Advances in spreadsheet and database training: Editorial

This special section of the Journal of Business Research includes papers on advances in teaching spreadsheet and database software. After a blind review process, four papers were accepted for the special section. Other papers examine whether database instruction can assist with transferring problem-solving skills from one setting to another, incorporating spreadsheet training in the marketing curriculum, using spreadsheets for exploratory data analysis, and using spreadsheets as a decision support system. The authors of each paper discuss the implications for the university business curriculum.     

Teaching basic marketing accountability using spreadsheets: An exploratory perspective

Extant literature suggests that a key problem with marketing is a lack of financial accountability, and a possible way of improving the situation is to use spreadsheets to inculcate marketing accountability among future marketing executives. This study attempts to enhance our understanding of how to impart spreadsheet skills and encourage an accountability mindset among undergraduate marketing students by focusing on a course called Marketing and Money. Assessment data indicate that the course, which captures the spirit of the behavioral model of learning, does in fact enhance students' spreadsheet skills in a consistent manner. In addition, the analysis suggests that in order to increase students' self efficacy, instructors ought to try to make the course perceptually more useful rather than try to reduce its difficulty.     

Spreadsheet Modeling for the Classroom: The Value of Position on the Web Page

ABSTRACT

This article focuses on the authors' experience with a little-used quality of spreadsheets–the ability to construct spatial models. The article follows the development of a Web page layout model for classroom use. The model presents students with the problem of balancing out value of position, color, movement and other input factors in developing overall Web page strategy.     

Siloed Perceptions in Pharmaceutical Supply Chain Risk Management: A Brazilian Perspective

Abstract

This article maps risk perception across the pharmaceutical supply chain (PSC) in Brazil. Our paper employs the method orders-of-magnitude analytic hierarchy process to rank risks as perceived by industry, distributors, hospitals and pharmacies. We show that players have a siloed perception of risk and impact of those risks. While upstream players emphasize cost, downstream players value service; moreover, both prioritize operational risks over strategic risks. We call for further studies in Latin America: although interest in risk is growing, few studies address the PSC and even fewer realities outside the Northern Hemisphere.     

Quantifying Sources of Risk in Global Food Operations and Supply Chain

The food industry plays a significant role in food supply. However, it is increasingly facing a significant number of risks to tackle. This article provides insight into sources and quantification of risk, which can restrict food operations and supply chain performance. Certainly, risks imposed by today's constantly changing global environment makes it imperative for food and agribusiness firms to develop purposeful proactive and predictive risk management for their global supply chains. We proposed the analytic hierarchy process (AHP) model to analyze sources of risks attached to the focal firm's global food operations and supply chain. The identified risks were from a review of relevant literature, expert opinions from the focal firm supply chain C‐level executive, and consultants in the food industry. We grouped the identified risks into seven categories and discussed the risk mitigation strategies. We validated the proposed model using a case study involving a focal food and agribusiness firm with global presence. © 2016 Wiley Periodicals, Inc.     

Permissibility and use of options for hedging purposes in Islamic Finance

The debate concerning permissibility and use of options in Islamic finance is ongoing, and the issue is far from settled. Current analyses on this issue appear to focus on taking of unnecessary risks ( gharar), the perceived lack of a physical asset in an options contract, and the possibility of exploitation of the ignorant. To the extent that these factors are involved, options are not permitted under Islamic teachings (the Shariah). In this article, we investigate whether options may be permitted for hedging purposes in Islamic finance. We use equity options as an example in our analysis. After providing a brief overview of options markets, we review the existing literature and critically examine other work such as the religious decrees (fatwas). We also provide two examples, one each of call and put options, to illustrate the managerial issue of use of options for hedging purposes. Our analysis shows that options may be permitted for hedging purposes in Islamic finance as long as the underlying economic activities are themselves permissible (halal) from an Islamic point of view. The analysis also indicates that one of the key issues is related to unnecessary risk taking. The avoidance or reduction of such risks in hedging situations is largely dependent on the settlement and clearing function of the exchanges trading options, which effectively provides a guarantee of delivery. Mutual consent for entering into or canceling contracts and the issue of intangible assets also play a role in determining if options are permissible under the Shariah. We conclude the article by urging experts of Islamic jurisprudence to understand the theory and mechanics of options and use group ijitihad (consensus opinion of Islamic scholars) in conjunction with academics and experts in financial markets and instruments on this vital issue in contemporary finance for the benefit of the Islamic world as well as those trading with the Islamic world. © 2006 Wiley Periodicals, Inc.     

