Using Advance Purchase Discount Contracts under Uncertain Information Acquisition Cost

We study the use of advance purchase discount (APD) contracts to incentivize a retailer to share demand information with a dual‐sourcing wholesaler. We analyze such contracts in terms of two practical considerations that are relevant in this context but have been overlooked by previous work that has largely studied the direct offer of APD to customers: the retailer's information acquisition cost and the wholesaler's limited information about that cost. The wholesaler's limited knowledge of the retailer's cost leads to a departure—from the normal “full observability” APD design—that is asymmetric and depends on the extent of unobservability; if the uncertainty is small (resp., large) then the optimal discount is higher (resp., lower) than in the case of full observability. An APD contract that ignores the retailer's cost or the wholesaler's uncertainty about it will yield fewer benefits for the wholesaler and the supply chain. We offer a numerical illustration (calibrated on real industry data) establishing that for a representative product, an APD contract can improve the wholesaler's profit margin by as much as 3.5%.     

Seeing Is Believing: The Transitory Influence of Reputation Information on E‐Commerce Trust and Decision Making

This research examines the transitory influence of reputation information on consumer decision making regarding an e‐vendor. Using social judgment theory to explain how reputation information's effect on perceptions may be fleeting, we specifically examined how user trusting beliefs related to an e‐vendor change after a simple exposure to the Web site. A total of 369 college students participated in an experiment that found that reputation information was initially strongly related to trusting beliefs regarding the e‐vendor, but a brief nonpurchase‐related exposure to the e‐vendor's Web site—that is, direct experience—reduced reputation's effects significantly. This research provides insights into why reputation information may be more important in certain circumstances than in others and enhances our understanding of how consumer decision making is affected by different purchasing contexts. This research also has implications on the design and use of trust‐building technologies.     

Accessing local knowledge: action learning and organizational learning in Walsall

This paper addresses a central question in organizational learning, namely: how can local knowledge be accessed to improve organizational direction, performance and learning (Argyris 1957; Argyris and Schon 1978, 1996; Kim 1993)? It is partly provoked by Nonaka and Takeuchi's (1995) claim, via their 'Theory of Organizational Knowledge Creation', that the knowledge of individual members can be systematically accessed and harnessed for corporate benefit. A related focus concerns the practice of action learning within a whole systems perspective and how it may serve to support local actors and promote a mutual learning exchange with their organizational leaders. A case study from local government centres on a group of 'neighbourhood facilitators' pioneering community regeneration and local democracy in the Borough of Walsall in the UK's West Midlands. The experiences and learning of this group, together with their interactions and dialogue with the leadership of the initiative and with the wider political system, are used to draw some lessons for facilitating organizational learning. The paper concludes that this is a hard-won and far from predictable accomplishment and questions the apparently reproducible process proposed by Nonaka and Takeuchi.     

Entrepreneurship,globalization, and public policy

This paper examines the impact of governmental policies in influencing the path of internationalization of small- and medium-sized enterprises (SMEs). It focuses on the role of institutions mandated to assist internationalization, as exemplified by Canada's Export Development Corporation (EDC). We illustrate and examine critically the role that governments typically play in assisting and influencing the international expansion of domestic firms. We argue that the activities of agencies such as EDC — mainly in financing and in insuring against the risks inherent in export activities — may actually be counterproductive to the long-term interests of many SMEs by skewing managers' decisions toward direct exporting, rather than toward indirect exporting by entering the value chain of already-established multinational enterprises (MNEs). A consequence may be to divert the constrained resources of entrepreneurial firms away from their greatest comparative advantage — innovation — toward managing direct entry into international markets in which they are at a comparative disadvantage relative to larger established MNEs. Highly innovative SMEs might be better off by leaving the internationalization of their innovations to MNEs and sharing some of the international direct exporting profits with them instead. The implications are relevant for governmental policies toward internationalizing SMEs not just in Canada but in open, market-oriented economies everywhere.     

Out of Sight,Out of Mind? Geographic and Social Predictors of Flood Risk Awareness

The persistent gap in flood risk awareness in Canada, and elsewhere in North America, is a continual source of worry for researchers and emergency managers; many people living in at‐risk places are simply unaware of risks and of their proximity to hazards. This study seeks to understand which residents were aware of flood risk, using unique representative survey data of Calgary residents living in the city's flood‐prone neighborhoods collected after the devastating and costly 2013 Southern Alberta Flood. The article uses logistic regression models to analyze which residents were aware of risk to their homes. Findings indicate that, in addition to various demographic predictors, many of the geographic predictors (including the elevation of one's home relative to the river) are significant predictors of awareness. Having a direct sight line to one of Calgary's two rivers is also a significant predictor in some of the models, suggesting that the visibility of hazards matters for flood risk perception, although this effect fades when many of the geographic predictors are added. Finally, the models indicate that several variables related to local, neighborhood‐based social networks are significant as well. These findings reveal that both physical surroundings and social context are important for understanding risk awareness. The article concludes by discussing the relevance for social science research on disasters and hazards, as well as for planners and emergency managers.     

