Disentangling the European airlines efficiency puzzle: A network data envelopment analysis approach

In recent years the European airline industry has undergone critical restructuring. It has evolved from a highly regulated market predominantly operated by national airlines to a dynamic, liberalized industry where airline firms compete freely on prices, routes, and frequencies. Although several studies have analyzed performance issues for European airlines using a variety of efficiency measurement methods, virtually none of them has considered two-stage alternatives – not only in this particular European context but in the airline industry in general. We extend the aims of previous contributions by considering a network Data Envelopment Analysis (network DEA) approach which comprises two sub-technologies that can share part of the inputs. Results show that, in general, most of the inefficiencies are generated in the first stage of the analysis. However, when considering different types of carriers several differences emerge – most of the low-cost carriers’ inefficiencies are confined to the first stage. Results also show a dynamic component, since performance differed across types of airlines during the decade 2000–2010.     

A DEA-based two-stage network approach for hotel performance analysis: An internal cooperation perspective

In the digital era, cooperation has become a new way of firm operation, but only rarely have studies investigated how internal cooperative mechanisms among departments affect firm performance evaluation. Grounded on resource-based view theory, a two-stage network structure model of a hotel (i.e. operations stage and marketing stage) is presented, illustrating how a hotel consumes internal resources and obtains competitive advantages and market profits. A DEA-based bi-objective model is put forward to evaluate the hotel performance from the perspective that the two internal stages cooperate with each other. To solve the proposed model, an extended augmented weighted Tchebycheff metric and a new algorithm are used. An empirical analysis using data from 68 Taiwanese international tourist hotels in 2011 was conducted, and the results corroborated the theorems and remarks about the proposed model. This study offers a comprehensive benchmarking tool to improve hotel decision-making.     

My network,my self: A social network approach to work-based identity

As the organizational landscape becomes increasingly turbulent and the gig economy grows, the conventional anchors for a work-based sense of identity – a relatively stable organization, workgroup, and occupation – are losing relevance. We argue that a “network identity,” defined as the core, distinctive, and more or less enduring character of a set of social ties (e.g., “we are high-achievers”), helps fill this growing void because individuals’ networks often reflect agency and have more or less fluid boundaries and portability. These attributes enable individuals to develop or join networks that may transcend specific contexts and adapt to change. An individual’s network identity simultaneously implicates all three levels of self – individual, relational, and collective – such that it is a potentially very powerful means for realizing his or her identity motives. Crossing the dimensions of network boundary strength and network density, we offer a 2 × 2 typology of networks and discuss their implications for members’ network identities and what kinds of individuals might prefer each network.     

A new product growth model with a dynamic market potential

Traditional new product diffusion models have assumed a constant market potential over the planning horizon for forecasting product adoptions. This assumption is conceptually unsound and is likely to yield either theoretically unacceptable parameter estimates of the model or poor demand forecasts. This paper presents a dynamic growth model which relaxes this assumption. Model illustrations, limitations and further extensions are included.     

The ties that lead: A social network approach to leadership

This article investigates, for leadership research, the implications of new directions in social network theory that emphasize networks as both cognitive structures in the minds of organizational members and opportunity structures that facilitate and constrain action. We introduce the four core ideas at the heart of the network research program: the importance of relations, actors' embeddedness, the social utility of connections, and the structural patterning of social life. Then we present a theoretical model of how network cognitions in the minds of leaders affect three types of networks: the direct ties surrounding leaders, the pattern of direct and indirect ties within which leaders are embedded in the whole organization and the interorganizational linkages formed by leaders as representatives of organizations. We suggest that these patterns of ties can contribute to leader effectiveness.     

Entrepreneurial orientation dimensions and the performance of high-tech and low-tech firms: A configurational approach

Building on the entrepreneurial orientation (EO)-as-experimentation perspective, we examine how configurations of the EO dimensions (innovativeness, risk-taking, and proactiveness) might lead to high and low firm performance, and how the configurations differ under different firm contexts. We adopted a configurational approach and applied fuzzy-set qualitative comparative analysis (fsQCA) to a sample of 110 UK small and medium-sized enterprises. Our findings show that three (four) configurations can result in high (low)-firm performance, demonstrating that the EO dimensions can contribute to as well as hinder firm performance. Moreover, the configurations leading to the same outcome are distinct between high-tech and low-tech firms, indicating that the impacts of the EO dimensions on firm performance depend on the firm context. Our findings offer useful insights for managers on how to configure the portfolio of firms' entrepreneurial activities to achieve superior performance.     

