Stock market undervaluation of resource redeployability

Research Summary : Stock market undervaluation of resources was often assumed to have strategic implications. Such undervaluation lets firms buy resources relatively cheaply, but it can also constrain resource deployment. This article shows that the option to redeploy a firm's resources to a new business can be undervalued in stock markets when investors face ambiguity about that option due to uniqueness of redeployment. The developed formal model derives conditions under which stock markets undervalue resources. Those conditions are summarized with an empirical operationalization that can be tested with a broad range of strategic implications. Besides, the model provides a more complete account of resource redeployability by demonstrating the redeployability paradox. The paradox highlights that some determinants of redeployability enhance undervaluation, while simultaneously increasing objective value of redeployable resources. Managerial Summary : Stock markets can systematically undervalue resources. On the one hand, such undervaluation creates a profitable opportunity for a firm that needs some resources for its growth and compares the option to buy stock in another firm, whose resource are undervalued, with the option to build those resources internally. On the other hand, such undervaluation poses limits to resource deployment strategies of the undervalued firm. When does such undervaluation occur? This study highlights one possible source for undervaluation, ambiguity that is faced by stock market investors about the option to redeploy a firm's resources to a new business. The study specifies conditions under which stock markets are more likely to undervalue resources. The understanding of those conditions can guide managers toward strategic opportunities.     

Development Resource Planning: Complexity of Product Development and the Capacity to Launch New Products

Overcommitment of development capacity or development resource deficiencies are important problems in new product development (NPD). Existing approaches to development resource planning have largely neglected the issue of resource magnitude required for NPD. This research aims to fill the void by developing a simple higher‐level aggregate model based on an intuitive idea: The number of new product families that a firm can effectively undertake is bound by the complexity of its products or systems and the total amount of resources allocated to NPD. This study examines three manufacturing companies to verify the proposed model. The empirical results confirm the study's initial hypothesis: The more complex the product family, the smaller the number of product families that are launched per unit of revenue. Several suggestions and implications for managing NPD resources are discussed, such as how this study's model can establish an upper limit for the capacity to develop and launch new product families.     

A bargaining perspective on resource advantage

Whereas prices serve to allocate many resources in market economies, there remain vast reservoirs of unpriced resources to be managed. Business management and strategy concerns the creation, evaluation, manipulation, administration, and deployment of unpriced specialized scarce resource combinations. This paper applies the formalism of cooperative game theory to these concerns. In cooperative game theory, rents appear as the negotiated payments for the services of scarce valuable resources. The division of surplus is determined by the relative values created by different use combinations of resources. Within this framework, the strategy problem is clearly seen as one of discovering or estimating the value of various resource combinations. New wealth can be created by trade in resources as long as there are hitherto unexamined combinations. Copyright © 2003 John Wiley & Sons, Ltd.     

基于改进遗传算法的多项目资源均衡配置研究

如何解决建筑企业在多个项目中资源利用率和配置效率低下的问题，是施工方项目管理的一大难题。本文根据多项目工程施工特点，建立了多项目并行施工时的资源均衡优化模型。为了提高遗传算法对多项目资源配置问题求解的性能，本文对遗传算法进行了改进，并以某公司3 个并行施工的工程项目为例，根据工程施工初始网络计划的资源需求，运用改进遗传算法（IGA）和遗传算法（GA）计算多项目的资源配置方差。结果表明，改进遗传算法可使资源配置达到更好的优化状态，并能得到各个项目非关键线路上工序的最佳开工时间，为建筑施工企业提供了具有实践价值的技术手段。     

Social media and value co-creation in multi-stakeholder systems: A resource integration approach

This paper provides a theoretical framework of multi-stakeholder systems to explain value co-creation through the contextual means of actor-to-actor (A2A) interactions. In applying the A2A model, we explicate the resources provided by three actors in particular – customer, firm and social media platform in co-creating value via resource integration. The resources afforded by social media platforms positions these actors as “systems resource integrators” in both B2B (business-to-business) and B2C (business-to-consumer) contexts. The role of social media platforms as systems resource integrators is to provide a technological platform that exposes its modular resources to facilitate higher order resource formations through the active participation of non-intermediary actors (i.e. customers and firms); which otherwise limits the ability of firms and customers to realize their optimal value co-creation potential.Six propositions are derived from the conceptual framework provided in this paper. Through the higher order resource formation analogy underpinning the discussion in this paper, we argue the significance of understanding the qualities of social media resources for managers to facilitate more efficient resource configurations in the creation, transformation and renewal of resources via resource integration in actor interactions. The paper concludes with the strategic implications of the conceptual framework provided and future research directions.     

