A dynamic factor model framework for forecast combination

A panel of ex-ante forecasts of a single time series is modeled as a dynamic factor model, where the conditional expectation is the single unobserved factor. When applied to out-of-sample forecasting, this leads to combination forecasts that are based on methods other than OLS. These methods perform well in a Monte Carlo experiment. These methods are evaluated empirically in a panel of simulated real-time computer-generated univariate forecasts of U.S. macroeconomic time series.     

Specific customer knowledge and operational performance in apparel manufacturing

Customer knowledge is an important organizational asset that can be exploited to yield competitive advantage to a firm. However, empirical research on the application of customer knowledge to improve operational performance has been lacking in operations management. In this study we explore how customer knowledge can be used to improve operational performance under a supply chain environment in the clothing industry. We first conceptualize the relationship between customer knowledge and operational performance and delineate their attributes based on a review of the pertinent literature. We then formulate several hypotheses based on past studies and interviews with experienced industry personnel. We develop a self-reported questionnaire to collect data to test the hypotheses. Finally, we conduct a number of regression analyses to identify the key attributes (constructs) of customer knowledge that have a significant impact on operational performance. This paper contributes to research by demonstrating that there are relationships between specific customer knowledge and different facets of operational performance, and provides practitioners in clothing manufacturing with managerial insights on how to leverage customer knowledge for operational performance improvement.     

Strategic orientation of high-technology firms in a transitional economy

Strategic orientation is a critical factor for a firm's competitiveness in a transitional economy context but it is understudied in the current literature. This article examines the antecedents of strategic orientation from both the socio-cognitive and resource-based view perspectives. The study posits that the strategic orientations of firms in a transitional economy context are influenced by the top managers’ cognitions and organizational resources. Based on a national survey of high-technology firms in China, the study finds that a stronger market-focused strategic orientation was facilitated by managerial cognitions about the future of the industry and current operation and performance of the firm, as well as organizational resources including an R&D infrastructure, technological alliance, and top managers' foreign experience. The study confirms that strategic orientations should be examined from multiple theoretical perspectives.     

Insiders maintain voice: A psychological safety model of organizational politics

We present a psychological safety model of organizational politics to account for the effects that exposure to organizational politics has on voice behavior. In particular, we hypothesize that psychological safety mediates the negative relation between organizational politics, as perceived by employees, and their voice behavior. Moreover, we examine the extent to which perceived insider status alleviates the main effect of organizational politics and the indirect effect of psychological safety. Using a sample of 283 supervisor–subordinate dyads in six electronic companies at two time points in China, our results fully support the hypotheses and provide new directions for politics and voice research.     

Coping with Workplace Ostracism: The Roles of Ingratiation and Political Skill in Employee Psychological Distress

The study reported here examined the relationship between workplace ostracism and employee psychological distress (i.e. job tension, emotional exhaustion, and depressed mood at work) by focusing on the joint moderating effects of ingratiation and political skill. Data from a two‐wave survey of 215 employees in two oil and gas firms in China indicated that as predicted, workplace ostracism was positively related to psychological distress. Moreover, the findings showed that when employee political skill was high, ingratiation neutralized the relationship between workplace ostracism and psychological distress, but when it was low, ingratiation exacerbated the relationship.     

The Real Cost of Financial Capital in the United States,Japan and Korea: Comparison and Convergence Tests

This paper presents alternative measures of the real cost of financial capital in the United States, Japan, and Korea over the 1975-90 period. Japan's cost of financial capital was the lowest among the three countries studied. The U.S. real cost of financial capital was higher than the Korean real cost. Our statistical analyses provide some evidence for shrinking the gap in the real financial costs of Japan and Korea vis a vis the United States. This is the reflection of increasing goods market integration and financial liberalization occurring in Japan and Korea. [F36, G15]