QUALITY MANAGEMENT: UNIVERSAL OR CONTEXT DEPENDENT?

Quality management has often been advocated as being universally applicable to organizations. This is in contrast with the manufacturing strategy contingency approach of Operations Management that advocates internal and external consistency between manufacturing strategy choices. This article empirically investigates whether quality management practices are contingent on a plant's manufacturing strategy context, by examining the use of process quality management practices—a critical and distinctive subset of the whole set of quality management practices—across plants representative of different manufacturing strategy contexts. The study strongly suggests that process quality management practices are contingent on a plant's manufacturing strategy, and identifies mechanisms by which this takes place.     

Dedicated Transportation Subnetworks: Design,Analysis, and Insights

A dedicated subnetwork (DSN) refers to a subset of lanes, with associated loads, in a shipper's transportation network, for which resources—trucks, drivers, and other equipment—are exclusively assigned to accomplish shipping requirements. The resources assigned to a DSN are not shared with the rest of the shipper's network. Thus, a DSN is an autonomously operated subnetwork and, hence, can be subcontracted. We address a novel problem of extracting a DSN for outsourcing to one or more subcontractors, with the objective of maximizing the shipper's savings. In their pure form, the defining conditions of a DSN are often too restrictive to enable the extraction of a sizable subnetwork. We consider two notions—deadheading and lane‐sharing—that aid in improving the size of the DSN. We show that all the optimization problems involved are both strongly NP‐hard and APX‐hard, and demonstrate several polynomially solvable special cases arising from topological properties of the network and parametric relationships. Next, we develop a network‐flow‐based heuristic that provides near‐optimal solutions to practical instances in reasonable time. Finally, using a test bed based on data obtained from a national 3PL company, we demonstrate the substantial monetary impact of subcontracting a DSN and offer useful managerial insights.     

RISK AVERSION,WEALTH, AND BACKGROUND RISK

We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay for a risky security. We relate this measure to consumer's endowments and attributes and to measures of background risk and liquidity constraints. We find that risk aversion is a decreasing function of the endowment—thus rejecting CARA preferences. We estimate the elasticity of risk aversion to consumption at about 0.7, below the unitary value predicted by CRRA utility. We also find that households' attributes are of little help in predicting their degree of risk aversion, which is characterized by massive unexplained heterogeneity. We show that the consumer's environment affects risk aversion. Individuals who are more likely to face income uncertainty or to become liquidity constrained exhibit a higher degree of absolute risk aversion, consistent with recent theories of attitudes toward risk in the presence of uninsurable risks. (JEL: D1, D8)     

MNEs' Agency Within Institutional Contexts: A Study of Walmart's Post-acquisition Practices in Mexico,Germany, and Japan

The issue of MNEs' adaptation to host country institutional environments in their post-cross-border acquisition implementation, and the outcomes thereof, remains underexplored in international management studies. The purpose of this paper is to assess the applicability of three institutional approaches — (1) the earlier variant of the neoinstitutional theory (ENIT), (2) its recent variant (RNIT), and the comparative institutional analysis approach (CIA) — to explain (non)adaptation behavior in host country environments. Using Walmart's acquisition cases, we show that the MNE adopted a non-adaptation behavior in Mexico and Germany—countries which represent vastly different institutional environments—and succeeded in the former, but failed and withdrew from the market in the latter. However, in the Japanese institutional environment, which is similar to the German one, Walmart engaged in selective adaptation and survived in the market. Based on the case data, we offer a critical assessment of the applicability of the three approaches. These three approaches provide a base on which to develop a model to explain the relationship between institutional influences, an MNE's organizational agency and adaptation behavior, as well as outcomes. Moreover, we discuss future research directions and provide implications for practitioners related to MNEs' adaptation behavior and the ensuing outcomes in host markets.     

