Designing vendor evaluation systems: An empirical analysis

Companies today are increasing efforts to develop their vendor evaluation system (VES) to qualify and select the best suppliers, monitor their performance and foster continuous improvement. VES lies at the intersection of three disciplines: purchasing management, supply chain management, and performance management. The extant literature especially focuses on vendor rating tools from a mathematical modeling standpoint, whereas firms are mostly concerned with guidelines necessary to design and implement an effective VES. The present study develops an encompassing research framework to investigate VES by means of thirteen case studies. In particular, the paper investigates VES design in terms of strategic alignment, process configuration and execution, as well as corresponding benefits and costs, exploring how the combination of the previous elements determines company satisfaction. Three groups of VESs are identified, leading to different levels of satisfaction.     

Management initiatives and just-in-time manufacturing

Numerous benefits have been claimed for firms that implement just-in-time (JIT) approaches to manufacturing. While a fair number of Western firms have been successful at such implementations, other firms that could benefit appear to be addressing only a few features rather than the overall philosophy and system. This paper considers whether each of a number of management initiatives is necessary for the implementation of just-in-time manufacturing. A case-based research methodology was used for theory testing at six plants, each which claimed to be implementing just-in-time manufacturing. Data were obtained via interviews, questionnaires, direct observation, and collection of documents. Of six management initiatives considered, four were supported as necessary conditions for both JIT flow and JIT quality, as well as for employee involvement. These four are: (1) promotion of employee responsibility, (2) provision of training, (3) promotion of teamwork, and (4) demonstration of visible commitment. The other two management initiatives were rejected as necessary conditions. These are: (1) provision of workforce security, and (2) use of group performance measures. The results also indicated that employee involvement plays a central role in JIT implementation.     

Related variety and firm heterogeneity. What really matters for short-run firm growth?

ABSTRACT

In recent years, two concepts have become key elements in economic geography: related variety and firm heterogeneity. The first one predicts that knowledge spillovers within a region/local system occur among firms operating in ‘different but related’ sectors. The second one assumes that knowledge spillovers can occur among ‘different’ firms belonging to the same localised sector/industrial cluster. Using a sample of 27,817 Italian manufacturing firms observed during the period 2010–2013, this paper analyses the role played by related variety and within-sector firm heterogeneity on short-run employment growth. The results suggest that both related variety and within-sector firm heterogeneity have a positive effect, although the latter has a higher impact than the former. These results confirm the role played by related variety, but identify firm heterogeneity as a potential additional source of local knowledge spillovers.     

Privatisation,corporate control and employment growth: Evidence from a panel of large Polish firms, 1996–2002

Using data on Polish firms this paper examines the relationship between corporate control structures, sales growth and the determinants of employment change. Privatised and de novo firms are the main drivers of employment growth; in the case of de novo firms, it is foreign ownership which underpins the result. Being privatised has a positive impact on employment but this is concentrated within a range of 3–6 years after privatisation. There are no systematic differences in employment response to negative sales growth across the ownership categories. Employment in state firms is less responsive to positive sales growth. From these results we infer that the behaviour of state firms is affected by both insider rent sharing and binding budget constraints.     

Impact of trade liberalization on firm's labour demand by skill: The case of Tunisian manufacturing

This paper investigates the impact of the trade liberalization process in Tunisia on employment by distinguishing different skills and different types of firms using micro level data covering the period of 1983–1994. There is considerable disagreement among analysts on the impact of recent trade reforms upon labour. Our contribution to these debates in this paper is essentially an empirical issue. The analysis of a Tunisian firm's data may be viewed as an attempt to apprehend how employment in Tunisia, a developing country, adjusted to the trade reforms. Using micro-level detail on individual firms, we are able to trace the relationship between changes in trade policies and manufacturing employment at firm level and by skill. Although trade reforms are generally implemented at the sector level, their effects may vary significantly across firm characteristics such as output orientation. We measure the effects of trade policy on employment according to different types of firms. We also associate changes in employment directly with a measure of change in trade protection, rather than linking them to changes in imports and exports which would be more common. The results suggest that the impact of trade liberalization on labour demand depends on a firm's characteristics. In particular, the estimates obtained suggest that trade liberalization has beneficial effects on employment for exporting-firms. Conversely, trade liberalization has negative and disciplinary effects on employment for domestically oriented firms. The reduction in tariff levels conducted in this first phase of liberalization in Tunisia seems to have had effects with different intensity on unskilled labour and on skilled labour; this justifies the examination of these two skills.     

