under which the research
“conceptually and practically…similar to using multiple study has been conducted. As stated earlier in this essay,
regression analysis” (Hair et al. 2011, p. 140). The formula depending on the research context, we can certainly envisage
can be demonstrated in the following way: situations where a small effect magnitude can in fact denote
a high substantive importance and vice versa (Lewandowsky
and Maybery 1998; Prentice and Miller 1992; Rosenthal
1990; Rosenthal and Rubin 1979).

“An unstandardized effect size is one whose interpretation is In our review of published IS research, we found examples
dependent on the units of the measurement instrument” displaying varying degrees of adherence to the, so to speak,
“principle of interpretation in context” described in the
(Kelley and Preacher 2012, p. 144). With unstandardized
preceding paragraph. For instance, Tian and Xu (2015), in
coefficients, authors are often in a better position to commu-
their interpretation of obtained magnitudes for the Cohen’s ƒ2
nicate the substantive importance of their obtained results to
effect size, state the following (p. 51):
both the reviewers/editors and the readership. Employing the
unstandardized magnitudes, authors can, for instance, conduct
By convention, effect sizes of 0.02, 0.15, and 0.35
a marginal analysis and show the actual change in a depen-
are termed small, medium, and large, respectively
dent variable along the same scale as the collected data when
(Cohen 1988). We chose R&D spending, which has
one unit of change happens for any independent variable of
been generally considered to be a major risk factor,
interest, again along the same scale as the collected data. This
as a benchmark (e.g., Kothari et al. 2002). Based on
often looks more sensible in the eyes of the reviewers, and
the regression results reported in Column (3) of
particularly the readership, compared to an analysis that Table 4, the effect size of R&D spending and the
draws on standardized coefficients, where the entire narrative effect size of ERP systems (including its primary
concerning the amount of change in the variables has to be effect and interactions with uncertainty) were esti-
stated in units of standard deviations. mated to be 0.0385 and 0.0161, respectively. Based
on the regression results reported in Column (2) of
(IV) Rationales Supporting the Interpretations of Magnitude: Table 5, R&D spending and ERP system scope
To offer interpretations of magnitude (element III) is a neces- variables had effect sizes of 0.0344 and 0.0376,
sary, but insufficient, condition in order to ensure the proper respectively. Hence, regarding their effect on firm
risk, ERP systems and R&D spending had com-
17 parable effect sizes, between a small and medium
For a case of calculating and analyzing unstandardized coefficients drawn
from a Likert-scale-based TAM research study, see Lee and Mohajeri (2012). effect size (Cohen 1988).

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Evidently, Tian and Xu offer the least adherence to the prin- uncertainty surrounding, or the precision of, the estimations
ciple of interpretation in context and state a rationale that is (Cumming and Finch 2001; Schwab et al. 2011).
completely drawn on the classic conventions communicated
in the statistics literature (i.e., Cohen 1988). In contrast, Table 6 provides a summary of our recommendations as for
drawing another example from published IS research, we the proper communication of practical significance.18
believe the marginal analysis quoted earlier (under element
III) from Vance et al. largely satisfies the principle of inter- To conclude this part on the proper communication of
pretation in context. The authors show an adequate articu- practical significance, we now return to the three MIS
lation of their logic for why they consider the parameter Quarterly papers (i.e., Armstrong et al. 2015; Liu et al. 2015;
estimate of -0.187 for the Äaccountability variable to con- Park et al. 2015) we reviewed in detail earlier. In Table 7, we
stitute a very large effect size. Another interesting example see elements that have been already communicated by the
in the IS literature, where adherence to the principle of authors as well as the ones that remained overlooked. In other
interpretation in context is implied, is Hsieh et al. (2012). In words, Table 7 demonstrates the proper communication of
fact, Hsieh et al. employ very appropriate language to convey practical significance with respect to one example of effect
the message that their research findings are of substantive size measurement reported in each paper.
importance, although the magnitude of findings may be
deemed small (p. 1075): The material summarized in Tables 6 and 7 are useful not
only to authors for recognizing the key tasks they need to
Importantly, while the marginal contribution of accomplish when communicating the practical significance of
UserSat to ESQ is small in absolute terms (the their findings, but also to editors/reviewers for examining the
correlation between UserSat and ESQ = 0.19, see elements that need to be communicated by authors in their
Table 3; ÄR≤ = 4.2% for the direct effect and ÄR≤ = submitted papers. As stated before, the burden of assessing
3.5% for the interaction effect, see Table 4), method- the practical significance of research findings is on the
ologists have noted that small effects in the social academic/research community. Authors of course have a
sciences must be evaluated in the context of the major stake in showing that their findings are of practical
significance of the practical problem and the theo- significance. However, since we posited earlier (under Issue
retical gaps, the nature of the research design, and 1) that addressing practical significance should be regarded a
the measures (Ellis 2010; Rosnow and Rosenthal main constituent of rigor in quantitative IS research, we also
2003). In our context (1) the problem domain is of see a prominent role for editors/reviewers to assess, and chal-
significant practical value, (2) the research design lenge, if necessary, the authors’ interpretations of practical
involves multisourced data with a time lag, (3) the significance. We envisage the possibility that IS editors/re-
independent variables and/or dependent variables are viewers may ask authors to report confidence intervals (as has
cumulative in nature, and (4) the relationships are already been required in some other research communities),
theoretically important. As such, the identified to provide more precise interpretations of magnitude, or to
effects, though small in size, are indeed of consider- offer more robust rationales supporting their interpretations of
able theoretical and practical value. magnitude.

