Amini Models Supply Chain Configurations for Diffusion of New Products
Amini, M., & H. Li. 2011. Supply Chain Configuration for Dynamic Diffusion of New Products: An Integrated Optimization Approach, Omega: International Journal of Management Science, 39: 313–322.
We develop an integrated/hybrid optimization model for configuring new products’ supply chains while explicitly considering the impact of demand dynamics during new products’ diffusion. The hybrid model simultaneously determines optimal production/sales plan and supply chain configuration. The production and sales plan provides decisions on the optimal timing to launch a new product, as well as the production and sales quantity in each planning period. The supply chain configuration provides optimal selection of options and safety stock level kept at each supply chain function.
Chang Publishes Study on Impact of High Deductible Health Plans
Waters TM, Chang CF, Cecil WT, Kasteridis P. & Mirvis D. 2011. Impact of Consumer Directed Health Plans on Healthcare Utilization and Costs. Health Services Research, 46:155-172.
High Deductible Health Plans (HDHPs) are of high interest to employers, policymakers and insurers because of the potential benefits and risks of this fundamentally new coverage model. One of the study’s major findings was that the impact of HDHP enrollment on utilization differed quite significantly by population subgroup. Chronically ill enrollees and those who clearly had a choice of plans were more likely to increase utilization in specific categories after switching to an HDHP plan. Our findings suggest that various subgroups of enrollees may choose HDHPs for different reasons and react differently to plan design and incentives. The study was funded by a grant from the pharmaceutical company, Pfizer, Inc.
Babakus Examines Effects of CEO Gender on SME Performance
Davis, P.S., Babakus, E., Danskin Englis, P. & Pett, T.
2011. The Influence of CEO Gender on Market Orientation and Performance in Service Small and Medium-Sized Service Businesses. Journal of Small Business Management, 48: 475-496.
This study examines the effects of CEO gender on market orientation and performance (growth and profitability) among a sample of small and medium-sized service
businesses. Gender was found to have significant indirect effects (via market orientation) on both market performance (growth) and financial performance (profitability). That is, female-led service SMEs perform significantly better due to their stronger market orientation relative those led by males. The findings further suggest that female-led firms were slightly better than their male-led counterparts in transmitting market performance into financial performance, although the differences were not statistically significant.
Dhaliwal Examines IT Alignment
Onita, C. & Dhaliwal, J., 2011. Alignment within the corporate IT unit: an analysis of software testing and development. European Journal of Information Systems, 20(1): 48-68.
In a study of how strategic management concepts such as alignment can be applied to the internal context of the corporate IT unit, Onita and Dhaliwal discover that underlying the macro level of strategic alignment are other, more granular levels of alignment involving the interdependent subunits within the unit. They present and test a model for tactically aligning the software development and testing units in software engineering to demonstrate that there is theoretic and practical value in considering alignment as a dynamic, context-driven, social phenomenon as well as a useful interpretative lens for exploring organizational interactions and interdependencies.
Kedia Releases Edited Text on Global Competitiveness and Sustainability
S.C. Jain & B.L. Kedia (Eds.) 2011. Enhancing Global Competitiveness through Sustainable Environmental Stewardship. Northampton, MA: Edward Elgar.
Companies that are proactive in mitigating their exposure to climate-change risks will not only generate new profitable opportunities, but also gain competitive advantage over their rivals in a carbon-constrained future. Enhancing Global Competitiveness through Sustainable Environmental Stewardship provides frameworks for identifying how climate change might affect a business, and suggests strategy guidelines to manage the risks and seek opportunities.
This seminal collection of research will be of particular interest to students and scholars of sustainability studies, business and management, and business professionals concerned with the role they will play in the changing and challenging times that lie ahead for business growth and environmental consciousness.
Kettinger Introduces Knowledge-Based Theory of Information
William J. Kettinger & Yuan Li
2011. The Infological Equation Extended: Towards Conceptual Clarity in the Relationship between Data, Information and Knowledge. European Journal of Information Systems, 19: pp. 409-421.
No concepts or relationships could be more core to the Information System (IS) field than: data, information, and knowledge. Surprisingly, there still exist considerable confusion concerning the definition and relationship between these core concepts. This article introduces the ‘Knowledge-Based Theory of Information’ describing data as the measurement of states, whereas knowledge outlines the relationship between concepts underlying those states. Information, representing a status of conditional readiness for an action, is generated from the interaction between the states measured in data and their relationship with future states predicted in knowledge. Following this logic, different forms of IS are conceptualized as the embodiments of knowledge domains capable of transforming specific categories of data into information for business operations and decision-making. The proposed theory and model helps address controversies in previous studies and provides guidance for further research.
