MEASURING AND COMPARING VOLUME FLEXIBILITY IN THE CAPITAL GOODS INDUSTRY

This paper presents a theoretical framework for measuring volume flexibility and relating these measures to firm performance. We develop four metrics using the principle that a volume flexible firm can handle similar levels of uncertainty (as measured by sales variability) with smaller fluctuations in inputs (as measured by variability in cost of goods sold and variability in inventory levels). Then, using 20 years of Compustat data on 550 firms in the capital goods industry, we find that on three of four process‐based measures, small firms are more volume flexible. However, when we incorporate financial performance into our fourth metric, we find that large firms are more volume flexible. We conclude that, to be volume flexible is one thing, but to benefit from this flexibility, firms need to focus on the cost of being flexible.     

High technology organizations: Context, organization and people

Firms in global high technology industries face key challenges. This paper presents an integrative framework that delineates aspects of their context, organization and human resources. It also identifies tensions within the firm that can only be resolved by increasing the capacity of the firm to deal with multiple and conflicting pressures. High technology firms muct be adept at resolving tensions and learning in a very fast paced and changing world.     

产品危害事件对品牌资产变动的影响

本文采用达沃和皮洛特的分析框架和两项实验,探索了产品危害事件中公司反应和消费者先前预期是如何影响品牌资产变动的。结果发现,消费者对公司反应的解释取决于其先前预期:出现产品危害事件时,不管公司采用何种反应措施,强预期条件下较弱预期条件下造成的品牌资产损失小。     

不对称双寡头企业技术创新投资决策研究

许多研究技术创新投资决策的期权博弈文献忽视了企业之间的投资成本和经营成本的不对称性,本文研究成本不对称双寡头企业技术创新投资决策问题。首先,导出企业投资收益函数和投资临界值。接着对存在的三种均衡,即抢占均衡、序列均衡和同时投资均衡进行了分析讨论,结果表明,成本不对称程度较小和先动优势不大情况下,企业将同时投资;当先动优势较大的情况下,低成本企业将先投资成为领先者;当企业成本不对称程度很大时,企业将序列执行投资期权。最后,结合案例进行数值计算,验证了理论分析结果。     

面对共同供应商时的市场进入决策

研究了海外零售商在与本土零售商拥有相同供应商的情况下最优的市场进入策略,以及市场进入决策对供应商的定价决策和零售商的采购决策的影响.把进入决策分为3种类型,分别命名为"市场开拓型"、"采购导向型"和"双重收益型".研究发现当企业目标进入的市场规模比原有市场大时,企业的进入决策为"市场开拓型";而当企业的目标进入市场规模比原有市场小时,企业的进入决策为"采购导向型";当两个市场规模接近时,企业的进入决策为"双重收益型".还研究了市场进入成本对企业进入决策的影响.随着进入成本的增加,海外企业选择进入国内市场的可能性越来越小.而且当进入成本足够大的情况下,其进入只能为"市场开拓型"或"采购导向型",即不可能在两个市场同时获益.     

裁员决策的经济理性分析

本文从员工行为取向角度对裁员决策的经济理性进行了分析.裁员决策的依据是员工能否忠实地履行自己的职责.裁员是一把双刃剑,虽然裁的是员工,最受伤的往往却是企业.无论企业的经营状况如何,裁员都应该是一种最后的、不得已的选择.本文探讨了裁员的经济因果,分析了裁员决策中的薪酬策略和目标策略等补救措施,指出了应该如何把握裁员的时机,理性地选择裁员对象.     

Vertikale Integration und Unternehmenserfolg: eine empirische Untersuchung in der Formel 1

According to the (new) theory of the firm vertically integrated firms might under certain conditions outperform disintegrated firms. In particular, in a situation with high transaction specific investments and measurement problems concerning individual performance an underinvestment problem may arise. In this paper we show for Formula One motor racing that integrated firms solve arising underinvestment problems more efficiently than disintegrated firms and that the decision to integrate positively affect the firm’s performance.     

The Creation of Output and Quality in Services: A Framework to Analyze Information Technology‐Worker Systems

Information technology has profoundly impacted the operations of firms in the service industry and service environments within manufacturing. Two models are introduced that establish a conceptual framework linking firm profit to attributes of the IT‐worker system. The framework considers the impact of IT capabilities (such as functionality and ease‐of‐use) and worker skill as drivers of output volume and quality. The framework contrasts attributes of the IT‐worker systems when services are mass‐produced (flow shop) versus customized (job shop). Mathematical models are introduced to formalize the conceptual framework. Numerical examples are presented that illustrate the types of insights that can be obtained from the models.     

Understanding Drivers of Risk‐Adjusted Performance for Service Firms with International Operations*

This article investigates whether international operations of service firms increase performance while reducing risk. The article draws on a longitudinal dataset of 584 internationally operating service firms from the United States. Analysis indicates that international diversification is negatively related to risk‐adjusted performance. However, it is established that international diversification interacts with internationalization and positively influences risk‐adjusted performance. This finding offers significant promise for firms, as it indicates that international operations (if managed well), through exposure to varied foreign markets coupled with adequate global scope, can lead to firms’ increased risk‐adjusted performance. The results provide a mechanism for decision‐makers to better understand international operations of service firms and present a strategy for achieving success in international markets by effectively managing two important levers: internationalization and international market diversification.     

