Substitution of Noncash Payment Instruments for Cash in Europe

The substitution of noncash (check, giro, credit and debit card) payments for cash transactions is of interest for monetary policy and for determining central banks' future seigniorage revenue. We develop a novel method for approximating the share of cash transactions using public information on currency stocks, noncash payments, and card payment technology for 10 European countries. We also provide a forecast of future cash use by country. The trend in cash substitution across countries is quite similar, but the countries themselves are at significantly different stages in this process. The spread of debit and credit card payments has been the key factor behind the substitution away from cash as the use of electronic cash is still in its infancy.     

Reliance on R&D Partnerships: The Influence of Short-Term R&D Bias and The Nature of Competition

Reports indicate that capital markets frequently focus on short-term corporate financial performance. Arguments suggest that the R&D projects of many firms are skewed towards short-term, low-risk projects with relatively modest expected benefits, reflecting both a response by companies to financial market pressure to maintain short-term returns and a short-term R&D bias. Anecdotal evidence suggests that one response to short-term R&D bias by firms is for them to seek R&D partnerships with customers and suppliers. A theory is developed which suggests that when firms compete on the basis of product costs, they are likely to seek partnerships with customers and suppliers in order to respond to short-term R&D pressures. In contrast, when competition is innovation-based, firms are unlikely to pursue R&D partnerships in response to short-term R&D bias. The results of an empirical study provide support for this proposition.     

The Resource Dependence, Service and Control Functions of Boards of Directors in Hong Kong and Taiwanese Firms

Since the Asian financial crisis of the late 1990's, there have been numerous calls for the reform of East Asian corporate governance. Without reform, fears abound that the crisis will return. However, a baseline understanding of corporate governance in East Asia needs to be established before reform efforts can begin. In the West, three major functions of boards are commonly recognized: resource dependence, service, and control. These functions have yet to be examined in the context of boards of directors of Overseas Chinese firms in East Asia. In this exploratory study, we examine the extent to which these functions are performed, primarily by outside board members, in Overseas Chinese firms in Hong Kong and Taiwan. We find that the service and control functions are less pronounced for East Asian boards than what would be expected in the West, while the resource dependence function is more pronounced. We also findthat the governance of the region is being moved closer to international practices by a new generation of leaders that have been exposed to Western influences and intense global competition. The implications of our findings for managers, educators, and researchers are discussed.     

Improving the management of concurrent new product development using process modelling and analysis

This paper focuses on how process modelling and analysis using 'light weight' technology¹ supported by focused group discussions and workshops can improve the 'concurrence' and integration within the New Product Development process. This enables managers to improve the management of product design and development through a better understanding of the issues. The paper argues that the traditional changes in human resource management via introduction of multifunctional/collocated teams required by Concurrent New Product Development (CNPD) can be complemented by the introduction of process management, focused on the modelling and analysis of the 'softer' organisational issues. A case study of a domestic appliance manufacturer, developing a new product using a collocated product development team, is described to verify the research. The paper concludes by discussing the issues that emerge from this type of approach to performance improvement in NPD management, such as involvement of all team functions, senior management commitment, standardisation of processes, and training in the process management concept including modelling and analysis techniques. The approach proposed allows one to make both tangible benefits, in terms of cost, delivery (lead times) and quality, and intangible benefits, in terms of communication, people empowerment, motivation, and collaboration.     

Reengineering of materials management system: A case study

A business process reengineering (BPR) project relating to the materials management function of a cement manufacturing plant is presented in this paper. The BPR project evolved out of an organisation development (OD) intervention initiative. Such an intervention aimed at improving value innovation capability of materials management professionals of a large cement manufacturing plant in India. The proposition here is that the value metrics relate to inside-in value innovations in order to deliver inside-out value to the customers in the face of fierce competition in Indian Cement industry. Materials of all types used in a cement plant constitute 60–70% of the total cost and hence the effective operations of procurement and inventory are the critical success factors for strategic value innovations and thereby competitiveness. The primary emphasis in this project was on learning and implementation, by creating an urgency for instilling responsible leadership and building organic partnership through knowledge networking.     

