Empirical Analysis of the Effects of Cyber Security Incidents

We analyze the time series associated with web traffic for a representative set of online businesses that have suffered widely reported cyber security incidents. Our working hypothesis is that cyber security incidents may prompt (security conscious) online customers to opt out and conduct their business elsewhere or, at the very least, to refrain from accessing online services. For companies relying almost exclusively on online channels, this presents an important business risk. We test for structural changes in these time series that may have been caused by these cyber security incidents. Our results consistently indicate that cyber security incidents do not affect the structure of web traffic for the set of online businesses studied. We discuss various public policy considerations stemming from our analysis.     

Zur Wirkung von Neukunden-Promotions auf Bestandskunden

Service providers frequently offer better deals to prospective customers than they offer to customers who prolong their contracts. The present paper examines the effectiveness of incentives on new customers and, perhaps even more significantly, assesses negative effects on existing customers. To test the hypothesized effects, a series of two experiments was conducted. Results indicate that promotions that are offered exclusively to prospective customers have a negative effect on existing customers, and that this negative effect is stronger for customers with a short relationship age and for those at the end of their contract life-cycle. The unfairness and inequity perceived by existing customers can be substantially reduced if these customers are offered the opportunity to receive a part of the promotion value, while the promotion??s effectiveness to attract new customers remains unaffected.     

Strategic Community Management with Customers: Case Study on Innovation Using IT and Multimedia Technology in Education, Medical and Welfare Fields

This paper discusses the management processes for forming strategic communities by means of strategic partnerships between businesses and customers, for introducing into the Strategic communities the knowledge of customers with a high degree of learning experience with respect to the products and services provided by the businesses, thereby creating new business models and at the same time extending the results of the strategic communities to many other associated customers. Innovations in the fields of education, medicine and welfare utilizing IT and multimedia technology over the past four years are taken as examples in this case study. Here a strategic community of business and innovative customers has established a new business model in the fields of education, medicine and welfare on the basis of IT and multimedia technology. The results of the activities of the strategic community of innovative customers were then extended to many other related customers in a chain of community creation, and the new systems were widely proliferated throughout Japan. This revised version was published online in July 2006 with corrections to the Cover Date.     

Corporate Control of Information: Business and the Freedom of Expression

Control over information is essential to business. This has become increasingly true in an era in which technological advances have enabled the rapid globalization of business. This article explores the implications of this control of information for freedom of speech and information. Four different situations are considered: censorship of the Internet by search engines albeit at the direction of a government; restrictions on Internet content by Internet Services Providers acting on their own; decisions by retail businesses not to sell various DVDs, CDs, etc. to their customers; and legal suits brought against individuals and groups by businesses seeking to prevent the further spread of information they deem injurious to their products or activities. The paper seeks to sort out the various rights and values involved in these cases, when a business may be justifiably said to be violating individuals' rights to freedom of information, and when customers and citizens do not have justified complaints against business decisions not to provide them with certain information products.     

Japanese Supply Chain Relationships in Recession

The remarkable nature of Japan’s supply chain relationships has been identified as a significant factor in its industrial success, especially in the automotive and electronics sectors. Yet, Japanese companies do not recognise the term ‘supply chain management’. For four decades Japan’s industrial giants developed sourcing strategies based on highly-pressured, customer-dominated supply relationships in which sub-contractors enjoyed the benefits of the success of their customers at the expense of yielding their autonomy. In 1991, the Japanese economy plunged into deep recession and has yet to recover. Large corporations now appear vulnerable and almost all Japan’s banks are technically insolvent. This article explains the ways in which recession has affected the supply chain relationships in Japan and the domestic and international sourcing strategies that shape them. Japanese industrial customers are now putting increased pressure on their suppliers to provide technical solutions and to develop links with other customers for the first time. The sub-structures of the keiretsu appear to be giving way to open competition with ‘parent’ firms selling equity in subsidiaries. Profound changes appear to be underway in Japanese industrial sourcing strategies—suppliers can no longer rely on retaining business simply by obedience and hard work. Instead, they face an open, fiercely competitive environment—at home and abroad. In this new order, Japanese suppliers are developing new competitive technical and commercial capabilities, enabling their Japanese industrial customers to concentrate on real-time, market-driven configuration of products, without needing to hold stocks in their supply chains and distribution channels. Meanwhile, Japan is seeking to re-establish its position of leading player in East Asia.     