Liu Explores Dynamics of Mass Customization and Manufacturing
Liu, G., Shah, R. & Schroeder, R.G. The Relationships among Functional Integration, Mass Customization, and Plant Performance. International Journal of Production Research (in press).
This article seeks to demonstrate the impact of functional integration within the focal firm on mass customization and plant performance. Organizational information processing theory and the resource-based view of the firm are used to relate these factors. Empirical analyses of data collected from 266 manufacturing plants indicate that functional integration has a significant positive impact on mass customization and operational performance. Mass customization partially mediates functional integration’s impact on operational performance. Results also indicate that mass customization’s impact on customer satisfaction is not direct. Rather, the relationship is fully mediated by operational performance.
Peng, D.X., Liu, G. & Heim, G.R. Impacts of Information Technology Infrastructure on Mass Customization Capability of Manufacturing Plants. International Journal of Operations & Production Management (in press).
This study identifies four types of IT that potentially support mass customization (MC) capability, including product configurator IT, new product development IT, manufacturing IT, and supplier collaboration IT. It then theoretically relates these four IT types with MC capability and empirically examines these relationships. A structural equation model is tested using survey data collected from a sample of manufacturing plants that focus on product customization. The empirical results indicate that two of the four IT types strongly support a manufacturer’s MC capability. The paper identifies managerial opportunities for investing in IT to support or enhance MC capability.
Mortal Publishes Work on Opportunistic Behavior, Asset Growth
McBrady, M.R. Mortal, S. & Schill, M.J.
2011. Do Firms Believe in Interest Rate Parity? Review of Finance, 14: 695-726.
Using a broad sample of international corporate bond offerings, we provide evidence that corporate borrowers make opportunistic currency choices, in that they denominate the currency of their bonds in a manner that is inconsistent with a belief in either covered or uncovered interest rate parity. Using firm-level tests, we identify a number of characteristics of firms that engage in opportunistic behavior. We observe that large issuers located in developed markets with investment-grade ratings and low cash flow characterize those firms that are responsive to covered borrowing rate differences across currencies. Corporate responsiveness to uncovered borrowing rate differences appears more general. We observe that although the gains firms achieve through opportunistic currency denomination are economically significant, the yield differential tends to systematically decline after issuance. This finding suggests that opportunistic issuance by corporations may be a primary mechanism for driving covered interest yields toward parity.
Lipson, M., Mortal, S. & Schill, M. On the Scope and Drivers of the Asset Growth Effect. Journal of Financial and Quantitative Analysis (in press).
Recent papers have debated whether the negative correlation between measures of firm asset growth and subsequent returns is of little importance since it applies only to small firms, justified as compensation for risk, or evidence of mispricing. We show that the asset growth effect is pervasive and evidence to the contrary arises due to specification choices; that one measure of asset growth, the change in total assets, largely subsumes the explanatory power of other measures; that the ability of asset growth to explain either the cross section of returns or the time series of factor loadings is linked to firm idiosyncratic volatility; that the return effect is concentrated around earnings announcements; and that analyst forecasts are systematically higher than realized earnings for faster growing firms. In general, there appears to be no asset growth effect in firms with low idiosyncratic volatility. Our findings are consistent with a mispricing-based explanation for the asset growth effect in which arbitrage costs allow the effect to persist.
Okunade Explores Household Healthcare Expenditure in Thailand
Okunade, A.A., Suraratdecha, C. & Benson, D.A.
2011. Determinants of Thailand Household Healthcare Expenditure: The Relevance of Permanent Resources and Other Correlates. Health Economics, 19: 365-376.
Out-of-pocket health spending of households, especially those at the middle and low income strata, can and do have devastating effects on compliance and health care access. Catastrophic health events often lead to a longer term impoverishment of the household. This research used four waves of the more than 100,000 household survey data observations (Source: National Socio-Economic Surveys) for econometric modeling of a two-stage decision process in out-of-pocket health care spending. Using a double-hurdle model, they found the impact of out-of-pocket heath care spending to vary significantly across income strata (from the lowest 20% or 1st income quintile to the 5th income quintile) and in protracted periods of 'economic shock'. One of the many innovations in this study is specifying health care spending to depend on permanent income.
Pierce Publishes Work Examining Research Methods
Aguinis, H., Pierce, C. A., Bosco, F. A., Dalton, D. R., & Dalton, C. M. Debunking myths and urban legends about meta-analysis. Organizational Research Methods (in press).
Meta-analysis is a statistical technique for conducting research syntheses. The authors identify and discuss seven meta-analytic practices, misconceptions, claims, and assumptions that have reached the status of myths and urban legends (MULs) in the organizational sciences. The seven MULs entail issues related to data collection, data analysis, and interpretation of meta-analytic results. The authors provide a critical analysis of the seven MULs and offer best-practice recommendations for conducting meta-analyses.