The rationale offered by Hsieh et al. could have been pre- Issue 3: Communicating relevance transcends merely
sented with much more elaboration regarding the four aspects including an “implications for practice” section and also
indicated in the quote above, but does hint at an appropriate requires an explicit treatment of the relevance of research
practice through which researchers may establish a rationale constructs/variables and quantitative results from the per-
to support their interpretations of magnitude. The practice is spective of the intended nonacademic stakeholders.
to draw attention to the literature in a certain research domain.
Ideally speaking, researchers may juxtapose the findings of
their own study with the ones reported by comparable
research studies in order to establish a sound rationale for
18
their judgment of practical significance. As stated before, a Our recommendations remain applicable to quantitative research that
employs other, sometimes, simpler, or more classic, types of statistical
pertinent facilitator in this type of practice is to draw on
designs/analyses such as experimental design (involving ANOVA), and
confidence intervals. Assuming that confidence intervals univariate, bivariate, cluster, or principal component, analyses. In all such
associated with a researcher’s variables of interest are already types of designs/analyses, as long as estimations associated with the measures
reported by some comparable studies in the literature, the known as effect size (see Huberty 2002 or Kelley and Preacher 2012 for the
researcher will be able to draw and show comparisons in definition, history, and typology of effect sizes) are calculated/reported,
terms of not only the magnitude of estimations, but also the researchers need to address, and communicate, the practical significance of
those estimations.

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Table 6. The Proper Communication of the Practical Significance of Research Results


Elements to Be Examples of Where to Concerns or Exemplar Papers Reviewed
Communicated Communicate Recommended Practices from Published IS Research
Effect In the text, in tables/figures, • Present the exact quantitative N/A
Magnitudes on charts magnitudes. (No paper was reviewed because
this element is already widely
communicated in published IS
research)
Confidence In the text, in tables/figures, • To report 95% confidence Ludwig et al. (2014)
Intervals on charts (e.g., the intervals is as arbitrary a Saboo et al. (2016)
confidence interval chart, practice as setting 0.05 or 0.01
see Lin et al. 2013) thresholds for p-values.
Interpretations of In the text, in tables/figures • Conduct and present marginal Salge et al. (2015)
Magnitude analysis. Greenstein and Zhu (2016)
• Calculate and present Vance et al. (2015)
unstandardized coefficients
(when appropriate).
Rationales In the text, in tables • Pursue the principle of Tian and Xu (2015)
Supporting the interpretation in context. Vance et al. (2015)
Interpretations of • Conduct and present marginal Hsieh et al. (2012)
Magnitude analysis.
• Draw comparisons with com-
parable findings reported in the
literature.*
*This is not of course an exhaustive list. Other practices may also be pursued as long as they are in accordance with the general principle of
interpretation in context.

Table 7. A Demonstration of the Communication of Practical Significance in the Cases of


Park et al., Armstrong et al., and Liu et al.
Reviewed MIS
Quarterly Example of Confidence Interpretation of Rationale Supporting the
Papers Effect Magnitude Interval Magnitude Interpretation of Magnitude
Park et al. â = -0.240 Not Not Provided Not Provided
(2015) Provided The authors could have The use of marginal analysis could
used marginal analysis to also lead to establishing the required
present an interpretation of rationale for the authors’ interpre-
the coefficient’s magnitude. tation of the coefficient’s magnitude.
Armstrong et al. R2 = 0.555 Not “The model had Not Provided
(2015) Provided reasonable explanatory The authors could have disclosed the
power accounting for just rationale with which they believe,
over half of the variance in within their particular research con-
TAI” (p. 720) text, the magnitude of 0.555 for the
R2 measure can indicate a
“reasonable explanatory power.”
Liu et al. (2015) “Each prior bid Not Not Provided Not Provided
increases the Provided The authors could have The authors could have established a
likelihood of provided an assessment of sound rationale for their assessment
lending by 2.1 the substantive importance of the substantive importance of 2.1
percent” (p. 739) of 2.1 percent in their percent by, for instance, drawing
respective research area. comparisons with findings reported in
comparable studies.

