Using frailty models to account for heterogeneity in multistage manufacturing and service processes

Statistical process control has been widely applied to manufacturing and service operations with the aim of monitoring and improving the reliability of products. The existing monitoring procedures were introduced following the assumption that a single-stage process with independent quality characteristic is under consideration. However, in multistage processes with dependent variables, quality characteristics of interest should be optimally monitored only after they have been adjusted for the effect of influential covariates. In general, it is impossible to include all relevant covariates because measuring such values entails great financial costs. The neglect of such covariates results in having unobserved heterogeneity which dampens the detection ability of the monitoring procedure. The more complicated picture arises when the values corresponding to the reliability-related quality variable are censored due to the time and cost constraints. Thus, to deal with the effect of observed and unobserved covariates together with the censoring issue, the frailty and the proportional hazard models are used and some model-based monitoring schemes are devised. The surveillance procedures are proposed in both the presence and absence of a censoring mechanism. The performance analysis shows that the monitoring procedure based on the cumulative sum chart is superior in detecting shifts while the exponentially weighted moving average chart is effective in some cases.     

Stock market signals and consequences of securities class actions lawsuits: a microstructure perspective

Review of Quantitative Finance and Accounting - We perform a microstructure analysis of trading activities pre- and post-class period end-dates of securities class action lawsuits. We posit that...     

The role of ethnicity in domestic intercultural service encounters

The current study investigates how ethnicity influences consumer (dis)satisfaction regarding service encounters in multicultural domestic service markets. The study interviews 306 ethnic Malay and Chinese respondents in Malaysia using the critical incident technique. The respondents provide 612 critical incidents for content analysis. Based on content analysis and inter-judge reliability, seven sub-categories (grouped within three major categories) emerge as integral determinants of service encounters in multicultural domestic service markets. The findings suggest intra- versus inter-ethnic affiliation between consumer and service provider influences the evaluation of domestic intercultural service encounters. Specifically, consumers are found to be more satisfied (dissatisfied) when service encounters are with service providers with the same (different) ethnic affiliation as themselves. The present study extends current literature by examining the role of ethnicity in service encounters in multi-cultural service markets. The identified determinants and associated findings from the present study further provide practical insights for managers regarding how different ethnic consumers are likely to respond to service encounters in such markets. The study indicates that different service expectations exist between consumers from different ethnic affiliations.     

Exploring the effects of capital mobility on the saving–investment nexus: evidence from Icelandic historical data

We explore the effects of capital mobility on the relationship between saving and investment using historical data for Iceland. First, we analyse the saving–investment (S-I) correlation for the period of restricted capital mobility using data from 1960 and 1994. We then add a period of free capital mobility between 1994 and 2008 and estimate the correlation for the period 1960–2008. Finally, we extend our analysis to the 2008 to 2016 period, when capital controls were imposed in response to the crisis. Institutions matter: We find institutional changes, in particular, Iceland’s entry into the European Single Market in 1994, coincided with a fall in the long-run correlation between saving and investment. However, the correlation weakens further when we include the post-crisis regime of capital controls, suggesting a weaker relationship between savings and investment in this regime. We discuss the possible reasons for this pattern and also the implications of our findings for post-crisis policy in small open economies.     

International Entrepreneurship as a Dynamic Adaptive System: Towards a Grounded Theory

This paper is based on a primary assumption: That the internationalizing smaller firms are different from large international firms, such as multinational enterprises (MNEs); and therefore, the process of internationalization and growth of smaller firms may not follow processes stipulated in the extant theories of MNEs and international business processes (IBPs). Even the primary orientations and theoretical constructs used in IBP and the theory of multinationals are different from those in entrepreneurship: While the former focuses on the institution of the “firm” the latter concentres on the “entrepreneur” as internationalizing entities. This paper will suggest a theoretical framework capable of integrating this prevailing fragmentation. The framework is based on the tenets of dynamic open complex adaptive system (DOCAS), comprising three layers, reflecting entrepreneurs (or entrepreneurial teams), firms and markets to reflect their own dynamics as well as the inter-relations and interactions of entities within and across layers within the framework. After a brief review of the basic characteristics of a simple DOCAS and the major attributes of entities populating each layer in the framework, the interdependencies and interactions within and across layers are highlighted. This framework presents a coherent and comprehensive structure capable of housing the next six papers contained in this issue. They are reviewed and highlighted from the perspective of the proposed framework. These papers support the proposed framework substantively. The proposed grounded framework appears to lay the foundation for the research and theory necessary for enhancing our understanding of IBP and internationalization in smaller firms. Conclusion and implications of the papers are presented at the end.