Obscure Oversight: Opacity Drives Sensemaking and Resistance Behavior in Algorithmic Management
Michael Pregenzer, Florian Wieser, Renata Santiago Walser, Ulrich Remus · Journal of the Association for Information Systems · 2021
Algorithmic Management (AM) is becoming ubiquitous in new work arrangements, where intelligent algorithms automate control activities previously performed by human managers. Existing research points to opacity as a driving force behind resistance behavior to AM. Analyzing an online forum for ride-hailing drivers shows that drivers engage in individual and collective sensemaking to create stories and alternative truths that help them cope with opacity by giving them a sense of control and agency. Not only did we find different types of sensemaking ‘theories’, but we also to shed light on the manifold interaction effects between opacity, sensemaking and resistance behavior. Interestingly, opacity acts as catalyst for resistance behavior only when financial pain is involved. The void which opacity leaves is then filled with malevolent sensemaking, even intensifying resistance, while trust can mitigate negative consequences of opacity. Our nuanced understanding behind opacity will provide a much-needed foundation for further research in AM.