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It is completely valid to say that not all IS research studies of independent/mediating variables, and the relevance of the
want or are conducted to directly inform, or offer implications magnitude of findings.20 Accordingly, we recommend that if
to, nonacademics. Part of the reason is that nonacademics are IS research papers are intended to provide nonacademics with
neither the primary readership of IS academic journals nor lessons and implications (and our review of published IS
often involved in the review process at those journals. research suggests that this is often the case), authors should
However, we believe, as long as these journals require authors provide adequate content on each of the three aforementioned
to address relevance to nonacademics (e.g., Straub and Ang elements in order to ensure the proper communication of
2008, 2011; Te’eni et al. 2015), there is a significant need to research relevance.
raise awareness among IS researchers that simply mentioning
the name of one or more nonacademic stakeholder groups and (I) The Relevance of Dependent Variables: The dependent
embedding an implications for practice section in a research variables/constructs in quantitative research often represent
paper are not sufficient for the task of communicating the principal phenomena of interest researchers are dealing
research relevance. In fact, the lesson from our review of the with. It is therefore crucial, regarding the communication of
published IS research is that communicating research relevance, to offer content on the significance of dependent
relevance is not only a matter of form, but also, and more variables in the eyes of nonacademics. Based on the
importantly, a matter of content. The content should be perspective proffered in this essay so far, it is clear that non-
offered in a way that could appropriately enable nonacademic academics may not necessarily find subjects or phenomena,
stakeholders/readers (if they happen to read IS academic which researchers choose to study, relevant. The manner in
journals) to make judgments about the impact and importance which we characterized the relevance of dependent variables
of a research study.19 In particular, in data analytics research, in this essay (see the Venn diagram section) emphasizes two
it is of high importance for nonacademic decision makers to aspects: understandability and noteworthiness. In other
be able to comprehend the results of applying sophisticated words, in an ideal situation, authors in a research paper are to
models and algorithms to large datasets (see Müller et al. clearly establish that the nonacademic audience of their
2016, p. 294). “[Real-world] insights do not emerge auto- research not only understand, but also acknowledge the note-
matically out of mechanically applying analytical tools to worthiness of, their dependent variable(s) of interest.
data” (Sharma et al. 2014, p. 435), in part, because “mana-
gerial decisions are typically based on economic return, rather We envisage that, in practice, authors may find themselves in
than a statistically significant analytical model, and that is at least two distinct types of situations when striving for
where analytics can generate mistrust and thus fall short” establishing the relevance of their dependent variables of
(Baesens et al. 2016, p. 815). interest. The first type of situation, which is quite common,
has to do with research studies that employ dependent vari-
ables/constructs derived from pure academic literature. In this
Recommendations on the Proper Communi- type of situation there is a high chance that the dependent
cation of Research Relevance variables/constructs will not be recognized at all, or not fully
acknowledged, in the everyday life of nonacademic stake-
The proper communication of research relevance is largely holders. One practice we recommend in this type of situation
absent in published quantitative IS research. Perhaps a major is to collect empirical evidence from samples of the targeted
reason, as indicated before, is that there is no coherent nonacademic stakeholders through methods such as inter-
account in the literature particularly characterizing the notion views or questionnaire surveys. The evidence should incor-
of relevance in the context of quantitative research. We, in porate the stakeholders’ views about the understandability and
this essay, have offered a remedy. The characterization of noteworthiness of the researchers’ dependent variables of
research relevance we presented in the Venn diagram section interest. It is also expected that researchers draw on the
(see Table 2), as well as in our review of the 27 MIS Quar- collected evidence (say, through triangulation with the related
terly papers published in 2015 (see Table 5), indicates three academic literature) to build/refine their proposed research
major elements in the notion of relevance in quantitative model(s)/hypotheses. We found a compelling example of this
research: the relevance of dependent variables, the relevance
20
In the case of quantitative research that employs other, sometimes, simpler,
or more classic, types of statistical designs/analyses such as experimental
19
We completely embrace the idea of communicating IS research to the design (involving ANOVA), and univariate, bivariate, cluster, or principal
nonacademic readership through other, nonacademic mediums/outlets. component, analyses, we still believe that our proposed conceptions and
However, we believe that the considerations we put forth in this essay as for recommendations with respect to the notion of relevance remain applicable.
how to properly communicate academic quantitative research to the non- In all these types of quantitative research, one can still identify the three
academics remain germane to the matter of publishing IS research findings elements of the phenomena under study, the factors espoused being asso-
in nonacademic mediums/outlets. ciated with the phenomena, and the reported magnitude of findings.

