Offshoring Business Process Services and Governance Control Mechanisms: An Examination of Service Providers from India

As emerging markets increasingly rely on service businesses through offshore outsourcing, we examine the role of governance control mechanisms in improving performance among business process outsourcing (BPO) service providers in India. Using data collected from 205 emerging market‐based BPO service providers in India, we examine the antecedents and consequences of establishing governance control mechanisms in BPO service providers. Specifically, we examine how structural (use of contracts with the client), administrative (effective allocation and demarcation of responsibilities within the firm), and relational (collaboration and information sharing with the client) mechanisms drive the performance of a BPO service provider operating in an emerging market. We also examine how key task‐related (task connectivity and task security) and client‐related (end customer orientation and global control) antecedents influence the use of different governance control approaches in this environment. Our analysis finds that both task connectivity and task security significantly impact use of structural and administrative mechanisms, whereas end customer orientation is significantly associated with the strength of the relational mechanisms governing the emerging market‐based BPO service provider and its client. Further global control significantly influences the strength of the structural mechanisms between the client and the BPO service provider. Finally, the three mechanisms have a complementary influence in driving the BPO service provider's performance.     

Strategic Purchases of Bundled Products in a Health Care Supply Chain Environment*

Recent articles in the Wall Street Journal summarize the state of business practice in American hospitals by shedding light on the state of supply chain management practices and foci in today's health care supply chains. In health care, the single largest cost after labor is materials, and it has been documented that health care facilities can reduce the environmental impacts of the products and services they consume before regulatory problems arise or waste disposal costs increase by focusing on their upstream activities. Health care systems around the country consume significant quantities and varieties of products within the health delivery processes. Solving these environmental problems requires a much broader view involving collaborative efforts of professionals from different areas of health care to meet these challenges. The purchasing function bridges the gaps by providing a healthy dialogue on key environmental attributes within the health care supply chain. The concept of bundling new with refurbished products is gaining a lot of attention in the health care supply chain. This research describes a health care purchasing problem for bundling new and refurbished products of the type facing a growing number of large health care providers, and then proposes a methodology for evaluating the complex tradeoffs involved in bundling decisions for refurbished health care products. By exploiting some useful properties of the problem structure, our results provide buyers with useful insights for examining and selecting suppliers who are willing to offer bundles of new and refurbished products.     

Barriers to green innovation initiatives among manufacturers: the Malaysian case

This study investigated the internal and external barriers to green innovation initiatives among Malaysian manufacturers. Data was gathered through a survey of 153 manufacturing companies in Malaysia. Data was analyzed using the partial least squares technique. Results indicated that the barriers to green products, processes, and systems innovations are different. Issues of environmental resources, attitude and perception, business practices, government support, and customer demand were found to be the barriers to green product innovations, whereas attitude and perception, business practices, poor external partnerships, insufficient information, lack of customer demand, and environmental commercial benefits were determined to be the factors that negatively affect green process innovations. As regards green system innovation, environmental resources, attitude and perception, business practices, technical barriers, government support, and environmental and commercial benefits presented themselves as the internal and external barriers that need to be addressed. The results have important implications for managers of manufacturers that have plans of promoting green products, processes, and system innovations.     

A Data‐Driven Inventory Control Policy for Cash Logistics Operations: An Exploratory Case Study Application at a Financial Institution

A number of market changes are impacting the way financial institutions are managing their automated teller machines (ATMs). We propose a new class of adaptive data‐driven policies for a stochastic inventory control problem faced by a large financial institution that manages cash at several ATMs. Senior management were concerned that their current cash supply system to manage ATMs was inefficient and outdated, and suspected that using improved cash management could reduce overall system cost. Our task was to provide a robust procedure to tackle the ATM's cash deployment strategies. Current industry practice uses a periodic review system with infrequent parameter updates for cash management based on the assumption that demand is normally distributed during the review period. This assumption did not hold during our investigation, warranting a new and robust analysis. Moreover, we discovered that forecast errors are often not normally distributed and that these error distributions change dramatically over time. Our approach finds the optimal time series forecaster and the best‐fitting weekly forecast error distribution. The guaranteed optimal target cash inventory level and time between orders could only be obtained through an optimization module that was embedded in a simulation routine that we built for the institution. We employed an exploratory case study methodology to collect cash withdrawal data at 21 ATMs owned and operated by the financial institution. Our new approach shows a 4.6% overall cost reduction. This reflects an annual cost savings of over $250,000 for the 2,500 ATM units that are operated by the bank.     

Maternal Health Care Seeking Behavior in a Post-Conflict HIPC: The Case of Rwanda

Rwanda is one of nine post-conflict heavily indebted poor countries (HIPC) of the world. There was a worsening of health indicators since the early nineties on account of conflict. In light of this, we examine factors affecting maternal health care seeking behavior in Rwanda using three rounds of Rwanda Demographic and Health Survey (RDHS) data (1992, 2000, and 2005). We find that progress towards increasing the share of assisted deliveries has been slow. There has been no significant increase in the proportion of women seeking antenatal care. This could partially explain why a large proportion of women continue to deliver at home without professional assistance. Further, women who gave birth in the 5 years preceding the 2000 RDHS are less likely to deliver in a health facility than those who gave birth in the 5 years preceding the 1992 RDHS. We do not find such a result for the year 2005. We also find that women are more likely to deliver at home with professional assistance in 2000 and 2005 compared to 1992.     

An Efficient Heuristic Procedure for Practical-Sized Capacitated Warehouse Design and Management*

The purpose of this paper is to refine and test a distribution system design model and evaluate its performance with respect to solution quality, model validation, and algorithm performance. The paper reports on the development of a multiproduct warehouse logistics model. The logistics model is used to predict the performance of distribution companies that typically have to deal with product costs, the cost to distribute the products from a set of warehouses to customer outlets, the level of service provided to its customers, and flexibility for each product group and market segment.     

Effect of Conflict on Age at Marriage and Age at First Birth in Rwanda

Using Rwanda Demographic and Health Survey 2005 data, we estimate a Cox proportional hazard model to identify the determinants of age at marriage and age at first birth and whether these decisions were affected by conflict. We find that women living in clusters accounting for a larger proportion of sibling deaths in 1994, the year of the genocide, were more likely to marry later and have children later compared with those living in clusters accounting for a lower proportion of sibling deaths. Women living in regions with higher levels of under-five mortality were more likely to have their first child earlier compared with women living in regions with lower infant mortality. The age at marriage was probably affected by two reasons: the change in age structure and sex ratio of the population following the genocide, and the breakdown of kinship in the case of women who lost their siblings.     

Central Bank Independence in the Pacific Island Countries: A Case Study of Vanuatu

Central banks are an important element of governance in most countries, although surprisingly neglected in the public administration literature. The South Pacific island nations have established central banks for regulating their payment systems and financial and banking sectors. They are pursuing monetary policies towards the objectives of growth and price stability under fixed exchange rate regimes. Although these bank authorities have been given enough powers to assert themselves under the relevant statutes, institutional experiences indicate that some of these powers are eroded over time by political interference, as well as by acts of omission and commission by officials both in the central banks and in governments. This is illustrated by particular reference to the case of Vanuatu, a young South Pacific republic.