Groupthink and Project Performance: The Influence of Personal Traits and Interpersonal Ties

This study explores whether the negative impact of “groupthink concurrence‐seeking behavior” (GTB) on business process reengineering (BPR) projects is affected by group members personal traits and interpersonal ties within the group. To this purpose we conduct and present the results of a longitudinal controlled field experiment over 18 BPR projects lasting 3 months and involving 18 teams comprising 71 first‐year MBA students. The main contribution of this study is twofold. First, we explicitly consider and measure the core construct of groupthink phenomenon: that is, GTB. Existing organizational behavior literature has, contrarily, considered only its causes, symptoms, and outcomes. Second, we show evidence that GTB does have a negative impact on group performance in BPR project settings. In this regards, results also indicate that while perceived control, conscientiousness and interpersonal evaluation mitigate the negative impact of GTB on group project performance, confidence, and previous relationships amplify this negative impact, even if they have a direct positive effect on performance. Thanks to the findings of this study, we are able to provide valuable suggestions to managers in charge of BPR projects for ensuring effective performance of project teams and controlling for potential obstacles due to GTB.     

Cui bono? Depicting the benefits of the new municipal budgeting and accounting regime in Germany

The new budgeting and accounting regime for the public sector (Doppik), which is based on private sector accounting standards, has been the subject of numerous discussions in research and practice in Germany for the last 20 years. However, those discussions were mostly characterized by assertions, unproven statements and logical arguments. The objective of this paper is to empirically analyze the perceived benefits of a reformed municipal accrual budgeting and accounting system by using a structural equation model. Our results show that improved management capabilities are an important indirect factor, whereas efficiency, intergenerational equity, and transparency are direct determinants of benefit. The consistent implementation of the new output-/outcome-oriented management rationality and the necessity of harmonizing budget laws are revealed as prerequisites for further development.     

Analyzing event stream dynamics in two-mode networks: An exploratory analysis of private communication in a question and answer community

Information about social networks can often be collected as event stream data. However, most methods in social network analysis are defined for static network snapshots or for panel data. We propose an actor oriented Markov process framework to analyze the structural dynamics in event streams. Estimated parameters are similar to what is known from exponential random graph models or stochastic actor oriented models as implemented in SIENA. We apply the methodology on a question and answer web community and show how the relevance of different kinds of one- and two-mode network structures can be tested using a new software.     

Promotion Planning and Supply Chain Contracting in a High–Low Pricing Environment

Demand forecast errors threaten the profitability of high–low price promotion strategies. This article shows how to match demand and supply effectively by means of two‐segment demand forecasting and supply contracts. We find that demand depends on the path of past retail prices, which leads to only a limited number of reachable demand states. However, forecast errors cannot be entirely eliminated because competitive promotions entail some degree of random (i.e., last‐minute) pricing. A hedging approach can be deployed to distribute demand risk efficiently over multiple promotional campaigns and within the supply chain. A retailer that employs a portfolio of forward, option, and spot contracts can avoid both stockouts and excess inventories while achieving the first‐best solution and Pareto improvements. We provide an improved forecasting method as well as stochastic programs to solve for optimal production and purchasing policies such that the right amount of inventory is available at the right time. By connecting a stockpiling model of demand with the supply side, we derive insights on optimal risk management strategies for both manufacturers and retailers in a market environment characterized by frequent price promotions and multiple discount levels. We employ a data set of the German retail market for a key generator of store traffic—namely, diapers.     

All You Need Is Trust? An Examination of Inter‐organizational Supply Chain Projects

This study examines the antecedents of supply chain project success. We first propose and test a model that describes the role of relationship‐level factors (trust and asymmetric dependence) and project‐level factors (between‐firm communication and within‐firm commitment) in determining supply chain project success. We find that project‐level factors completely mediate the effect of trust on project success. We conclude that trust, despite being a stronger predictor compared to asymmetric dependence, is necessary but not sufficient for supply chain project success. We then proceed to further explore the role of these factors by introducing a categorical scheme that differentiates supply chain projects based on the decision rights configuration of each project. This categorization enables us to explore how relationship‐level and project‐level factors can have different impact on performance based on the characteristics of a supply chain project. The findings offer insights into how to effectively manage supply chain projects and inter‐firm alliances.     

