Barriers to Swift,Even Flow in the Internal Supply Chain of Perioperative Surgical Services Department: A Case Study*

This research analyzes the internal service supply chain of a perioperative surgical services department of a nonacademic community hospital using the theory of swift and even flow as a theoretical lens. Performance data were gathered using an in‐depth case study and it was determined that the swift and even flow constructs did affect flow speed and variance, but did not account for all the effects observed. To understand the need for departments to coordinate their efforts with each other and how this affected flow, further analysis was conducted using insights from Pagell's (2004) theory of internal integration and Gittell's (2002) research about coordinating mechanisms. The findings suggest the need to incorporate a variable measuring supply chain coordination into the theory of swift and even flow.     

Producing Synergy: Innovation,IT, and Productivity

Bringing innovations to market is critical to industrial progress and economic growth. We explore the potential for information technology (IT) to enable innovations, and thus improve productivity. We hypothesize that a knowledge stock of process‐oriented research and development (R&D) increases total factor productivity growth by leveraging traditional forms of capital and labor, and further enhances the ability of IT capital to increase productivity. We estimate these relationships using two broad panels of U.S. industries covering the periods 1987–1998 and 1998–2005. The results indicate qualified support for a synergistic effect of R&D and IT investment in both periods.     

复杂情境下中国企业管理创新类型选择研究

旨在解析我国企业在多因素综合作用的复杂情境下就突变型与渐进型管理创新选择的问题。基于扎根理论、使用多案例比较研究方法,首先采用开放式译码、轴向译码、以及选择性译码析出了大连三洋冷链有限公司管理创新案例中蕴含的关键概念、范畴和故事脉络,并对初始案例研究草案和研究样本进行了发展和补充;其次,在对其他9个案例分别进行概念、范畴和故事脉络分析的基础上,对10个案例进行了比较研究,得出了我国企业在组织规模、行业环境、企业家精神和组织文化的不同组合维度下对突变型和渐进型管理创新的选择模式及其中的机理。     

The Emergence of Service Science: Toward Systematic Service Innovations to Accelerate Co‐Creation of Value

The current growth of the service sector in global economies is unparalleled in human history—by scale and speed of labor migration. Even large manufacturing firms are seeing dramatic shifts in percent revenue derived from services. The need for service innovations to fuel further economic growth and to raise the quality and productivity levels of services has never been greater. Services are moving to center stage in the global arena, especially knowledge‐intensive business services aimed at business performance transformation. One challenge to systematic service innovation is the interdisciplinary nature of service, integrating technology, business, social, and client (demand) innovations. This paper describes the emergence of service science, a new interdisciplinary area of study that aims to address the challenge of becoming more systematic about innovating in service.     

Profit Sharing in Portugal: Why Higher Productivity?

The paper studies some characteristics of Portuguese profit‐sharing (PS) firms based on a sample of 192 manufacturing firms. Some issues are examined that could help explain observed productivity differences such as the performance contingency of PS payments and the complementary or substitution nature of these payments regarding wages. The higher productivity found for PS firms seems to be more related to higher total remuneration in these firms than to the specific PS pay formula. The issues of why, how and by whom PS payments are determined could clarify the exact nature of our findings.     

To What Extent Are Labor‐Saving Technologies Improving Efficiency in the Use of Human Resources? Evidence from the Banking Industry

With special reference to the banking industry, the objective of this study is to address managerial concerns over the impact of labor‐saving technologies on efficiency in the use of human resources. A bank is viewed as a collection of human, technology, and capital resources. Labor‐saving technologies are represented by two categories of technology resources—information technologies and patented in‐house process innovations. The estimation of a stochastic frontier manpower‐requirement function shows that, whereas information technology resources have a direct impact on efficiency in the use of human resources, in‐house process innovations have an indirect impact through spillovers. The reduction in labor costs resulting from a more efficient use of human resources is more than enough to cover the required increase in information technology expenditures. This cost‐reducing impact is stronger for firms currently employing a lower level of information technologies. The empirical findings also suggest a complementary relationship between information technologies and spillovers of in‐house process innovations. The empirical framework proposed in this study can help decision makers determine the optimal input mix of technology and human resources.     

Business technology complementarities: impacts of the presence and strategic timing of ERP on B2B e-commerce technology efficiencies

Enterprise resource planning (ERP) implementations have the potential of significantly complementing the use of business-to-business e-commerce technologies. We consider the sources of this complement by drawing on transaction cost economics, and the theory of swift even flow. Analysis of 115 firms shows that perceived transactional efficiencies are greater for B2B e-commerce technologies in the presence of ERP, and are in fact magnified when ERP implementation specifically precedes B2B e-commerce initiatives. These findings imply a distinct system adoption strategy for firms pursuing e-commerce opportunities.     