An empirical assessment of the operational performance through internal benchmarking: a case of a global logistics firm

This article solves an operational performance measurement problem of a global logistics firm through an internal benchmarking tool. The intended impact is to enable logistics firms to form a deeper understanding of their own internal processes and metrics. The methodology of this in-depth action research involves a sequential approach with a series of interviews, questionnaire-based surveys, operations data collated through observations and process mapping yielding real-world data. A series of statistical tests are conducted to analyse the collated data. Strategic priorities of the firm are integrated with the firm’s operational performance to ascertain the effective performance by considering both the tangible and intangible measures. The outcomes inform both practitioners and academics how the firm could improve its freight forwarding business’s profitability by ensuring that its operations meet the prioritised criteria. The ‘best practice’ derived from internal benchmarking forms an intermediate step towards external benchmarking. The outcomes facilitate investigating the current business strategy, the standard operating procedures and the scope of improving those.     

公司证券投资、所有权类型与资本结构决策关系研究

考察了股市收益波动与公司资本结构决策之间的关系,以此分析上市公司是否存在违规举债炒股行为。研究发现:股市收益波动与公司负债水平正相关,即上市公司会根据市场收益情况举债进行证券投资决策,这种正相关关系在非国有企业更为显著;政府的监管政策效果不明显。研究结果证实了上市公司存在违规举债炒股行为,检验了政策效果并明确了监管的重点与方向。     

Promotion,Turnover, and Compensation in the Executive Labor Market

This paper develops a generalized Roy model with human capital accumulation, moral hazard, and career concerns. We identify and estimate the model with a large panel that matches data on publicly listed firms to information on their executives. The structural estimates obtained are used to decompose the firm‐size pay gap. We find that although total compensation and incentive pay increase with firm size, certainty‐equivalent pay decreases with firm size. In larger firms, and for more highly ranked executives, weaker signal quality about effort results in higher risk premiums. This risk premium accounts for roughly 80 percent of the firm‐size gap in total compensation. Larger firms are also willing to pay more than smaller ones to attract executives. Finally, the estimated coefficients on human capital accumulation from formal education and experience gained from different firms are individually significant, but their collective effect on firm‐size pay differentials nets out.     

R&D,productivity, and market value: An empirical study from high-technology firms

Although prior research has addressed the influence of production activity and research and development (R&D) on productivity, it is not clear whether production and R&D affect the market value of a firm. This study proposes and verifies an R&D value chain framework to explore the relationship among productivity, R&D, and firm market values, as measured by Tobin's q theory. By doing so, we attempt to link new theoretical insights and empirical evidence on the effects of R&D efforts and basic production activities to the market valuations of high-technology firms. The value chain data envelopment analysis approach was proposed to estimate parallel-serial processes of basic operations and R&D efforts. This approach can be used to simultaneously estimate the profitability efficiency and marketability efficiency of high-technology firms. This area has rarely been studied, but it is particularly important for high-technology R&D policies and for further industrial development. Using the R&D value chain perspectives of model innovations and extensions proposed in several previous studies, we examined the appropriate levels of intermediate outputs. Production efficiency and R&D were combined to estimate the appropriate levels of intermediate outputs for high-technology firms. Based on the intermediate output analyses, we developed an R&D efforts decision matrix to explore and identify operational and R&D efficiency for high-technology firms. Our sample firms are displayed on a four-quadrant action grid that provides visual information on current short-term operational efficiency and decision making on long-term R&D strategic positions. The empirical findings from the R&D value chain model can provide information for policymakers and managers and suggest the adoption of various policies that place more emphasis on profitability and marketability strategies.     

Factors influencing a firm’s decision to conduct remanufacturing: evidence from the Thai automotive parts industry

This paper aims to investigate the key factors influencing the decision-making process of firms in conducting remanufacturing activities, using the Thai automotive parts as a case study. Our results show that on average, business feasibility is the most influential determinant driving the decision-making of firms, followed by areas of the firm’s strategic factors, and policy factors. In terms of individual factors, product maturity is ranked first as the most important factor for a firm to engage in remanufacturing activities, followed by financial aspects, availability of skilled workers and technical aspects. Policies related to trade, intellectual property rights and the environment are identified as the least crucial factors in affecting the decisions of firms. Characteristics of firms and products matter in ranking the factors influencing a firm’s decision to conduct remanufacturing.     