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practice in the study by Armstrong et al. (2015). As discussed rigor and methodology, there are increasing “construct
earlier in our detailed review of Armstrong et al., the authors validity/credibility concerns pertaining to variables derived
report on focus group interviews with IS professionals as one from user-generated, non-survey-based data sources, [which
of the major nonacademic stakeholders they target. The are] often characterized by low veracity” (Abbasi et al. 2016,
authors conducted the interviews during the theory develop- p. xxiii).
ment phase with the aim of determining the applicability of
their proposed research model to the particular context of an Our characterization of the relevance of independent/medi-
IS career. Particularly with respect to the relevance of their ating variables (see the Venn diagram section) specifies the
two major dependent variables of interest (i.e., Exhaustion two aspects of understandability and actionability. As men-
from IS Career Experience and Turn-Away Intention), tioned before, actionability, in our view, is a contingent
Armstrong et al. point out that “individuals in the focus criterion—due to the possibility that a research study may
groups highlighted the importance of exhaustion and turn- merely invoke a “general” relevance, as opposed to an “action
away for IS professionals” (p. 715). The authors also provide lever” relevance (see the Venn diagram section). Therefore,
details on how they adjusted their research model based on our recommendation is for authors to clearly establish and
comments from the IS professionals. Notwithstanding the communicate that their targeted nonacademic stakeholders
example drawn from the IS literature, we understand that, in consider the independent/mediating variables at least under-
general, the task of conducting fieldwork to collect evidence standable, if not actionable. The practicalities of establishing
in order to establish the relevance of dependent variables and communicating the relevance of independent/mediating
might be too demanding a requirement for IS researchers. variables though remain similar to that of dependent variables.
Therefore, another appropriate practice we can recommend is Authors in fact may face the very same two different types of
to look for evidence reported by other studies in the literature, situations as described in the case of dependent variables.
where the desired nonacademic stakeholder group(s) are And again, the studies by Armstrong et al. and Gao et al. can
shown to be understanding and acknowledging the importance definitely serve as exemplars of communicating the relevance
of the researchers’ dependent variables/constructs of interest. of research variables (whether dependent or independent/
mediating). However, we also wish to draw attention here to
The second type of situation is concerned with research the interesting case of Wang et al. (2015), where the rele-
studies that incorporate constructs/variables that are directly, vance of independent variables/constructs is established
in one way or another, derived from industry reports, prac- during the operationalization of the research model—as
titioner outlets, or online user-generated data. In this type of opposed to the cases of Armstrong et al. and Gao et al., where
situation, the researchers’ dependent variables/constructs of the relevance of research variables was mainly established
interest are very likely to be already in use, or fully acknowl- during the development of the research model or even earlier.
edged, by nonacademic stakeholders. In that case, we Wang et al. develop hypotheses on how five theoretical con-
recommend that authors provide clear evidence from the structs—derived from the routine activity theory (RAT) in the
respective industry/online sources to communicate that their criminology literature—concerning the characteristics of
dependent constructs/variables of interest are actually the computer applications are associated with the dependent risk
same, or directly related to the ones, already acknowledged of unauthorized access attempts. In order to operationalize
among their targeted nonacademic stakeholders. An exemplar their research model, the authors solicit input from their main
study is Gao et al. (2015). The authors provide plain evidence targeted nonacademic stakeholder group (i.e., security
right from the beginning of their paper that their research managers). In particular, the authors “interviewed application
variables directly reflect “population measures of physician owners and security managers for relevant information
quality as rated by patients, constructed using rigorous stan- regarding the [computer] applications” (p. 97). In addition,
dards set by the Agency for Healthcare Research and Quality Wang et al. report on a Delphi-type exercise with “13 appli-
(AHRQ) of the U.S. Department of Health and Human Ser- cation owners who were ultimately responsible for the secu-
vices” (p. 566). rity and risk management of their applications” (p. A2). The
aim of the exercise was to “confirm the mapping and mea-
(II) The Relevance of Independent/Mediating Variables: surement relationship between [the theoretical] constructs and
Apart from dependent variables, the relevance of independent/ [the real-world computer] application characteristics” (p. 97).
mediating variables should not also be taken for granted. As
illustrated in the Venn diagram section, nonacademics may To conclude our discussion on how to communicate the
not find certain factors—which are research-wise believed to relevance of research variables/constructs, it is important to
be contributing to, or associated with, a phenomenon— emphasize that, as shown through the exemplar studies, the
relevant (see Table 4). This is of particular issue in data ana- evidence on the relevance of research variables/constructs
lytics research, where, even from the standpoint of research might, and sometimes should, not merely be presented in an

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“implications for practice” section of a paper. On many occa- to look for a particular research finding is not an appropriate
sions, authors may, and in fact need to, initiate communi- practice. The magnitude of research findings along with the
cating the relevance of research variables/constructs much corresponding real-world insights or interpretations should be
earlier—for instance, in the theory development, measure- as accessible as possible to the nonacademic readership. It is
ment, or introduction sections. also obvious that the use of language is a key. The language
employed to communicate research findings should be as
(III) The Relevance of the Magnitude of Findings: To estab- simple and straightforward as possible. That being said, other
lish and communicate the relevance of research variables/ appropriate practices to facilitate the comprehension of
constructs is a crucial task. However, the bottom-line aspect research findings are to convert and present results in such
of research relevance often has to do with the real-world easily digestible forms as percentages (when possible), and to
impact associated with research findings in the eyes of the visualize research findings using charts/graphs/plots. In a
nonacademic audience. When it comes down to writing up broader perspective on how to present findings in an “implica-
the section on practical implications, IS researchers should tions for practice” section, we also envision that the non-
establish and communicate research relevance in an objective academic audience would often conveniently relate to the
manner—with clear mentions, and comprehensible interpre- cost-benefit type of analyses, where authors may present
tations, of the magnitude of research findings, rather than with alternative manipulations of factors studied in their research
subjective, imprecise statements, which may often have no in order to demonstrate possible varying returns in terms of
readily apparent connection with those research findings. Our comprehensible real-world costs/benefits.
emphasis on providing nonacademics with objective and
According to our review of published IS research, the study
comprehensible interpretations of quantitative results also
by Wang et al. (2015) is the only one that shows a fair amount
turns out to be completely in line with some emerging con-
of adherence to the practices outlined in the preceding
cerns in the data analytics domain—namely, that analytical
paragraph, albeit with respect to only one research finding. In
models and algorithms often yield “measures that can be
their discussion of practical implications, the authors refer to
difficult to understand for end-users or nonexperts” (Baesens
one obtained hazard ratio and conclude the following (p. 108):
et al. 2016, p. 814). As addressed in a number of recent com-
mentaries and editorials (e.g., Abbasi et al. 2016; Baesens et The study showed that one level of increase in
al. 2016; Lycett 2013; Müller et al. 2016; Sharma et al. 2014), CSTR [i.e., control strength] decreased the hazard
the issue with the interpretability and accountability of the rate of an application by 28 percent. This finding
outputs of analytical algorithms seems to be a serious bottle- becomes pertinent in practice owing to the fact that
neck in the way of realizing (business) value from data each application works within several controls;
analytics. Although advanced analytics models are obviously enhancing an existing or implementing a new
superior in terms of capturing complex relationships and (exclusive or compensatory) control can have a far-
producing accurate results and predictions, there is clear reaching impact on improving the overall security of
evidence from such areas as healthcare or finance (e.g., an application.
Breiman 2001; Martens et al. 2007), where the stakes are
high, that practitioners might still strongly prefer simpler, The above quote from Wang et al. in fact denotes that the
parsimonious regression models with a limited number of authors aim to pursue a form of cost-benefit analysis in order
well-understood variables—“even though these models could to establish a sound rationale on why a 28% decrease in the
be easily outperformed by non-linear models working on hazard rate of an application is significant in the world of
high-dimensional data sets” (Müller et al. 2016, p. 294). practice. The authors could also pursue other complementary
Therefore, strictly speaking, in a choice between interpret- practices to further strengthen their rationale. One practice
ability and accuracy/comprehensiveness, it is not surprising we recommend is to solicit, and present, views and comments
at all that nonacademics would prefer the former. from samples of targeted nonacademic stakeholders (in the
case of Wang et al., security managers) on the significance of
In a nutshell, our recommendation is for authors to write the research findings (in the case of Wang et al., the 28%
“implications for practice” section differently in the future. decrease in the hazard rate of an application). Another suit-
Authors should clearly exhibit how the real-world insights, able approach is to draw comparisons with findings reported
advice, viewpoints or interpretations offered in that section in practitioner outlets, where similar effect sizes, ratios or
are grounded in the particular magnitudes of research measures have been reported for the concerned phenomena/
findings. Therefore, it is necessary to present the quantitative variables. Additionally, in some cases, the comparisons may
magnitude of pertinent findings again in the “implications for be made, in one way or another, between research findings
practice” section. To refer the readers back to a sophisticated and certain industry-wide/global standard rates, market
table or chart, where many analysis results are often reported, averages, benchmarks, and so forth.

