Corporate planning for Asia, Latin America and Africa

It is in the broad sense of “a systematic approach to general management” that strategic planning is here compared in large corporations and Government. For, just as strategic planning is today concerned

1.

1. the development and evaluation of optional strategies;     

Business in Japan and the United States of America; some implications for management science and operations research

Significant differences exist between United States-managed and Japanese-managed organizations.

• •• U.S. firms are epitomized by surplus behaviors (emphasis on profits and returns on assets, investments and equity).
• •• Japanese firms are characterized by scarcity behaviors (emphasis on husbanding resources and reduction of waste).
• •• Management Science has been used in the generally surplus-oriented Western-world. Western values drive its application, or the decision not to apply it.
• •• Management Science can work effectively within a scarce-resource framework, as well as within a surplus-resource framework.
• •• Management Science has been barely used by the Japanese, although they might use it effectively. A possible explanation is that the Japanese culture is pervasive and consistent in dealing with scarcity.
• •• Management Science, when combined with a severe distaste for waste, may enable Western-world management to develop better strategies to achieve Global Competitiveness.
• •• The scarcity-oriented value system elevates the importance of people as resources. Management Science, to be effective, must do the same.

     

Supply chain management in the US and Taiwan: An empirical study

This study uses an empirical survey of middle-line managers in the US and Taiwan to study the association of supply chain management components and organizational performance. Through structural equation modeling, critical components of supply chain management are found to have considerable effects on organizational performance. The findings of the study are summarized as follows:

•$•$

Supply chain competencies have positive effects on organizational performance in both the US and Taiwan. Supply chain competencies are developed around quality and service, operations and distribution, and design effectiveness. The goal of supply chain competencies is to satisfy customer requirements.     

Deciding on ISO 14001: Economics, Institutions, and Context

ISO 14001 is an international standard for environmental management systems that was introduced in September 1996. It has gained wide recognition among businesses, much like its sister standard on quality management systems, ISO 9000. As a result, managers in almost every organization will evaluate whether the organization should become ISO 14001 certified. However, most analyses of ISO 14001 that are intended to guide managers in their evaluation have focused on the merits of ISO 14001, such as improved competitiveness, management control, and regulatory compliance. Very few articles provide a balanced picture of the costs and benefits of ISO 14001—including the conditions under which adoption will be most effective. This article redresses this gap by providing an analysis of not only why firms may choose to certify based on economic and institutional considerations, but also, when certification might be appropriate based on the firm’s context.In 1998, the Jutras division of Meridian Magnesium Inc., which manufactures magnesium automotive parts, reported that it saved almost $2 million soon after its $45,000 investment on an ISO 14001 certified environmental management system (EMS).¹ The company reduced its use of electricity, natural gas, and lubricants, while producing less solid waste and contaminated water. These were not just one-time savings; they were expected to continue into perpetuity. Not all their ISO 14001 projects were winners, however. Jutras implemented ten projects for their EMS in the first year with an initial goal of saving over $460,000 in costs. Four of the projects did not result in any savings and one had disappointing but positive results. The remaining projects, however, provided larger than expected returns. The cost savings increased the competitiveness of a firm that prides itself on being the low cost leader in an increasingly competitive automotive parts industry. The benefits to the environment were a bonus. And there was yet another bonus from ISO 14001 that had not been anticipated: the preference for ISO certified suppliers by its key customers, Ford and General Motors, and the social legitimacy earned from stakeholders pressuring for greener business practices. The company now posts its ISO 14001 certification on its web site as one of its main achievements.Although this type of vignette presents ISO 14001 in a positive light, not all firms have embraced the standard with enthusiasm. While over 22,000 facilities in 98 countries were ISO 14001 certified by December 31, 2000, many firms had decided to delay certification or reject it altogether.² The significant financial rewards realized by the Jutras Division of Meridian Magnesium have not been perceived by many of its peers, even though most analyses of ISO 14001 attempt to convince the reader that such a system is of significant strategic importance and a panacea of opportunity. Writers typically tout the potential for lower costs, increased competitiveness, market share growth, higher profits, and regulatory compliance, such as those experienced by Meridian Magnesium.³The costs of ISO 14001, however, are not trivial. Managers need to undertake a careful analysis of the relevance of ISO 14001 to their firm before they decide to jump on the ISO 14001 bandwagon. While managers can estimate the direct costs of certification with the help of good internal cost accounting, evaluating the intangible costs and benefits and the indirect impacts on the firm’s performance is more difficult. In this article, we provide background perspectives and evaluation criteria for those aspects of ISO 14001 certification, looking specifically at the marginal benefit of ISO 14001 certification over an in-house EMS. This article, then, identifies why firms may certify and in which contexts, based on economic and institutional considerations. Armed with relevant decision-making criteria, we present managers with an analytical tool to assist them in determining if ISO 14001 is appropriate for their firm.The insights provided here build on three studies:

