Aggregate stock market behavior and investors’ low risk aversion

This paper studies whether investors’ high risk aversion can be avoided in a representative-agent model that is able to explain aggregate stock market behavior in the US financial market. We present a consumption-based asset pricing model with a representative agent who has a ‘catching up with the Joneses’ preference to show that high risk aversion can be avoided in a representative-agent model that can help explain many of the empirically observed properties of the aggregate stock market return, including the equity premium and risk-free rate puzzles, the predictability of long-horizon stock returns, and the ‘leverage effect’ in return volatility.     

At the receiving end of supply network intervention: The view from an automotive first tier supplier

As companies are increasingly responsible for all ingredients that make up their products, the requirement to increase visibility and exert control over the entire supply network has been identified as key imperatives. However, little research to date has examined the consequences of supply network control on the suppliers that are at the receiving end of it. This paper reports on research into the dynamics of supply network intervention and the effects on the companies that are subject to attempts to control a supply network, particularly in the context of new product development. The paper discusses the case of an automotive component supplier and its role in a specific vehicle development project. The case study shows how the supplier was a victim of its customer's attempt to ‘supply chain manage’ the project, giving the supplier little control over key activities such as the choice of suppliers of key components and little influence on commercial and technical agreements. The perspectives of both vehicle manufacturer and supplier are debated to reveal the drivers for and problems associated with supply network intervention. The paper discusses the theoretical and managerial implications of the study and concludes by raising some serious questions about the negative effects of intervention strategies.     

Demand chain management: an integrative approach in automotive retailing

Recent reviews of the ‘operations management’ (OM) research literature have shown a surprising little shift towards empirical methodologies from traditional modelling solution methods. In addition, there is generally a lack of empirical testing and validation of manufacturing strategies. Coupled to this fact is that empirical work is rarely carried out in an inter-disciplinary manner, with the complete combination of OM, marketing, strategy, lean thinking and accounting approaches particularly poorly researched. Fully cross-functional integrative empirical research is required to help support the understanding of the applicability of OM practices within industry. This paper explores such an integration of approaches developed within the ‘lean thinking, strategic cost management, marketing and policy deployment areas’. In order to investigate the approach a single automotive retailer is used as an instrumental case. The results of the study show that the new approach stands up well as an integrative approach that can prove highly beneficial results. However, the pilot work also identified a number of limitations that are the basis of further refinement and testing of the method.     

A Hotelling model with a ceiling on the stock of pollution

Environmental agreements such as the Kyoto Protocol aim to stabilize the amount of carbon in the atmosphere, which is mainly caused by the burning of nonrenewable resources such as coal. We characterize the solution to the textbook Hotelling model when there is a ceiling on the stock of emissions. We consider both increasing and decreasing demand for energy. We show that when the ceiling is binding, both the low-cost nonrenewable resource and the high-cost renewable resource may be used jointly. A key implication is that if energy demand were to decline in the long run, we may supplement energy supply through ‘clean’ renewables to meet the environmental standard, but then revert back to using only ‘dirty’ fossil fuels in the future when the ceiling has become non-binding. That is, the much heralded societal ‘transition’ to clean energy resources may be short-lived.     

The ‘science’ and ‘practice’ of HRM in small firms

This paper looks at the ‘science’ and ‘practice’ of human resource management in small firms. While there is growing evidence that the practice of human resource management in small firms is characterized by informality, there is less evidence about the science, or explaining why this is the case. We look to writing on strategic human resource management, which has at its heart the resource based view of the firm, for possibilities offered to understanding the science of human resource management in small firms.     

Towards a common understanding of the differences between purchasing, procurement and commissioning in the UK public sector

This paper recognises that commissioning has now become an important term in the lexicon of UK public policy but the term ‘commissioning’ is taking on a different meaning than that traditionally used within the purchasing and supply management community. The frequent inter-changeability of the terms ‘commissioning’, ‘procurement’ and ‘purchasing’ is now causing confusion and means different things to different people. Therefore the academic community needs to help practitioners understand the differences and implications. A document analysis of various UK Central Government departments’ commissioning frameworks was used to establish the key themes and compare commissioning, procurement and purchasing. This paper discusses the similarities and differences, and argues that commissioning is different from procurement, but that commissioning offers major opportunities for Procurement practitioners to make a strategic contribution.     