The strategic power of saying no

Susan Bishop started Bishop Partners with the aim of making it the best boutique executive-search firm in the business. Specializing in television, radio, and publishing industries, her plan was to beat out her larger, established competitors through superb execution. Great service would lead to happy clients, which would lead to more business, which would keep clients happy, which would lead to even more business. A virtuous circle, right? Wrong. Before long, she and her staff grew weary of jumping through every hoop their clients could think of--trying to find candidates for lower-level positions in remote locations at below-market rates, for instance. But what could they do? How could they afford to disappoint any customer when they didn't have that many to begin with? In this vivid first-person account, Bishop describes how she and her staff came to an answer that was highly counterintuitive: stop trying to make everyone happy. Focus instead on making the right customers happy. Raise their prices. Limit their searches to high level positions in their field of expertise. Stick to companies big enough to give them repeat business. As hard as it was to define the right clients, it was even harder to say no to the wrong clients. One member of the staff had to turn down work worth $120,000; Bishop herself had to turn down $250,000 from her largest client, Coca-Cola. But in the end, those clients came back with higher-quality work, and her company was on its way from chaotic little start-up to successful, professional enterprise. Bishop tells the classic entrepreneur's story, one with important lessons about strategy making, courage, and discipline for all businesspeople.     

A question of character

For the most part, Glamor-a-Go-Go's board has been thrilled with CEO Joe Ryan's performance. Ryan, after all, had transformed the private-label cosmetics company into a retail powerhouse with flashy outlets from New York to Los Angeles. In addition to saving the company from bankruptcy shortly after his arrival in 1992, Ryan had made Glamor-a-Go-Go a fun and exciting place to work, increasing workers' wages and creating boundless opportunities for anyone willing to work hard and think out of the box. He had also brought more women and people of color on board. And he had made many employees wealthy, with generous stock giveaways and options for the most senior employees down to the most junior. Glamor-a-Go-Go's stock price had grown tenfold during Ryan's tenure. But Ryan's personal affairs were beginning to call into question his leadership abilities. The local paper's gossip column recently ran a photo of Ryan--a married man--leaving a gala event with a beautiful young woman from the company, with the headline "Who's That Girl?" Indeed, rumors about Ryan's philandering were starting to take on a harsher edge. Some people believed his secretary left because Ryan had sexually harassed her. Others believed a mail-room employee had been promoted to factory supervisor because of her affair with the CEO. Having warned Ryan several times about his alleged infidelities, the board is stuck. What should it do about Ryan's extracurricular behavior? Does Ryan's personal behavior even affect the company? Is what Ryan does outside the office the board's concern? Six commentators weigh in.     

Calm After the Storms: Income Distribution and Welfare in Chile, 1987-94

After rising during most—but not all—of the 1960–85period, inequality in Chile seems to have stabilized since around1987. Following the stormy period of economic and politicalreforms of the 1970s and 1980s, no statistically significantLorenz dominance results could be detected since 1987. Scalarmeasures of inequality confirm this picture of stability, butsuggest a slight change in the shape of the density function,with some compression at the bottom being "compensated for"by a stretching at the top. As inequality remained broadly stable,sustained economic growth led to substantial welfare improvementsand poverty reduction, according to a range of measures andwith respect to three different poverty lines. Poverty mixedstochastic dominance tests confirm this result. All of thesefindings are robust to different choices of equivalence scales.     

可修复单元备件储备量计算方法研究

本文讨论了考虑原件修复时,可修复单元备件储备量的计算方法,并给出了该方法在印制电路板备件储备量计算中的应用实例。     

Corporate Hedging: The Relevance of Contract Specifications and Banking Relationships

This article examines the contribution of hedging to firm valueand the cost of hedging in a unified framework. Optimal hedgingand firm value are explicitly linked to firm risk, the typeof debt covenants and the relative priority of the hedging contract.It is shown that in some cases hedging is possible only if thecounterparty to the forward contract also holds a significantportion of the debt. Also, the spread in the hedging contractreduces the optimal amount of hedging to less than the minimum-variancehedge ratio. Among other results this article elucidates whysome firms hedge using forward contracts while other firms hedgein the futures markets, as well as why higher priority forwardcontracts are more efficient hedging vehicles. JEL Classificationnumbers: G13, G22 and G33.