Vehicle Procurement Policy for Humanitarian Development Programs

This article aims to identify optimal vehicle procurement policies for organizations engaged in humanitarian development programs and to derive general insights on the characteristics of these policies. Toward that end, we follow an inductive approach. First, we study the operations of the International Committee of the Red Cross (ICRC) in three representative countries: Sudan, Afghanistan, and Ethiopia. Using a linear programming (LP) model primed with field data provided by the ICRC, we calculate the optimal vehicle fleet size and compare it with the policies actually implemented. Second, drawing from results of the LP model, we develop a stylized quadratic control model and use it to characterize the general structure of the optimal policy under different demand scenarios and operational constraints. After demonstrating that the results of the control model are consistent with those of the LP model in the specific context analyzed, we discuss the optimal policies and the applicability of the former as a practical tool for strategic asset planning.     

Evaluating the consequences of abandoning unprofitable customers: A comparison of direct and indirect abandonment strategies

Due to the increasing use of customer databases in many industries, companies nowadays have high visibility about the profitability of individual-level client relationships. This has led some researchers to recommend the implementation of value-based customer management strategies, including the abandonment of unprofitable customer relationships. In this context firms are faced with the choice between direct and indirect abandonment approaches. While direct abandonment strategies tend to be more efficient than indirect ones (i.e., immediate termination of the relationship vs. hoping that the unprofitable customer may leave on her own) they are also claimed to be associated with more severe negative reactions and higher abandonment cost. Based on two surveys among 965 US customers we provide evidence that, despite these beliefs, direct and indirect abandonment strategies do not differ in their negative impact on the abandoning firm. Given that (indirect) abandonment costs are therefore likely to be similar for both approaches, direct abandonment appears to be the recommendable approach for relationship dissolution.     

Ein Pl?doyer f��r Coaching vor dem Karrieresprung als fest installiertes Angebot in Organisationen

The occupational transitions of executives are considered in concerns of the conceptions ??Social Support?? and ??Sense of Coherence?? by a four structured model of a transition cycle. Furthermore the importance of a coaching that recognizes the specific needs during the single phases of a professional transition is described. After all the idea of a coaching is supported, which becomes a status of a fixed installation in organizations. The executives are accompanied through the transition in order to reduce the psychological and organizational costs and finally to commit them and their team members for a long-term employment. In addition the special change from an expert to an executive is taken into consideration.     

A Learning-Efficiency Explanation of Structure in Language

This paper proposes a learning-efficiency explanation of modular structure in language. An optimal grammar arises as the solution to the problem of learning a language from a minimal number of observations of instances of the use of the language. Agents face symmetry constraints that limit their ability to make a priori distinctions among symbols used in the language and among objects (interpreted as facts, events, speakers intentions) that are to be represented by messages in the language. It is shown that if it is commonly known that the object space is modular and messages are strings, then modularity of the language is sufficient and (essentially) necessary for learning efficiency. Journal of Economic Literature Classification Number: C72.I am grateful to Hsueh-Ling Huynh, Bart Lipman, Ariel Rubinstein and Birger Wernerfelt for stimulating discussions and comments. Many thanks are due to the anonymous referee for suggestions that have helped to improve the focus and presentation of the paper. I have benefitted from comments by seminar participants at Arizona State University, Boston University, the University of California-San Diego, the University of Pittsburgh, the Wissenschaftszentrum Berlin für Sozialforschung (WZB), the Midwest Mathematical Economics Meetings, and the Summer in Tel Aviv (SITA). This research was supported by a Grant from the National Science Foundation.