完全BTO模式下的汽车物流与环境

描述了国内库存在汽车生产厂的上下游积压的现象,汽车生产与客户需求的完全脱节是重要原因,指出BTO是解决这个问题的可行方法,介绍了缩短OTD时间为3天的3daycar系统中可为国内汽车业借鉴的特征,从汽车物流的入厂物流与出厂物流两个方面论述了物流模式改变对环境产生的影响,并提出了为打造可持续发展的汽车物流对策。     

中国汽车物流的现状及问题研究

汽车物流是集汽车零部件及整车的运输、仓储、包装、保管、搬运、改装及物流信息于一体的综合性管理,预计其将在中国保持较快的增长,但中国的汽车物流发展还处于起步阶段,降低物流成本已经成为汽车产业的第三利润增长点。以港口滚装码头为载体,集滚装业务、汽车整车及零部件分拨、汽车增值服务等为一体的汽车物流平台所提供的第三方物流服务为降低汽车物流成本提供了有效途途径。     

“100% EDI-connected suppliers” projects: An empirical investigation of success factors

Electronic Data Interchange (EDI) is becoming increasingly important, and new organizational forms based on EDI suppliers’ capabilities are emerging. Therefore, taking advantage of recent technological changes, especially the development of Web-based EDI systems, many big industrial buyers are seeking to get all their suppliers EDI-connected. Based on previous research on EDI adoption, we conducted a survey to study the opportunities of success of such a “100% EDI-connected suppliers” policy using data from the vehicle industry. Findings from our survey helped us to understand suppliers’ responses to such a policy and to provide recommendations to industrial buyers who are seeking to succeed in a “100% EDI-connected suppliers” project. This includes employing tailored communication strategies and selecting appropriate incentives that take into account different levels of suppliers’ EDI-capabilities and suppliers’ dependence.     

Networked creativity: a structured management framework for stimulating innovation

The effect of today's turbulent environment means that organisations need to improve their competitive advantage and swiftly respond to changing technology and markets. An organisation's ability to continuously innovate its products and business systems is essential to its future success. However, this ability to stimulate innovation is highly dependent upon the stock of potential ideas and problem solutions, which is available to feed the innovation process. These ‘seedlings of innovation’ are the product of the creative processes of an organisation. Whilst continuous, sustainable innovation is an essential competitive capability for future organisational success, to date the creative process has been allowed to operate in an ‘ad hoc’ and serendipitous fashion. Continuous innovation means that organisations need to be able to effectively manage their creative processes to ensure their innovation process has a plentiful supply of good ideas and solutions. To this end, a framework for enhancing networked creativity is presented as a means towards the effective management of the creative process within organisations.     

Implementing Lean in aerospace—challenging the assumptions and understanding the challenges

Lean manufacturing appears to hold considerable promise for addressing a range of simultaneous, competitive demands including high levels of process and product quality, low cost and reductions in lead times. These requirements have been recognised within the aerospace sector and efforts are now well established to implement Lean practices. Lean manufacturing was initiated within the automotive sector. However, since the publication of the influential book, The Machine That Changed the World (Womack et al., 1990) there has been a range of documented cases of Lean implementation in a variety of sectors. Despite this evidence, the perception remains that Lean manufacturing is to some degree, an ‘automotive idea’ and difficult to transfer to other sectors especially when there are major differences between them. In this paper we discuss the key drivers for Lean in aerospace and examine the assumption that cross-sector transfer may be difficult. A Lean implementation case comparison examines how difficulties that arise may have more to do with individual plant context and management than with sector specific factors.     

Institutional investors, antitakeover defenses and success of hostile takeover bids

In this study we investigate the question of whether institutional investors enhance or reduce efficiency in the market for corporate control. In particular, given unequivocal evidence that target stockholders gain in successful takeover bids, we investigate the impact of institutional ownership in target firms on the adoption of the type of antitakeover defense as well as the outcome of takeover bids. We find that target firms are more likely to adopt value-reducing antitakeover defenses and successfully thwart takeover bids when a higher percentage of target common stock is owned by ‘pressure-indeterminate’ investors (investment counsel firms in particular). On the other hand, the probability of a successful takeover rises with the ownership of both ‘pressure-sensitive’ and ‘pressure-resistant’ investors. The above findings support the view that institutional investors do not play a homogeneous role in the market for corporate control.     

The spatial structure of production with a leontief technology – II: Substitute techniques

The structure of the optimal spatial pattern of production is studied when there are dependencies among production units which can be described by a Leontief technology with substitute techniques, and when there is a single marketplace of final demand, the CBD. Transportation cost is proportional to distance. The various goods are produced in rings. There are a finite number of patterns in which these rings are arranged, and they can be obtained by a finite algorithm. The particular pattern depends on the final demand. Hence there is no ‘non- substitution’ theorem. ‘Reswitching’ of techniques can occur, that is, in an optimal pattern a technique may be operated at large and small distances from the CBD, but not at intermediate distances; this contradicts prevailing beliefs about optimal capital/land profiles.     

Inside the queue:: hypercongestion and road pricing in a continuous time–continuous place model of traffic congestion

This paper develops a continuous-time–continuous-place dynamic economic model of traffic congestion, based on car-following theory. The model integrates two archetype congestion technologies used in the economics literature: ‘static flow congestion’ and ‘dynamic bottleneck congestion.’ With endogenous departure times and a bottleneck along the route, ‘hypercongestion’ arises as a dynamic equilibrium phenomenon on the upstream road segment. Congestion tolls based on an intuitive dynamic and space-varying generalization of the standard Pigouvian tax rule can hardly be improved upon. A naïve application of a toll schedule based on Vickrey's bottleneck model performs much worse and reduces welfare in the numerical model.     

