Wal‐Mart and County‐Wide Poverty*

Objectives. This study seeks to identify the independent effect of Wal‐Mart stores on changes in U.S. family‐poverty rates at the county level. We draw on the contributions of a number of disciplines to enhance our understanding of the broader forces that influence poverty. Methods. A key innovation is that we estimate a two‐stage regression model, in which an instrument is created for new Wal‐Mart stores from a location equation; this reduces any potential endogeneity bias in the poverty‐change equation. In addition, we use spatial econometric methods to correct for spatial dependence bias. Results. After controlling for other factors determining changes in the poverty rate over time, we find that counties with more initial (1987) Wal‐Mart stores and counties with more additions of stores between 1987 and 1998 experienced greater increases (or smaller decreases) in family‐poverty rates during the 1990s economic boom period. Conclusions. Wal‐Mart creates both benefits and costs to communities in which the chain locates. These benefits and costs need to be weighed carefully by community decisionmakers in deciding whether to provide public subsidies to the chain.     

Demand and Production Management with Uniform Guaranteed Lead Time

Recently, innovation‐oriented firms have been competing along dimensions other than price, lead time being one such dimension. Increasingly, customers are favoring lead time guarantees as a means to hedge supply chain risks. For a make‐to‐order environment, we explicitly model the impact of a lead time guarantee on customer demands and production planning. We study how a firm can integrate demand and production decisions to optimize expected profits by quoting a uniform guaranteed maximum lead time to all customers. Our analysis highlights the increasing importance of lead time for customers, as well as the tradeoffs in achieving a proper balance between revenue and cost drivers associated with lead‐time guarantees. We show that the optimal lead time has a closed‐form solution with a newsvendor‐like structure. We prove comparative statics results for the change in optimal lead time with changes in capacity and cost parameters and illustrate the insights using numerical experimentation.     

Modeling Supply Chain Dynamics: A Multiagent Approach*

A global economy and increase in customer expectations in terms of cost and services have put a premium on effective supply chain reengineering. It is essential to perform risk-benefit analysis of reengineering alternatives before making a final decision. Simulation provides an effective pragmatic approach to detailed analysis and evaluation of supply chain design and management alternatives. However, the utility of this methodology is hampered by the time and effort required to develop models with sufficient fidelity to the actual supply chain of interest. In this paper, we describe a supply chain modeling framework designed to overcome this difficulty. Using our approach, supply chain models are composed from software components that represent types of supply chain agents (e.g., retailers, manufacturers, transporters), their constituent control elements (e.g., inventory policy), and their interaction protocols (e.g., message types). The underlying library of supply chain modeling components has been derived from analysis of several different supply chains. It provides a reusable base of domain-specific primitives that enables rapid development of customized decision support tools.     

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.     

Challenging western hegemony through systematic study of cultural diversity: an undergraduate course on child development and culture

Traditional courses in developmental psychology treat the development of white, middle‐class European American children as normative. This approach offers an inaccurate representation of child development, displays a lack of sensitivity towards the cultural diversity of students, and fails to meet these students’ intellectual needs. This paper describes an attempt at rectifying this ethical, paradigmatic error in an undergraduate course on child development and culture. Key concepts at the interface of culture and development in cultural geographical zones that contrasted with the European‐American tradition were systematically treated, employing varied instructional strategies. The experience suggests that synthesizing a multicultural classroom with a multicultural syllabus compels students to confront their own intellectual ethnocentrism, diversifies intellectual experience and, for minority students, addresses an intellectual lacuna that they may not yet have articulated.