Product Modularity,Process Modularity,and New Product Introduction Performance: Does Complexity Matter?

Modularity has the potential to impact various facets of new product introduction performance including product development lead time, frequency of new product introduction, on time introduction and product innovation. The impact of modularity on new product introduction performance, however, may vary for different levels of product and process complexity. This study empirically investigates relationships between perceptual measures of product modularity, process modularity, and new product introduction performance and explores whether an objective product/process complexity measure moderates these relationships. Using survey‐based methodology we probe both manufacturers of technically simple products and technically complex products. Hierarchical regression models are used to test hypotheses concerning the main effects of product and process modularity and the effects of their interactions with complexity on new product introduction performance. The results show that the main effect of product modularity was positive and its interaction with complexity was disordinal and negative, suggesting that the positive effect of product modularity on new product introduction performance is dampened when complexity is high. For process modularity, only the interaction effect (positive) was statistically significant and it was also disordinal in nature. Thus, the effect of process modularity on new product introduction performance is heightened when complexity is high. The implications of these findings are discussed and more specific theoretical and managerial implications are delineated by examining the impacts of these main and interaction effects on individual measures of new product introduction performance (frequency of new product introduction, product development lead times, product innovation, and on‐time product launch).     

Consumer Deception or Unwarranted Product Disparagement? The Case of Lean,Finely Textured Beef

When celebrity chef Jamie Oliver used his television presence to denounce the inclusion of lean, finely textured beef (LFTB) in ground beef products sold to consumers and present in school lunches, a firestorm of protests ensued. Ultimately, processing plants were closed, employees laid off, school lunch programs were changed to exclude LFTB from their menus, and large retailers such as Costco and Walmart refused to sell products containing LFTB. Calls for mandatory labeling were proposed in Congress, the argument being that consumers had a right to know what was in the beef they were purchasing and feeding their families. Dubbed “pink slime” by its critics, LFTB is treated, processed beef renderings that are derived from trimmings that would otherwise be discarded or used for some inferior purpose such as animal food. This article chronicles the events surrounding the LFTB controversy, briefly reviews scientific evidence pertaining to its safety, and reviews public policy initiatives in the wake of public protests.     

Can Sustainable Development and the Market Co-exist?

This article looks at Shell vision of sustainable development which is based on three essential and inseparable building blocks — the creation and maintenance of economic wealth, environmental improvement and social equity. All three must be integrated and balanced for long-term success, and all three underpin the Shell approach to global markets.The process of moving towards a sustainable future is under way, but the rate of progress depends on customer choice, innovation and investment — in other words, on market forces. If governments set targets and provide a good framework, companies like Shell will take the chances and offer solutions that support sustainable development. Then the markets will decide.Shell companies see support for sustainable development as a key element in continuing business success. This article discusses some of the ways Shell works with a wide range of partners to seek ways of achieving the best balance between economic, environmental and social considerations and between short term and long-term benefits. On this basis, the market supports the aims of sustainable development and Shell companies intend to play their part by providing, responsibly, efficiently and profitably, the energy the world's growing populations will need and want in the 21^st century.     

Something Old,Something New?: Competing Logics and the Hybrid Nature of New Corporate Professions

The professionalization of certain management occupations, such as project management and human resource management, has been neglected in recent debates on professions, which instead focus upon the deregulation of collegial professions or the failure or unwillingness of new expert occupations to professionalize. Project management represents one of a handful of ‘management professions’ which confound this interpretation, explicitly pursuing a ‘corporate professionalization’ project with some degree of success. This paper focuses on the strategic activities of the principal British professional association in this field, the Association for Project Management (APM), as it negotiates a path between exploiting established sources of legitimacy and exploring a novel conception of professionalism. In the process, the association manipulates collegial and corporate logics of professionalism, in terms of its relationships with key stakeholders, its global orientation, its knowledge base and strategies of occupational closure. Drawing on interviews with APM officials and broader documentary analysis, we analyse the conditions which have produced this hybrid model of professionalism, highlighting the pragmatic management of tensions through the combination of distinct, even contradictory, professionalization logics.     

