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Accountable algorithms? The ethical implications of data-driven business models

Christoph F. Breidbach (University of Queensland, Brisbane, Australia)
Paul Maglio (University of California, Merced, California, USA)

Journal of Service Management

ISSN: 1757-5818

Article publication date: 5 May 2020

Issue publication date: 24 September 2020

3185

Abstract

Purpose

The purpose of this study is to identify, analyze and explain the ethical implications that can result from the datafication of service.

Design/methodology/approach

This study uses a midrange theorizing approach to integrate currently disconnected perspectives on technology-enabled service, data-driven business models, data ethics and business ethics to introduce a novel analytical framework centered on data-driven business models as the general metatheoretical unit of analysis. The authors then contextualize the framework using data-intensive insurance services.

Findings

The resulting midrange theory offers new insights into how using machine learning, AI and big data sets can lead to unethical implications. Centered around 13 ethical challenges, this work outlines how data-driven business models redefine the value network, alter the roles of individual actors as cocreators of value, lead to the emergence of new data-driven value propositions, as well as novel revenue and cost models.

Practical implications

Future research based on the framework can help guide practitioners to implement and use advanced analytics more effectively and ethically.

Originality/value

At a time when future technological developments related to AI, machine learning or other forms of advanced data analytics are unpredictable, this study instigates a critical and timely discourse within the service research community about the ethical implications that can arise from the datafication of service by introducing much-needed theory and terminology.

Keywords

Citation

Breidbach, C.F. and Maglio, P. (2020), "Accountable algorithms? The ethical implications of data-driven business models", Journal of Service Management, Vol. 31 No. 2, pp. 163-185. https://doi.org/10.1108/JOSM-03-2019-0073

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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