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Table 8. The Proper Communication of Research Relevance


Exemplar Papers
Corresponding Reviewed/Noted from
Elements to Be Aspect(s) of Recommended Practices to Establish/Communicate Published IS
Communicated Relevance Relevance Research
The relevance Understandability, • Collect and present evidence (solicited from the Armstrong et al. (2015)
of dependent and targeted nonacademic stakeholders) on the relevance Gao et al. (2015)
variables Noteworthiness of dependent variables.
• Collect and present evidence (from similar research
studies) on the relevance of dependent variables.
• Collect and present evidence from nonacademic
outlets/reports to prove that the same variables are
already recognized in practice.
The relevance Understandability, • Collect and present evidence (solicited from the Armstrong et al. (2015)
of independent/ and Actionability targeted nonacademic stakeholders) on the relevance Gao et al. (2015)
mediating (when of independent/mediating variables. Wang et al. (2015)
variables appropriate) • Collect and present evidence (from similar research
studies) on the relevance of independent/mediating
variables.
• Collect and present evidence from nonacademic
outlets/reports to prove that the same variables are
already recognized in practice.
The relevance Real-World • Offer practical insights, advice and interpretations Wang et al. (2015)
of the Impact along with the corresponding quantitative
magnitude of magnitude of research findings.
findings • Convert and present research findings in such easily
digestible forms as percentages, when possible.
• Visualize research findings using charts/graphs/ plots.
• Conduct and present cost-benefit type of analyses.
• Solicit and present views on the importance of
research findings from the targeted nonacademic
stakeholders.
• Draw comparisons with practitioner outlets’ findings,
industry-wide/global standard rates, market averages,
benchmarks, etc.

Table 8 provides a summary of our recommendations for the raise a point as to how to address the issue of generalizability.
proper communication of research relevance. May the interpretations made by a research study in a given
setting, or with a certain population, concerning the matters of
As with our demonstration of addressing practical signifi- relevance, practical significance, and statistical significance
cance in the cases of the three MIS Quarterly papers (i.e., be generalized to a new setting or population? For instance,
Armstrong et al. 2015; Liu et al. 2015; Park et al. 2015) in for a particular research study, there could be the findings of
Table 7, we now return again to the three papers for a demon- no relevance, medium practical significance, and high statis-
stration of the communication of research relevance. Table 9 tical significance. May these interpretations be generalized to
shows elements that have been already communicated by the a new setting or population? According to Lee and Basker-
authors as well as the ones that remained overlooked. ville (2003), in their statement on the generalizability of a
theory, “[t]he only way in which a researcher (or practitioner)
may properly claim that the theory [which has been tested] is
Generalizing Relevance, Practical Significance, indeed generalizable to the new setting would be for the
and Statistical Significance theory to be actually tested and confirmed in the new setting”
(p. 237). Therefore, in a research study that, for instance,
To conclude our recommendations on how to properly com- involves SEM, the “theory” would refer to its operationali-
municate practical significance and research relevance, we zation in the form of equations, which are fitted, using data

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Table 9. A Demonstration of the Communication of Research Relevance in the Cases of


