Quantitative Storytelling in the Making of a Composite Indicator

The reasons for and against composite indicators are briefly reviewed, as well as the available theories for their construction. After noting the strong normative dimension of these measures—which ultimately aim to ‘tell a story’, e.g. to promote the social discovery of a particular phenomenon, we inquire whether a less partisan use of a composite indicator can be proposed by allowing more latitude in the framing of its construction. We thus explore whether a composite indicator can be built to tell ‘more than one story’ and test this in practical contexts. These include measures used in convergence analysis in the field of cohesion policies and a recent case involving the World Bank’s Doing Business Index. Our experiments are built to imagine different constituencies and stakeholders who agree on the use of evidence and of statistical information while differing on the interpretation of what is relevant and vital.

     

Performance management practices in lean manufacturing organizations: a systematic review of research evidence

This paper provides the first systematic look into the existing research on performance management (PM) practices employed in lean manufacturing organisations (LMOs). It adopts a systematic review method to examine the evidence generated in the period 2004 – 2015 and uses a comprehensive PM framework to synthesise the findings. The results suggest that PM practices that have the most prominent role in LMOs are those that, firstly, are located closest to front-line actions and, secondly, explicitly address operational realities. This calls into question the primacy of accounting-driven controls in LMOs, suggesting that operational controls may be more effective than top-down accounting-based PM practices. The results also confirm the bias towards operational-level issues but suggest that LMOs may integrate the operational and the strategic levels by using PM practices that drive organisational learning through employee involvement and engagement.     

David and Goliath: causes and effects of coopetition between start-ups and corporates

Coopetition (collaboration between competitors) among young firms (i.e. start-ups) and larger, more established firms (i.e. corporates) may be beneficial for both partners as each party typically has something to offer that is missing in the other. Start-ups often develop innovative ideas, are flexible and agile, willing to take risks, and aspire to achieve high growth, but they tend to lack the required resources, capabilities, and knowledge due to their newness and smallness. Corporates have resources, routines, and experience that enable them to work efficiently but lack a certain innovation capability. Research has suggested that coopetition represents an opportunity for start-ups facing restrictions in resources, while corporates benefit from start-ups’ innovative ideas. However, it is yet unknown whether start-ups and corporates engage in coopetition with each other and, if so, how and why they do this. This study seeks to fill this void by exploring the motives of coopeting start-ups and corporates, how they manage their coopetitive relationship, and what implications occur including potential benefits and risks. We present a multiple case study based on qualitative data collected through 70 interviews with Austrian-based start-ups and corporates representing 35 coopetitive partnerships. Discussing the findings based on our data, we propose relationships concerning coopetition and its role to enlarge resource- and technology-bases as well as its role in the development of dynamic capabilities.     

Trust in Islamic Business-to-Business Relationships: Evidence from Indonesia

We examine the role of trust within Islamic culture in business-to-business relationships by exploring the link between credit officers’ trust in business customers and their financing decisions. In line with our framework, which is based on the fact that Islamic culture is characterized by a collectivistic approach and clan-based social structure, we find that value-based trust is more important than competence-based trust in explaining business relationships. The results support the argument that Islamic culture business relationships are grounded more on the principles, values and norms that a partner brings to the relationship than on business skills. Our results are robust to endogeneity and multilevel issues.     

Trend effects on perceived avalanche hazard

Hazard-level forecasts constitute an important risk mitigation tool to reduce loss of economic values and human life. Avalanche forecasts represent an example of this. As for many other domains, avalanche risk is communicated using a color-coded, categorical risk scale aimed at informing the public about past, current, and future risk. We report the results from three experiments in which we tested if an irrelevant past trend in forecasted avalanche danger affects perceptions of current and future avalanche risk. Our sample consisted of individuals from three different populations targeted by national avalanche warning services. All three experiments showed that the perception of avalanche risk is influenced by the trend, but that the effect is opposite for perceptions of current and expectations of future avalanche risk. While future avalanche risk is extrapolated in the same direction as the change from the previous day, we found that perceived current risk appears to be based on an average of past and current risk. These effects diminish when we provide participants with a scale indicating the exact level of avalanche danger. For most of our measurement instruments, however, the effects remain significant. These results imply that targeted populations may consider historic information more than was intended by the sender. As such, our results have implications for both avalanche warning services and risk communication in general.