Strategic learning with scenarios

Since the oil shocks upset the business world in the 1970s, the use of multiple scenario analysis has been increasingly propagated as an approach to deal effectively with the many long-run uncertainties that surround business organisations. Since its introduction, the scenario approach has undergone some considerable changes and it is now claimed fulfils a diverse range of functions. Newly-added functions include the stretching of managers' mental models and the triggering and acceleration of processes of organisational learning. Although these functions currently get most of the attention in academic and management journals in recent years, a satisfying explanation of how scenarios fulfil these functions is still missing in the scenario literature. The scenario methodology seems to tell only part of the story suggesting that construing and using scenarios ‘simply’ consists of sequentially completing several distinct phases. If multiple scenario analysis really is able to fulfil the wide range of functions ascribed to it another, more dynamic process has to be hidden behind the rather static phase model. The scenario literature does not give any insight into this latter process. This article aims to increase the understanding of multiple scenario analysis by unravelling some of the mysteries surrounding it. For this purpose, the role of scenarios in strategic management is studied from a cognitive perspective. It appears that scenarios can deal effectively with several bottlenecks that potentially hinder organisational learning on a strategic level in organisations.     

Editorial

Ohne Zusammenfassung     

One-dimensional optimal bounded-shape partitions for Schur convex sum objective functions

Consider the problem of partitioning n nonnegative numbers into p parts, where part i can be assigned n_i numbers with n_i lying in a given range. The goal is to maximize a Schur convex function F whose ith argument is the sum of numbers assigned to part i. The shape of a partition is the vector consisting of the sizes of its parts, further, a shape (without referring to a particular partition) is a vector of nonnegative integers (n₁,..., n_p) which sum to n. A partition is called size-consecutive if there is a ranking of the parts which is consistent with their sizes, and all elements in a higher-ranked part exceed all elements in the lower-ranked part. We demonstrate that one can restrict attention to size-consecutive partitions with shapes that are nonmajorized, we study these shapes, bound their numbers and develop algorithms to enumerate them. Our study extends the analysis of a previous paper by Hwang and Rothblum which discussed the above problem assuming the existence of a majorizing shape. This research is partially supported by ROC National Science grant NSC 92-2115-M-009-014.     

Data relaying with constraints in hierarchical sensor networks

In this paper we present and discuss several optimisation problems that arise in the management of data flow in wireless sensor networks (WSNets). We consider a hierarchical architecture for WSNets composed of sensors, relays, and relay gateways. Sensors send data they generate at a known average bit rate to relays in one hop. The relay nodes use a multi-hop mechanism to reach a set of assigned gateways which then forward the data directly to the base station. We are concerned with finding an assignment of relay gateways to relays so that certain constraints are satisfied. We define a unified model in which constraints such as lifetime, data delay, and data flow splitting are formulated in terms of four optimisation problem in graphs.     

An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India

This paper presents findings of a survey on manufacturing strategy practices adopted by the Indian machinery manufacturing companies (IMMC). Based on the survey, three companies have been selected for detailed case studies. Their experiences in the manufacturing strategy process are analyzed. Although the companies represented diversity in terms of product type, sales volume, and geographic location, they share several commonalties including use of advanced manufacturing technologies and use of several improvement techniques. The process of strategy formulation varied among the companies in terms of participants, complexity and degree of formalization. Competitive priorities, order winners and critical success factors are also identified for these companies. Based on strategic manufacturing issues, manufacturing competence index and business performance index for the companies has been worked out.     

Strategic Alliance Outcomes: a Transaction‐Cost Economics Perspective

Empirical research on strategic alliances has been limited because previous studies examined alliance outcomes, and the factors associated with them, from a single partner in a manufacturing alliance. Furthermore, many of these studies have been done from a transaction cost perspective and researchers have inferred opportunistic behavior, rather than directly measuring it and observing its actual relationship with alliance performance. Building on previous transaction cost theory and research, this study seeks to address these gaps by analyzing factors associated with both opportunistic behavior and alliance performance within a major service sector, namely the US healthcare industry. After controlling for asset specificity and alliance age, we found that partner trustworthiness and contractual safeguards were negatively related to opportunistic behavior. Furthermore, opportunistic behavior was negatively related to alliance performance, as hypothesized. Interestingly, mutual equity investments were found to be unrelated to opportunistic behavior, counter to transaction‐cost logic. These findings refine and extend the transaction‐cost economics perspective regarding our understanding of strategic alliance behavior and outcomes, and offer executives in service‐based industries some practical ideas for assuring favorable strategic alliance outcomes.     

