Understanding the Determinants of Firms’ Usage of A/B Testing: A Technology–Organization– Environment Framework

Abstract

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