Perceived Risks in Supply Chain Management E-Collaboration

ABSTRACT

Supply chain management is an accepted concept involving a process-oriented, integrated approach to procuring, producing, and delivering products and services to customers. The boom in applying Internet-based applications is driven by corporate desires to use wireless access, extranets, Internet-based EDI, e-marketplaces, web services and other remote networks for supply chain activities. This paper reports the findings of a study that aims to examine perceived risks of e-commerce in supply chain activities. The conceptual model developed from previous research identifies four types of risks, namely technological, organizational, implementation, and relational risks. The model is tested via in-depth multiple case studies in seven firms from a cross-section of different industries who applied e-technologies in their supply chain activities. The findings highlight factors that contribute to risks and the related undesirable consequences that the firms experienced.     

Logistics Professional Identity: Strengthening the Discipline as Galaxies Collide

The merger of logistics, operations, supply management, and related disciplines into the broader field of supply chain management (SCM) has brought together academic fields with different professional identities and competing visions of what SCM ought to be, what students ought to be taught, and what the priorities for research and publication should be. This raises serious concerns because logistics faculty are less numerous than faculty in related fields. Logistics professional identity risks being diluted by the merger, resulting in potentially serious consequences for the future of logistics education and research. This paper explores these issues and offers suggestions to preserve logistics' professional identity, education and research in a supply chain world. We propose that logisticians expand the journals where they publish logistics research, continuing support for strengthening the Journal of Business Logistics as the “A” journal in logistics, rethink the way we train doctoral students, and work to preserve our community both inside and outside business schools.     

An <Emphasis Type="Italic">ex ante</Emphasis> forecast on economically engineered bit rates for IPTV service via xDSL transports of internodal access

Concerning broadband IPTV service (of 12/24 MHz bandwidth) on a digital subscriber line (xDSL), an algorithm (plus a numerical spreadsheet) that computes the required, economically engineered bit rates (EEBRs) of associated (aggregated) traffic is developed. The EEBR is decided by user (residential/business) behavior at a wire center and is essential for economic design/implementation/expansion of xDSL infrastructure. Using an available set of (ex post) data on xDSL growth of services (collected over a period of semiannual terms) at a wire center, an ex ante forecast on EEBR is elucidated. An EEBR-based economic utilization of resources and connection admission control is indicated.     

On the “Invisible Inventory Conundrum” in RFID‐Equipped Supply Chains: A Data Science Approach to Assessing Tag Performance

Recent trade reports suggest that RFID implementation continues to lag lofty projections. A primary concern is that, despite the high cost of implementing RFID systems, realized read‐rates fall short of expectations. This results in the invisible inventory conundrum whereby tagged merchandise may still not be accurately represented in inventory records. Drawing from data science to address this issue, we ask: How can directed data mining models be used to identify laboratory test performance criteria for RFID tags that operate reliably across the idiosyncratic facilities (i.e., unique DCs, warehouses, and stores) that comprise apparel retailers’ supply chains? We investigate this question by advancing a methodology that integrates laboratory test performance data, field tests of RFID tags fixed to apparel items and scanned under normal operating conditions, and the application of five directed data mining models to the integrated data set of laboratory and field test results. Our analyses of 45,416 observations show that two directed data mining models may identify—with near‐100% accuracy—laboratory test criteria that discriminate tags having 99% or greater read‐rates in the field. Accordingly, our study validates a generalizable methodology for identifying technical performance standards for tags that operate reliably within apparel retailers’ supply chains.     

Resilience toward supply disruptions: A stochastic inventory control model with partial backordering under the base stock policy

This paper examines supply-side disruptions using an inventory management framework to gain insights into the economic performance of buyers who use two conventional costing strategies – end-of-cycle and continuous. The proposed model assumes that a single supplier faces full disruptions with a probability, and therefore, fails to procure all the items ordered. Accordingly, the buyer experiences unmet demand, which is assumed to be partially backordered. To make proper replenishment decisions, two base stock (S,T) periodic review optimization models are developed. The objective functions minimize the expected long-run total costs (i.e., ordering, holding, and shortage). After proving their convexity and obtaining the optimal decisions, computational experiments were carried out to investigate the impacts of the change in parameters. The results highlight the importance of selecting a suitable ratio for backorders during supply disruptions, as it leads to lower costs and reduces the inventory obsolescence and overstocking risks. Moreover, the managerial insights derived from this study aid retailers to make better replenishment decisions (in terms of level and frequency) and to be more resilient in times of disruptions. Retailers can benefit from the provided solution algorithm as a computational application.     