Job transfers and job-bid systems in restructuring Japanese and American firms

When Japanese firms restructured their operations in the 1990s, Japanese employees were not fired and were often transferred together in groups inside firms or to related outside firms. Undergoing similar business restructuring from the late 1980s on, American firms fired low-performing white-collar employees, and excess midoodle-performing white-collar employees were fired if they could not locate other jobs in the firms by using 'job-bid' systems (systems that identifyopenings and allow individuals at their own choosing to 'bid' for those openings). American unionized blue-collar workers were laid off based on seniority rules. Although similar job-bid systems were introduced into Japanese firms in the 1990s, they were used only for certain white-collar jobs. In the United States, job-bid systems commonly were used for both blue- and white-collar employees. Overall, the Japanese employment system was characterized by management control and stable employment in contrast to the active role played by individual choice in an environment of unstable employment in the United States.     

The strategic use of contingent workers in Hong Kong's economic upheaval

This research examines strategy in the use and purposes of contingent employment in four retail firms under different economic conditions in Hong Kong. Data from in‐depth qualitative case studies found that the four firms – three Japanese and one British – had different organisational responses to the economic conditions caused by the increase of sales before the Asian financial crisis of 1997 and the shrinkage of sales afterwards. One such response concerned the companies' employment policies, especially in their use of contingent workers. Some tended to have an ad hoc opportunistic approach to the use of contingent workers, while others were more strategic and incorporate long‐term planning in their labour utilisation strategy. Implications are drawn relating to companies' use of contingent employment to changes in the contextual environment regarding their long‐term development.     

试论提高大学生就业能力的主要经验和做法

大学生就业能力存在就业观念偏差,社会化程度偏低以及职业规划意识薄弱等问题。提升大学生的就业能力从内容上包括加强就业人格的养成、加强社会适应性以及加强知能储备与运用的能力,从形式上要把职业指导作为系统工程早规划早投入、要从学生主体的角度出发进行阶段性培养。     

The Labour Market Effects of Increases in Social Insurance Premium: Evidence from Japan

Exploiting heterogeneous variations in labour cost increases due to Japan's 2003 social insurance premium reform as a natural experiment, we estimate the impacts of the increased social insurance premiums on employment, working hours and payroll costs. Using the difference‐in‐differences method with establishment fixed effects, we find that firms reduce the number of employees and increase average annual earnings from longer working hours in response to an exogenous increase in labour costs without productivity gains. Firms manage to pay for this increase in the average wage paid to the remaining workers by reducing the number of employees to keep total payroll costs unchanged. In contrast, since social insurance premiums are shared equally between employees and employers, firms pay the remaining half premiums that they are imposed with. Sub‐sample analyses show that firms adhering to a labour hoarding policy did fire many workers taking advantage of the 2003 reform. This may indicate that the reform provided a good excuse to cut employment in firms that had been forced to comply with a labour hoarding policy even in an over‐employment situation, which is more likely in sectors and countries where dismissals are rigorously regulated.     

Do employment subsidies work? Evidence from regionally targeted subsidies in Turkey

This paper studies the effects on registered employment and number of registered establishments of two employment subsidy schemes in Turkey. We implement a difference-in-differences methodology to construct appropriate counterfactuals for the covered provinces. Our findings suggest that both subsidy programs did lead to significant net increases in registered jobs in eligible provinces (5%–13% for the first program and 11%–15% for the second). However, the cost of the actual job creation was high because of substantial deadweight losses, particularly for the first program (47% and 78%). Because of better design features, the second subsidy program had lower, though still significant, deadweight losses (27%–46%). Although constrained by data availability, the evidence suggests that the dominant effect of subsidies was to increase social security registration of firms and workers rather than boosting total employment and economic activity. This supports the theory that in countries with weak enforcement institutions, high labor taxes on low-wage workers may lead to substantial incentives for firms and workers to operate informally.     