Job Insecurity and Employee Commitment: Managers' Reactions to the Threat and Outcomes of Redundancy Selection1

Increases in managerial redundancies have followed in the wake of recession and fiercer competition. Although popular accounts have warned of a growing disaffection among managers, few studies have examined the effects of abandoning their traditional job security. This article examines changes in the work attachments of long-service managers under the threat of redundancy. Over a 12-month period, interviews were conducted with 42 middle managers who, at the beginning of the research, had been warned of possible redundancy. Initially, most of the managers experienced significant threats to their established views about themselves and their employers. The development of these early perceptions into altered work attachments depended largely on outcomes of the redundancy process. For reprieved managers organizational commitment was quickly re-established. In contrast, those demoted to engineering roles or re-employed by other companies became less trusting and developed new explanations of their past employment experiences. These findings illustrate the tension between the need of managers to be assured of their place within the organizational structure and recent threats to their traditional careers and employment security. Also we may expect difficulties in the development of organizational commitment to emerge as the personal risks to managers increase.     

The Impact of Revenue‐Maximizing Priority Pricing on Customer Delay Costs

Speed is an increasingly important determinant of which suppliers will be given customers' business and is defined as the time between when an order is placed by the customer and when the product is delivered, or as the amount of time customers must wait before they receive their desired service. In either case, the speed a customer experiences can be enhanced by giving priority to that particular customer. Such a prioritization scheme will necessarily reduce the speed experienced by lower‐priority customers, but this can lead to a better outcome when different customers place different values on speed. We model a single resource (e.g., a manufacturer) that processes jobs from customers who have heterogeneous waiting costs. We analyze the price that maximizes priority revenue for the resource owner (i.e., supplier, manufacturer) under different assumptions regarding customer behavior. We discover that a revenue‐maximizing supplier facing self‐interested customers (i.e., those that independently minimize their own expected costs) charges a price that also minimizes the expected total delay costs across all customers and that this outcome does not result when customers coordinate to submit priority orders at a level that seeks to minimize their aggregate costs of priority fees and delays. Thus, the customers are better off collectively (as is the supplier) when the supplier and customers act independently in their own best interests. Finally, as the number of priority classes increases, both the priority revenues and the overall customer delay costs improve, but at a decreasing rate.     

Leveraging middle managers’ brokerage for corporate entrepreneurship: The role of multilevel social capital configurations

Building on recent efforts to bring a socio-political perspective to social capital research, we develop and test a multilevel framework that explains why middle managers who occupy brokerage positions differ in their ability and willingness to engage in entrepreneurial behavior. More specifically, we provide a contextualized understanding of the links among middle managers' brokerage, their political-support ties, and their personal initiative. Results derived from data on 383 middle managers and 72 top managers in 34 business units indicate that political-support ties with top managers strengthen the relationship between middle managers’ brokerage and personal initiative. However, this positive effect depends on the social capital resources available in the focal business unit. It is attenuated in business units with a supportive and trusting social context and amplified in business units with high levels of internal connectedness. By uncovering these incompatibilities and complementarities, our study demonstrates the value of accounting for different social capital configurations and the interplay of their inherent social capital resources when examining the effects of brokerage on corporate entrepreneurship.     

Cloud platforms for remote monitoring system: a comparative case study

Abstract

Currently, industrial companies are increasingly introducing services to extend their tangible products. Remote monitoring solutions are one of the most implemented services by machine builders to manage their relationship with customers and also improve their business performance in the digital manufacturing era. However, the conventional method of remote monitoring cannot fulfill distributed business environments. Therefore, new solutions are needed to enable remote connection in manufacturing. By reviewing recent literature and proposing new features for software which can be used for remote service and operations, this research paper introduces a remote monitoring system connecting into a central cloud-based system with edge computing network architecture, namely Cloud-based Remote Monitoring (CloudRM). This proposed CloudRM also has been implemented in two different case companies for analysis and evaluation from a value proposition and technical implementation point of view. It shows significant improvement in production management and measurement by using CloudRM.     

How does homeland security affect U.S. firms' international competitiveness?

