Swarm intelligence. A whole new way to think about business

What do ants and bees have to do with business? A great deal, it turns out. Individually, social insects are only minimally intelligent, and their work together is largely self-organized and unsupervised. Yet collectively they're capable of finding highly efficient solutions to difficult problems and can adapt automatically to changing environments. Over the past 20 years, the authors and other researchers have developed rigorous mathematical models to describe this phenomenon, which has been dubbed "swarm intelligence," and they are now applying them to business. Their research has already helped several companies develop more efficient ways to schedule factory equipment, divide tasks among workers, organize people, and even plot strategy. Emulating the way ants find the shortest path to a new food supply, for example, has led researchers at Hewlett-Packard to develop software programs that can find the most efficient way to route phone traffic over a telecommunications network. South-west Airlines has used a similar model to efficiently route cargo. To allocate labor, honeybees appear to follow one simple but powerful rule--they seem to specialize in a particular activity unless they perceive an important need to perform another function. Using that model, researchers at Northwestern University have devised a system for painting trucks that can automatically adapt to changing conditions. In the future, the authors speculate, a company might structure its entire business using the principles of swarm intelligence. The result, they believe, would be the ultimate self-organizing enterprise--one that could adapt quickly and instinctively to fast-changing markets.     

Institutions,resources, and entry strategies in emerging economies

We investigate the impact of market‐supporting institutions on business strategies by analyzing the entry strategies of foreign investors entering emerging economies. We apply and advance the institution‐based view of strategy by integrating it with resource‐based considerations. In particular, we show how resource‐seeking strategies are pursued using different entry modes in different institutional contexts. Alternative modes of entry—greenfield, acquisition, and joint venture (JV)—allow firms to overcome different kinds of market inefficiencies related to both characteristics of the resources and to the institutional context. In a weaker institutional framework, JVs are used to access many resources, but in a stronger institutional framework, JVs become less important while acquisitions can play a more important role in accessing resources that are intangible and organizationally embedded. Combining survey and archival data from four emerging economies, India, Vietnam, South Africa, and Egypt, we provide empirical support for our hypotheses. Copyright © 2008 John Wiley & Sons, Ltd.     

A New Global Index of Infrastructure: Construction,Rankings and Applications

We construct comprehensive and comparable indices on the most relevant components of economic infrastructure. An unobserved components model is employed to cover the largest possible number of developing and developed countries over the period 1990–2010. We map major findings from the new indices of infrastructure and provide country rankings, which we also compare with subjective assessments of infrastructure in the World Economic Forum's Global Competitiveness Report. Finally, we exemplify possible applications related to trade and foreign aid. By overcoming several data limitations, our new global index can help assess the links between infrastructure and economic development more systematically.     

Moderating effect of discriminatory attributions on repatronage intentions

This research investigates the role of social context at the time of a service failure. The negativity of the service failure has the potential to escalate when consumers who are part of a traditionally stigmatized group believe the service failure to be a purposeful event brought on by physically observable differences in appearance. A small exploratory study and two large scale data collections are conducted to validate a measure of transaction specific attributions of discrimination (TSAD) to enhance our understanding of the issue. The moderating effect of TSAD is demonstrated on repatronage intentions to the service firm.     

Restructuring Soviet Transport: a Study in Similarities and Contrasts

The nation states created by the disintegration of the former Soviet Union inherited transportation systems ill suited to the needs of market economies. Technologies were often outmoded, too energy intensive and not well adapted to the on–time delivery of small shipments characteristic of a modem consumer society. Furthermore, similarly to much of the rest of the Soviet economy, the transport sector was burdened with unwieldy and diffxcult–to–manage vertically integrated monopolies that were largely unresponsive to customer needs. Policies to solve these problems will vary from mode to mode. For water and highway transport, simple pro–competitive policies that emphasize easy entry, little regulation and prompt privatization should be appropriate. Because of network coordination and specialized infrastructure requirements, rail and air transport will need less fragmented approaches. One positive aspect of the transport situation in the former Soviet Union, slightly reducing the pressures for immediate reforms, the substantial capacity put in place by the old regime–a consequence of the former command/control economy being one of the most transport intensive in the world     

The suffering company: Consumer compassion towards companies exposed to negative events

When a company commits misconduct, it will usually suffer; for example, in the form of a short‐term decline in sales, a medium‐term loss of reputation, or a long‐term drop in its bottom line. But when a company is involved in a negative event for which it is fully responsible, for example, public customer agitations due to false expectations, some consumers might feel compassion for the company. In turn, they might aim to help the company overcome its period of suffering; for example, by making supportive recommendations. Drawing upon deservingness theory and previous findings on these issues, the authors propose a causal model suggesting antecedents of compassion and subsequent helping behaviors towards the company. A main finding is that the emergence of helping behaviors as a result of consumers’ compassion depends largely on company reputation. Self‐efficacy is a further focal construct influencing the intensity of felt compassion and helping behaviors depending on company reputation, suggesting that consumers apply emotion regulation strategies in such incidents.     

Human capacity development in Indonesia: leadership and managerial ideology in Javanese organizations

Abstract

In this paper, leadership is viewed as a driver for change, showing directions towards a society with high adaptive capacity. This study, in particular, investigates whether the eight ancient principles of Javanese statesmanship (Asta Brata) can be employed as change agents for analysing managerial leadership excellence in Javanese organizations. Factor analysis, regression modelling and structural modelling are used to explain what constitutes leadership excellence in Javanese organizations. These findings based on the perceptions of 312 Javanese managers suggest they favour a paternalistic leadership style that is nurturing but not authoritative. This then calls for institutions that stimulate progressive leadership and entrepreneurial leadership as necessary but not sufficient until tempered with personal quality factors such as trustworthiness, dependable and discerning behaviours, patience and decisive action and acknowledgement of environmental influence.     

Cultural context and its influence on managerial leadership in Thailand

In this paper, we explore excellence in leadership in Thailand, a nation that has strong roots in Theravada Buddhism. Summated scales and a structural model were constructed to explain the relationships between the excellences in leadership constructs. A sample frame of 401 Thai managers employed in organizations in Bangkok, North Thailand, and East Thailand participated in this research. The findings suggest that there are strong cultural factors such as non-confrontation, respect, and deference for authority mediating the perceptions of Thai managers with regards to perceptions of an excellent leader. Age and gender are also demonstrated as key differentiating factors in the perceptions of Thai managers.