Understanding information systems infrastructure in engineering SMEs: A case study

The benefits of integrated enterprise-wide information systems (IS), such as Enterprise Resource Planning (ERP) systems, are widely accepted. The implementation of such systems in large organisations is established with many in their second or third generation. However, in small to medium-sized enterprises (SMEs) the maturity and extent of their IS infrastructure is less clear. In engineering SMEs, this infrastructure needs to support not only business processes but also the activities of design and manufacture.In this case study, our goal is to provide a better understanding of current IS infrastructure, the functional elements of IS infrastructure, integration and expenditures are explored in ten engineering SMEs. A model of IS functionality is developed and used to identify and classify functional elements within the firms and to compare and contrast the IS infrastructures. The findings are contrasted with the SME literature and conclusions and implications developed.     

Self-management competencies in self-managing teams: Their impact on multi-team system productivity

This research examined how composition of individual capabilities within self-managed teams translates into greater effectiveness for multi-team systems (MTS) in which teams are embedded. We investigated how a broad range of self-management competencies by team members aggregate to form a collective construct that influences productivity of a team network. In a semiconductor plant, we surveyed 716 members from 97 self-managed teams in 21 MTS. We found that MTS comprising teams whose members widely practice self-management strategies attain higher productivity gains and that multi-team systems consisting of highly cohesive teams of self-managers are the most productive.     

Strategies for Addressing the Nursing Shortage: Coordinated Decision Making and Workforce Flexibility

In this article, we present strategies to help combat the U.S. nursing shortage. Key considerations include providing an attractive work schedule and work environment—critical issues for retaining existing nurses and attracting new nurses to the profession—while at the same time using the set of available nurses as effectively as possible. Based on these ideas, we develop a model that takes advantage of coordinated decision making when managing a flexible workforce. The model coordinates scheduling, schedule adjustment, and agency nurse decisions across various nurse labor pools, each of differing flexibility levels, capabilities, and costs, allowing a much more desirable schedule to be constructed. Our primary findings regarding coordinated decision making and how it can be used to help address the nursing shortage include (i) labor costs can be reduced substantially because, without coordination, labor costs on average are 16.3% higher based on an actual hospital setting, leading to the availability of additional funds for retaining and attracting nurses, (ii) simultaneous to this reduction in costs, more attractive schedules can be provided to the nurses in terms of less overtime and fewer undesirable shifts, and (iii) the use of agency nurses can help avoid overtime for permanent staff with only a 0.7% increase in staffing costs. In addition, we estimate the cost of the shortage for a typical U.S. hospital from a labor cost perspective and show how that cost can be reduced when managers coordinate.     

The Potential for Cannibalization of New Products Sales by Remanufactured Products*

The potential for cannibalization of new product sales by remanufactured versions of the same product is a central issue in the continuing development of closed‐loop supply chains. Practitioners have no fact‐based information to guide practice at firms and academics have no studies available to use as the basis for assumptions in models. We address the cannibalization issue by using auctions to determine consumers’ willingness to pay (WTP) for both new and remanufactured products. The auctions also allow us to better understand the potential impact of offering new and remanufactured products at the same time, which provides us insights into the potential for new product cannibalization. Our results indicate that, for the consumer and commercial products auctioned, there is a clear difference in WTP) for new and remanufactured goods. For the consumer product, there is scant overlap in bidders between the new and remanufactured products, leading us to conclude that the risk of cannibalization in this case is minimal. For the commercial product, there is evidence of overlap in bidding behavior, exposing the potential for cannibalization.     

The Evolving Firm: How Dynamic and Operating Capabilities Interact to Enable Entrepreneurship

In this study, we expand our understanding of firm evolution by focusing on how operating and dynamic capabilities interact through endogenously led changes. The focus on endogenous change complements the current emphasis in the literature on how dynamic capabilities help firms cope with the risk of core rigidities following an exogenous shock. Our comparison of two collaborating firms shows that, at the operating capability level, firms build absorptive capacity in value networks during their product development experiences and this learning needs to be captured at the product portfolio planning level. When this learning is captured and transformed, product portfolio planning acts as a dynamic capability reconfiguring operating capabilities based on beliefs about follow-on entrepreneurial opportunities. Under conditions of endogenous change, dynamic capabilities are guided by a proactive entrepreneurial logic, complementing the need for reactive adaptive responses in circumstances of exogenous change. A key implication is that dynamic capabilities have a more expansive and critical role in the adaptation of firms than previously considered. Our theorizing shows how interactions between dynamic and operating capabilities build the adaptive capacity of the organization.     

Opportunities of Reforming the WTO: Resistance and Potentials of Change

This paper intends to show both that a reform of the WTO is severely needed in order to establish a fairer international trade order but also that it is possible. The first section of this paper analyzes the functioning and the most controversial rules of the organization. The second and third sections intend to look for current opportunities of reforming the WTO by analyzing the main existing critical responses to the institution’s deficiencies—namely coalitions of southern Nation-States and global civil society movements—and their potential to achieve some change. It is concluded that these two key group actors, while playing different roles, do have common goals on selected issues of international trade and if so, their combined negotiating power is considerably increased for achieving a progress in the direction of a positive reform of the WTO for the developing world.

Optimal Ordering Policies for Stochastic Inventory Problems with Observed Information Delays

Information delays exist in an inventory system when it takes time to collect, process, validate, and transmit inventory/demand data. A general framework is developed in this paper to describe information flows in an inventory system with information delays. We characterize the sufficient statistics for making optimal decisions. When the ordering cost is linear, the optimality of a state‐dependent base‐stock policy is established even when information flows are allowed to cross over time. Additional insights into the problem are obtained via a comparison between our models and the models with stochastic order lead times. We also show that inventory can substitute for information and vice versa.     

The Microeconomics of Efficient Group Behavior: Identification1

Consider a group consisting of S members facing a common budget constraint p'ξ=1: any demand vector belonging to the budget set can be (privately or publicly) consumed by the members. Although the intragroup decision process is not known, it is assumed to generate Pareto‐efficient outcomes; neither individual consumptions nor intragroup transfers are observable. The paper analyzes when, to what extent, and under which conditions it is possible to recover the underlying structure—individual preferences and the decision process—from the group's aggregate behavior. We show that the general version of the model is not identified. However, a simple exclusion assumption (whereby each member does not consume at least one good) is sufficient to guarantee generic identifiability of the welfare‐relevant structural concepts.     

Human capital and agency effects on CEO compensation of IPO biopharmaceutical firms and the market’s response

This paper examines the determinants of base pay and total incentive compensation packages of CEOs of biopharmaceutical firms that have recently gone public, and whether human capital and agency factors affect the market’s response to the initial public offering. We find that in terms of net proceeds, the IPO market appears to reward the firms that have founder-CEOs and CEOs with higher incentive compensation. CEOs with prior venture capital experience are associated with receiving higher incentive compensation, while CEOs with a greater ownership interest in the firm receive lower incentive compensation but higher salaries. CEOs of firms with a greater percentage of insiders are associated with lower salaries. The results should add to our understanding related to human capital and agency theories, as well as help firms and investors better understand and structure CEO compensation.