Positioning a company in enterprise collaborations: Vertical integration and make-or-buy decisions

During any strategic development, a firm has to position itself in its supply chain. The decision as to how many activities in the chain to occupy is known as vertical integration and is termed as make-or-buy when an individual activity is considered. Because of its very nature, this category of decisions may be made only within the framework of an extended enterprise. To support such a decision-making process, a model is described that defines all key elements needed to make such critical decisions. More precisely, a set of rules must present all items which have to be defined and valued, and the relationships between them, in order to conclude if an activity must be processed internally (Make) or supplied externally (Buy). This paper details such a hierarchy of rules.     

Moral imagination in long-term care workers

Our study focused on the cultural construction of dying and death in long-term care facilities. This article centers on direct care workers' perspective of residents' deaths. The data on which this article is based were gathered in a multi-year, multi-site study through formal ethnographic interviews, informal conversations, and on-site observations of residents and staff members. During fieldwork, we noticed an aptitude of direct care workers to deal with residents' deaths, which we named "moral imagination." The term is borrowed from other disciplines to describe a "way of seeing" residents. The case studies presented--that of three direct care workers: a dietary aide, a nurse aide, and an assistant activities director--are suggestive of workers in each category. Our study offers implications for future research concerning direct care workers' value to residents' quality of life. We also propose questions for long-term care facilities about standards of formal caregiving at the end of life.     

Existential Risks to Humanity Should Concern International Policymakers and More Could Be Done in Considering Them at the International Governance Level

In this perspective, we consider the possible role of the United Nations (UN) with respect to existential risks to human civilization and the survival of humanity. We illustrate how existential risks have been discussed at an international governance level, specifically in documents in the UN Digital Library. In this large corpus, discussions of nuclear war account for over two-thirds (69%, 67/97) of mentions of existential risks, while mention of other existential risks, or such risks as a category, appears scant. We take these observations to imply inadequate attention to these significant threats. These deficits, combined with the need for a global response to many risks, suggest that UN member nations should urgently advocate for appropriate action at the UN to address threats, such as artificial intelligence, synthetic biology, geoengineering, and supervolcanic eruption, in analogous fashion to existing attempts to mitigate the threats from nuclear war or near-Earth objects.     

Utility‐consistent Brand Demand Systems with Endogenous Category Consumption: Principles and Marketing Applications*

This paper introduces the design and implementation of utility‐consistent, brand, and category demand systems. It extends formal demand analysis to the area of brand and category demand, which directly concerns marketing researchers and managers. The proposed brand demand system is a set of interrelated demand functions that are derived explicitly from a utility function describing consumer preferences. The model generalizes by the integration of category expenditures, which are determined endogenously. The theoretical plausibility of the proposed demand model is demonstrated first and, subsequently, brand and category level systems are derived. Econometric methods for estimating the systems are also developed and illustrated in empirical data. The results yield empirically determined, quantitative insights into the structure of consumer demand for brands and product categories. The proposed approach has the attractive feature of structuring the interdependencies of consumer decisions and ensuring an explicit role for theory in applied research.     

Category Captainship vs. Retailer Category Management under Limited Retail Shelf Space

Shelf‐space scarcity is a predominant aspect of the consumer goods industry. This paper analyzes its implications for category management. We consider a model where two competing manufacturers sell their differentiated products through a single retailer who determines the shelf space allocated to the category. The scope of category management is pricing. We consider two category management mechanisms: retailer category management (RCM), where the retailer determines product prices and category captainship (CC), where a manufacturer in the category determines them. Our analysis reveals that the retailer can use the form of category management and the category shelf space to control the intensity of competition between manufacturers to his benefit. We also show that the emergence of CC depends on the degree of product differentiation, the opportunity cost of shelf space, and the profit sharing arrangement in the alliance. The equilibrium category shelf space under CC may be higher than under RCM if the value to the retailer of eliminating double marginalization and putting price pressure on the non‐captain manufacturer dominates the loss from sharing the profit with the category captain. CC has been criticized for disadvantaging non‐captain manufacturers. While we provide some support for this claim, we also find that CC may benefit non‐captain manufacturers when implemented by a powerful retailer in categories with sufficiently differentiated products, because the shelf space allocated to the category increases in this case.     

