Disruptive Organisation

Organizations are driven by continuous change. Global, socio-economic and technological megatrends – demographic changes and digitalization – are the reasons for transformation. Traditional organization forms are not in line with customers‘ need. Disruptive modes of development and innovations have been intensively discussed elsewhere. The topic of disruptive organization have not been discussed towards internal and external customer relations, although of high relevance. 129 Managers answered on communication ways and the purpose of upcoming meaning for the working place/office. Two new models and five concrete recommendations have been established for upcoming future organization.     

Ways out of the sewage sludge dilemma: Connecting administrative and participatory decision making

This paper examines the problem of decisions about the disposal of sewage sludge, in the face of stakeholder groups with varying viewpoints, based on a current case from the state of Lower Saxony in Germany. Like other developed countries, Germany faces the dilemma that sludge arisings are increasing (e.g., because of better water treatment) while disposal options are becoming more scarce. Lower Saxony relies heavily on landfill and agricultural application, but landfill of untreated sludge will be banned after 2005. The state Environment Ministry sees agricultural application as having various advantages, but it faces scepticism from various stakeholders. The ministry has therefore taken steps to encourage a long-term dialogue process with the main stakeholders, including farming organizations, food processors, other landowners such as the churches, and environmental and consumer organizations. The process began with a discussion forum in 1995 that led to the proposal of specific discussions with stakeholders. This paper focuses in particular on the dialogue with environmental and consumer groups. It analyzes the initial positions of the various stakeholders, describes the concrete steps taken so far, describes the ongoing efforts, and critically evaluates the procedures used as well as their implications in terms of the ideas of deliberation and analysis.     

When Precaution Creates Misunderstandings: The Unintended Effects of Precautionary Information on Perceived Risks,the EMF Case

In the past decade, growing public concern about novel technologies with uncertain potential long‐term impacts on the environment and human health has moved risk policies toward a more precautionary approach. Focusing on mobile telephony, the effects of precautionary information on risk perception were analyzed. A pooled multinational experimental study based on a 5 × 2 × 2 factorial design was conducted in nine countries. The first factor refers to whether or not information on different types of precautionary measures was present, the second factor to the framing of the precautionary information, and the third factor to the order in which cell phones and base stations were rated by the study participants. The data analysis on the country level indicates different effects. The main hypothesis that informing about precautionary measures results in increased risk perceptions found only partial support in the data. The effects are weaker, both in terms of the effect size and the frequency of significant effects, across the various precautionary information formats used in the experiment. Nevertheless, our findings do not support the assumption that informing people about implemented precautionary measures will decrease public concerns.     

‘Putting an ocean between them’: Gender relations among Italian immigrant families in twentieth‐century Argentina

The article starts from the premise that dominant research paradigms of both ‘melting pot’ and ‘multiculturalism’ have concentrated almost exclusively on the institutions of ethnic groups in the study of one of the twentieth century's principal immigrant nations, Argentina. The article makes a case for refocusing the study of immigration in more individual categories. It takes as its example gender, and analyses the role of women in two Italian family networks who emigrated to Argentina. The findings demonstrate that women's roles changed significantly in the migratory process and that women were, in fact, crucial in offering the prospect of social mobility for newly immigrated men. The article concludes by advancing a view beyond the issues of gender on the continuities and discontinuities of political ideologies in the new society.     

Firm Size and Employment Dynamics: Estimations of Labor Demand Elasticities Using a Fractional Panel Probit Model

This paper examines the comprehensive discussion on the relationship between job creation, or destruction and firm size. More specifically, the study will determine whether the argument about small‐ and medium‐sized enterprises (SMEs) showing higher employment dynamics is confirmed or not. As such, the following work applies elasticities from a standard labor demand model derived from the estimations of fractional probit models for panel data, as process recommended in Papke and Wooldridge [2008; Journal of Econometrics 145(1–2): 121–133]. Elasticities are a useful measure of employment dynamics, if it is assumed that SMEs act on the same markets. The elasticity results from German establishment data illustrate that firm size does matter for the increase or decrease of employment. SMEs with less than 10 workers exhibit a higher employment dynamic, compared with other entities, at each respective percentile in the distribution of the wage share. Additionally, the outcome of the analysis weakly confirms the hypothesis that smaller firms are more restricted to capital markets, compared with large entities. The results also illustrate that firm size only explains one aspect of job creation and destruction. As stated in the well‐known Hicks–Marshall rules for elasticities of factor demand, the results illustrate that the reaction of labor demand on economic changes increases with the share of labor. Firms with a high share of labor also have larger elasticities, compared with firms with a strong use of capital. Both effects, the size effect and the effect of the proportion of labor, would blend in reality, and therefore, possibly lead to controversial results for the relationship between firm size and employment dynamics. In addition, a model with a negative relationship among both variables is too simple to explain the behavior of firms.     

Information Needs Concerning a Planned Waste Incineration Facility

Waste management has become a major environmental issue in Germany. The siting of waste incineration especially arouses strong local opposition. The study presented here is related to such a case (i.e., a planned waste incineration facility in a small West German village). The study is based on a telephone survey aimed at the information needs of the residents. Two topics are stressed: (1) the thematic relevance of the siting project as seen by the public; and (2) the residents'information needs. The results show that a majority of residents are concerned about the planned facility, and the most important topics of their information needs refer to the risks and the safety systems of the planned facility, as well as information about waste management alternatives. Furthermore, the information needs depend on the personal relevance of the issue and the perceived knowledge deficit about it. Conclusions are drawn with regard to the design of a risk communication program. Here, four groups of residents are distinguished in terms of knowledge and motivation and, thus, need to be approached in different ways.     

Planning with multiple objectives

Planning any task that is characterised by the presence of multiple objectives presents the decision maker with a set of special considerations which are not present in the case of decision making with one unique objective. The paper outlines the stages in the formulation of a dynamic multiple-objective objective function and introduces the criterion complex as a decision making construct particularly suited to formulating and solving problems with multiple objectives. The paper then considers some of the mathematical properties of the alternative formulations of criterion complex.     

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.     

Operational Hedging and Diversification under Correlated Supply and Demand Uncertainty

When facing supply uncertainty caused by exogenous factors such as adverse weather conditions, firms diversify their supply sources following the wisdom of “not holding all eggs in one basket.” We study a firm that decides on investment and production levels of two unreliable but substitutable resources. Applying real options thinking, production decisions account for actual supply capabilities, whereas investment decisions are made in advance. To model triangular supply and demand correlations, we adapt the concepts of random capacity and stochastic proportional yield while using concordant ordered random variables. Optimal profit decreases monotonically in supply correlation and increases monotonically in supply–demand correlation. Optimal resource selection, however, depends on the trivariate interplay of supply and demand and responds non‐monotonically to changing correlations. Moreover, supply hedges (i.e., excess capacity at alternative sources) can be optimal even if supply resources are perfectly positively correlated. To accommodate changing degrees of correlation, the firm adjusts the lower margin capacities under random capacity; but under stochastic proportional production capability, it uses either low‐ or high‐margin capacities to create tailored “scale hedges” (i.e., excess capacity at one source which can partially substitute for diversification).