A Systematic Study of Change Management During CMMI Implementation: A Modified Activity Theory Perspective

This study proposed a modified activity theory framework, complemented by a dynamic time axis, to analyze each organizational change stage of a two‐phase capability maturity model integration (CMMI) maturity level adoption case. The study revealed the following results: At the planning stage, the involvement of senior executives determined the positive attitude toward change. At the getting started stage, employees' clear recognition of change objectives determined the change effectiveness. At the letting go stage, department heads got involved, understood, and provided both support and mediating activities to achieve the actual benefits. At the completion stage, performance was used as a measurement tool to help internalize the change into new capabilities.     

Information Asymmetry and Corporate Investment Decisions: A Dynamic Approach

This paper develops a dynamic model of the financing and operating decisions of firms in the presence of information asymmetry. When the value of growth opportunities is not fully recognized, securities are undervalued, thus influencing the financing and investment decisions. The agency‐based underinvestment problem is re‐examined under information asymmetry. For firms with greater growth opportunities, the investment distortion resulting from information asymmetry is especially significant. Information asymmetry also increases the expected bankruptcy cost. The cost of information asymmetry in terms of both the firm value and the information spread under the optimal capital structure could be substantial.     

Innovation killers: how financial tools destroy your capacity to do new things

Most companies aren't half as innovative as their senior executives want them to be (or as their marketing claims suggest they are). What's stifling innovation? There are plenty of usual suspects, but the authors finger three financial tools as key accomplices. Discounted cash flow and net present value, as commonly used, underestimate the real returns and benefits of proceeding with an investment. Most executives compare the cash flows from innovation against the default scenario of doing nothing, assuming--incorrectly--that the present health of the company will persist indefinitely if the investment is not made. In most situations, however, competitors' sustaining and disruptive investments over time result in deterioration of financial performance. Fixed- and sunk-cost conventional wisdom confers an unfair advantage on challengers and shackles incumbent firms that attempt to respond to an attack. Executives in established companies, bemoaning the expense of building new brands and developing new sales and distribution channels, seek instead to leverage their existing brands and structures. Entrants, in contrast, simply create new ones. The problem for the incumbent isn't that the challenger can spend more; it's that the challenger is spared the dilemma of having to choose between full-cost and marginal-cost options. The emphasis on short-term earnings per share as the primary driver of share price, and hence shareholder value creation, acts to restrict investments in innovative long-term growth opportunities. These are not bad tools and concepts in and of themselves, but the way they are used to evaluate investments creates a systematic bias against successful innovation. The authors recommend alternative methods that can help managers innovate with a much more astute eye for future value.     

Individual initiative,skill variety,and creativity: the moderating role of knowledge specificity and creative resources

This study explores the effects of individual initiative and skill variety on individual creativity under the contexts of knowledge specificity and creative resources. Regression analysis was used to test the hypotheses in a sample of 245 employees of the Bureau of National Health Insurance in Taiwan. The results show that individual initiative and skill variety positively affect creativity. Knowledge specificity and creative resources play moderating roles in affecting the relationships. High knowledge specificity complements the deficiency of the low initiative, while abundant creative resources strengthen the effect of the high initiative in performing creativity.     

Imported inputs and privatization in downstream mixed oligopoly with foreign ownership

This paper examines welfare implications of privatization in a mixed oligopoly with vertically related markets, where an upstream foreign monopolist sells an essential input to public and private firms located downstream in the domestic country. The impact on domestic welfare of privatizing the downstream public firm is shown to contain three effects. The first is an output distortion effect, which negatively affects welfare since privatization decreases the production of final good for consumption. The second is an input price lowering effect resulting from a decrease in derived demand for the input. When the level of privatization increases, a decrease in final good production lowers input demand, causing input price to decline and domestic welfare to increase. The third is a rent‐leaking effect associated with foreign ownership in the downstream private firm. The rival domestic firm strategically increases its final good production, causing profits accrued to foreign investors to increase and domestic welfare to decline. Without foreign ownership in the downstream private firm, the optimal policy toward the public firm is complete privatization as the output distortion effect is dominated by the input price lowering effect. With foreign ownership, however, complete privatization can never be socially optimal due to the additional negative impact on domestic welfare of the rent‐leaking effect. We further discuss implications for domestic welfare under different privatization schemes (e.g., selling the privatization shares to the upstream foreign monopolist or to the rival domestic firm).     