Modeling and optimization of a container drayage problem with resource constraints

This paper investigates the problem faced by firms that transport containers by truck in an environment with resource constraints. The considered area is export-dominant. As a result, there are three types of container movements as inbound full, outbound full, and inbound empty movements. Both the time windows at the terminal and at the customers’ places and the operation times are considered. Empty containers are also regarded as separate transportation resources besides trucks. The total operating time including waiting time of all the trucks in operation is minimized. The problem is first formulated as a directed graph and then mathematically modeled based on the graph. It falls into a multiple traveling salesman problem with time windows (m-TSPTW) with resource constraints. An algorithm based on reactive tabu search (RTS) is developed to solve the problem. A number of randomly generated examples indicate that the algorithm can be applied to the real world.     

基于休伯特模型对未来石油资源的预测及思考

地质学家休伯特曾提出了石油生产的典型规律,并运用该模型对未来石油产储量趋势做了较为准确的预测。今天“休伯特顶点”理论并未过时,全球石油能源枯竭的威胁始终困扰着人类社会。当然,这并不意味着人们在能源问题上没有出路可寻,相反,它促使人们积极探求解决办法,通过优化能源结构,寻找替代能源,开发新能源,从而为经济发展和社会进步开辟新的出路。     

Managing a Portfolio of Interdependent New Product Candidates in the Pharmaceutical Industry

Highly regulated industries such as pharmaceuticals and agrochemicals face the challenge of maintaining a 0continuous stream of new products. This is difficult because of low probabilities of technical success, high development costs, uncertain market impact, a scarcity of good new product ideas, and limited human and capital resources available to develop them. The problem of evaluating and selecting which new products to develop and then of sequencing or of scheduling them is complicated further by the presence of dependencies between products both in the market place and in the development process itself. This study proposes a portfolio management approach that selects a sequence of projects, which maximizes the expected economic returns at an acceptable level of risk for a given level of resources in a new product development pipeline. A probabilistic network model of distinct activities is used to capture all the activities and resources required in the “process” of developing a new drug. A prioritization scheme suggesting sequences for developing new independent drug candidates with unlimited resources is generated with a conventional bubble chart approach. These sequences initiate a genetic algorithm (GA)‐based search for the optimal sequence in the presence of product dependencies and limited resources. By statistically evaluating the sequences generated during the GA search using a discrete event simulation model, it is possible to construct an economic reward‐risk frontier that illustrates the trade‐offs between expected rewards and risks. The model ideally is suited to answer various “what if” questions relative to changes in the resource level on pipeline performance. The methodology is illustrated with an industrially motivated case study, involving nine interdependent new product candidates targeting three diseases. The dramatic results yield a candidate sequence with an expected return 28 percent higher than the sequence suggested by the bubble chart approach at almost the same level of risk. The synergism among the candidate dependencies, pipeline resources, and economic and technical uncertainties demonstrates the necessity of a computationally intensive approach if the best development strategy is to be realized.     

The mediating effects of interfirm business process integration and joint teamwork on firm performance in supply chains

This paper empirically examines the influences of strategic interdependence and resource complementarity on operational performance and relational performance of Chinese suppliers based on the resource-based view and resource dependence theory. In particular, it analyses the mediating effects of interfirm business process integration and joint teamwork. We apply structural equation modeling to analyze the survey data collected from logistics and supply chain managers, and derive the best model with theoretical foundation and statistical significance. As a result, our work has identified the mediating effects of interfirm business process integration and joint teamwork, and validated the assertion that strategic interdependence and resource complementarity as supply chain resources are fundamental to firm performance. It is stressed that resource capitalization requires interfirm business process integration and joint teamwork to realize the value of supply chain resources. The findings not only contribute to research on interfirm resources and performance, but also have practical implications for operations and supply chain management.     

Strategic factor markets,scale free resources,and economic performance: The impact of product market rivalry

This paper analyzes how scale free resources, which can be acquired by multiple firms simultaneously and deployed against one another in product market competition, will be priced in strategic factor markets, and what the consequences are for the acquiring firms' performance. Based on a game‐theoretic model, it shows how the impact of strategic factor markets on economic profits is influenced by product market rivalry, preexisting competitive (dis)advantages, and the interaction of acquired resources with those preexisting asymmetries. New insights include the result that resource suppliers will aim at (and largely succeed in) setting resource prices so that the acquiring firms earn negative strategic factor market profits—sacrificing some of their preexisting market power rents—by acquiring resources that they know to be overpriced. Copyright © 2014 John Wiley & Sons, Ltd.     

鄂尔多斯市可持续发展条件下的资源环境综合利用研究

本文从可持续发展的角度,建立了鄂尔多斯综合开发与整治的基本模型,对鄂尔多斯市的资源、环境、经济等特征进行了比较全面的分析,重点从能源资源的特征以及开发条件入手,通过对现状和存在的问题进行分析,说明如何在此条件下协调好资源开发和环境整治的关系,将鄂尔多斯经济发展、生态环境保护统一起来,最后提出了鄂尔多斯能源开发和综合利用思路以及对可持续发展的建议。     