Park et al., Armstrong et al., and Liu et al.
Reviewed MIS Example of The Relevance of Research The Relevance of the
Quarterly Papers Practical Implication Variables Magnitude of Findings
Park et al. (2015) “As the results of the present Not Communicated Not Communicated
study show, perception of the The authors could have The authors could have
strength of information solicited evidence from some explicitly mentioned the
assurance increases belief in hospital managers (as the magnitude of research finding
resilience.” (p. 338) main targeted nonacademic corresponding to the term
stakeholder group) on the “increase.” Also, the authors
relevance of the research could have presented a cost-
variables, i.e., “information benefit type of analysis and/or
assurance” and “perceived evidence solicited from some
resilience.” hospital managers to indicate
if the amount of the “increase”
makes any difference in real-
world terms.
Armstrong et al. “Our findings suggest that “Focus group interviews were Not Communicated
(2015) perceptions of fairness and its conducted with 29 IS profes- The authors could have
importance to individuals extend sionals [as one of the main presented the magnitude of
beyond any one particular job targeted nonacademic the “findings” they are talking
and across an individual’s ISCE stakeholder groups] … about. In addition, the authors
[i.e., IS career experience]. This working in three different could have provided evidence
finding is particularly pertinent organizations in the transpor- solicited from some HR
as HR managers are limited in tation, food, and technology managers and/or practitioner
that they are only able to control industries in an effort to outlets to support the claim
job/organizational factors....HR determine the applicability of that the magnitude of the
managers should be cognizant this [research] model to the “findings” associated with the
of the importance of fairness career context.” (p. 715) research variable/construct
perceptions for new hires and “fairness” in fact constitute an
existing IS employees.” (p. 723) important impact in the eyes of
HR managers, or other
pertinent practitioners in the
real world.
Liu et al. (2015) “Our finding of the negative Not Communicated Not Communicated
prism effect suggests a distrust The authors could have The authors could have
of friend bid by third parties. A demonstrated the real-world explicitly mentioned the
P2P lending platform may relevance of the research magnitude of the “finding of
increase the number of bids by constructs (i.e., the prism the negative prism effect” and
removing friend bid labeling.” (p. effect and the probability of thereby could have disclosed
740) lending) by providing empirical the estimated amount of
evidence solicited from practi- “increase” in the number of
tioners in the online lending bids that a P2P lending
industry or from some similar platform should expect to earn
studies in the literature. from “removing friend bid
labeling.” These all in fact
could have been incorporated
in a solid cost-benefit type of
analysis, where the authors
could have justifiably estab-
lished that the “finding of the
negative prism effect” can
make a substantial difference
in real-world terms.

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from a sample, to the population. Thus, the communication Nonetheless, a research study, where statistically and practi-
of practical significance, relevance, and even statistical cally significant results are obtained and properly communi-
significance, of results in the research study should also cated, may not necessarily bear relevance to the real world.
include the caution that the interpretations associated with Relevance is a distinct matter. As conceptualized in this
these matters may not necessarily generalize to a new setting essay, relevance pertains to the situation in which a non-
or population—and that valid interpretations would require academic stakeholder finds the phenomenon under study, the
generating new results by refitting the statistical equations to factors associated with the phenomenon, and the reported
the new setting or population. magnitude of findings, to make a difference to the stake-
holder’s own real-world concerns or interests. Therefore, in
response to the last question posed in the “Introduction” sec-
tion, it is completely conceivable to think of situations where
Conclusion research findings would be of considerable practical signifi-
cance among researchers, but the research as a whole would
To conduct statistical analysis merely to obtain statistically not interest the targeted nonacademic audience (see Table 4).
significant results is too limited a goal. Statistical signifi-
cance simply has to do with statistical concerns as to whether In principle, it is possible for a study to bear any or all three
an obtained result may be considered discernible or not. of the qualities of statistical significance, practical signifi-
Returning to the question posed earlier (i.e., toward the end of cance and relevance. A pertinent question, therefore, is:
the “Introduction” section) on the relationship between statis- “Might IS researchers deliver more impactful research if their
tical significance and scientific inference, it is also clear that studies would bear all the three qualities?” Whereas ac-
statistical significance does not do any good under most hieving all three qualities in a research study would be
circumstances because, mathematically speaking, statistical desirable, we believe there still might be occasions where a
significance is concerned with p(D|H0), whereas through research study may or may not bear one or more of these three
scientific inference researchers are looking for p(H0|D). qualities, but could still tell an interesting and impactful story.
Thus, our major motivation behind this essay is not to call on
In addition to statistical significance, there are the matters of producing more IS research bearing all the three qualities;
practical significance and relevance. Practical significance, rather, we are motivated by establishing the lesson that all
although a well-established concept in statistics and some three qualities should be appropriately addressed and reported
social science areas, is largely misunderstood in the IS field. on by researchers. Therefore, this essay is not primarily
Concerning the question “What is practical significance?” meant to address a problem of research methodology per se,
(posed toward the end of the “Introduction” section), both the but to draw attention to an equally important problem,
theoretical (see Table 1) and illustrative (see Table 2) material namely, that of research communication.
in this essay indicate that practical significance refers to the
impressiveness of the magnitude of results—obtained through Being concerned with the issue of research communication,
statistical/computational analyses—in the research world. our review of published IS research suggests that statistical
Research results could well be significant in the statistical significance (as expected) is always reported, but practical
sense but still may be of no or little substantive importance significance and relevance are seldom fully reported in IS
among researchers. This long-established contrast between research studies. This, in our view, is indicative of the lack of
statistical significance and practical significance, therefore, attention to the development and promotion of proper
clearly suggests—in response to the question (posed toward research communication practices in our community. Conse-
the end of the “Introduction” section) on the necessity of quently, our effort in this essay has been to put forth a body
reporting on practical significance—that researchers need to of recommendations concerning how researchers can better
address, and report on, not only p-values, but also the prac- communicate the value of their research to both academic and
tical significance of obtained effect sizes, no matter if those nonacademic stakeholders. This is a critical effort con-
effect sizes are reported in the more recent “data analytics” sidering the fact that quantitative research has a major role in
type of research, or in the classic types such as ANOVA, shaping the profile and character of IS research as a whole.
linear regression or SEM. Furthermore, a firm communica- Interestingly to note, our review of MIS Quarterly papers
tion structure has to be in place for reporting practical published in 2015 established that 64% (27 out of 42) of the
significance. To only present effect size measurements in articles involved statistical/computational analyses.
some bulky tables or charts would not suffice. At least three
other elements (see Table 6), in addition to effect magnitudes, In summary, our recommendations for future quantitative IS
have to be communicated in IS research studies in order to research are (1) to view practical significance as an essential
accomplish an appropriate reporting on practical significance. part of rigorous statistical practice and a necessary companion