The tortoise and the hare: the impact of employment instability on firm performance

The main objective of this study is to assess the influence of employment instability on firm performance in a sample of publicly traded firms. Competing theoretical arguments are considered with regard to likely outcomes associated with employment instability. A large sample of cross‐sectional time‐series data is then analysed using generalised estimating equations (GEE) regression techniques. Results indicate that employment instability is negatively associated with firm performance, although the relationship is also demonstrated to be quadratic (an inverse U‐shaped relationship). This suggests that the main relationship varies depending upon the level of employment instability. Industry characteristics are also examined as moderators of this main effect. The results suggest a disordinal interaction effect for industry differentiation, where employment instability is negatively associated with firm performance for firms in highly differentiated industries and positively associated in less differentiated industries.     

The adoption of outside boards by small private US firms

The research issue motivating the present study is concerned with why some small private firms adopt an ‘outside board’ (i.e. larger boards in which the majority of directors are neither managers of the firm nor relatives of the Chief Executive Officer (CEO)) and others do not. This issue is addressed by investigating whether differing contextual conditions distinguish adopters from non-adopters of outside boards. The authors consider the adoption of an outside board to be one part of a larger organizational life-cycle process in which organizations implement more ‘professional management’ structures and practices in response to their evolving internal and external contexts. The authors examine simultaneously three contextual pressures that commonly confront small private firms as they develop over time- firm growth and larger size, the succession of the CEO, and the diffusion of equity to individuals outside the firm- to determine which of these are salient in explaining the presence of an outside board. Logistic regression results (3070 respondents toa cross-industry mail survey) indicate that outside boards are more likely when more equity is held by individuals outside the firm, CEOs are older and CEOs do not intend to implement an intra-family transition of leadership. The results suggest that firms adopt outside boards primarily to satisfy the desires of external owners, and only secondarily for the service and resource benefits that outside directors provide.     

Changing employment relation systems in Japan: cases of the Mitsubishi Chemical Group and the Federation of Shinkin Banks

Over the past decade or so a number of changes have been observed in traditional Japanese employment relations (ERs) systems such as an increase in non-regular workers, a move towards performance-based systems and a continuous decline in union membership. There is a large body of Anglo-Saxon and Japanese literature providing evidence that national factors such as national institutions, national culture, and the business and economic environment have significantly influenced what were hitherto three ‘sacred’ aspects of Japanese ERs systems (ERSs). However, no research has been undertaken until now at the firm level regarding the extent to which changes in national factors influence ERSs across firms. This article develops a model to examine the impact of national factors on ER systems; and analyses the impact of national factors at the firm level ER systems. Based on information collected from two different groups of companies, namely Mitsubishi Chemical Group (MCG) and Federation of Shinkin Bank (FSB) the research finds that except for a few similarities, the impact of national factors is different on Japanese ER systems at the firm level. This indicates that the impact of national factors varies in the implementation of employment relations factors. In the case of MCG, national culture has less to do with seniority-based system. Study also reveals that the national culture factors have also less influence on an enterprise-based system in the case of FSB. This analysis is useful for domestic and international organizations as it helps to better understand the role of national factors in determining Japanese ERSs.     

Last in,first out?: Estimating the effect of seniority rules in Sweden

In this paper we investigate whether a relaxation in seniority rules (the “last-in-first-out” principle) had any effect on firms' employment behaviour. Seniority rules exist in several countries, but consequences of seniority rules on firms' employment behaviour have not been examined previously. The “last-in-first-out” principle in Sweden was reformed in January 2001 such that employers with ten or fewer employees were allowed to exempt two workers from the seniority rule. Using an employer–employee unbalanced panel data for the period 1996–2005, we find that both hires and separations increased in small firms relative to large firms by 5%. This also implies that there were no effects on firms' net employment. Our results show that firms reacted to changes in the seniority rules, but we argue that the effects are not overwhelmingly large.     

Supplier Development Practices for Sustainability: A Multi‐Stakeholder Perspective

Supplier development for sustainability is a critical element of sustainable supply chain management and requires extensive multi‐stakeholder collaboration. This article establishes a conceptual four‐stage framework to analyse the collaborative mechanisms of supplier development practices, and presents an exploratory, qualitative analysis to identify the major contributors of sustainable supplier development practices, such as NGOs, industrial associations, consulting firms etc. Based on semi‐structured interviews about 63 organizations from different regions and industries, this article identifies three types of contributor: drivers, facilitators and inspectors. Instead of traditional stakeholder engagement processes, these contributors actively collaborate with buying firms and suppliers to design, implement and evaluate sustainable supplier development programs. The article then provides a matrix to describe the supply chain coverage and supplier performance of supplier development practices, given the absence or positive involvement of facilitators and inspectors. We conclude our study by suggesting future research directions as well as discussing managerial implications. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Labour adjustment costs: Estimation of a dynamic discrete choice model using panel data for Greek manufacturing firms