“资源劫难”假说的实证检验及政策启示

世界许多资源型国家的发展实践显示，自然禀赋与一些国家或地区的经济增长之间存在显著的负相关关系，由此形成所谓的“资源劫难”假说。从中心-外围论、贸易条件恶化论、荷兰病到资源诅咒论等也均揭示出资源禀赋与经济发展之间的悖论。本文以此现实问题为背景，在分析相关理论的基础上，深入讨论了资源劫难或诅咒的成因，并以中国煤炭资源大省山西为例进行验证，进而提出了相应的对策建议。     

Explaining alliance success: Competences, resources, relational factors, and resource-advantage theory

Business alliances, by filling critical resource gaps, enable firms to have positional advantages that lead to superior financial performance. Some alliances, however, are more successful than others. The three prominent theoretical approaches to explaining alliance success rely on resources, competences, and relational factors. The authors theorize that the three approaches are interdependent and, using resource-advantage (R-A) theory as a framework, develop an integrative model. This model proposes that the three approaches are linked by means of relationships among (1) alliance competence, (2) complementary resources, (3) idiosyncratic resources, and (4) cooperation. A test of the model, using a sample of alliance professionals, finds support for the theory that the three approaches are, indeed, interdependent and that resources, construed in the manner of R-A theory, influence alliance success through positional advantage.     

The long‐term performance of horizontal acquisitions

This paper examines how value is created in horizontal mergers and acquisitions. More specifically, it examines the impact of post‐acquisition asset divestiture and resource redeployment on the long‐term performance of horizontal acquisitions. The data come from a detailed survey of acquiring firm managers and cover 253 horizontal mergers and acquisitions that were initiated by European and U.S. firms in manufacturing industries for the period 1988–1992. This study incorporates insights from the cost efficiency and resource‐based theories to propose a model of the effects of asset divestiture and resource redeployment on long‐term acquisition performance. Overall, our results show that both asset divestiture and resource redeployment can contribute to acquisition performance, with, however, a significant risk of damaging acquisition performance when the divested assets and redeployed resources are those of the target. Copyright © 1999 John Wiley & Sons, Ltd.     

Network resource stocks and flows: how do alliance portfolios affect the value of new alliance formations?

We examine how new network resources accessed through alliance formations interact with network resources present in a firm's alliance portfolio. We test our theoretical model using event study methodology and data from the global air transportation industry. We find that the market rewards firms forming alliances that contribute resources that can be synergistically combined with firms' own resources as well as with network resources accessed through their alliance portfolios. Our results also indicate that the market penalizes firms entering into alliances that create resource combinations that are substitutes to resource combinations deployed by existing alliance partners. Copyright © 2011 John Wiley & Sons, Ltd.     

The cornerstones of competitive advantage: A resource-based view

This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.     

A bicriteria approach to maximize the weighted number of just-in-time jobs and to minimize the total resource consumption cost in a two-machine flow-shop scheduling system

We analyze a two-machine flow-shop scheduling problem in which the job processing times are controllable by the allocation of resources to the job operations and the resources can be used in discrete quantities. We provide a bicriteria analysis of the problem where the first criterion is to maximize the weighted number of just-in-time jobs and the second criterion is to minimize the total resource consumption cost. We prove that although the problem is known to be NP-hard even for constant processing times, a pseudo-polynomial time algorithm for its solution exists. In addition, we show how the pseudo-polynomial time algorithm can be converted into a two-dimensional fully polynomial approximation scheme for finding an approximate Pareto solution.     

The influence of material resources on innovation projects: the role of resource elasticity

More (rather than fewer) material resources are thought to be the key driver in innovation project performance. Recent empirical evidence, however, suggests that the influence of material resource availability on innovation projects is not as simple and straightforwardly positive as it may seem. We build on the concept of an innovation project team's resource elasticity to disentangle the material resource–innovation output conundrum. This concept is analogous to the marketing concept of price elasticity and points to four types of innovation project teams based on their resource elasticity: In resource‐elastic teams, the relationship between material resources and innovation outcomes is positive (hence, they are ‘resource driven’ when able to dispose of adequate material resources or ‘resource victims’ when lacking these material resources). In contrast, and as a significant departure from previous work, resource‐inelastic teams show no or even a negative relationship between material resource adequacy and team performance (thus, the teams are ‘resourceful’ if they can perform with limited material resources or ‘resource burners’ if they show low success with adequate material resources). Because neither adequate nor inadequate material resources seem to be a reliable predictor of success, we synthesize empirical research efforts that point to each team type's key characteristics to derive novel implications for managing innovation projects.     

B2B service brand identity: Scale development and validation

Several brand identity frameworks have been published in the B2C and the B2B brand marketing literature. A reliable, valid and parsimonious service brand identity scale that empirically establishes the construct's dimensionality in a B2B market has yet to be developed. This paper reports the findings of a study conducted amongst 421 senior executives working in the UK IT Service sector to develop and validate a B2B Service Brand Identity Scale. Following established scale development procedures support is provided for a B2B Service Brand Identity Scale comprising five dimensions; employee and client focus, visual identity, brand personality, consistent communications and human resource initiatives. Concluding remarks discuss theoretical and managerial implications with limitations and directions for future research.