Individual learning as a driver of changes in community vulnerability under repeated hurricanes and changing climate

The risks from singular natural hazards such as a hurricane have been extensively investigated in the literature. However, little is understood about how individual and collective responses to repeated hazards change communities and impact their preparation for future events. Individual mitigation actions may drive how a community's resilience evolves under repeated hazards. In this paper, we investigate the effect that learning by homeowners can have on household mitigation decisions and on how this influences a region's vulnerability to natural hazards over time, using hurricanes along the east coast of the United States as our case study. To do this, we build an agent-based model (ABM) to simulate homeowners’ adaptation to repeated hurricanes and how this affects the vulnerability of the regional housing stock. Through a case study, we explore how different initial beliefs about the hurricane hazard and how the memory of recent hurricanes could change a community's vulnerability both under current and potential future hurricane scenarios under climate change. In some future hurricane environments, different initial beliefs can result in large differences in the region's long-term vulnerability to hurricanes. We find that when some homeowners mitigate soon after a hurricane—when their memory of the event is the strongest—it can help to substantially decrease the vulnerability of a community.     

Assessment of fifteen years of urban modeling

The purpose of this paper is, through an ‘ethnographic’ approach, to review where the urban and regional modeling field has been since its inception, regarding analytical inputs to policy analysis, policy development, policy assessment etc. Assessed are: What progress in understanding, explanation, evaluation has there been? Do we know a little or a lot more after 15 years than we did in 1962–1963? More than anything—given our often overly ambitious aspirations, false starts, and imprecise objectives: Can representative members of the urban/regional modeling profession be more helpful to policy makers today than we were in the mid-sixties and early seventies? The paper reviews the phases through which this particular modeling field has achieved its current state of maturity, relative calm, and usefulness, and concludes with a discussion of how we could do even better.     

Perceptions of Risk and Vulnerability Following Exposure to a Major Natural Disaster: The Calgary Flood of 2013

Many studies have examined the general public's flood risk perceptions in the aftermath of local and regional flooding. However, relatively few studies have focused on large‐scale events that affect tens of thousands of people within an urban center. Similarly, in spite of previous research on flood risks, unresolved questions persist regarding the variables that might influence perceptions of risk and vulnerability, along with management preferences. In light of the opportunities presented by these knowledge gaps, the research reported here examined public perceptions of flood risk and vulnerability, and management preferences, within the city of Calgary in the aftermath of extensive flooding in 2013. Our findings, which come from an online survey of residents, reveal that direct experience with flooding is not a differentiating factor for risk perceptions when comparing evacuees with nonevacuees who might all experience future risks. However, we do find that judgments about vulnerability—as a function of how people perceive physical distance—do differ according to one's evacuation experience. Our results also indicate that concern about climate change is an important predictor of flood risk perceptions, as is trust in government risk managers. In terms of mitigation preferences, our results reveal differences in support for large infrastructure projects based on whether respondents feel they might actually benefit from them.     

Biodiversity and Tourism Co-exist in Harmony

Ever since the Rio summit, biodiversity has become a buzzword for conservation management. Through the UK's own Biodiversity Action Plans, specific habitats flora and fauna have been identified, which require protection or are in need of enhancement to maintain their existence. This article examines biodiversity in relation to tourism. Center Parcs UK, have developed their own unique Forest Management Plans, corporate Biodiversity Action Targets and annual Ecological Monitoring studies. The latter have identified outstanding examples of flora and fauna of national and local interest, which have colonised Center Parcs' sites after the construction phase. In this article, Center Parcs clearly demonstrate that biodiversity can be achieved at a local level, which is where a significant impact can be made, against the global context of biodiversity.     

Risk Management and the Wisdom of Aldo Leopold

Human demands on nature have increased due to our burgeoning population. The applications of scientific knowledge to the development of increasingly powerful technologies and consumptive lifestyles by more and more people have created a modern category of human‐caused disaster—stealth disasters. Stealth disasters—such as agriculturally‐induced soil erosion and release of unprecedented amounts of greenhouse gases into Earth's atmosphere—tend to have protracted, unobvious onsets; do not necessarily have dramatic manifestations; and often do not attract public attention until they reach a stage approaching catastrophic consequences. At this late stage it is difficult or impossible to undo damage. Scientists tend to be among the first to understand the physical causes and notice the developments of stealth disasters and their risks and yet scientific knowledge is not enough to prevent or mitigate them. As we search for ways to deal with stealth disasters, the concept of “land health” assembled by the prominent conservationist and author, Aldo Leopold (1887–1948), can, in normative terms, provide an ecologically grounded example of nature in good condition toward which society can aim. Evidence of the reverse—symptoms of land illness—can provide a checklist for risk analysis and management that helps guide people away from harm‐causing attitudes and activities and toward beneficial outcomes. Leopold's criteria of land health motivated by a land ethic that incorporates the whole of nature may be applied at geographic scales ranging from local to global as a framework for contemporary risk management.     