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Mohajeri et al./Investigating Relevance, Practical Significance, & Statistical Significance

to statistical significance; (2) to communicate the practical American Psychological Association. 2010. Publication Manual
significance of research results by offering explicit, context- of the American Psychological Association, American Psycho-
sensitive interpretations of magnitude and supporting ration- logical Association, Washington, DC.
ales; (3) to provide evidence on the relevance of variables Armstrong, D. J., Brooks, N. G., and Riemenschneider, C. K. 2015.
“Exhaustion from Information System Career Experience:
incorporated into the research; and (4) to discuss implications
Implications for Turn-Away Intention,” MIS Quarterly (39:3),
of the research for nonacademics by making reference to the
pp. 713-727.
magnitude of research findings, rather than merely the sign or Baesens, B., Bapna, R., Marsden, J. R., Vanthienen, J., and Zhao,
the statistical significance of those findings. Our recommen- J. L. 2016. “Transformational Issues of Big Data and Analytics
dations are readily implementable and do not place any in Networked Business,” MIS Quarterly (40:4), pp. 807-818.
additional burden on researchers. Indeed, as exemplified Banerjee, D., Cronan, T. P., and Jones, T. W. 1998. “Modeling IT
throughout this essay, there have been some past IS research Ethics: A Study in Situational Ethics,” MIS Quarterly (22:1), pp.
studies that have, in effect, followed our recommendations to 31-60.
some extent. Furthermore, while not primarily intended to Bapna, R., Qiu, L., and Rice, S. 2017. “Repeated Interactions
serve as procedures or evaluative standards as to how one Versus Social Ties: Quantifying the Economic Value of Trust,
may achieve or assess practical significance or relevance in IS Forgiveness, and Reputation Using a Field Experiment,” MIS
research studies, our recommendations can still give rise to Quarterly (41:3), pp. 841-866.
Benaroch, M., Lichtenstein, Y., and Fink, L. 2016. “Contract
ideas with respect to such procedures or standards—a
Design Choices and the Balance of Ex Ante and Ex Post
research opportunity worthy to be pursued much further in the Transaction Costs in Software Development Outsourcing,” MIS
future. Quarterly (40:1), pp. 57-82.
Berkson, J. 1938. “Some Difficulties of Interpretation Encountered
in the Application of the Chi-Square Test,” Journal of the Ameri-
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About the Authors
Information Systems (24:6), pp. 559-568.
Kaveh Mohajeri is an assistant professor at IESEG School of
Thompson, B. 2002. “‘Statistical,’‘Practical,’ and ‘Clinical’: How
Many Kinds of Significance Do Counselors Need to Consider?,” Management. He received both his B.Sc. degree in Industrial
Journal of Counseling & Development (80:1), pp. 64-71. Management and M.Sc. degree in IT Management from the
Tian, F., and Xu, S. X. 2015. “How Do Enterprise Resource University of Tehran, Iran. He also has a Ph.D. in Information
Planning Systems Affect Firm Risk? Post-Implementation Systems from Virginia Commonwealth University. His research
Impact,” MIS Quarterly (39:1), pp. 39-60. agenda mainly deals with advancing new research practices with a
Tripp, J. F., Riemenschneider, C., and Thatcher, J. B. 2016. “Job focus on the issues of research relevance and theory testing. Before
Satisfaction in Agile Development Teams: Agile Development starting his Ph.D. program, Kaveh worked in industry as an
as Work Redesign,” Journal of the Association for Information entrepreneur and a project analyst for more than four years.
Systems (17:4), pp. 267-307.
Vacha-Haase, T., and Thompson, B. 2004. “How to Estimate and Mostafa Mesgari is an assistant professor of Information Systems
Interpret Various Effect Sizes,” Journal of Counseling Psych- at Loyola Marymount University, Los Angeles. He received his
ology (51:4), pp. 473-481. Ph.D. degree in business administration from Concordia University,

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Mohajeri et al./Investigating Relevance, Practical Significance, & Statistical Significance

Montreal, Canada, in 2016. His research interests include data Allen S. Lee is professor emeritus of information systems at
analytics, open communities, and human–computer interaction. He Virginia Commonwealth University. He served as editor-in-chief of
explores novel data-driven methodologies to study the socio- MIS Quarterly and as a founding senior editor of MIS Quarterly
technical aspects of information systems in organizations. His work Executive. His research program has involved showing not only
has appeared in leading outlets including European Journal of how qualitative research can be done rigorously and scientifically,
Information Systems, IEEE Transactions on Software Engineering, but also how quantitative research equally needs to live up to the
Journal of the Association for Information Science and Technology, requirements of science. He is a Fellow of the Association for
and Information Processing & Management. Before entering Information Systems, a LEO Award recipient, and a member of the
Circle of Compadres of the Information Systems Doctoral Students
academia, he worked as a computer systems analyst.
Association of the KPMG Ph.D. Project.