INSTITUTION‐INDUCED PRODUCTIVITY DIFFERENCES AND PATTERNS OF INTERNATIONAL CAPITAL FLOWS

This paper studies theoretically how the cross‐country differences in the institutional quality (IQ) of domestic credit markets shape the patterns of international capital flows when such IQ differences also cause productivity differences across countries. IQ affects productivity by changing productivity–agency‐cost trade‐offs across heterogeneous investment projects. Such institution‐induced productivity differences are shown to have effects on the investment and capital flows that are opposite of exogenous productivity differences. This implies that the overall effect of IQ could generate U‐shaped responses of the investment and capital flows. Among other things, this means that capital could flow from middle‐income countries to both low‐income and high‐income countries, and that, starting from a very low IQ, a country could experience both a growth and a current account surplus after a successful institutional reform. More generally, the results here provide some cautions when interpreting the empirical evidence on the role of productivity differences and institutional differences on capital flows. It also calls into question the validity of treating the degree of financial frictions as a proxy for the quality of financial institutions, as commonly done in the literature.     

On the Dynamics of Unemployment and Wage Distributions

Postel‐Vinay and Robin's (2002) sequential auction model is extended to allow for aggregate productivity shocks. Workers exhibit permanent differences in ability while firms are identical. Negative aggregate productivity shocks induce job destruction by driving the surplus of matches with low ability workers to negative values. Endogenous job destruction coupled with worker heterogeneity thus provides a mechanism for amplifying productivity shocks that offers an original solution to the unemployment volatility puzzle (Shimer (2005)). Moreover, positive or negative shocks may lead employers and employees to renegotiate low wages up and high wages down when agents' individual surpluses become negative. The model delivers rich business cycle dynamics of wage distributions and explains why both low wages and high wages are more procyclical than wages in the middle of the distribution.     

Project‐Level Reuse Factors: Drivers for Variation within Software Development Environments*

Systematic reuse can dramatically improve software development productivity and quality even though a software reuse methodology may require substantial investments. Some projects may fail to achieve the targeted amounts of reuse within organizations that are overall successful in employing reuse. To explain such variation, this research explores the effects of project‐level factors in the success of software reuse. A model that relates project factors to project reuse success is developed using an information‐rich case study approach. The results are based on the insights obtained in a nominal group technique session, triangulated with structured interviews and comparative case studies. Success factors identified by the study relate to client influence, project culture, project attributes, and developer reuse experience. An organization that can successfully identify the factors affecting potential software reuse will be able to better target investments for the improvement of its reuse methodology and thus positively affect its software development productivity and quality.     

Strategic Product/Service Innovations of an Online Firm

We study the incentives that drive an online firm to make various types of innovations in a competitive environment. We develop and use a simplified price competition model between two retailers, one online and one offline. A given fraction of consumers, called the Internet penetration, comparison shop online, independent of their customer type, thereby creating two markets for the offline retailer, a captive market and a competitive market. The online product has the steeper of the two linear utility functions, which means that the customers who buy online in our model are high end. We focus on the competitive region in which both retailers are (strictly) profitable in the competitive market and consider innovations that increase high‐end appeal, low‐end appeal, and/or reduce unit cost. We find that the online firm has a strong incentive to invest in innovations that either reduce unit cost and/or, equivalently, increase the appeal to all consumers equally. Investments of this type are strategic complements: implementing one increases the value of another, so the value of two innovations of this type is more than the sum of the values of each individually. We identify a relative strength measure of the online firm such that, as its high‐end appeal increases and/or its unit cost decreases, we say that the online firm is stronger. This strength measure facilitates drawing an explicit dividing line between strong and weak online firms. If Internet penetration increases, the online firm's profits increase if and only if it is strong. If penetration increases over time, it is possible for a strong firm to turn weak and see its profits decrease and possibly disappear completely. A strong online firm has more opportunity to profit from low‐end innovations than does a weak one, while the opposite is true for high‐end innovations. Interestingly, some innovations may actually decrease the online firm's profits. We discuss the implications of our results for existing and future online innovations.     

Review and preview of productivity research and applications

During the last two decades, productivity research and applications have not been given adequate importance when trying to attain excellence in the management of manufacturing enterprises. Recent developments in managerial philosophies Total Quality Management and Business Process Re-engineering , manufacturing technologies Flexible Manufacturing Systems, Computer Integrated Manufacturing, etc. and Information Technology innovations have made the traditional productivity improvement techniques obsolete. This article presents a review consisting of analyses of literature on productivity and a survey of manufacturing enterprises. A five-step preview strategy on productivity is enumerated which provides a meaningful direction towards future productivity research and application. The article is concluded by briefly describing the current research that is being carried out based on the preview strategy evolved.     

Progressive Learning

We study a dynamic principal–agent relationship with adverse selection and limited commitment. We show that when the relationship is subject to productivity shocks, the principal may be able to improve her value over time by progressively learning the agent's private information. She may even achieve her first‐best payoff in the long run. The relationship may also exhibit path dependence, with early shocks determining the principal's long‐run value. These findings contrast sharply with the results of the ratchet effect literature, in which the principal persistently obtains low payoffs, giving up substantial informational rents to the agent.     

