Cross‐training Decisions in Field Services with Three Job Types and Server–Job Mismatch*

To be cost‐effective, field service managers must balance the high cost of machine downtime with the high cost of cross‐training technicians in multiple skills. We study a field service system with three job types requiring three different skills. Each server has a primary skill, the cost of which is considered sunk, and up to two secondary skills, which is a managerial decision. We model two important characteristics that distinguish field services: server–job mismatch and the ratio of travel time to service time. We use a queueing framework and simulation to study three cross‐training decisions: the number of servers cross‐trained in secondary skills, the number of secondary skills each server should have, and the efficiency in each secondary skill. We find that complete cross‐training is cost‐effective in some field service situations. Typically, efficiency in secondary skills must be close to 100%, but when the probability of mismatch is high and the ratio of travel time to service time is high, efficiency in secondary skills must be less than 100%.     

Measuring precautionary wealth using cross-sectional data: the case of farm households

This study models and investigates the presence of precautionary wealth among farm households, something few studies have attempted. Using pooled farm-level data, we find that self-employed farm households accumulate more wealth. Precautionary savings is about 8% of total household wealth. In addition, we find that age, education, occupation, and operation size are important factors influencing wealth accumulation by US farm households.     

The Effect of Demand–Supply Mismatches on Firm Risk

A supply chain management (SCM) system comprises many subsystems, including forecasting, order management, supplier management, procurement, production planning and control, warehousing and distribution, and product development. Demand–supply mismatches (DSMs) could indicate that some or all of these subsystems are not working as expected, creating uncertainties about the overall capabilities and effectiveness of the SCM system, which can increase firm risk. This article documents the effect of DSMs on firm risk as measured by equity volatility. Our sample consists of three different types of DSMs announced by publicly traded firms: production disruptions, excess inventory, and product introduction delays. We find that all three types of DSMs result in equity volatility increases. Over a 2‐year period around the announcement date, we observe mean abnormal equity volatility increases of 5.62% for production disruptions, 11.19% for excess inventory, and 6.28% for product introduction delays. Volatility increases associated with excess inventory are significantly higher than the increases associated with production disruptions and product introduction delays. Across all three types of DSMs, volatility changes are positively correlated with changes in information asymmetry. The results provide some support that volatility changes are also correlated with changes in financial and operating leverage.     

The Effect of Product Development Restructuring on Shareholder Value

This article examines the effect of product development restructuring (PDR) on shareholder value. The results are based on a sample of 165 announcements made during 2002–2011. PDR announcements are associated with an economically and statistically significant positive stock market reaction. Over a two‐day period (the day of the announcement and the day preceding the announcement), the mean (median) market reaction is 1.63% (0.87%). The market reaction is generally positive regardless of the PDR purpose or action. Although the market reaction is more positive for higher R&D intensity firms, it is not directly affected by the firm's prior financial performance or whether the firm's primary PDR objective is to increase revenues or cut costs. However, the interaction between the firm's prior financial performance and its primary PDR objective is significant. For firms that are financial outperformers, the market reaction is more positive if the firm's primary PDR objective is to increase revenues. For financial underperformers, the market reaction is more positive if the firm's primary PDR objective is to cut costs.     

Corruption as a site for contested meaning: Elite constructions in India

This paper investigates the problem of corruption in India from a social constructionist perspective. The constructions of corruption among five elite groups (bureaucrats, judges, politicians, industrialists, and journalists) in the southern state of Andhra Pradesh were obtained through a total of 60 interviews. Members of these five elite groups play a critical role in constructing the problem of corruption for public discourse. These elite groups, with the possible exception of the media elite, are also primary targets of public accusations of corrupt behavior. This paper examines three major issues related to corruption: the definition of corruption, the so-called functionality of corruption, and the role of culture in fostering or inhibiting corruption. Narrow/legalistic or broad/moralistic definitions of corruption, the acceptance or rejection of functionality, and modernist or nationalist responses to the question of culture are shown to constitute the varied structures of reality constructed by the different elite groups. These constructions of the corrupt reality in India are explained with reference to specific interests of the elites and their positions in the social structure. Instead of treating corruption as an objective condition, this study seeks to view corruption as a process in which strategic elites in society, define the problem and negotiate solutions to it.A previous version of this paper was presented at the 1991 New York Conference for Asian Studies, Cornell University, Ithaca.     

The inherent tensions within sustainable supply chains: a case study from Bangladesh

Abstract

The complexities surrounding the supply chain logistics for perishable commodities within Bangladesh are extensive. Poor infrastructure, fragmented transportation and corruption compound the operational complexities within this emerging market. This case study analyses many of the day-to-day operational challenges and tensions inherent within Micro-Small-Medium Enterprises (MSMEs) forming the backbone of the Bangladesh socio-economic structure. The drive for transition toward greater levels of sustainability and corporate responsibility is problematic, affecting many levels within an extended and fragmented supply chain. The selected case study highlights the ‘lived in’ geographical, environmental, economic and cultural factors that impact the ability of emerging market enterprises to remain profitable within emergency scenarios whilst transitioning toward a more sustainable model. This study, whilst detailing many of the tensions and critical issues facing MSMEs, highlights the benefits of direct Government intervention, criticality of a leaner and more efficient supply chain and reassessment of financial incentives to drive the transition to a more efficient and sustainable economy.     

A Procedure for Identification of Principal Variables by Least Generalized Dependence

Principal components are often used for reducing dimensions in multivariate data, but they frequently fail to provide useful results and their interpretation is rather difficult. In this article, the use of entropy optimization principles for dimensional reduction in multivariate data is proposed. Under the assumptions of multivariate normality, a four-step procedure is developed for selecting principal variables and hence discarding redundant variables. For comparative performance of the information theoretic procedure, we use simulated data with known dimensionality. Principal variables of cluster bean (Guar) are identified by applying this procedure to a real data set generated in a plant breeding experiment.     

Nonparametric approach to rank global petroleum business opportunities

Crude oil continues to be one of the significant energy sources. Several countries do not have enough indigenous oil and gas resources. These countries resort to overseas business of Exploration and Production (E&P) of oil to secure a stable supply. Profitability, risk and growth guide overseas investment decisions. Selection of overseas investment opportunities are critical for a firm because of uncertainty in identifying and quantifying the attendant geological, commercial, social and political risks as well as return on investment. To secure overseas oil acreage, business entities intend to invest in overseas E&P destination having reasonable petroleum reserve, favorable contract terms (fiscal terms), well-developed infrastructure, sound legal system, minimum country risk (CR) (economic, social and political) and facilitate relative ease to do business in that country. The countries have varied mix of these parameters, and it leads to growing concern to screen and rank overseas investment opportunities. Methodologies to rank global opportunities should take into consideration the risk factors such as petroleum potential, infrastructure, geo-political scenario, contract terms, etc. We coin the term for the numerical rank as Globalization Index (GI), which is a function of the factors considered to affect the decision of a business entity in screening the global destinations for venturing in to E&P business of crude oil. This paper is an attempt to model these factors by invoking Alternating Conditional Expectation methodology to find GI.