Is Imperfect Competition in the Product Market Relevant for Labour Markets?

Recent research in macroeconomics emphasises the importance of imperfect competition in the product market for labour market outcomes. We investigate one aspect of this issue by specifying a dynamic labour demand model where firms face different degrees of competition in the product market and test its predictions for 299 US manufacturing industries. We find that the long-run equilibrium level of industry employment as well as the speed of labour demand adjustment decreases with market power. Our results imply that imperfect competition in the product market explains part of the observed labour market rigidities and also sheds new light on two “stylized facts” in industrial organisation, the observation of procyclical movements in productivity and price–cost margins in concentrated industries.     

Regulatory treatment of the double default effect under the New Basel Accord: how conservative is it?

Within the internal ratings-based approach of the New Basel Accord, banks have the possibility to consider the so-called double default effect of guaranteed exposures. However, the correlation assumptions inherent in the regulatory recognition of the double default effect appear to be quite conservative. To evaluate the degree of conservatism, on one hand, the regulatory correlation assumptions are compared with the results of a broad range of empirical studies. On the other hand, additional simulation experiments are carried out. While the comparison with the empirical results indeed suggests that the correlation parameters assumed by the regulatory authorities are much too large, the simulation experiments show that the assumed values are not unrealistic for capturing the intended effects.

How to Model a Negligible Probability Under the WTO Sanitary and Phytosanitary Agreement?

Since the 1997 EC – Hormones decision, World Trade Organization (WTO) Dispute Settlement Panels have wrestled with the question of what constitutes a negligible risk under the Sanitary and Phytosanitary Agreement. More recently, the 2010 WTO Australia – Apples Panel focused considerable attention on the appropriate quantitative model for a negligible probability in a risk assessment. The 2006 Australian Import Risk Analysis for Apples from New Zealand translated narrative probability statements into quantitative ranges. The uncertainty about a “negligible” probability was characterized as a uniform distribution with a minimum value of zero and a maximum value of 10^?6. The Australia – Apples Panel found that the use of this distribution would tend to overestimate the likelihood of “negligible” events and indicated that a triangular distribution with a most probable value of zero and a maximum value of 10^?6 would correct the bias. The Panel observed that the midpoint of the uniform distribution is 5 × 10^?7 but did not consider that the triangular distribution has an expected value of 3.3 × 10^?7. Therefore, if this triangular distribution is the appropriate correction, the magnitude of the bias found by the Panel appears modest. The Panel's detailed critique of the Australian risk assessment, and the conclusions of the WTO Appellate Body about the materiality of flaws found by the Panel, may have important implications for the standard of review for risk assessments under the WTO SPS Agreement.     

Why Do We Observe Stockless Operations on the Internet? Stockless Operations Under Competition

Due to the proliferation of electronic commerce and the development of Internet technologies, many firms have considered new pricing‐inventory models. In this paper, we study the role of stockless (i.e., zero‐inventory) operations in online retailing by a considering duopoly competition in which two retailers compete to maximize profit by jointly optimizing their pricing and inventory decisions. In our model, the retailers are allowed to choose either an in‐stock policy or stockless operations with a discounted price. We first present the characteristics and properties of the equilibrium. We then demonstrate that the traditional outcome of asymmetric Bertrand competition is observed under head‐to‐head competition. However, when the two firms choose different operational policies, with corresponding optimal pricing, they can share the market under certain conditions. Finally, we report interesting observations on the interaction between pricing and inventory decisions obtained from an extensive computational study.     

Business Exit and Strategic Change: Sticking to the Knitting or Striking a New Path?