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an investigation of the motivations of environmental responsiveness by interviewing members of 53 firms in the UK and Japan;⁴

2.

an investigation of the factors that influence the adoption of ISO 14001 based on a statistical analysis of 46 matched pairs of certified and non-certified firms and interviews with members of six firms in the US;⁵ and

3.

an investigation of the contexts that explain adoption based on interviews with 16 pulp and paper companies in Canada.⁶

Details of these studies are provided in text boxes later in this paper. While these studies form the foundation of this paper, many of the anecdotes provided here are based on published sources because the interviewees were promised complete confidentiality.     

When stressors make you work: Mechanisms linking challenge stressors to performance

Based on previous empirical findings, “challenge stressors” (Cavanaugh, Boswell, Roehling, & Bouderau, 2000 Cavanaugh, M. A., Boswell, W. R., Roehling, M. V., & Boudreau, J. W. (2000). An empirical examination of self-reported work stress among U.S. managers. Journal of Applied Psychology, 85, 65–74. doi:10.1037/0021-9010.85.1.65[Crossref], [PubMed], [Web of Science ®] , [Google Scholar]; Lepine, Podsakoff, & Lepine, 2005 LePine, J. A., Podsakoff, N. P., & LePine, M. A. (2005). A meta-analytic test of the challenge stressor hindrance stressor framework: An explanation for inconsistent relationships among stressors and performance. Academy of Management Journal, 48, 764–775. doi: 10.5465/AMJ.2005.18803921[Crossref], [Web of Science ®] , [Google Scholar]), such as the amount and scope of responsibility, can be loosely considered as “good stressors” that are consistently and positively related to job satisfaction and performance. We introduce the role of appraisal to further examine how challenge stressors are connected to performance. Structural equation modelling analyses using an applied sample of 284 employee–supervisor dyads showed that affective commitment to the organization mediated the relationship between both opportunity and threat appraisal and performance (in-role and extra-role). The mediating role of increased psychosomatic distress was supported only for the relationship between threat appraisal and in-role performance. The findings indicate the importance of taking into account the actual appraisal of “challenge stressors”, as it carries implications for performance, and reveals the key role of affective commitment and induced distress mechanisms in this relationship. In conclusion, “challenge stressors” are not always positively related to performance, but only when they are perceived as opportunities.     

Do synergies exist in related acquisitions? A meta-analysis of acquisition studies

Mergers and acquisitions (M&A) aim to increase the wealth of shareholders of the acquiring company, in particular by creating synergies. It is often assumed that relatedness is a source of synergies. Our study distinguishes between business, cultural, technological, and size relatedness. It discusses the reasons why these different forms of relatedness can lead to an acquisition success and we conduct a meta-analysis of 67 prior M&A studies. Results indicate that positive effects can be expected under specific conditions only and have a limited overall impact on acquisition success. A moderator analysis finds that synergies stemming from relatedness depend on industry-, country-, and investor-characteristics.

A simple approach to an integrated single-vendor single-buyer inventory system with shortage

In this article, a simple approach with two basic inequalities (Cauchy–Schwarz inequality and arithmetic–geometric mean inequality) is used to solve the integrated single-vendor single-buyer inventory problem developed by Wu and Ouyang (Wu, K.-S. and Ouyang, L.-Y., 2003. An integrated single-vendor single-buyer inventory system with shortage derived algebraically. Production Planning & Control, 14 (6), 555–561). Without the method of completing perfect square, the proposed approach yields the global minimum of the integrated total cost per year more easily than the algebraic approach used by Wu and Ouyang (2003 Wu, K-S and Ouyang, L-Y. 2003. An integrated single-vendor single-buyer inventory system with shortage derived algebraically. Production Planning & Control, 14(6): 555–561. [Taylor & Francis Online], [Web of Science ®] , [Google Scholar]). In addition, for people without the background of calculus, it is more useful to determine the buyer's economic order quantity and the vendor's optimal number of deliveries.     

