The effectiveness of different mechanisms for integrating marketing and R&D

The integration of marketing and R&D is a major concern for companies that want to improve their new product performance (NPP). For this integration, companies are using mechanisms such as physical proximity, cross-functional teams, and job rotation. This study examines the effectiveness of these mechanisms by developing a model that distinguishes between indirect effects of mechanisms on NPP (i.e., through a higher level of integration) and direct effects. The model is tested with data collected from 148 pharmaceutical companies. We were able to measure and compare the effectiveness of seven different integration mechanisms, which produced insights that are interesting and relevant for theory as well as practice.
We found that housing marketing and R&D closer to each other and using an influential cross-functional phase review board are the most effective mechanisms to foster integration. Equal remuneration and career opportunities for marketing and R&D and cross-functional teams are somewhat less effective, whereas personnel movement and informal social group events contribute little. ICT appears to be a very effective tool for enhancing NPP. ICT not only fosters integration between marketing and R&D, but it also has an independent direct positive effect on NPP. Through ICT the day-to-day communication between the different parties in the companies becomes much easier, and we think that this fosters the knowledge creation process within marketing and R&D. For cross-functional phase review boards we found a negative direct effect on NPP. Notwithstanding its strong positive effect on integration, a price is paid in terms of NPP. This may be related to the amount of formalization and complexity accompanying this mechanism.     

Tactical Opportunities,Risk Attitude and Choice of Farming Strategy: an Application of the Distribution Method

When assessing farming strategies, it is important to account for the opportunities provided for tactically adjusting to outcomes of risk. The hypothesis that accounting for tactical adjustment is more important than accounting for risk attitude was supported in this study with regard to identifying the optimal drainage recirculation strategy for an irrigated dairy farm. Failing to account for tactical adjustment would lead to a sub-optimal choice, costing the farmer about A$3 100 in present value terms. In contrast, failing to account for risk aversion would not affect the strategy chosen. The distribution method was found to be well suited to modelling tactical adjustment.     

AN EVALUATION OF PROCESS‐ORIENTED SUPPLY CHAIN MANAGEMENT FRAMEWORKS

Supply chain management (SCM) is implemented by integrating corporate functions using business processes within and across companies. Several process‐oriented frameworks for SCM have been proposed but only two of these provide sufficient detail to enable implementation. We evaluate the Supply‐Chain Operations Reference (SCOR) framework and The Global Supply Chain Forum (GSCF) framework using four criteria and identify their relative strengths and weaknesses.     

The Contingent Value of Responsive and Proactive Market Orientations for New Product Program Performance*

While the benefits of being market oriented are largely accepted, a group of scholars and managers remain skeptical. Marketing scholars have sought to counter the criticisms leveled against market orientation (MO) by arguing that it has both responsive and proactive dimensions. However, few studies have empirically examined the complexity of the effects of these dimensions on firm performance. Drawing on theories of resource‐based advantage and organizational search behavior, this article advances understanding by arguing that responsive and proactive market orientations have curvilinear effects on product development performance, that their interaction may be positively related to product development performance, and that their effects on new product program performance are moderated differentially by the organizational implementation conditions and marketing function power. Survey results of 175 U.S. firms indicate support for most of the hypotheses. Specifically, whereas responsive MO has a U‐shaped relationship with new product program performance, proactive MO has an inverted U‐shaped relationship with new product program performance. Contrary to the arguments presented here, the interaction of both orientations is negatively related to new product program performance. This study finds that both orientations are needed; however, new product program performance is enhanced when one is at higher level and the other is at lower level. Finally, responsive MO is only positively related to new product program performance under specific conditions such as when strategic consensus among managers is high. On the other hand, the positive effect of proactive MO on new product program performance is further strengthened when learning orientation and marketing power are high. Overall, this study suggests that the effects of responsive and proactive MO on new product program performance are more complex than previously theoretically argued and empirically examined.     

Universal service through roll‐out targets and licence conditions: lessons from telecommunications in South Africa

A priority for the post‐apartheid government was the extension of basic infrastructure services to the vast majority of citizens that were not serviced under apartheid. The Reconstruction and Development Programme set objectives for each of these utilities that would be achieved in the first decade of democracy, while departmental policy aimed to find means of achieving these targets. The strategy of choice in most sectors was one of ambitious roll‐out targets being set for utility operators. Targets were set for individual residential service (‘universal service’) and for community service outside of individual homes (‘universal access’). While most utilities remained under public ownership, in telecommunications there was partial privatisation of the incumbent Telkom and the entry of privately owned mobile cellular operators. This article examines how roll‐out targets and licence conditions for universal service have performed in this sector where private operators exist. It examines the failure of the Telkom licence and draws out some lessons for policy.     

Centre-State Resource Allocation in India: A Suggestive Mathematical Approach

Journal of Quantitative Economics - The paper tries to apply a new technique — the decomposition principle — to centre state financial relations in India. As, appropriate data are not...     

Initial public offerings in the gaming industry: an empirical study

The fastest growing segment of the hospitality industry is gaming-related business. This industry has experienced record numbers of companies going public, and their stocks are considered favorable long-term investments. Research in the initial public offering (IPO) area suggests that investors acquiring stock at the initial offering price earn large returns. The purpose of this study was to determine if large returns are being experienced for IPOs in the gaming segment of the hospitality industry, and if these large returns were limited to investors who purchased the stock at the initial offer price. There were 14 gaming-related companies selected for the study. The conclusions supported research reporting that the highest returns from IPO investments are made when the stock is purchased at the initial offer price. This study concludes that returns based on the initial offer price were greater than the casino index and the IPO index. When the investor purchased the stock at the first day's closing price, however, returns compared to the two indices were surpassed only after holding the stock for 8 weeks.     

Disciplining: A question of ethics?

The importance of evaluating a discipline system from an ethical perspective is considered. Disciplinary practices in contemporary organizations are frequently characterized by managers having to choose from among alternative courses of corrective action. Since the selected alternative may have serious consequences for the individuals involved, its rightness or wrongness is of concern. The pattern of these choices reflects the overall disciplinary practice of the organization, and is an issue that warrants attention from an ethical perspective. Basic schools of thought that influence contemporary discipline practices are discussed and suggestions are made for conducting an evaluation of the ethical nature of a discipline system.     

MIGRATION FROM THE NORTHEAST TO THE SOUTHEAST IN BRAZIL:* Do Migrants Succeed?

"In this paper 1980 [Brazilian] Census microdata are used to evaluate the experiences of males who moved from the Northeast to the Southeast in the post- 'miracle' period. Using regression analysis, migrant earnings are compared to those of persons who remain in the Northeast, to estimate the average earnings gain from relocating. These results are then disaggregated by education, age at migration, period of residence, and particular sending and receiving location, to provide more specific information on which groups benefit most. Wide variation in gains is observed, but substantial improvements in earnings are reported in most cases."