Entrepreneurial applications of the lean approach to service industries

Service industries have grown significantly in recent years, especially in the advanced economies. The applicability of the Toyota system for manufacturing excellence to other industries has been widely studied. This paper seeks to contribute to this growing body of research by exploring the applications of the Toyota approach, particularly the lean system in the service sector. The paper examines the information systems that have enabled benefit in the service industries, to include vendor-managed inventory systems and variants, and then compares the benefits from information systems in support of supply chains. We also review why enterprise systems provide more opportunities in aiding the implementation of the lean systems. We present a case study of a South Korean supply chain system to demonstrate the entrepreneurial application of such approaches.     

How Persistent is Stock Return Volatility? An Answer with Markov Regime Switching Stochastic Volatility Models

Abstract:  We propose generalised stochastic volatility models with Markov regime changing state equations (SVMRS) to investigate the important properties of volatility in stock returns, specifically high persistence and smoothness. The model suggests that volatility is far less persistent and smooth than the conventional GARCH or stochastic volatility. Persistent short regimes are more likely to occur when volatility is low, while far less persistence is likely to be observed in high volatility regimes. Comparison with different classes of volatility supports the SVMRS as an appropriate proxy volatility measure. Our results indicate that volatility could be far more difficult to estimate and forecast than is generally believed.     

The importance of understanding the shape of diverse ethnic female consumers for developing jeans sizing systems

This study has been conducted to investigate the fit issues related to the current apparel pants and jeans sizing system for diverse consumers, identifying body shape differences among ethnic groups. A total of 1335 women in a certain size range (Misses figure type sizes 2–20) were selected in the study. A Misses figure type size category is commonly used for adult women of average proportion and height. First, the body dimension differences among ethnic groups were examined with a single factor analysis of variance. Second, the fit of pants and jeans for the diverse consumers within the same size category was examined with the current standard sizing system, ASTM D5585 for adult female Misses figure type sizes 2–20. Three cases were programmed within a database: When each consumer selects a size for a pair of jeans based on (1) waist size; (2) hip size; and (3) waist height (usually pants length). And last, the results were analysed with fit comparison plots. Current jean consumers are racially diversified in the US and globally as well. This study revealed that ethnic groups had different fit problems and significant body shape differences. Even within the same figure type size category, a variety of body dimensions existed in each ethnic group. According to the fit problem assessment in this study, consumers within the same body figure type size category could not find the right fit of the pants and jeans within the current sizing system. Half of the female consumers could not find a garment to fit based on waist height (pants length) because the current sizing systems overlooked the effect of diverse consumers. This study will be useful for standardizing organizations to modify current sizing systems for diverse ethnic consumer groups as a demographic factor so that apparel companies could provide better quality of fit for their consumers in the global and local market.     

International Variation in Accounting Measurement Rules and Analysts' Earnings Forecast Errors

We theorize that accounting systems affect analysts' forecast accuracy through changes in earnings variability. We argue that the matching and historical cost principles reduce earnings variability, and hence, reduce analysts' earnings forecast errors. We also argue that restricting the choice of accounting methods can result in larger forecast errors. We argue that more informative disclosure environments should reduce forecast errors. We test whether variation in these factors across countries explain variation in analysts' earnings forecast bias and accuracy. Our results indicate that these characteristics of financial accounting systems are complements, and that they affect financial analysts' earnings forecast errors.     

Effects of demotion in loyalty programs on brand-switching intentions

This study explores the effects of demotion in loyalty programs on intentions to switch to competitors. In a survey of 650 individuals, demotion evoked negative emotions, and its effect weakened when the demoted respondents’ internal locus of control was high and strengthened when their program involvement was high. Negative emotions had an indirect effect on intentions to switch to competitors; its effect was thus mediated by the demoted respondent’s attitudes toward the company. Finally, negative emotions had a direct effect on switching intentions, an effect moderated by prior satisfaction with the company.     

An exploratory study of how casino dealer communication styles lead to player satisfaction

ABSTRACT

The purpose of this study is to verify the importance of communication styles in the casino industry. More specifically, it was proposed that nine types of casino dealer communication styles affect player satisfaction. In addition, it was hypothesized that player satisfaction plays an important role in the formation of trust, commitment, and loyalty. A conceptual model was developed and tested using the empirical data collected from 414 table game players in Korea. The results indicated that six dimensions of communication styles (i.e. attentive, open, friendly, relaxed, animated, and contentious) positively affect player satisfaction, which in turn has a positive influence on trust, commitment, and loyalty.     

Understanding user experiences of online travel review websites for hotel booking behaviours: an investigation of a dual motivation theory

Online travel review websites (a form of social media) have become an important information source for online travellers. However, previous studies have mainly focused on the issue of the adoption of social media websites. Recognising the theoretical gap in tourism, this paper tries to understand users’ experiences in using social media, associated with user satisfaction and determining the success of an information system. The findings of this research indicate that, in accordance with the motivation theory, both extrinsic (i.e. the argument quality of consumer reviews) and intrinsic (i.e. the credibility of the source) motivation play important roles that enhance user satisfaction. Specifically, the completeness, relevance, flexibility, and timeliness of the argument quality as well as the trustworthiness of source credibility positively influence user satisfaction, leading to intentions to reuse the website and purchase the tourism product. Practical implications for online tourism marketers are also discussed.     

CROSS‐COUNTRY TECHNOLOGY TRANSFER AND POLITICALLY DRIVEN INTERNATIONAL AGREEMENTS FOR ENVIRONMENTAL STANDARDS

Grossman and Helpman highlighted a political framework to internalize inefficiency incurred due to unilateral trade policy implementation by sovereign countries. This paper extensively adopts their framework to explore the effects of special interest politics on governments under negotiation to forge international environmental standards to control global emission. Particular attention is given to a case in which negotiation is driven by transferring the abatement technology. Within a specific factor model of international trade, improving the abatement efficiency through technology transfer can give the most mutually beneficial outcome, achieving the lowest level of global pollution compared to other political benchmarks.     

Top-floor discounts in residential buildings: Evidence from South Korea

This study assesses the phenomenon of resale price discounts for top-floor units of residential buildings, or “top-floor discounts.” Using 1.9 million resale transactions of apartment units from South Korea, we find that top-floor discounts range from 1.3% to 8.3% of resale prices. We hypothesize that top-floor discounts exist because of larger heating/cooling costs for these units relative to those on lower levels, resulting from relatively more extreme variation in indoor temperatures unique to top-floor apartment units. Using a household-level survey data on energy consumption and exploiting variations in weather conditions and roof material across time and regions throughout South Korea, we provide evidence in support of our hypothesis.