Interactive profit-planning systems and market turbulence: A dynamic capabilities perspective

This article describes, theorizes and empirically investigates the concept of interactive profit-planning systems (PPS) through the lens of the dynamic capabilities logic. With this conceptualization: interactive PPS capabilities comprise budgeting, forecasting and results-reporting routines, in which top and middle managers interact to create knowledge for sensing, seizing, and business model reconfiguring (to manage strategic business change). Survey data from 331 Australian firms is analyzed employing partial least squares structural equation modeling. The data provides support for two hypotheses: (1) greater market turbulence strengthens the positive effect of interactive PPS capabilities on business unit performance; and (2) greater market turbulence strengthens the positive effect of flexibility values (of organizational culture) on interactive PPS capabilities. Our findings show that interactive PPS capabilities function according to the salient tenets of the dynamic capabilities logic, and clarify the beneficial roles of formal cybernetic control systems and the intertwined involvement of top and middle managers in using dynamic capabilities.     

Future of European human resource management: A contingent approach

The ability to cope with an increasingly open European Market, enhanced mobility between nation states and the threat of competition from the Far East will be highly prized organisational skills in the third millenium. Many commentators have argued that ‘Europeanisation’ (broadly defined) is an irreversible process and companies will have to cope proactively with this or perish. However, in this article we argue that many of these predictions are based on an uncritical acceptance of the ‘internationalisation’ thesis, and on subjective assessments of possible future trends — rather than on sound empirical research within strong theoretical frameworks. Accordingly, this article takes a critical look at some widely-held assumptions about internationalisation, Europeanisation and the (potential) development of European Human Resource Management (EHRM). It then goes on to suggest a framework of research which will be more able to capture future developments in EHRM and thereby facilitate more robust exchanges on strategic HRM with those companies operating in a European setting.     

融资融券交易与市场稳定性:基于动态视角的证据

通过构建“外生信息冲击的门限自回归条件密度(TARCD-X)”模型,进而从动态的视角考察了融资融券实施前后,市场涨跌和交易量增减4种重要的信息冲击对下一期市场稳定性的影响具有怎样的差异,以及融资融券实施后,融资融券余额变动作为新的信息冲击如何影响下一期市场的稳定性.以波动性、暴涨暴跌的不对称性和暴涨暴跌的频繁性3个指标衡量市场的稳定性,研究发现:(1)12种影响关系中,除交易量减小对市场波动性的冲击作用在融资融券实施后有所放大之外,其他11种影响关系均未出现不利变化;(2)融资融券余额的变动没有显著增加市场的波动性和暴涨暴跌的频繁性,但其与暴涨暴跌的不对称性存在显著的相关关系.后者为构建股市暴涨暴跌的预警指标提供了实证依据.     

A machine-learning approach for a sintering process using a neural network

This paper presents a machine-learning approach using a multi-layered neural network (NN) with application to a sintering process in an iron- and steel-making plant. Our method induces 'operational rules' that determine operational conditions to obtain products that meet a given quality specification. In our application, an operational condition decides the appropriate ranges of chemical composition and heat input to obtain sinter with desirable properties. Our approach consists of two stages. First, backpropagation (BP) training is performed to obtain a NN which decides whether a given condition is appropriate or not. Secondly, from the trained NN, we extract rules which explain what operational conditions are appropriate. In spite of the effective learning capability, a major drawback of a NN is 'unreadability' of the learned knowledge, or the lack of an explanatory capability, which is crucial in the second stage. We developed a rule extraction algorithm which contributes to overcoming this 'unreadability'. The extracted rules are found to agree well with the knowledge in material science.     