Reverse exchange of healthcare devices: the case of hearing aid equipment in the UK

Abstract

Reverse exchange (RE) in dealing with the return, recycle and reuse of products is receiving a growing focus. When properly handled, RE in healthcare can deliver an economic benefit of cost minimisation and has extensive positive impacts on both human health and the environment (Li and Olorunniwo 2008 Li, X., and F. Olorunniwo. 2008. “An Exploration of Reverse Logistics Practices in Three Companies.” Supply Chain Management: An International Journal 13 (5): 381–386. doi:10.1108/13598540810894979[Crossref], [Web of Science ®] , [Google Scholar]) but to date, RE research is mostly limited to pharmaceutical return. This paper investigates the potential for RE benefits in the UK National Health Service (NHS) supply chain for medical devices. Hearing aids supplied to adults with hearing loss are used as an illustrative example. This research applied a consensus approach through the use of dispersed nominal groups in order to obtain qualitative data on information, barriers, solutions and priorities to support findings. Findings illustrate that the end user behaviour of returning the device, and the requirement by NHS Procurement for manufacturers to meet RE targets are secondary to the importance of audiology departments who have the autonomy to design RE processes and successfully implement initiatives. A schematic highlighting the information and materials flow of the supply chain and the barriers and facilitators to RE is presented for hearing aid devices with potential for transferability to other small medical device supply chains.     

5 Bringing National Culture to the Table: Making a Difference with Cross‐cultural Differences and Perspectives

Abstract

Cross‐cultural research has achieved a front‐and‐center role in management and social psychology. In this chapter, we attempt to address the fundamental issue of what makes cross‐cultural research valuable. In doing so, we first summarize major methodological and conceptual themes across recent reviews. We then raise the question about the criticality of cross‐cultural differences, i.e., whether cross‐cultural differences are required for research in this domain to matter. Most efforts exerted by cross‐cultural researchers have been directed toward uncovering and explaining cross‐cultural differences, or finding better ways to do so. However, differences per se do not necessarily make an important difference in advancing knowledge. Instead, we argue that a more fundamental value of cross‐cultural research is the diverse perspectives it offers for theoretical innovation. Using Wagner and Berger’s (1985 Wagner, D.G. and Berger, J. 1985. Do sociological theories grow?. American Journal of Sociology, 90: 697–728. [Crossref], [Web of Science ®] , [Google Scholar]) typology, we examine how the inclusion of “other cultural” perspectives has contributed to knowledge growth in social psychology and organizational behavior. We conclude with suggestions for how the field can further realize the inherent benefits of diverse cultural perspectives in future research.     

A temporal investigation of the direct,interactive, and reverse relations between demand and control and affective strain

Abstract

Few studies have tested how stressors affect outcomes over time. We sought to extend the literature by means of a longitudinal study testing for direct, interactive, and causal relations between demands and control and affective strain. We extended prior work testing causal relationships for Karasek's (1979 Karasek, R.A. Jr. 1979. Job demands, job decision latitude, and mental strain: Implications for job redesign. Administrative Science Quarterly, 24: 285–307. [Crossref], [Web of Science ®] , [Google Scholar]) Job Demand-Control (JDC) model by examining both the effects of demands and control on strain and in turn the effects of strain on demand and control. We tested our hypotheses using hierarchical linear modelling with a military sample of 1539 soldiers who completed six waves of survey data at 3-month time lags. The results replicate earlier cross-sectional studies reporting effects of work characteristics on strain; however, in our study these effects did not persist past three months. The results also provide evidence for reverse causal effects such that higher strain was associated with higher subsequent work overload and lower control over a six month time period. Similar to past research, we did not find support for the interactive effects of work overload and control on strain. We discuss the implications of our findings for theory and practice (such as the optimum time for applying interventions during the management of change), especially in terms of understanding the specific time lags for different stress–strain associations and the need for additional theories to explain reverse relationships.     

The minimum value of geometric-arithmetic index of graphs with minimum degree 2

The geometric-arithmetic index was introduced in the chemical graph theory and it has shown to be applicable. The aim of this paper is to obtain the extremal graphs with respect to the geometric-arithmetic index among all graphs with minimum degree 2. Let G(2, n) be the set of connected simple graphs on n vertices with minimum degree 2. We use linear programming formulation and prove that the minimum value of the first geometric-arithmetic \((GA_{1})\) index of G(2, n) is obtained by the following formula:

$$\begin{aligned} GA_1^* = \left\{ \begin{array}{ll} n&{}\quad n \le 24, \\ \mathrm{{24}}\mathrm{{.79}}&{}\quad n = 25, \\ \frac{{4\left( {n - 2} \right) \sqrt{2\left( {n - 2} \right) } }}{n}&{}\quad n \ge 26. \\ \end{array} \right. \end{aligned}$$