In this paper we estimate a dynamic structural model of employment at firm level. Our dataset consists of a balanced panel of 2790 Greek manufacturing firms. The empirical evidence of this dataset stresses three important stylized facts: (a) there are periods in which firms decide not to change their labour input, (b) there are periods of large employment changes (lumpy nature of labour adjustment) and (c) the commonality is employment spikes to be followed by smooth and low employment growth periods. Following Cooper and Haltiwanger [Cooper, R.W. and Haltiwanger, J. “On the Nature of Capital Adjustment Costs”, Review of Economic Studies, 2006; 73(3); 611–633], we consider a dynamic discrete choice model of a general specification of adjustment costs including convex, non-convex and “disruption of production” components. We use a method of simulated moments procedure to estimate the structural parameters. Our results indicate considerable fixed costs in the Greek employment adjustment.     

HRM retrenchment practices and firm performance in times of economic downturn: exploring the moderating effects of family involvement in management

A substantial number of studies have indicated a significant negative relationship between human resource management (HRM) retrenchment practices such as downsizing, and firm performance. However, a consideration of the potential effects of business family involvement in management is largely absent from the general employment restructuring literature. Using a sample of 218 Taiwanese publicly listed firms, this study seeks to further our understanding in this area by examining the moderating effects of family involvement in management on the relationship between the adoption of HRM retrenchment practices and firm performance during the period of global economic downturn that erupted in the middle of 2008. Data analysis reveals that HRM retrenchment practices had a negative influence on firm performance, and that the relationship between HRM retrenchment practices and firm performance was negatively and significantly moderated by family involvement in management.     

Occupational Labour Demand and the Sources of Non‐neutral Technical Change*

This article introduces a two‐step empirical approach for examining both the nature and sources of non‐neutral technical change across multiple occupations. First, conventional labour‐demand parameter estimates and unbiased tests for neutrality are obtained in the context of a flexible cost system. The resulting input‐specific indices of technical change, unconstrained with respect to time path, facilitate subsequent evaluation of proposed sources. In our application to employment decisions of airline firms, we find labour‐saving technical change that is non‐neutral across occupations. We also document occupation‐specific responses to aircraft technology adoption, route system developments and an unprecedented range of technical change elements.

相似文献   

Patterns of employment relationships: the association between compensation policy and contractual arrangements

Firms respond differently to labour market regulations and develop an employment relationship accordingly. We use linked employer–employee data to examine the relationship between compensation policies and contractual arrangements in large-sized firms in Portugal. In this country, the wages are regulated through minimum wage and collective agreement, while employment is protected by stringent employment legislation. The empirical analysis starts with a fuzzy clustering to identify typical compensation policies. Three major segments emerge from this analysis: Competitive, Internal Labour Markets and Incentive. The first segment comprises low-wage firms, which are highly responsive to market conditions. The other two reveal properties of internal labour markets, although the incentive-based firms reinforce the use of discretionary power to differentiate the workforce. Subsequently, we estimate a regression model to examine how the compensation policy interacts with contractual arrangement. Empirical evidence confirms the segmentation predictions, i.e. low, flexible wages and flexible contracts prevail in the same firms. Furthermore, vulnerable categories like young workers and female workers are over-represented in Competitive firms, while high-wages are associated with incentive devices benefiting white-collar employees. Apparently, firms foster inequality among segments of workers and often penalise or favour the same category of workers.     

Efficiency in complementary partnerships with competition

The objective of this paper is to show how efficiency can be implemented in a market with strictly complementary inputs when the productive firms undertake unobservable effort. The observable output is a joint undertaking by a partnership consisting of two types of firms. It is shown that simple linear sharing rules cannot implement socially optimal effort, but a modified linear sharing rule can implement the first‐best outcome provided that commitment to the proposed sharing rule is possible. This is so even when the sharing rule is proposed by one of the active partners. When opening up for the possibility of renegotiating sharing contracts that have undesirable properties for one or more of the firms, it becomes more difficult to implement socially efficient solutions. Implementation of the socially efficient outcome requires that the sharing rule is proposed by an outsider to the partnership. Copyright © 2008 John Wiley & Sons, Ltd.