竞争环境下的以旧换新策略

企业通过对拥有旧产品的老消费者提供以旧换新补贴能够提升自身销量与利润。然而,面临竞争对手时企业的以旧换新决策是否会受到影响?本文求解了先后进入市场的双寡头竞争企业所面临的以旧换新与定价博弈均衡,并分析了竞争存在与否对于企业以旧换新策略产生的影响。研究结果表明,第一,面对竞争时企业的定价决策受到市场中老消费者比例、两家竞争企业各自新产品的创新提升水平、老产品的使用残值这四个因素的共同影响。第二,当老产品残值相对较低而市场中老消费者数量适中时,两企业均不提供以旧换新可能成为博弈均衡,而其他条件下,两企业均提供以旧换新为博弈均衡。第三,先进入的企业没有动机单独为消费者提供以旧换新补贴。第四,竞争对手的存在对于先进入企业自身的以旧换新决策与相应的定价策略都产生了显著的影响。     

Organizing for Global Competition

Global information technology (i.e., computer hardware, software, and data communications shared across country boundaries) can support the multinational firm as it seeks to coordinate global operations, diffuse innovations worldwide, or provide integrated service to a global corporate customer. The current study uses information processing theory as the basis for examining alternative organizational designs for information technology in a globally competing firm. Mail survey data gathered from information technology managers in 109 multinationals provide evidence that multinational firms use different and distinct ways of organizing their global information technology activities. The survey data also reveal that in nearly half of the organizations, the way information technology activities are organized is inconsistent with the way the organization is reportedly structured. A follow-up interview-based study sought explanations for these misfits. Several contingency variables were identified that may shed some light to the misfits. These included factors from both the firm's internal and external environments.     

Effect of best management practices on the performance and productivity of small firms

Abstract

Recent research on productivity finds that best management practices are a crucial but neglected element in explaining firm productivity. This stream of research also focuses on why a large number of firms may not implement best management practices despite their apparent benefits. In this paper, we examine the adoption of best management practices in small leveraged buyout (LBO) firms. Our choice of small LBO is motivated by the fact that these firms undergo extensive restructuring and, therefore, there is an opportunity to study the adoption process of best management practices. The findings show that buyout companies introduce best management practices (operations, monitoring, targets and incentive-related practices) at different stages of their development, and more importantly, these practices evolve in response to changes in various firm-level characteristics. For example, companies emphasizing cost leadership tend to follow targets and monitoring related practices while firms following a differentiation strategy are more likely to implement incentives and operations related management practices. Buyout sponsors’ board representatives and new CEO also play a critical role in the adoption of these best management practices which are linked to superior firm performance, measured as growth in revenues, productivity and return on assets.     

超竞争环境下企业困境并购定价与时机研究

在超竞争环境下企业面临的竞争环境越来越动荡，企业的竞争优势呈现出短期性与临时性的特点，为了快速发展，越来越多的企业选择并购。本文以超竞争环境为研究背景，运用期权博弈理论，分析并建立了存在竞争对手的企业困境并购定价与时机选择模型，通过模型求解得到并购中主并企业给予目标企业的最优价值以及主并企业的最佳并购时机；此外，通过数值模拟重点分析了三个超竞争特征因子（竞争强度、竞争不确定性、企业价值损失因子）、企业困境因子以及竞争对手的溢价水平对企业困境并购时机的影响。本文研究发现：（1）被并企业得到的价值补偿比例及主并企业最佳并购时机均受到各超竞争特征因子、企业困境因子以及竞争对手溢价水平的综合影响；（2）竞争对手的存在会使目标企业得到的价值补偿比例增加；（3）超竞争环境下企业困境并购中主并企业的最佳并购时机取决于并购双方的相对价值比；（4）随着可能导致双方谈判破裂因素、事件的增多以及企业财务困境程度的增加，主并企业提前进行并购的可能性增加；（5）随着竞争强度、竞争不确定性、竞争对手造成溢价水平的增加，主并企业推迟并购时机的可能性增大。     

Determinanten der Vorstandsvergütung

Using a novel, hand-collected data set covering all German non-financial firms listed in the Prime Standard of FWB (Frankfurt Stock Exchange), we examine determinants of executive compensation in German listed firms. We distinguish three potential determinants: firm characteristics, firm performance, and corporate governance characteristics. While we find that simple firm characteristics like size and industry affiliation together with time effects explain more than 60 % of variation in overall compensation, performance characteristics are economically inconsequential for the explanation of compensation levels. When we distinguish between widely held firms and firms with a large blockholder, we find that the latter grant compensation packages that are smaller, less sensitive to the firm’s stock market performance but more sensitive to the firm’s operating performance. Finally, we confirm that supervisory board characteristics also affect the level of executive compensation in German firms. Overall, our findings suggest that although the corporate governance environment in Germany has changed dramatically during the last decade, German listed firms are still exposed to high agency costs.     

Research on global strategy

This paper reviews the extant literature on global strategy. We argue that the literature has developed along three major directions, namely: (1) the literature identifying the emergence of a global village; (2) the literature identifying the advantages to a firm following a global strategy; and (3) the literature addressing the management challenges and the implementation issues faced by an international firm. We find that the literature has arrived at a number of important conclusions, namely: (1) the global environment places conflicting demands on participating firms; (2) there is no one strategy called global strategy, firms adopt different strategies to compete in the global arena; (3) the benefits accruing from a global strategy are contingent on the industry environment; (4) it is imperative to have multidimensional capabilities in the global arena; (5) matrix structures are becoming increasingly vital in implementing global strategies; and, finally, (6) the actual benefits of adopting matrix structures are contingent on the adoption of appropriate management processes. We identify the trends in the literature and suggest some directions for further research on the topic.