This paper frames the issue of homeland security and its relationship to the international competitiveness of U.S. firms in general. This is largely a conceptual statement, identifying the areas of national security (homeland security) that are key to business, and exploring the management concerns of business to the new threats and opportunities that have arisen.We establish the point that homeland security is a purposeful, conscious, and rational response to terrorist events that is an emergent and evolving systems phenomenon. This systems approach is an especially useful way to look at the implications of homeland security in its relation to business. We then look specifically at the kinds of costs and risks that are generated for U.S. international business (exports, imports, incoming and outgoing investments) as a result of this phenomenon. Management strategies for dealing with these costs and risks are explored for U.S. firms.Our conclusion is to demonstrate the scope of analysis that is needed to understand and to managerially cope with the homeland security problem. We show the value of using theory from various disciplines for analyzing a multi-dimensional problem like this. And finally we are able to recommend some policy dimensions for both companies and the U.S. Government toward mitigating the negative impacts of the homeland security problem.     

Demand for business information service of firms in Taiwan: a case study of Hsinchu Science-based Industrial Park and Hsinchu Industrial Park

Continuous development of technology brings changes in economic environment and market structure. Enterprises should be equipped with speedy and accurate analytical capabilities on business information so that they can foresee the future. For countries such as Taiwan where the majority of the enterprises are small or medium businesses, these enterprises lack the economies of scale and skilled professionals in collecting and analyzing business information in their business environment. External professionals, on the other hand, fit better into their needs. In this case study research, based on organizational buying theory and through questionnaire survey, we try to understand the demand motives, awareness, interest, evaluation items and purchase intention of enterprises for business information in Taiwan. At the end of the case study, we also try to make a few recommendations for information service providers.     

面向动态完全竞争构建多维协同组合战略

现有战略管理理论以不完全竞争市场为前提条件,因而越来越难以应对日益激烈的超竞争环境.有甚于此,笔者的研究发现,在技术进步和收入增长效应足够大的情况下,传统上认定不会出现完全竞争的差别产品最终也会出现每个企业都按边际成本定价的动态完全竞争.面向动态完全竞争的战略管理的基本任务随之转为运用介观视野去发现并实施具备多维协同组合特性的新的商务模式,同时做到差异准确、成本领先、反应敏捷和分享得力.     

Examining the Firm's Value Creation Process: A Managerial Perspective of the Firm's Value Offering Strategy and Performance

The primary pursuit of any business is to understand what customers value and to create that value for them. While customers are the final arbiter of value, it is the firm's role to explore, interpret and deliver value based on what they believe customers are seeking. Based on this premise we adopt the firm's perspective on value creation to extend both Bowman and Ambrosini's theoretical framework and the work of DeSarbo, Jedidi and Sinha and focus on two issues. The first is the strategic emphasis firms place on the design and delivery of their value offering. The second is the extent the firm's value offering explains performance differentials at the customer‐centric performance level. We present a conceptual model of how firms gain positional advantage via their value offering and the realized outcomes they achieve. We present two approaches to modelling the firm's value offering (type II and type IV models) and articulate the theoretical underpinnings and results for these models. Our results validate the conceptualization of the firm's value offering and suggest that creating superior value offerings enables firms to achieve superiority in customer‐centric performance.     

Focus on the fundamentals

What business are we in? Who are our customers? as health care evolves, the answers to these questions become increasingly complex. And as physicians become more involved in the business side of medicine and the business side of medicine becomes more sophisticated itself, we must not forget the fundamentals. Successful business people do not lose touch with the essential concerns of their industry. Future success in the medical marketplace will require physicians and physician leaders to keep in mind what business we are in and who our customers are. This article offers a set of answers to these questions.     

Analysing and reducing customer defections

Firms can grow businesses by attracting new customers, losing fewer customers and doing more business with existing customers. Keeping your present customers and doing more business with them is generally a more efficient way of using resources. It requires a detailed analysis of customer defections to assess the effects of losing customers on long-term profitability and growth. This article provides some simple but powerful graphical analysis tools to use in customer defections analysis. The tools are initially described using the simple case of a service firm to show how managers can examine the probability of defections and the resulting need to attract new customers. Then the techniques are illustrated graphically using data from a UK subsidiary of an American concern which supplies equipment to large organizations. The analysis of customer defections is summarized in a sixstage process.     