Disruptions in Supply Networks: A Probabilistic Risk Assessment Approach

Supply disruptions are attracting growing attention. Even in geographically, politically and economically stable locations, companies are exposed to disruptions, because they depend on their suppliers and suppliers’ suppliers. The analysis of these disruptions helps mitigate risks: for example, instead of relying on local measures such as safety stock or insurance, a company can introduce new supply contracts or backup risky suppliers. In this article, we analyze risks caused by supplier disruptions by introducing concepts from probabilistic risk assessment (PRA), which is a widely employed methodology for the risk analysis of complex engineering systems. We apply PRA to examine simple networks such as triads analytically, and use simulation to analyze disruption risks in random networks of realistic size. We also illustrate how PRA can support strategic decisions such as whether or not to use single or multiple suppliers; which suppliers are more risky than others; and what impacts the complexity of the supply base has on the reliability of the supplier network.     

Financial Reporting of Small Business Entities in Canada*

Financial reporting for small business entities (SBEs) has been the subject of much debate and concern by the accounting bodies (institutes) in Canada, the United States, the United Kingdom, Ireland, Australia, New Zealand, and other countries. The main issue for the standard setters is whether they should have one set of standards for all companies or two sets of standards (one for big companies and one for SBEs). The main objective of our study is to examine whether SBEs in Canada should have their own new set of Generally Accepted Accounting Principles (GAAP) or should they continue to use big GAAP used by public companies. To address this issue in the Canadian environment, we sent out a questionnaire to a sample of managers and owners of small businesses, preparers, auditors, and users of small business accounts. These stakeholders were asked to identify the purposes of SBE financial statements, their levels of satisfaction or dissatisfaction with the present accounting standards for SBEs, the burdens imposed on the preparers of the financial statements, and the weaknesses of the present standards. Furthermore, they were asked to give the expected advantages of adopting new standards, after having ranked four models of financial reporting of SBEs. The results are quite interesting. Stakeholders indicated that financial statements of SBEs are prepared mainly for taxation purposes and borrowing. They are not satisfied with the present standards because they are costly to comply with and very complex. The burden of producing SBE financial statements can be reduced by simplifying the present standards. The new standards would mean a shorter and simpler form of financial statements. It is hoped that the results of this study will provide the standard setters in Canada and other countries with an indication of the future direction for SBE reporting and accounting.     

The Ethics of Innovation: p2p Software Developers and Designing Substantial Noninfringing Uses Under the Sony Doctrine

This essay explores the controversy over peer-to-peer (p2p) software, examining the legal and ethical dimensions of allowing software companies to develop p2p technologies. It argues that, under the Supreme Court’s ruling in the Sony betamax case, technology developers must be accorded the freedom to innovate and develop technologies that are capable of substantial noninfringing uses. This doctrine, known as the Sony doctrine, provides an important safe harbor for technological development, including p2p. The safe harbor, however, does not immunize conduct beyond the design, sale, or supply of the product. For other conduct that falls outside the Sony safe harbor, the traditional standards of secondary liability apply.     

Managerial ethics and microeconomic theory

There is a very apparent conflict between economists and ethicists over the moral standards that should be applied to the managers of business firms. The view of most economists is that moral standards in business are not relevant, beyond the normal personal obligations to speak the truth and observe the law, because profit maximizing behaviour, under market and resource constraints, leads inexorably to social welfare optimization. The opposing view of most humanists is that modern markets are not competitive enough to be constraining, that profit maximization often leads to social harm, and that welfare benefits are unjustly distributed. The article examines the moral constructs in microeconomic theory and the ethical objections to that theory at both the pragmatic and theoretic levels, and concludes that inappropriate assumptions about the nature and worth of human beings in the economic paradigm require the use of moral standards for business decisions and actions. LaRue Tone Hosmer is Professor of Policy and Control at the School of Business Administration, University of Michigan. His most important publications are: The Entrepreneurial Function, Prentice-Hall, 1977; Academic Strategy, University of Michigan Press, 1979; Strategic Management, Prentice-Hall, 1982; and Formation Planning, McGraw-Hill, 1984.     