The Value of Category Captainship in the Presence of Manufacturer Competition

This research investigates the value of category captainship (a management practice in which a retailer relies on a manufacturer for recommendations regarding strategic category management decisions) in retail supply chains. We consider a setting where the scope of category management is limited to assortment decisions and demand enhancing activities. We assume that the retailer selects a category captain among multiple competing manufacturers with privately known capabilities for driving category traffic. First, we consider a benchmark scenario where the retailer is responsible for category management. Then, we consider the category captainship scenario where the retailer selects one of the manufacturers as a captain to manage the category. We find that captainship is more likely to emerge in categories where the cost of managing variety, the retail margins, and the competition for captainship are moderate and the captain is more capable of driving traffic compared to the retailer. In such categories the collaboration between the retailer and the captain ensures sufficient surplus for both parties. Finally, we show that captainship can also benefit the non‐captain manufacturers.     

Ryan White CARE Act and Collaborative Governance Re-Examined: the South Florida Experience

This research sequel employs collaborative governance framework with the aim to ascertain whether HIV/AIDS collaborative governance still works in Broward and Palm Beach Counties of South Florida within the context of efforts to provide care and treatment to target populations. The study uses interviews, observations, and document reviews to garner data from all relevant sources of the Councils and focuses on 2000–2006 and 2009–2013 time frames. The collected data was subjected to integration of themes and concepts based on category analysis. The analysis reveals representation and participation of target populations, service providers, non-elected community leaders and other relevant stakeholders in decision making enable collective problem solving. The research contributes to theory and praxis by highlighting collaborative governance presents public managers the viable option of serving as advocates of various interests in society.     

Does umbrella branding really work? Investigating cross-category brand loyalty

Numerous studies on the drivers of brand extension success found evidence that parent-brand characteristics and the fit between parent brand and transfer product are the main and most influential factors driving brand extension success. However, the ability of a brand to transfer its brand loyal customers from the parent to the extension category has been widely neglected. Brand loyalty can be regarded as a consequence of the underlying assumption of customers transferring their quality perceptions, their brand knowledge, and their experience with the brand from one category to the other. We find empirical evidence that consumers who are loyal to the brand in the leading (parent) product category show a higher probability to be loyal to that same brand in another (extension) category compared to those consumers who are not loyal in the leading category. Moreover, as the overall success of the extension includes positive retroactive effects of the extension product on the parent product or brand, the arising question is whether there are differences between extension product categories regarding their attachment to the parent category and their ability to stimulate brand loyal purchases in the parent category, i.e., speaking of ‘leader’ and ‘follower’ categories in terms of brand loyal purchase behavior. This might even hold true for the relationship of any two categories the brand competes.     

POTENTIAL RESEARCH TOPICS IN DECISION ANALYSIS*

Robert L. Winkler's paper [1] provides a comprehensive overview of challenging research areas for decision making under uncertainty. Hence, rather than try to extend the list of research areas identified, this note will attempt to embellish some that I feel are particularly important. In these areas, I feel the value of systematic research is particularly high. For convenience, the discussion will be organized under the four research categories identified by Winkler with a couple of sugestions following in an “implementation research” category. The reader will note, however, that many of the suggested topics actually relate to more than one research category.     

存在荣誉效用的等级竞赛机制分析

针对存在荣誉效用的等级竞赛,研究在等级数已定的条件下,以总努力最大化为目标的竞赛设计者如何设置竞赛人数和各等级人数的问题。通过分析荣誉效用由于相邻等级容量调整所引起的变化对总努力的影响,得到结论：无论能力分布如何,将最高等级容量设置得很小,对竞赛设计者而言,是更合理的选择;当竞赛者的能力分布为凹函数时,将中低等级的容量设置得相对较大更合理;当能力分布为凸函数时,将中高等级的容量设置得相对较小更合理。     

On the scientific study of small samples: Challenges confronting quantitative and qualitative methodologies

