Interlocking of information systems for international supply and demand chains management

This paper is concerned with coordination aspects of supply chain management and, in particular, investigates setup coordination between two and three stages of a supply chain. The problem arises from a real application in the production chain of a kitchen furniture plant. In different stages of the plant, items are grouped according to different attributes. A setup is required in a stage when the new batch has a different level of attribute from the previous one. Two objectives are considered, i.e., minimizing the total number of setups and minimizing the maximum number of setups of the stages. The problem is to determine a sequence of batches in search for Pareto-optimal solutions with respect to the two objectives. Several metaheuristics, including genetic algorithm, simulated annealing, and iterated local search (ILS) have been proposed for the two-stage problem. In this paper, we develop a constructive heuristic, which combines a least flexibility first principle and a greedy search, for the two- and three-stage problems. Computational results show that the proposed heuristic performs significantly better than the genetic algorithm and simulated annealing. Although the proposed heuristic is inferior to the ILS, which employs two constructive initial solution heuristic, for the two-stage problem, it can be easily extended to the three-stage problem.     

The demand for training and consultancy investment in SME-specific ERP systems implementation and operation

This research examines the demand for the level of investment in training and consultancy necessary to successfully implement and operate small and medium sized enterprises (SME)-specific enterprise resource planning (ERP) systems in SMEs. The extant literature on ERP, as well as established business practices adopted by the majority of ERP vendors and trainers, suggests that in order to implement and operate ERP systems effectively, a training model including an extensive training period, and often utilising external consultants, is a necessary condition. An in-depth case study has been conducted in this research on a UK-based SME-specific ERP systems vendor, which maintain that their SME-specific ERP systems can be implemented and operated effectively with only five days of formal training and no additional consultancy. This research evaluates the validity of this claim, and investigates the basis for the training model employed by the case company is, or is not, sufficient for users to successfully implement and operate SME-specific ERP systems.     

Goodwill impairment as a reflection of investment opportunities

We exploit a unique opportunity to examine whether goodwill impairment write‐offs reflect firms’ investment opportunities during the first years of the US goodwill impairment accounting regime. We find that impairment write‐offs are negatively associated with firms’ underlying investment opportunities. We also find associations between goodwill impairment write‐offs and traditionally applied leverage, firm size and return on assets variables, although the leverage and firm size results are less robust. The results support the International Accounting Standards Board and Financial Accounting Standards Board contention that an impairment test regime can reflect firms’ underlying economic attributes, while simultaneously indicating that managers use discretion to reduce contracting costs.     

By chance or by choice? Biased attribution of others’ outcomes when social preferences matter

Experimental Economics - Decision makers in positions of power often make unobserved choices under risk and uncertainty. In many cases, they face a trade-off between maximizing their own payoff and...     

The prospects of a monetary union in East Asia

This paper assesses the empirical desirability of the East Asian economies to form a monetary union. The Structural Vector Autoregression (VAR) method is employed to assess the nature of macroeconomic disturbances among the East Asian countries, as a preliminary guide in identifying potential candidates for forming an Optimum Currency Area (OCA). In comparison with European countries, East Asia has less symmetric underlying structural shocks but the speed of adjustment to shocks is much faster. The empirical results suggest that there exists a scope among some small sub-regions, comprising mainly of ASEAN countries, for potential monetary integration. The finding of an increased symmetry of shocks among countries after the Asian Financial crisis indicates that the regional policy-coordinating effort after the crisis has put the region on the right track if monetary union is a desired goal.     

Does franchising help restaurant firm value?

A company's financial performance is of keen interest to many groups of people, including management, employees, shareholders, government, and so on. Although franchising has been one of the most common strategies to maximize a firm's financial performance in the restaurant industry, little research has been conducted regarding the relationship between the degree of franchising and the restaurant firm's financial performance. This study initially proposed a sigmoid relationship between the degree of franchising and the restaurant firm's financial performance based on the diversification theory. Findings, however, do not fully support the sigmoid relationship; rather a more quadratic or inverted U-shaped relationship was found.     

An integrated framework for competency development: perspectives of risk managers in banks

To succeed, business organisations need comprehensive competency development to continuously churn out talent. However, existing approaches are inadequate because they focus on specific technicalities, people and internal firm matters, rather than tackling the issues in a comprehensive manner. We address this deficiency by testing a framework that integrates three concepts—core competencies, dynamic competencies and learning organisation—in an under-researched context: banks’ risk management functions. Our survey of 135 risk management professionals yielded a five-factor framework. The proposed framework guides competency development more comprehensively in that it integrates the three concepts hitherto studied in isolation. It is also systematic and practical given its overarching and expandable dimensions.     

Seize the moment: Opportunism in Australian capital markets

This paper examines theories of capital structure using a dataset of listed Australian companies from 1993 to 2005. Companies appear to have target leverage but they take advantage of favorable firm characteristics to achieve these targets. Issuers issue debt when they are profitable. When firms are profitable and perform well in the market, they will issue both debt and equity.