Internationalization Strategies of Business Schools: How Flat Is the World?

Business school strategy has become extremely complex, especially regarding internationalization. Using different paths, experiencing failure and success, business schools have internationalized, attracting many of the international students who contributed $27 billion¹ to the US economy in 2014. Some business schools are global, training global managers, while others serve national markets. How do business schools strategize about internationalization? Can we use existing models to explain this process? Are internationalization and globalization similar? Using a comparative analysis of six case studies in the United States and Europe, we found that the engine of internationalization influences its paths and outcomes. We contribute to international business (IB) research by discussing how business schools strategize their internationalization toward uniformity or diversity under isomorphic pressures from accreditation bodies (Association to Advance Collegiate Schools of Business [AACSB], 2011) and rankings. The so‐called Uppsala model should be extended to address three tensions: internationalization versus globalization, enacted dimensions of audiences, and respective risks of different internationalization pathways. © 2015 Wiley Periodicals, Inc.     

DIRECT PRODUCT PROFITABILITY AND RETAIL SHELF‐SPACE ALLOCATION MODELS

Given an assortment of k products, a retailer must make an important decision on the percentage of space allocated to each of them. Optimization models for this problem have previously shown that an item's space should not simply be given in proportion to its sales or its gross margin (GM). Calculations of Direct Product Profitability (DPP) have improved upon the GM concept, but the present paper is the first (of which we are aware) to integrate the DPP approach into a shelf‐space optimization model.     

An Analysis of the Effects of Intra‐ and Interorganizational Arrangements on Hospital Supply Chain Efficiency

Efficiency in supply chain operations is increasingly a key strategic goal as organizations focus on containing cost. This is especially the case for hospitals where supply chain costs account for a substantial portion of operating budgets. In this study, we examine the impact of incentive mechanisms for internal stakeholders and negotiating leverage with external partners on supply chain efficiency in the hospital industry. We premise the study on agency, stewardship, and power theories. We use data from over 200 California hospitals in a five‐year period (pooled data) to estimate regression models using generalized estimating equation. We find that physician employment and contract management enhance supply chain efficiency. Surprisingly, we did not find that better supply chain efficiency was associated with either hospital affiliation with systems or high‐volume purchases through large national group purchasing organizations. The results have important theoretical and managerial implications for supply chain management.     

The Ethical Wealth of Nations

Michael Porter argues that some nations manifest a competitive advantage deriving from key elements of their economic structure. Some nations are thus disposed by structure to possess what Porter calls a "competitive advantage of nations" (Porter, 1990). In this paper I examine the prospect of an ethical advantage of nations, and in particular, of a set of advantages that extend far beyond the simple dimension of trust so often discussed. I consider, further, how such a range of ethical features would be structured, and what the implications of those features would be. Three conclusions are reached: 1. Morality may create economic advantages for nations in ways that extend beyond the notion of an idealized market; 2. In order for ethics to drive economic advantage, ethical concepts must rise to the status of intrinsic value; and 3. If claims for national ethical success factors are true, then nations should attend to the issue of moral education.     

EFFICIENT HEDGING OF EUROPEAN OPTIONS WITH ROBUST CONVEX LOSS FUNCTIONALS: A DUAL‐REPRESENTATION FORMULA

Motivated by numerical representations of robust utility functionals, due to Maccheroni et al., we study the problem of partially hedging a European option H when a hedging strategy is selected through a robust convex loss functional L(·) involving a penalization term γ(·) and a class of absolutely continuous probability measures . We present three results. An optimization problem is defined in a space of stochastic integrals with value function EH(·) . Extending the method of Föllmer and Leukerte, it is shown how to construct an optimal strategy. The optimization problem EH(·) as criterion to select a hedge, is of a “minimax” type. In the second, and main result of this paper, a dual‐representation formula for this value is presented, which is of a “maxmax” type. This leads us to a dual optimization problem. In the third result of this paper, we apply some key arguments in the robust convex‐duality theory developed by Schied to construct optimal solutions to the dual problem, if the loss functional L(·) has an associated convex risk measure ρ^L(·) which is continuous from below, and if the European option H is essentially bounded.