Proximity and inter‐organizational collaboration: A literature review

The proximity concept is used in many different ways in the literature. These dimensions of proximity are, however, defined and measured in many different (sometimes even contradictory) ways, show large amounts of overlap, and often are under‐ or over‐specified. The goal of this paper is to specify the different dimensions of proximity relevant in inter‐organizational collaboration more precisely and to provide definitions of these dimensions. The research presented contributes to reducing the ambiguity of the proximity concept as used in the literature. Based on the above, the following research question is addressed in this paper: ‘Which dimensions of proximity are relevant in inter‐organizational collaboration and how are they defined?’ A systematic literature review is presented in order to disentangle the dimensions of the proximity concept. Based on this literature review, three dimensions of proximity relevant in inter‐organizational collaboration are distinguished: geographical proximity, organizational proximity and technological proximity. Examples (case studies) from the literature are used to illustrate the current conceptual ambiguity as well as to clarify how the proposed dimensions of proximity reduce this conceptual ambiguity.     

Social Loafing: A Field Investigation

Social loafing was investigated by testing a multilevel model among 23 intact work groups comprised of 168 employees representing two organizations. Results demonstrated that as hypothesized at the individual level, increases in task interdependence and decreases in task visibility and distributive justice were associated with greater occurrence of social loafing. At the group level, increased group size and decreased cohesiveness were related to increased levels of social loafing. Of particular interest was the finding that group member perceptions of perceived coworker loafing was associated with reduced social loafing, opposite of our predictions. We suggested that this unexpected finding may provide evidence of a social compensation effect.     

Explaining the Flight of Cupid’s Arrow: A Spatial Random Utility Model of Partner Choice

Spatial homogamy may be defined as follows: anyone may be attracted to anyone else, but near candidates are more attractive than distant candidates. In this article, we propose a model of partner choice, where homogamy is defined in terms of spatial, demographic, socioeconomic and cultural similarity. A spatial choice model using random utility theory is formulated, taking into account a relaxation of the independence from the irrelevant alternatives property, as spatial alternatives are not independent of one another. We model partner choice given the characteristics of the chosen partner and a choice set of alternatives, using unique micro data on all new cohabiters in the Netherlands, linked to other relevant data sets. The model takes the spatial locations of potential candidates within a choice set into account, including an indicator for the spatial similarity between alternatives. We find that spatial homogamy is a vital component of partner matching, aside from and adding to the spatial effects in demographic, socioeconomic and cultural homogamy. Given a choice set of partners, the highest likelihood of a match occurs with a person who is born and lives near by, who is close in age, is in the same life stage and has the same marital status, who has the same educational and income level and the same labour market status, who speaks the same dialect and lives in a culturally similar residential area. The distance effect is most pronounced for those individuals with lower levels of education and those living in rural areas.     

Loneliness and Adolescents’ Neural Processing of Self,Friends, and Teachers: Consequences for the School Self‐Concept

The present interdisciplinary study explored whether perceived loneliness is associated with ventromedial prefrontal cortex (vMPFC) activation during self‐ and social judgments (friends and teachers) in adolescents. Moreover, we examined how vMPFC activity is related to the academic self‐concept (ASC). Results of manifest path analysis indicated that high perceived loneliness was related to lower neural response to self‐judgments. In turn, high neural response to self‐judgments was positively associated with the ASC, whereas there was a trendwise negative association between high neural response to teacher‐related judgments and ASC. This study reveals associations between perceived loneliness and neural processing of the self, underlining the idea that feeling isolated from others may hinder self‐insight and, by extension, the formation of a stable academic self‐concept.