Longitudinal Analysis of Relationships between Planning and Performance in Small Firms

This paper investigates causal relationships between planning and performance utilizing a longitudinal database with responses from the same 2,956 businesses over a four-year period. Results confirm the association between planning activity and performance that is evident in most extant literature. They also, however, cast doubt on the traditional perception of the causal sequence of that association. Although subject to a number of limitations, the results indicate that planning is more likely to be introduced into a small firm after a period of growth rather than before a period of growth. These results make an important contribution to understanding the planning performance relationship for two main reasons: they overcome the static data and relatively smaller sample size restrictions of many past studies; and, they provide evidence concerning the sequence of the relationship between planning and performance.     

The Effects of Rhetorical Figures and Cognitive Load in Word‐of‐Mouth Communications

Advertising messages often are intended to ignite large‐scale word‐of‐mouth campaigns among consumers. Drawing primarily from memetic theory, cognitive fit theory, and perceptual fluency, this research examines how rhetoric and cognitive load interact to enhance or diminish desirable effects such as retention of the original intent of the message (copy‐fidelity) and engendering a desire to pass the message along (fecundity). Certain types of rhetoric are shown to aid this process by making some messages more attractive for retransmission and increasing retention of the original message, while cognitive load modifies which types are effective in accordance with cognitive fit and perceptual fluency. The results suggest that low‐deviation high‐complexity message forms (known as reversal) are the most effective for creating positive word‐of‐mouth outcomes and limiting potentially negative outcomes. Additionally, the results show that destabilization messages are more likely to yield mutated word‐of‐mouth messages that consumers still feel a strong desire to pass along to others. For practitioners, the results indicate what message forms should be used to effectively spark word‐of‐mouth campaigns.     

Internal and external drivers for quality certification in the service industry: Do they have different impacts on success?

This paper presents the results of a study of hotels that are certified for quality management to identify the reasons for seeking quality certification. The authors analyse whether internal or external drivers for seeking certification have different impacts on benefits and the use of quality tools in the hotel industry. The analysis groups hotels according to the importance of their internal reasons for certification, and uses cluster analysis to identify the significant differences between groups of hotels. The findings for the 32 hotels analysed show that hotels that pursued certification for internal reasons develop better quality tools and have increased levels of benefits.     

A holistic network model for supply chain analysis

Supply chain researchers are experiencing a conceptual and analytical paradox. They are asked to move beyond dyadic analyses and investigate larger network effects with only a limited analytical toolkit. This research proposes the use of bilinear mixed-modeling to holistically analyze supply chain phenomena. Through this approach, researchers are able to account for multiple supply chain relationships, higher-order dependencies among member firms, and simultaneously evaluate covariates from buyer and seller perspectives. The model is validated through the lens of a pervasive supply chain problem commonly referred to as the bullwhip effect. A sample of firms from the US apparel industry in 2004 is analyzed and then the findings are confirmed using data from 2005. In addition to validating the model through the presence of the bullwhip effect, the bilinear model illuminates variables such as advertising, price deals, inventory turnover, and inventory backlogs that exacerbate or diminish inventory differences between firms in a supply chain. The results extend research on supply networks and supply efficiency to a more holistic level and show that higher-order dependencies are important drivers of supply chain phenomena.     

The Effect of “Private” and “Public” Risks on Oilfield Asset Pricing: Empirical Insights into the Georgetown Real Option Debate