THE IMPACT OF INCOME SHOCKS ON HEALTH: EVIDENCE FROM COHORT DATA

We study the effect of permanent income innovations on health for a prime‐aged population. Using information on more than half a million individuals sampled over a 25‐year period in three different cross‐sectional surveys we aggregate data by date‐of‐birth cohort to construct a “synthetic cohort” data set with details of income, expenditure, socio‐demographic factors, health outcomes, and selected risk factors. We then exploit structural and arguably exogenous changes in cohort incomes over the 1980s and 1990s to uncover causal effects of permanent income shocks on health. We find that such income innovations have little effect on a wide range of health measures, but do lead to increases in mortality and risky health behaviour. (JEL: I10, D31)     

Testing for Statistical Discrimination: The Case of Immigrant Physicians in Israel

Two models have been proposed to explain why two groups of workers who have the same level of productivity can receive different wages: (i) the statistical discrimination model, according to which the discrimination is the result of a rational response to uncertainty about productivity that consists in adopting certain characteristics as proxies for productivity and (ii) the taste‐based discrimination model, according to which the discrimination is based on prejudice against a particular group. It is usually difficult to determine empirically whether the gap in earnings is due to statistical or taste‐based discrimination. However, the conditions for a natural experiment were created in 1989 when Israel introduced a licensing examination for immigrant physicians arriving from that point onward, thus making it possible to determine which type of discrimination is responsible for the wage gap between immigrant and native physicians. Controlling for other factors, the paper finds that: (1) the earnings of physicians who immigrated to Israel after 1989 are significantly higher than those of physicians who immigrated previously and (2) the earnings of immigrant physicians who have taken the licensing examination converge to those of native physicians after an average of 5.5 years. These results constitute evidence that the difference in earnings between native and immigrant physicians is due to statistical, rather than taste‐based, discrimination.     

BEYOND PRACTICES: A QUALITATIVE INQUIRY INTO HIGH PERFORMANCE ELECTRONICS ASSEMBLY

This paper is based on the cumulative or synergies theory of manufacturing performance, as opposed to the trade‐off perspective. The paper compares the cases of two British contract electronics assemblers, the first one having achieved a high level of performance on productivity, quality, and dependability, and the second one having achieved a lower level of performance on these criteria but higher flexibility. The case material is used to develop a “high school” analogy that helps to understand why companies come to achieve cumulative manufacturing performance in an industrial sector where competitive pressure is particularly high.     

Effect of Quality Management Systems and Total Quality Management on Productivity Before and After: Empirical Evidence from the Indian Auto Component Industry

We study the linkages between firm‐level quality initiatives such as quality management systems (QMS) and total quality management (TQM) and output productivity in the Indian auto component industry. We use externally validated quality certification and quality awards as proxies for QMS and TQM, respectively, as it is difficult to directly measure the QMS and TQM efforts of firms. We use an unbalanced panel of 220 firms and a balanced panel of 73 firms from the Indian auto component industry over the period 1993–2006 to study these links. Both parametric as well as non‐parametric approaches are used, as appropriate, to measure the rate of change in productivity and the impact of quality initiatives on productivity change during this period. We determine the proportion of productivity resulting from technical change and relative efficiency change, thus providing insights into the structure of productivity improvements. We find that TQM efforts resulted in a high rate of productivity change (11%) in the award‐winning firms after the award. On the other hand, pre‐certification productivity change due to QMS was 5% and post‐certification change was 3.6%. In the periods prior to certification, productivity change was driven mainly by technical change; whereas the source of productivity change after certification is mixed. However, prior to awards, productivity change was driven mainly by relative efficiency change, whereas post‐award productivity change was due to technical change. The results suggest that management focus on attaining certification did generate conceptual learning (linked to technical change) during the period leading to certification, but these effects were not significant after certification. The results also suggest that the TQM programs generated significant productivity gains in the long run, although setting the associated systems in place did not result in significant productivity change prior to winning awards. Thus, the study provides direct but nuanced evidence linking quality certification as well as the adoption of TQM programs to the associated conceptual and operational learning processes and their impact on the change in productivity.     

Metaprogress functions

This paper presents a theory of evolutionary learning as an alternative to the traditional theories of productivity. It is commonly recognized that there exists a significant process of learning in the utilization of existing techniques of production. This is exemplified by the well-known concept of manufacturing progress function that unit costs systematically decline with increase in cumulated output. The thesis is advanced here that yet other learning processes underlie the development of new techniques in the first place giving rise to what may be called metaprogress functions. The proposed concept of metaprogress functions is formalized and explained by means of several illustrative case studies of technological innovations. It is concluded that the conventional and the metaprogress functions together account for both the temporal and spatial aspects of productivity evolution. The policy implications of the study are discussed at length.     

金融发展与基于水平创新的内生增长模型

基于中间投入品种类扩张的水平创新型内生增长模型,本文论证了金融发展影响一国长期经济增长的作用机制。对平衡增长路径的稳态增长率求解结果表明,稳态消费、产出增长率同时取决于研发、人力资本以及金融部门的产出效率;进一步比较静态分析表明较高的金融发展水平将提高稳态消费增长率,然而各产出效率参数对金融部门自身的稳态增长率影响是不确定的。