Evaluation of supplier capability and performance: A method for supply base reduction

Development of partnership with suppliers is widely recognised today as a potent tool for supply chain improvement. To develop an effective partnership, it is necessary to have a small supply base and an effort to reduce the supply base to a manageable level. Despite its overwhelming importance, models of supply base reduction are rare. Supplier sorting methods, used for pre-selection of suppliers and sometimes seen as methods for supply base reduction, have limitations ranging from (1) requirement of an exhaustive database of historical information (case-based reasoning), (2) inability to predefine the number of elements in a cluster (cluster analysis) and (3) inability to identify suppliers who are both highly capable as well as high performers (data envelopment analysis). In the present work, we develop a systematic framework for carrying out the supply base reduction process. The study assumes two important dimensions of suppliers—performance and capability. Performance of a supplier represents short-term effects on the achievement of supply chain objectives while supplier capability indicates long-term effects. Many of the performance and capability factors are imprecise in nature. In order to account for the imprecision involved in numerous subjective characteristics of suppliers, we use fuzzy set approach to measure the imprecision of these factors and rank a potential list of suppliers against their performance and capability. We then display their ranks in a ‘capability–performance matrix’ that helps a decision maker arrange the suppliers in decreasing order of preference. The desired numbers of suppliers are finally selected on the basis of this ordered list. The suggested framework will be of immense help to the practising managers in reducing the supply base—a prerequisite for building a strong supplier partnership and developing an effective supply chain.     

Market power of large cities and policy differences in metropolitan areas

When a single city, the ‘central city’, has a large share of the metropolis population, it will influence housing prices in other, smaller cities, the ‘suburbs’. This market power leads to differences in government policy and property values between the central city and suburbs even when residents and amenities in the two regions are identical. When the central city's government is controlled by property-owning residents, its property tax rate exceeds the rate in the suburbs. The central city will also have lower property values than suburbs.     

‘Repeat commercializers,’ the ‘habitual entrepreneurs’ of university–industry technology transfer

Among academic faculty, is there a class of ‘repeat commercializers’ who account for a disproportionate share of commercialized technologies arising from university research? In a survey of 172 engineering, mathematics, and science faculty members from a major Canadian university, we found evidence that a class of repeat commercializers does exist. Further, we found that the 12% of the faculty who are repeat commercializers account for 80% of the commercialized innovations. Interviews with repeat commercializers in the same faculties at the same university suggest that repeat commercializers parallel habitual entrepreneurs in that they have the ability to commercialize (i.e. the ability to generate and identify commercializable inventions and the ability to acquire resources for the commercialization of their inventions) and the aspiration to do so (i.e. commercialization-friendly attitudes). Since repeat commercializers account for such a large percentage of commercialization activity, it is important that programs and policies associated with technology transfer address the needs of this subpopulation of the faculty.     

Theoretical tests of the rational expectations hypothesis in economic dynamical models

This paper examines different theoretical stability tests of infinite-horizon rational expectations equilibria. These ‘tests’ have different status: two of them express that the considered equilibrium is ‘isolated’ [neither (non-sunspot) equilibria (test 1) nor (well-behaved) sunspot equilibria exist in a neighbourhood (test 2)] and two of them are learning criteria [either standard ‘evolutive learning’ (test 3) or game-theoretical ‘eductive’ learning (test 4)]. Surprisingly, these four tests select the same steady state equilibria in the class of one-dimensional one-step-forward looking economic models. The extension of this equivalence theorem to n-dimensional and then more complex systems is discussed.     

Vertical integration as a remedy for imbalances in the ‘Porterian’ value system. The Dutch financial securities industry at the beginning of the 20th century

The way of accounting for vertical integration, of this paper is based on the ‘Porterian’ value system and focuses on the relation between the creation and appropriation of value. The essence of a value system is that at each stage in the system value is created and added to the value created at previous stages. We propose that firms which are unable to appropriate the value they create at the stage they currently inhabit, would find it advantageous to integrate vertically towards stages offering a more attractive relation between value appropriation and value creation. This argument will be illustrated here by the case of a large Dutch bank that integrated vertically towards securities trading.     

Purchasing strategies in the Kraljic matrix—A power and dependence perspective

Kraljic's purchasing portfolio approach has inspired many academics to undertake further research into purchasing portfolio models. Refined models typically recommend one purchasing strategy for each portfolio quadrant. Yet, it has been shown that purchasers make a clear distinction between alternative purchasing strategies within each quadrant. The fundamental assumption of portfolio models seems to be that differences in power and dependence between buyers and suppliers exist. Still, little is known about how these concepts influence the choice for a specific purchasing strategy. In this paper, ‘relative power’ and ‘total interdependence’ for a number of portfolio-based purchasing strategies have been quantified empirically, using data from a comprehensive survey among Dutch purchasing professionals. The survey data largely confirmed the hypotheses that were deduced from the literature.