Approach and avoidance motivations in response to being envied at work and their effects on proactivity

The goal of the present study is to provide a deeper analysis of the envy-proactivity link. Drawing upon regulatory theories and Smith's model on envy appraisal, we theorize that when envied individuals focus on the potential negative impact of envy on themselves, they adopt avoidant coping strategies, which hinder proactivity, whereas concern toward others stimulates approach-motivated coping strategies, which foster proactivity. Specifically, our model operationalizes a parallel mediating mechanism between perceptions of being envied and proactivity via the serial mediation of self-oriented concern and distancing, and other-oriented concern and courtesy. Results from a multi-source survey confirm that being envied indirectly decreases proactivity via the serial mediation of self-oriented concern and distancing, and indirectly increases proactivity via other-oriented concern and courtesy.     

Does a Friendly Hotel Room Increase Senior Group Package Tourists' Satisfaction? A Field Experiment

This study uses a field experiment to investigate whether senior-friendly facilities in a hotel affect the satisfaction levels of senior tourists. This research also identifies the staff explanation effect with respect to tourists' satisfaction. A field experimental design was applied to examine the senior tourists' satisfaction with the group package tour. Senior-friendly attributes were obtained from the literature reviews, three focus groups, and in-depth interviews. Hotel rooms with senior-friendly facilities were designated as the first experimental group and senior-friendly rooms with staff explanation were designated as the second. A total of 397 valid questionnaires for senior group package tourists were retrieved. The results indicate that a room with facilities could significantly increase customers' satisfaction with respect to cleanliness, comfort, decoration, illumination, overall satisfaction, and room recommendation. However, staff explanation did not further increase or influence customers' satisfaction for a room with friendly facilities.     

Disappointment and the Optimal Insurance Contract

This paper studies the optimal insurance contract under disappointment theory. We show that, when the individuals anticipate disappointment, there are two types of optimal insurance contract. The first type contains a deductible and a coinsurance above the deductible. We find that zero marginal cost is just a sufficient but not a necessary condition for a zero deductible. The second type has no deductible and the optimal insurance starts with full coverage for small losses and includes a coinsurance above an upper value of the full coverage.     

Management earnings forecasts and bank loan contracting

We find that firms tend to issue management earnings forecasts and convey good news before bank loan initiation. Issuing firms enjoy more favorable contracting terms and attract more lenders. Management forecasts issuance within a nine‐month period prior to the loan activating quarter can lower the subsequent loan spread by 14.06 basis points. Moreover, firms with larger management forecast errors are charged harsher contracting terms and attract fewer lenders. Our study suggests that firms strategically issue management earnings forecasts before entering into debt contracts and lenders incorporate the information contained in management earnings forecasts into bank loan contracting.     

Dynamic Use Diffusion Model in a Cross‐National Context: A Comparative Study of the United States,Sweden, and India

This study proposes a model of dynamic use diffusion that serves as a basis for investigating post‐adoption technology‐usage behavior. Dynamic use diffusion measures the extent to which technology usage has evolved since the time of adoption. Herein, antecedents and consequences of dynamic use diffusion are investigated. A large‐scale, random sample survey was conducted in the United States, Sweden, and India on the use of Internet and computing technology. The survey results suggest that while the antecedents of dynamic use diffusion are similar across the three countries, the consequences are somewhat different for India. These differences can be attributed to the national cultural differences of India compared with the United States and Sweden with regard to power distance beliefs.