Often phenomena that are important to understand and predict are very rare. Rare events can prove difficult to analyze systematically because they do not generate many sampling observations. In this article I examine how small sample sizes can be studied scientifically. The article begins with an explanation of the distinction between research and science. I then bring to the fore the importance of counterfactual comparisons and outline the nature of the methodological problems posed by the study of small samples. These problems include challenges related to using a single case, small sample sizes, selecting on the dependent variable, regression toward the mean, explaining a variable with a constant, and using the same data to both generate and test hypotheses. I provide potential resolutions to these problems which are: (a) employing matched controls; (b) shifting or widen the category of inquiry; (c) selecting variables based on variance in the independent variable; (d) including counterfactuals; (e) ensuring that both independent and dependent variables demonstrate variation; and (f) testing potential hypotheses against data sets that are fully independent of those used to generate the hypotheses. I conclude with a discussion of future directions for undertaking a more scientific approach to using small samples.     

Multi-category purchase incidences with marketing cross effects

We focus on cross effects of marketing variables and cross category dependences for multi-category decisions which households take during a shopping trip to a retail store. A cross effect is defined as the effect which a marketing variable used for a certain product category exerts on purchases of another category. Using Dirichlet process mixture models with multivariate probit components we analyze purchase incidences of 24,047 shopping visits of a random sample of 1500 households. Independent variables of these models encompass marketing variables for 25 product categories and household attributes. We discuss differences between the two best performing models, a full model which includes both cross effects and cross category dependences, and a related restricted model which ignores cross effects. We obtain several high and significant differences with respect to category constants and cross category dependences between these two models. We also present explanations for the larger (in absolute terms) cross effects of features or displays. We demonstrate that by ignoring cross effects management runs the risk to obtain in many product categories too optimistic forecasts of sales revenue changes due to promotions. In contrast to previous related work suggesting not to use promotions which are not tailored to individual households in any of the investigated categories, we obtain support for such promotions in at least 48 % of the 25 product categories. In addition, based on the full model we demonstrate that often different categories are appropriate for promotions which are targeted at household clusters.     

Supplier Selection Behavior Under Uncertainty: Contextual and Cognitive Effects on Risk Perception and Choice

Buyers often make supplier selection decisions under conditions of uncertainty. Although the analytical aspects of supplier selection are well developed, the psychological aspects are less so. This article uses supply chain management and behavioral decision theories to propose that attributes of the purchasing situation (category difficulty, category importance, and contingent pay) affect cognition that, in turn, affects a supply manager's choice. We conducted a supplier selection behavioral experiment with practicing managers to test the model's hypotheses. When the context involves an important or difficult sourcing category, higher risk perceptions exist that increase preference for a supplier with more certain outcomes, even when that choice has a lower expected payoff. However, the presence of contingent pay decreases risk perceptions through higher perceived supplier control. We also find that a manager's risk propensity increases preferences for a supplier with less certain outcomes regardless of perceived risk. Our model and results provide a theoretical framework for further study into the cognitive aspects of supplier selection behavior and provide insight into biases that influence practicing supply chain managers.     

Stakeholder strategies for the physician executive.

If physician executives are to be effective in confronting the environmental turbulence and uncertainty facing their organizations, they must effectively manage their stakeholders. This article extends the stakeholder approach described in the May-June 1989 issue of Physician Executive as a tool for the physician executive in the development of practical strategies to cope with turbulence and uncertainty. We suggest four generic strategies physician executives can use: involve supportive stakeholders, monitor marginal stakeholders, defend against nonsupportive stakeholders, and collaborate with mixed-blessing stakeholders. As an overarching strategy, a physician executive should try to change the organization's relationships with a stakeholder from a less favorable category to a more favorable one. The stakeholder can then be managed using the generic strategy most appropriate for the category.     

Can recessions be predicted?

Can recessions, or serious turning points in general, be predicted? Or do forecasters tend to assume that the future will continue as an extension of the near past. Theoretical evidence and practical observations tend to support the hypothesis that forecasters are unduly influenced by current events and feel that booms or contractions in the economy will continue for much longer than they actually do. In the opinion of the authors this is a serious shortcoming of a good majority of those involved with forecasting who do not seem to be learning from experience. The basic question which the authors consider in this article is whether it is possible to avoid either of the two extremes. If this is possible, they argue that this will allow economic signs to be correctly interpreted, which ‘quite often can give clear indications of forthcoming changes in the level of economic activity’.     