Appendix A
An Illustration of Relevance, Practical Significance and
Statistical Significance (Continued)
Region 3: The research study falls in Region 3 in Figure 1 if it has the profile shown in Table A1.

Table A1. The Profile of the Example Research Study in Region 3


The research is not statistically significant because the p-values corresponding to the
X statistical significance ^ and â ^ are both large (p > .05).
estimated coefficients â1 2
^ and â
The research is practically significant because the estimated coefficients â ^ have
1 2
T practical significance certain magnitudes to constitute what the researchers consider to be impressive effect size
values.
The research is relevant to the firm because:
• For the firm, “individual BI usage proficiency” is an understandable and noteworthy matter.
• For the firm, “organizational role of BI user” and “length of BI user training” are
T relevance understandable and actionable factors.
• For the firm, the magnitudes of the research results corresponding to “organizational role
of BI user” and “length of BI user training” are satisfactory to make a difference to its
question of interest, which pertains to “individual BI usage proficiency.”

The scenario associated with Region 3 is useful for highlighting that research results can, at the same time, lack statistical significance but still
have practical significance and relevance. The absence of statistical significance does not, by itself, preclude practical significance from the
perspective of the researchers conducting the statistical analysis. Also, the absence of statistical significance does not, by itself, preclude the
firm from deeming the magnitudes of statistical results corresponding to “organizational role of BI user” and “length of BI user training” to
be satisfactory to make a difference to its question of interest, which pertains to “individual BI usage proficiency.” Moreover, the firm is aware
that, among researchers, the given threshold for the p-value in many disciplines is an arbitrary convention (see Kelley and Preacher 2012,
p. 139) and, therefore, does not necessarily see the lack of statistical significance in this case to be a negative criticism of the research model.

Region 4: The research study falls in Region 4 in Figure 1 if it has the profile shown in Table A2.

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Mohajeri et al./Investigating Relevance, Practical Significance, & Statistical Significance

Table A2. The Profile of the Example Research Study in Region 4


The research is not statistically significant because the p-values corresponding to the
X statistical significance ^ and â^ are both large (p > .05).
estimated coefficients â1 2
^ and â
The research is not practically significant because the estimated coefficients â ^ do
1 2
X practical significance not have magnitudes to constitute what the researchers consider to be impressive effect
size values.
The research is relevant to the firm because:
• For the firm, “individual BI usage proficiency” is an understandable and noteworthy
matter.
• For the firm, “organizational role of BI user” and “length of BI user training” are
T relevance
understandable and actionable factors.
• For the firm, the magnitudes of the research results corresponding to “organizational
role of BI user” and “length of BI user training” are satisfactory to make a difference to
its question of interest, which pertains to “individual BI usage proficiency.”

Region 4 is useful for highlighting that research can still be relevant even when both statistical significance and practical significance are absent.
The researchers whom the firm commissioned to conduct the statistical study might very well caution the firm not to act on the basis of the
research model; however, the firm may also properly argue, as mentioned previously, that the insignificant findings do not necessarily
generalize to all settings in the firm, especially new settings that the researchers did not include in their study and in which the firm has an
interest in later applying the research model.

Region 6: The research study, which involves Model B, falls in Region 6 in Figure 1, if it has the profile shown in Table A3.

Table A3. The Profile of the Example Research Study in Region 6


The research is not statistically significant because the p-values corresponding to the
X statistical significance ^ and â ^ are both large (p > .05).
estimated coefficients â1 2
^ and â
The research is practically significant because the estimated coefficients â ^ have
1 2
T practical significance certain magnitudes to constitute what the researchers consider to be impressive effect
size values.
The research is not relevant.

X relevance The firm does not consider the factors, indicated by the independent variables, to be
actionable. Specifically, the firm does not consider it feasible to change an employee’s
age or gender, or consider it ethical to select an employee based on age or gender.

This example shows the situation where researchers can consider the effect sizes to be impressive and where, at the same time, the lack of
statistical significance would indicate unreliability of the results (at 0.05 p-value level) and would therefore inhibit the researchers from
approving or recommending the research model. In any case, the lack of actionability of the research model would render it not relevant in
the eyes of the firm.

Region 7: The research study, which involves Model B, falls in Region 7 if it has the profile shown in Table A4.

558 MIS Quarterly Vol. 44 No. 2/June 2020


Mohajeri et al./Investigating Relevance, Practical Significance, & Statistical Significance

Table A4. The Profile of the Example Research Study in Region 7


The research is statistically significant because the p-values corresponding to the
T statistical significance ^ and â ^ are both small (p < .05).
estimated coefficients â 1 2
^ and â
The research is not practically significant because the estimated coefficients â ^ do
1 2
X practical significance not have magnitudes to constitute what the researchers consider to be impressive effect
size values.
The research is not relevant.

X relevance The firm does not consider the factors, indicated by the independent variables, to be
actionable. Specifically, the firm does not consider it feasible to change an employee’s
age or gender, or consider it ethical to select an employee based on age or gender.

Finally, the case of Region 7 draws attention to the situation where there is only statistical significance. In general, statistical significance, in
and of itself, should not be the goal of statistically conducted research in so far as statistically significant results are always obtainable as long
as the sample size is large enough (for an extensive explanation, see Nickerson 2000).

MIS Quarterly Vol. 44, No. 2/June 2020 559


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