Leader development across the lifespan: A dynamic experiences-grounded approach

Previous research has established leader development as an ongoing process across the entire lifespan. Experience, especially on-the-job experience, has been increasingly acknowledged as a needed condition for leader development. From a life span developmental perspective, however, individuals are exposed to a variety of critical experiences across their life course—from preschool, childhood, through adolescence, emerging adulthood, adulthood and well into late adulthood. These time periods, characterized by specific developmental experiences, serve as potential windows of opportunity for one's leader development. However, the extant research primarily focuses on the development of leadership through on-the-job experiences in adulthood; there is little integration of leader developmental experiences that occur before and after adulthood, as well as those that occur beyond the workplace. Additionally, the influencing mechanism of experiences during the leader development process has been understudied. Using an interdisciplinary perspective, we present a framework that explores the critical developmental experiences at each stage in the lifespan. These experiences influence one's expertise in leadership through the mediating role and dynamic interaction of the leader experience processing system and the leader self-view system that are introduced in the model of this framework. This theoretical study systematically explores experiential opportunities across the course of life and within multiple contexts, as well as the underlying mechanisms that foster leader development. There are important implications for enhancing process-oriented leadership research and leadership pedagogical practices.     

A heuristic approach to n/ m job shop scheduling: fuzzy dynamic scheduling algorithms

n/m shop scheduling is a ‘ NP-Hard’ problem. Using conventional heuristic algorithms ( priority rules) only, it is almost impossible to achieve an optimal solution. Research has been carried out to improve the heuristic algorithms to give a near-optimal solution. This paper advocates a fuzzy logic based, dynamic scheduling algoridim aimed at achieving this goal. The concept of new membership functions is discussed in die algorithm as a link to connect several priority rules. The constraints to determine the membership function of jobs for a particular priority rule are established, and three membership functions are developed. In order to decide the weight vector of priority rules, an aggregate performance measure is suggested. The methodology for constructing the weight vector is discussed in detail. Experiments have been carried out using a simulation technique to validate the proposed scheduling algorithm.     

Risk based internal auditing within Greek banks: a case study approach

Internal Audit functions within Greek banks are imposed both by the Greek law for publicly listed enterprises (Law 3016/17.5.2002), as well as by the Bank of Greece (Bank of Greece Governor’s Act. Number 2577/9-3-2006). Based on the traditional approach of internal audit within Greek Banks, an inspection of branches and credit on a tick and check (compliance) basis was conducted. Recent research (Koutoupis and Tsamis, Fourth European Academic Conference on Internal Audit and Corporate Governance. Cass Business School, London, United Kingdom, 2006) comes to a conclusion that this approach does not result in adequate coverage of risks. In addition, new international regulations and best practices such as basel committee on banking supervision requirements, COSO enterprise risk management (ERM) suggested framework, as well as The Institute of internal auditors standards for professional practice of internal auditing (standards) were in most cases partially or fully ignored by the vast majority of Greek banks. However, minimum requirements regarding the operation of internal audit functions have been set up by the Bank of Greece, which in most cases are followed by the Greek banks, as well as periodically assessed by the above banking regulator. Risk based internal audit (RBIA) was an unknown concept for the vast majority of publicly listed and non-listed Greek enterprises until very recently. Only Greek subsidiaries of US and UK enterprises were aware of the RBIA audit concept (including big foreign banks which operate in Greece as subsidiaries), as they were periodically audited by group audit functions as an immediate result of relevant risk assessments. Also, the majority of Greek publicly listed enterprises use the audit cycle approach in developing their long term (3 year) and annual audit plans, which means that they audit specific business cycles and activities within a predefined time interval (1–3 years). Audit planning is based on the head’s of internal audit and internal auditors experience without formal application of risk assessment and audit planning techniques. All Greek banks that participated in the corporate governance and internal auditing survey (Koutoupis, Third European Academic Conference on Internal Audit and Corporate Governance, 2005) stated that they follow a risk-based audit approach and develop risk based audit plans; however the vast majority of them could not prove it through a clearly documented risk assessment and risk-based audit plan. Sarbanes–Oxley Act (2002) directed National Bank of Greece to adjust its audit planning process to a risk based one. Also, other big Greek banks (case study 1–3) are now either considering or adopting a RBIA approach, mostly because of Bank of Greece pressures. internal audit functions within small banks still follow the audit cycle approach. In this paper, current status of Greek banks RBIA approach will be discussed based on relevant references, as well as on three case study examples. This research will be based on relevant literature review, as well as authors’ professional experience in past and current projects related to risk assessment, audit planning and RBIA. Specifically, RBIA approach will be critically evaluated based on three big Greek banks analysis on a case study format and benchmark against basel requirements, ERM and standards for professional practice of internal auditing. Based on the relevant assessment, best practices and recommendations for improvement will be identified.     