The Spring 2005 issue of this journal featured a “debate” over the best way of applying real options. In “Real Options Analysis: Where Are the Emperor's Clothes?,” Adam B orison criticized most practices that go under the name real options and recommended an “integrated” approach that combines real options techniques with a traditional approach known as “decision tree analysis.” This approach breaks valuation problems into two components—“market” risks (say, oil price changes) and “private” risks (the possibility that actual reserves fall well short of estimated) — and then uses option pricing models to evaluate the market risks and decision trees for the private risks. In response to Borison's article, Tom Copeland and Vladimir Antikarov argued that these two components can be evaluated in a single analysis that uses both DCF (to calculate the value of the “underlying asset”) and Monte Carlo simulation (to estimate the volatility of the underlying), thereby expanding the range of real options applications. In this article, the authors attempt to shed light on this debate with the findings of their extensive empirical analysis of U.K. oilfield expansion options. The bottom line of their study is that size matters in the context of oilfields, presumably because it offers a reliable guide to the kind and size of risks associated with the project. In the case of the larger oilfields, where market risks are likely to outweigh the private risks, the author's findings suggest that both approaches are reasonably effective and provide roughly the same degree of accuracy. In the case of smaller fields, however, where private risks are proportionally larger, the authors conclude that Borison's approach is likely to be more reliable.     

The Sun Also Rises: Productivity Convergence Between Japan and the USA

The growth process for a technological leader is different from that of a follower. While followers can grow through imitation and capital deepening, a leader must undertake original research. This suggests that as the gap between the leader and the follower narrows, the follower must undertake more genuinely innovative R&D and possibly face a slower overall growth rate. The results of a dynamic panel equilibrium-correction model of productivity growth suggest that the productivity gap with the USA had a strong effect on the growth of Japanese manufacturing, and that changes in R&D intensity also made a significant contribution. Moreover, the effect of the productivity gap was significantly higher in industries that had higher R&D intensities, higher levels of human capital, and were more open to exports. This paper is based upon Chapter 5 of my D.Phil. thesis at the University of Oxford. It was partly written while I was a Visiting Scholar at the Foundation for Advanced Information & Research, Tokyo, and was supported by a Sanwa Bank Foundation Research Fellowship and ESRC grants R000234954 and R000237500.     

Globalization and Local Leadership: Growth,Power and Politics in Thailand's Eastern Seaboard

A growing literature has examined the changing nature of urban political leadership in an era of economic globalization and increased pressures for fiscal austerity on governments. Based mostly on the experiences of the United States and Europe, this literature has emphasized the imperative of urban leaders to become increasingly entrepreneurial — to foster collaboration with private sector actors, to mobilize new sources of financing for urban development, and to develop innovative strategies for economic growth. This article examines this question in the very different context of the Extended Bangkok Metropolitan Region (EBMR) in Thailand. It argues that, in the context of rapidly urbanizing regions in Southeast Asia, these changes have in many contexts led to the emergence of businessmen‐cum‐politicians who exert both economic and political dominance in localities. Such figures have emerged as intermediaries in the process of industrialization and urbanization between national governments and people in localities, and play an important role in mobilizing land, labor and capital at the local level, and in fostering a political base for national economic development policy. The article illustrates this phenomenon with a case study from Chonburi, a rapidly industrializing province on the fringe of the EBMR. L'évolution de l'autorité politique urbaine, dans un cadre de mondialisation économique et de gouvernements en butte à des pressions d'austérité fiscale accrues, fait de plus en plus souvent l'objet d'études. Essentiellement basées sur les expériences américaines et européennes, celles‐ci soulignent l'impératif, pour les leaders urbains, de devenir des chefs d'entreprise encourageant la collaboration avec les acteurs du secteur privé, mobilisant de nouvelles sources de financement de l'expansion urbaine et élaborant des stratégies novatrices de croissance économique. L'article examine cette question dans le contexte très différent de la Métropole étendue de Bangkok en Thaïlande. Dans un environnement sud‐asiatique en urbanisation rapide, ce changement a fréquemment fait émerger des hommes politiques‐hommes d'affaires qui exercent une domination tant économique que politique dans les régions. Apparus en tant qu’intermédiaires dans le processus d'industrialisation et d'urbanisation (entre les gouvernement nationaux et les populations régionales), ces personnages jouent un rôle important dans la mobilisation du terrain, de la main‐d'?uvre et du capital en plan local, tout en favorisant un appui politique pour les stratégies de développement économique nationales. L'article illustre ce phénomène avec le cas de Chonburi, province en cours d'industrialisation rapide située aux confins de la Métropole étendue de Bangkok.