On the use of multivariate regression methods for longest path calculations from earned value management observations

This paper explores the use of multivariate regression methods for project schedule control within a statistical project control framework. These multivariate regression methods monitor the activity level performance of an ongoing project from the earned value management/earned schedule (EVM/ES) observations that are made at a high level of the work breakdown structure (WBS). These estimates can be used to calculate the longest path in the project and to produce warning signals for project schedule control. The effort that is spent by the project manager is thereby reduced, since a drill-down of the WBS is no longer required for every review period. An extensive computational experiment was set up to test and compare four distinct multivariate regression methods on a database of project networks. The kernel principal component regression method, when used with a radial base function kernel, was found to outperform the other presented regression methods.     

How Opportunistic Culture Affects Financial Performance in Outsourcing Relationships: A Meta-Analysis

Although a substantial body of research has analyzed the overall impact of outsourcing on firm performance measured in shareholder value, a major portion of the between-study variance remains unexplained. Asset specificity related to the outsourcing category (e.g., a business process versus information technology) alone can explain only some of the observed differences in stock market reactions. By integrating insights from transaction cost economics and outsourcing research, we first explain how expected buyer opportunism negatively affects the overall performance of the outsourcing relationship and ultimately, the buyer's own shareholder value. We further argue that this opportunism can be predicted by national culture. We test this hypothesis by applying meta-analytic techniques to compare 4216 outsourcing announcements of firms from 19 cultural backgrounds. The results reveal that an opportunistic culture, represented by a high level of assertiveness combined with a low level of institutional collectivism, is a highly statistically significant predictor of stock market reactions to outsourcing announcements. When further integrating the outsourcing category, the meta-analytic weighted least squares regression becomes a strong predictor of stock market reactions to an outsourcing announcement.     

What Happens When Manufacturers Perform The Retailing Functions?

This study examines the effects of a relatively new channel structure on prices and sales in a large department store, which in recent years has switched the management of many of its product categories from a traditional retailer‐managed system to a manufacturer‐managed system. We find that the change caused overall retail prices to decrease. However, there was significant heterogeneity in the response across brands. In the cell phone category, brands with high market shares and inelastic demand did not change prices. In the watch category, the retail prices of relatively low‐end brands decreased while the prices of premium brands increased substantially after the switch. In addition to sales increases due to lower prices, we find that the channel structure change further caused sales to increase by 9–10% in the cell phone category and by 11–17% in the watch category. These results are consistent with previous theoretical predictions. We believe that our results provide important academic and managerial implications due to the increasing prevalence of manufacturer‐managed systems in the retail industry.     

Where did “Tex-Mex” come from? The divisive emergence of a social category

Research on social categories has become one of the more active lines of research on organizations. Much of this research presumes the pre-existence of at least the “seed” of the category and then proceeds to study and explain how the category developed and became institutionalized. By contrast, this study joins several recent others in attempting to identify and explain why a previously non-existent social category emerged in the first place. Empirically, we examine the emergence of the Tex-Mex social category for food and cuisine. In studying Tex-Mex food, we present a brief analytical social history of the cuisine starting in Old Mexico and continuing up to contemporary times. We juxtapose the social facts that we report with prevailing theoretical ideas (social-activist theorization and similarity clustering) about category emergence drawn from organization theory. While insightful, we find current theoretical accounts to be incomplete in explaining why Tex-Mex emerged. By contrast, our analysis directs attention to the status dynamics of ethnic majority/minority populations, early inexpensive mass industrialization of the food and certain geographic factors. Casual comparisons to other ethnic food categories appear to support the speculative argument we advance.     

品牌质量差异、消费者产品涉入程度对品牌敏感的影响研究

品牌敏感是消费者品牌行为研究方面的一个新课题,它反映了消费者在购买决策过程中对品牌的重视程度.同一产品类别不同品牌之间的质量差异和消费者的产品涉入程度被认为是品牌敏感的两类主要解释变量.本文利用结构方程模型进行的实证分析表明,品牌质量差异和消费者产品涉入程度总体上对品牌敏感起正向影响作用,但该作用因产品类别而异,因产品质量和产品涉入程度的维度而异.