A Study of the Role Played by Manufacturing Strategic Objectives and Capabilities in Understanding the Relationship between Porter's Generic Strategies and Business Performance

An appropriate alignment between business strategy, manufacturing strategic objectives and manufacturing capabilities reportedly influences business performance positively. However, few papers empirically analyse this proposition for the case of Porter's generic strategies of cost leadership and differentiation, and none jointly considers all four elements. This paper integrates strategies, capabilities and performance in a single model and proposes that both manufacturing competitive priorities and capabilities, articulated in terms of cost and flexibility, are essential for explaining the link between generic business strategies and business commercial and financial performance. Within this analytic framework, we test whether companies that emphasize one business strategy rather than another achieve a better alignment and superior performance. The analyses conducted with a sample of 148 Spanish manufacturers provide general support for these propositions and contribute to a deeper understanding of the role played by functional strategies in understanding the outcomes of business strategy.     

Does Parental Participation in Schools Empower or Strain Civil Society? The Case of Community‐managed Schools in Central America

Among the various educational models in Latin America that seek to increase parental participation in schooling, perhaps the most far‐reaching is the experiment with self‐managed schools. These are publicly funded schools administered by parents. Broad public powers, such as the capacity to decide the budget and make staffing decisions, are given to parents, many of whom have had very limited prior administrative experience. How does this policy innovation impact on civil society? Does parental participation in school administration empower participating citizens or strain civil society? There are various ways of answering these questions. This article looks at some possible ways to conceptualize and assess the relationship between parental participation in self‐managed schools and civil society. The article draws from the experience of El Salvador, Guatemala, Honduras and Nicaragua, where these reforms have advanced significantly since the 1990s.     

Quality certification, institutions and innovation in local agro-food systems: Protected designations of origin of olive oil in Spain

This article examines the interrelations between establishment of territorial quality certification systems (Protected Designations of Origin or PDOs), diffusion of innovations through local agro-food chains, and the role of the institutions overseeing geographical designations. Empirical analysis is applied to olive oil PDOs in Spain and entails a detailed case study of the “Sierra Mágina” PDO in Andalusia. Making use of the neoinstitutional concept of ‘organised proximity’—and focussing specifically on the problematic of organizational quality—the article assesses characteristics that support the competitive positions of local certified-product production systems. In particular, the authors find that collective organisation and coordination between PDO agents who are locally responsible for quality assurance and protection can enhance local competitiveness. Three hypotheses are confirmed. First, PDO labels can, through the action of PDO regulators, become quality assurance systems for distributors. Second, PDO Regulatory Boards can enhance and coordinate local inter-professional activities, particularly with respect to the diffusion of quality-enhancing innovations and knowledge. Third, the study indicates that local certified-product systems are starting to incorporate quality attributes linked to the environment and sustainable development, although much remains to be accomplished in this regard.     

Stochastic Optimization for Natural Disaster Asset Prepositioning

A key strategic issue in pre‐disaster planning for humanitarian logistics is the pre‐establishment of adequate capacity and resources that enable efficient relief operations. This paper develops a two‐stage stochastic optimization model to guide the allocation of budget to acquire and position relief assets, decisions that typically need to be made well in advance before a disaster strikes. The optimization focuses on minimizing the expected number of casualties, so our model includes first‐stage decisions to represent the expansion of resources such as warehouses, medical facilities with personnel, ramp spaces, and shelters. Second‐stage decisions concern the logistics of the problem, where allocated resources and contracted transportation assets are deployed to rescue critical population (in need of emergency evacuation), deliver required commodities to stay‐back population, and transport the transfer population displaced by the disaster. Because of the uncertainty of the event's location and severity, these and other parameters are represented as scenarios. Computational results on notional test cases provide guidance on budget allocation and prove the potential benefit of using stochastic optimization.     

The Time Series and Cross‐Section Asymptotics of Dynamic Panel Data Estimators

In this paper we derive the asymptotic properties of within groups (WG), GMM, and LIML estimators for an autoregressive model with random effects when both T and N tend to infinity. GMM and LIML are consistent and asymptotically equivalent to the WG estimator. When T/N→ 0 the fixed T results for GMM and LIML remain valid, but WG, although consistent, has an asymptotic bias in its asymptotic distribution. When T/N tends to a positive constant, the WG, GMM, and LIML estimators exhibit negative asymptotic biases of order 1/T, 1/N, and 1/(2N−T), respectively. In addition, the crude GMM estimator that neglects the autocorrelation in first differenced errors is inconsistent as T/N→c>0, despite being consistent for fixed T. Finally, we discuss the properties of a random effects pseudo MLE with unrestricted initial conditions when both T and N tend to infinity.