Aguinis, H., Boyd, B. K., Pierce, C. A., & Short, J. C. 2011. Walking new avenues in management research methods and theories: Bridging micro and macro domains. Journal of Management, 37: 395-403 (Special Issue Editorial Introduction).
The authors introduce a special issue of the Journal of Management that addresses the challenge of integrating micro and macro research methods and theories in the field of management. First, the authors describe the nature of the micro-macro divide and its challenge for the field of management. Second, the authors provide a summary of the guest editorials and articles published in the special issue. Finally, the authors offer suggestions for future research aimed at bridging the micro-macro gap and science-practice gap in the field of management.
Aguinis, H., Dalton, D. R., Bosco, F. A., Pierce, C. A., & Dalton, C. M. 2011. Meta-analytic choices and judgment calls: Implications for theory development and testing, obtained effect sizes, and scholarly impact. Journal of Management, 37, 5-38.
The authors content analyzed all meta-analyses published from 1982 to 2009 in five premier journals in the organizational sciences. The goal of this content analysis was to examine the presumed effects of 21 methodological choices and judgment calls on substantive conclusions in organizational science research. Overall, results indicate that the methodological choices available and judgment calls involved in the conduct of a meta-analysis have little impact on the resulting magnitude of the meta-analytically derived effect sizes. Results also reveal that the more a meta-analysis attempts to test an exisiting theory, the larger the number of its citations, whereas the more a meta-analysis attempts to build new theory, the smaller the number of its citations. Finally, results are also supportive of scientific particularism (not universalism) such that the magnitude of the derived meta-analytic effect sizes is not related to the extent to which a meta-analysis is cited.
Poston and Simon Examine IT Outsourcing
Jain, R., Poston, R.S., and Simon, J.C. An Empirical Investigation of Client Managers’ Responsibilities in Managing Offshore Outsourcing of Software Testing Projects. IEEE Transactions on Engineering Management (in press).
Although the number of IT projects outsourced has increased, there is little research that studies the kind of issues managers face or how their responsibilities change when dealing with their offshore vendors. Therefore a case study was conducted to study such a relationship between a U.S. client and its Indian vendors engaged in software testing projects. Six project activities that went a major change have been identified and various ways the manager used to deal with these changes have been discussed. Lastly, we discuss how the interaction between multiple global boundary variables affects these project management activities. To do so, we draw upon literature from global distributed teams, organizational communications, and offshore outsourcing to theoretically ground the relationship between the boundary variables and the coping strategies.
Jain, R., Simon, J.C., and Poston, R.S. Mitigating Vendor Silence in Offshore Outsourcing to India: An Empirical Investigation. Journal of Management Information Systems (in press).
Keeping silent about a project or sharing project ideas may either lead to lower performance of a project or complete project failure. Earlier literature in offshore outsourcing says that client managers should not only induce offshore vendor’s employees to report project problems but also to bring newer ideas to the table regarding the project. Also, literature on cross-cultural teams suggests that adaptation to different cultures is important for smooth functioning of IT projects that have teams coming from different cultures. However there is little research that studies how cultural adaptation may lessen the effect of keeping silent in IT projects. Therefore, this paper studies the concept of vendor silence and cultural adaptation in cross-cultural teams and also develops a framework which shows how vendor silence may be mitigated in offshore outsourcing through various mechanisms. We then show how social and structural silence mitigation mechanisms are linked to different levels of cultural adaptations through the alignment of communication preferences and relationship building between client and vendor managers. Lastly, we develop three propositions that studies the mediating role of cultural adaptation in mitigating vendor silence.
Renn and Allen Explore Self-Management Behaviors
Renn, R. W., Allen, D., & Huning, T. 2011. Empirical Examination of the Individual-Level Personality-Based Theory of Self-Management Failure. Journal of Organizational Behavior, 30: 1-19.
Self-management is becoming increasingly important as organizations shift from traditional structures and jobs to flexible decentralized structures and distributed work. However, employees often fail to self-manage properly even after receiving professional training in the process. In this study of employees using self-management in the workplace, Dr. Renn and colleagues found that personality traits can predispose employees to self-defeating behavior such as procrastination that in turn contributes to self-management failure. The study highlights the importance of matching employees to jobs requiring self-management using personality traits and the benefit of training employees to overcome self-defeating behavior that can undermine their self-management.
Spiceland Publishes New Textbook Editions
The second edition of Professor David Spiceland’s textbook Financial Accounting, coauthored with Wayne Thomas and Don Herrmann, has been published by McGraw-Hill. The previous edition received the Crystal Award for First Edition Of The Year from McGraw-Hill. Also published in 2011 is the sixth edition of Intermediate Accounting by David Spiceland, James Sepe, and Mark Nelson.