A dynamic business modelling approach to design and experiment new business venture strategies

Business Modelling has evolved as a key activity to reflect new business venture strategy by framing the way a firm will operate and how it will function in achieving its goals (e.g., profitability, growth, innovation, social impact). However, scholars and practitioners have criticized the adoption of a too static perspective in the design and use of conventional Business Model representations. Such a static perspective prevents nascent entrepreneurs experimenting with their Business Models and, as a result, identifying the most effective strategies, especially in terms of business sustainability and profitability. In this paper, we argue that combining conventional Business Model schemas with System Dynamics modelling results in a strategy design tool that may overcome several limitations related to a static view of Business Model representation. Mapping the different key elements underlying value creation processes into a system of causal interdependencies – through the use of simulation – allows strategy analysts and entrepreneurs to experiment and learn how the business reacts to strategic and organizational changes in terms of performance, innovation and value creation. As such, Dynamic Business Models provide useful insights to strategy formulation and business venturing by capturing how critical Business Model elements interact to produce enduring competitive advantages over time.     

Liability of foreignness and membership in a regional economic group: Analysis of the European Union

This study examines the performance of foreign vs. domestic firms in a regional economic group. In particular, we focus on host country and foreign-owned firms in the European Union. Results provide evidence of a liability of foreignness—foreign-owned firms underperform host country firms. However, there is also evidence that liability of foreignness can vary across countries, and that foreign firms can overcome the liability of foreignness in some host countries, even industrialized ones. The results show the moderating effects of the host country and home country environments on the relative performance of foreign firms. Lastly, the results reveal that foreign-owned banks from highly competitive home countries underperform foreign firms from less competitive home countries.     

Efficiency evaluation of banks in China: A dynamic two-stage slacks-based measure approach

Operational processes of banks in China can be divided into productivity and profitability stages. Within this, non-performing loans can be treated as a carry-over variable, an undesirable output of the profitability stage in the previous period but an input to the profitability stage in the current period. Using this framework, this paper proposes a dynamic two-stage slacks-based measure model to evaluate the efficiencies of Chinese banks. Based on the proposed model, the measures of stage, period and period stage efficiencies are defined. The proposed approach is applied to evaluate the operational efficiency of banks in China during 2008–2012. Key findings are that banks in China show both technical and scale inefficiency during 2008–2012, which results from the inefficiencies of both the productivity stage and profitability stage; city-owned commercial banks are more overall technically efficient than state-owned commercial banks and joint-stock commercial banks although state-owned commercial banks show best practice for pure technical efficiency, and city-owned commercial banks perform better than joint-stock commercial banks for pure technical efficiency.     

Credibility-based rescheduling model in a double-track railway network: a fuzzy reliable optimization approach

Using a space–time network to represent the choice of train trajectories, this paper proposes a fuzzy optimization framework to reschedule trains in a double-track railway network when the capacity reduction is caused by a low-probability incident. We explicitly introduce a fuzzy variable-based recovery time to capture the uncertainty of incident duration based on professional judgements or empirical estimates. The problem is then formulated as a credibilistic two-stage fuzzy 0–1 integer optimization model to find a reliable operational plan for emergency response guidance. The first stage of the model aims to generate a traversing order on the incident link, and meanwhile the second stage adaptively generates optimized schedules to evaluate the operational plan. Crisp equivalents of mathematical models are further investigated to simplify solution methodologies. The numerical experiments, which are solved by using the GAMS optimization software, demonstrate the effectiveness and efficiency of the proposed approaches.     

生态价格: 对生态经济系统的动态分析

通过对生态系统中物质流与能量流的研究提出了在生态经济系统中计算生态自然物价 格的方法. 这一过程建立在生态系统与经济系统相似性的基础之上:二者均为物质流与能量流 的流转过程. 为计算生态系统中的生态价格,文章使用了Koopmans 经济线性产出模型中的数 学结构. 通过研究价格的生态学解释以及生态价格系统的独特性,最后给出了一个生态系统中 生态价格的计算方法,并通过一个数字案例加以证明.