Organizational and supervisory justice effects on experienced threat during change: The moderating role of leader in-group representativeness

We explore the complex interplay between organizational justice and supervisory justice when predicting group members' threat perceptions in a context of organizational change. Based on the assumptions of relational models of procedural justice and prior research done in the multifoci justice framework, we hypothesize that the extent to which a supervisor is seen to embody and represent key in-group attributes will moderate the interaction between the supervisor's own interactional justice and the overall organizational procedural justice. Specifically, organizational justice is expected to decrease employees' feelings of threat particularly when the supervisor treats group members fairly and is perceived to be in-group representative rather than non-representative. We found support for this hypothesis across two studies, a cross-sectional survey and a scenario experiment. The findings confirm the particularly powerful role that an in-group representative leader's interactional fairness has in managing group members' responses to fundamental organizational processes. The implications for further research and practice are discussed.     

The Non‐Democratic Roots of Elite Capture: Evidence From Soeharto Mayors in Indonesia

Democracies widely differ in the extent to which powerful elites and interest groups retain influence over politics. While a large literature argues that elite capture is rooted in a country's history, our understanding of the determinants of elite persistence is limited. In this paper, we show that allowing old‐regime agents to remain in office during democratic transitions is a key determinant of the extent of elite capture. We exploit quasi‐random from Indonesia: Soeharto‐regime mayors were allowed to finish their terms before being replaced by new leaders. Since mayors' political cycles were not synchronized, this event generated exogenous variation in how long old‐regime mayors remained in their position during the democratic transition. Districts with longer exposure to old‐regime mayors experience worse governance outcomes, higher elite persistence, and lower political competition in the medium run. The results suggest that slower transitions towards democracy allow the old‐regime elites to capture democracy.     

The Impact of Nonagility on Service Level and Project Duration*

“Why projects are late” is a fundamental issue in theory and in practice. One well‐established explanation is that a project's network structure can be a significant factor—the “fatter” or more parallel the project, the later the project completion. Herein we show that a lack of agility, which may frequently arise in projects when there are external resources, can also be a significant factor in project delays—both in more serial‐like projects as well as more parallel ones. Specifically, this article formally characterizes the concept of agility in projects, shows how a lack of agility can have a significant impact on a project, and gives some general properties on agility with respect to a project's structure.     

A Model of the Antecedents of Perceived Ease of Use: Development and Test*

The Technology Acceptance Model (TAM) has been widely used to predict user acceptance and use based on perceived ease of use and usefulness. However, in order to design effective training interventions to improve user acceptance, it is necessary to better understand the antecedents and determinants of key acceptance constructs. In this research, we focus on understanding the determinants of perceived ease of use. Data from three experiments spanning 108 subjects and six different systems supported our hypothesis that an individual's perception of a particular system's ease of use is anchored to her or his general computer self-efficacy at all times, and objective usability has an impact on ease of use perceptions about a specific system only after direct experience with the system. In addition to being an important research issue in user acceptance research, understanding antecedents of perceived ease of use is also important from a practical standpoint since several systems in which millions of dollars are invested are rejected because of poor user interfaces. Moreover, the actual underlying problem might be low computer self-efficacy of the target user group. In such cases, training interventions aimed at improving computer self-efficacy of users may be more effective than improved interface design for increasing user acceptance.     

“To thine own self be true”: The effects of enactment and life storytelling on perceived leader authenticity

Although researchers have emphasized the importance of antecedents to the construct of authentic leadership, very little empirical research exists to confirm this notion. Combining theoretical approaches from dramaturgy and narrative research, we were able to identify possible antecedents that help followers perceive a leader's authenticity. Using two online experimental designs, we analyzed the concept of perceived leader authenticity. Specifically, we examined how a leader's enactment—that is, a leader's physical actions—(Study 1, n = 105) and a combination of leader enactment and life storytelling (Study 2, n = 334) influenced followers' perceptions of the leader's authenticity, and how this may impact leadership outcomes. The results of these studies, in which leader enactment in the context of authentic leadership was operationalized for the first time, indicate that leader enactment predicts perceived leader authenticity. Life storytelling, however, only partially predicted followers' perceptions of the leader's authenticity. Findings further revealed that followers' trust in the leader and positive emotions are outcomes of perceived leader authenticity. Implications for research and practice are discussed.