Loyalty-based segmentation and the customer development process

As process management fast becomes recognised as the means by which customer value can be created, it is now equally well understood that the mechanism of value delivery is among the core processes. Without managing Customer Development as a core process, the implementation of strategic plans will lack clear focus. The author argues that the function of the Customer Development process is to build relationships with preferred customers. Working on the premise that all customers are not created equal, the priority for customer development in mature markets is to build these preferred relationships among existing customers. It is now accepted wisdom that these customer relationships deliver superior profits. How customer development management select these customers, or groups of customers, and build specific relationships is directed by the Principles of Loyalty Management.These principles acknowledge that customer loyalty is relative which means that customers as well as product and service brands need to be differentiated. The Diamond of Loyalty© provides a new management tool for this purpose by categorising customer purchasing styles according to their level of involvement (i.e. brand or company relationship) and their purchasing portfolio across suppliers.Finally, it is argued that customer development should discriminate in favour of supporting `high share' customers over `low share' customers in building preferred relationship among existing customers.     

Inter-firm collaborations and supply chain coordination: review of key elements and case study

Considering the effects of globalisation, the increase of production and energy costs, and the introduction of advanced technologies, companies need to change their way of doing business if they want to stay competitive. One way of doing this is to establish collaborations with suppliers, distributors and retailers, in order to exchange products efficiently and create value for customers. Nevertheless, the structure of the collaboration must be designed carefully and some coordination mechanisms must be implemented to support this way of doing business. In this article, we first analyse: why companies work together, how they should build their partnership, and which strategies they can implement to facilitate coordination of supply chain activities. We then report a case study of collaboration in the forest industry that shows the benefits of implementing coordination mechanisms as well as the necessity of using incentives to better share these benefits.     

The role of organizational facilitators in promoting job-related mental health and group service effectiveness: a two-wave analysis

This study aimed to add to knowledge by providing a more systematic integration of work characteristics, workers’ health and performance. The two-wave multi-source study was conducted to test the relationship over time between the healthy states of groups of service-oriented workers and their service effectiveness when their organizations provide facilitators such as training, technical support and autonomy. The study takes healthy states to be a composite of affective-motivational and competent collective states (collective vigour and service competence) and service effectiveness. Service effectiveness was a combination of service quality as assessed by customers and their loyalty intentions. Data from 53 hotels and restaurants in Spain were aggregated from 256 boundary workers (i.e. workers in direct contact with customers) and 530 customers at Time 1 and from 470 customers at Time 2 six month later. Structural equation modelling showed that organizational facilitators at Time 1 were related to the service effectiveness reported by customers at Time 2, and also that there was a relationship between service effectiveness at Time 1 and the healthy states reported by the groups at Time 2. That is, contrary to what is widely believed, there was an influence of performance on well-being.     

Trust in Islamic Business-to-Business Relationships: Evidence from Indonesia

We examine the role of trust within Islamic culture in business-to-business relationships by exploring the link between credit officers’ trust in business customers and their financing decisions. In line with our framework, which is based on the fact that Islamic culture is characterized by a collectivistic approach and clan-based social structure, we find that value-based trust is more important than competence-based trust in explaining business relationships. The results support the argument that Islamic culture business relationships are grounded more on the principles, values and norms that a partner brings to the relationship than on business skills. Our results are robust to endogeneity and multilevel issues.     

Digitalization,institutions and new venture internationalization

This study examines the effect of digitalization on the internationalization of new ventures and further investigates the influence of a home country's presence of institutional voids and digital infrastructure on the extent of internationalization by new ventures, with the prediction that a home country's institutional voids and a weak digital infrastructure strengthen the positive relationship between new ventures' digitalization and internationalization. Applying multilevel modeling on a sample of more than 6000 entrepreneurs from 62 countries the study offers empirical support for these predictions. The findings are robust to alternative specifications. Entrepreneurs using the internet to sell their products and services are more likely to focus on customers in foreign markets when they face institutional voids and a lack of digital infrastructure in their home countries. The study contributes as follows: From a theoretical view, it provides a better understanding of the boundary conditions of the digitalization-new venture internationalization linkage. From a practical perspective, the findings of the study suggest the complementary roles of institutional voids and digital infrastructure at home to help entrepreneurs grow domestically and facilitate their internationalization.