The purpose of this study is to examine the potential of business exit for initiating strategic change in divesting parent firms. In contrast to prior literature that mainly investigates the impact of different antecedents on the likelihood of business exit in general, this study additionally tests the influence of these antecedents on the choice between two exit types with a cross‐industry sample of divesting firms listed in the German CDAX over the time period 1999–2004. A divestiture involving strategic change is a strategic business exit; otherwise it is denoted as status quo preserving. The findings reveal that a relatively highly dissipated focus does not automatically enhance the likelihood of business exit in general and status‐quo‐preserving business exit in particular. CEO turnover and pressures exerted by institutional investors predict neither strategic nor status‐quo‐preserving business exit. Low firm performance does not nurture the likelihood of business exit per se but especially promotes status‐quo‐preserving business exit.     

Are Individual Differences Germane to the Acceptance of New Information Technologies?

Persuading users to adopt new information technologies persists as an important problem confronting those responsible for implementing new information systems. In order to better understand and manage the process of new technology adoption, several theoretical models have been proposed, of which the technology acceptance model (TAM) has gained considerable support. Beliefs and attitudes represent significant constructs in TAM. A parallel research stream suggests that individual difference factors are important in information technology acceptance but does not explicate the process by which acceptance is influenced. The objective of this paper is to clarify this process by proposing a theoretical model wherein the relationship between individual differences and IT acceptance is hypothesized to be mediated by the constructs of the technology acceptance model. In essence then, these factors are viewed as influencing an individual's beliefs about an information technology innovation; this relationship is further supported by drawing upon extensive research in learning. The theoretical model was tested in an empirical study of 230 users of an information technology innovation. Results confirm the basic structure of the model, including the mediating role of beliefs. Results also identify several individual difference variables that have significant effects on TAM's beliefs. Theoretical contributions and practical implications that follow are discussed.     

Global Financial Crisis, Public Administration and Governance: Do New Problems Require New Solutions?

A financial crisis, or any crisis, is likely to produce a variety of responses from governments. This article discusses the range of responses that may be possible, pointing out that diametrically opposite answers may be made to the common problem. The analysis points to the persistence of many dichotomies in our thinking about public administration and public policy. These varied responses to crises are investigated in several political systems including the Baltic States and the European Union.     

Ghosts of Policing Strategies Past: Is the New Zealand Police ‘Prevention First’ Strategy Historic,Contemporary or the Future?

Since the 1990s the New Zealand Police have introduced three extensive change management programs to improve the efficiency and effectiveness of their core services; Policing 2000, Policing Excellence and Prevention First. Each program has been fundamentally different, with the more modern programs influencing the way that New Zealand Police deliver services. Policing 2000 evolved from implementation of the first strategic plan, while Policing Excellence and Prevention First were introduced in response to the 2007 fiscal crisis. The programs are compared to identify the differences, and whether these later programs can increase service delivery efficiency and effectiveness.     

Internal and External Social Capital for Radical Product Innovation: Do They Always Work Well Together?

We examine the role of internal and external relational social capital (SC) as determinants of radical product innovation (RPI). By analysing both sides of SC, we provide interesting insights on their relative influence and their interaction effect on this type of innovation. Besides, traditional assumptions on SC and innovation are questioned. In our empirical study using a sample of 142 manufacturing and service companies we found that, of the two types of SC analysed, internal SC is the most relevant predictor of RPI in relation to either technological or market dimensions. The influence of external SC is not as strong as the internal one. Regarding their interaction effect, external SC reduces the positive effect of internal SC on the market dimension of RPI. Interesting implications arise for practitioners, who should pay special attention to the higher impact of internal SC on RPI and the need to carefully manage the difficulties that emerge when it is combined with external SC.     

Merit Payment in France: Towards New Forms of Wage Determination?

ABSTRACT Wage policies in France were substantially renewed in the 1980s; this renewal was reflected in two phenomena: profit-sharing and merit payment. Merit payment is analysed here in relation to the emergence of new forms of organization of production. The need for higher-skilled labour, the relative decline of execution work and Taylorism have led to the setting up of systems of individual assessment and a more coherent organization of internal labour markets. Thus, merit payment should be seen as a very different practice from piece work: rather, it is the first attempt to establish a system of payment which could serve as a basis for renewing the entire wage bargaining set-up.