Service strategy to improve operational capabilities in the public sector

ABSTRACT

Public institutions, such as emergency services, face unique operational challenges because they do not have a clear profit motive, operate in a political system as opposed to a market system, and have a fragmented authority structure. This study applies traditional operations and service strategy theory to the not-for-profit, public sector context. Synthesizing research from these theoretical domains, a contingency framework is developed to determine the effect of environmental uncertainty and strategic choices on operational capabilities in emergency services under different governance structures. Operations strategy research traditionally uses survey-based measures, while emergency services research focuses on mathematical modeling techniques. In contrast, this study analyzes archival data with 9800 emergency incidents using hierarchical regression. The results support that in the public not-for-profit context, strategic choices mediate the impact of environmental uncertainty on operational capability. Furthermore, governance structure moderates the impact of environmental uncertainty and strategic choices.     

Product market deregulation and the US employment miracle

We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main theoretical contribution is combining a job matching model with monopolistic competition in the goods market and individual bargaining. We calibrate the model to US data and perform a policy experiment to assess whether the decrease in trend unemployment during the 1980s and 1990s could be directly attributed to product market deregulation. Under our baseline calibration, our results suggest that a decrease of less than two-tenths of a percentage point of unemployment rates can be attributed to product market deregulation, a surprisingly small amount.     

A study of the structural integration of the marketing and PR functions in the C-suite

Recently, a number of firms have structurally integrated the distinct yet related functions of marketing and public relations (PR), under the leadership of a single corporate-, or C-level, executive. Such actions, as well as turf wars between the functions over social media ownership and related stakeholder management conflicts, have reignited the debate over whether marketing and PR should be separated or unified. By drawing on the pros and cons of integration, as suggested by prior conceptual research on integrated marketing communications, and using secondary data for a set of Fortune 500 firms, this study empirically tests this issue for multiple outcomes and contingencies. Results show that the integration of marketing and PR has positive benefits for firm reputation, an effect that is weakened as firm size increases, and positive effects for firm profitability in service-oriented firms.     

Robustness of the Black and Scholes Formula

Consider an option on a stock whose volatility is unknown and stochastic. An agent assumes this volatility to be a specific function of time and the stock price, knowing that this assumption may result in a misspecification of the volatility. However, if the misspecified volatility dominates the true volatility, then the misspecified price of the option dominates its true price. Moreover, the option hedging strategy computed under the assumption of the misspecified volatility provides an almost sure one-sided hedge for the option under the true volatility. Analogous results hold if the true volatility dominates the misspecified volatility. These comparisons can fail, however, if the misspecified volatility is not assumed to be a function of time and the stock price. The positive results, which apply to both European and American options, are used to obtain a bound and hedge for Asian options.     

Costs and benefits of controlling quarantine diseases: a bio-economic modeling approach

This article describes a bio-economic model to quantify the costs and benefits of controlling plant quarantine diseases. The model integrates the epidemiology and economic consequences of a quarantine disease. It allows for ex ante evaluation of control scenarios for their cost-effectiveness, taking into account potential export losses resulting from presence of the disease. The model is applied to brown rot of potato in the Dutch potato production chain. Simulation results show that under the current (2006) control policy, the average yearly costs of brown rot are 7.7 million euros. Reducing monitoring frequency increases the costs to 12.5 million euros, 60% of which are export losses. It is also shown that, due to potential long-term effects of a strategy, conclusions on cost-effectiveness of a strategy depend on the length of the period over which that strategy is observed. These applications illustrate the potential of the bio-economic model to facilitate the development of cost-effective and soundly based control policies.     

Social Power and Power Over Space: How the Bourgeoisie Reproduces itself in the City

Urban sociology has long ignored districts of wealth and privilege in cities because they harbor few ‘social problems’ and the class background of sociologists has not inclined them to venture there. In France after 1968, the continued attraction of Marxism and the sulfurous reputation of sociology conspired to make such investigation difficult. Pierre Bourdieu pioneered it with his landmark book on the bourgeoisie, Distinction: A Social Critique of the Judgement of Taste. This essay reports on two decades of research extending Bourdieu's model of social space to study the territories and strategies of the French high bourgeoisie and aristocracy. The dominant class lives in reserved upscale districts and this seclusion, resulting from the elective spatial aggregation of familial dynasties, is a fundamental characteristic of the group. Segregative isolation is strengthened by specific institutions, such as society balls and social clubs, entrusted with effecting class closure and perpetuation. But, in the greater Paris region, the best districts also attract businesses (corporate headquarters, luxury firms), and thus employment that prompts the established bourgeoisie to migrate westwards in an endless search for social exclusivity. In addition to their Paris homes, upper‐class dynasties possess family properties (a castle or a large manor house) in the provincial hinterland that serve as a basis for paternalistic forms of sociability, linking them to the local lower class via such institutions as riding to hounds. Spaces reserved by and for the high bourgeoisie are major vectors of social reproduction and, along with family and elite schools, help to train heirs suited to safeguarding and valorizing their inherited assets.     

Moving purchasing & supply management beyond a cost-focused identity

Practitioners and researchers recognize that purchasing and supply management (PSM) contributes value to business performance beyond reported cost reductions, though capturing and evaluating such contributions is often challenging. The goal of this research is to understand roadblocks impeding the recognition of PSM's contributions beyond cost reduction, and suggest potential solutions to these challenges. Social identity theory offers a conceptual framework to study PSM's self-identity and how it is perceived by others in the organization. Gaining acceptance for value-added metrics is critical to move perceptions of PSM's contribution beyond cost reduction and achieve its full potential. Social identity theory is used as a lens to assess the data and develop propositions. Using a qualitative interview method, the researchers identified important roadblocks hindering PSM's attainment of a broader value-based perception. PSM's identity is closely linked to cost-savings by itself, other functions and upper management. These perceptions are further reinforced by PSM through excessive cost reporting metrics. We provide two suggested solutions for PSM to expand its recognition beyond cost savings: 1) PSM must change its narrative and associated self-identity; and 2) PSM needs to develop metrics that are meaningful across multiple areas of the business.     

Attribution Effects of Time Pressure in Retail Supply Chain Relationships: Moving From “What” to “Why”

Retail supply chains must be responsive to consumer demand and flexible in adapting to changing consumer preferences. As a result, suppliers are often expected to deal with time pressure demands from retailers. While previous research demonstrates that time pressure can have longer term relational costs that reduce collaborative behaviors and overall relationship quality, this mixed‐methods study goes further by accounting for attribution effects to explain why the time pressure occurs. Specifically, supplier perceptions for the reason of time pressure being within or beyond a retailer's control, rather than time pressure itself, appear to have a stronger effect on relational outcomes. By investigating time pressure through the lens of attribution theory, this research opens a new inquiry of research that moves away from examination of outcomes themselves (the “what”), to examining “why” the outcome occurred.     

Supplier Role Conflict: An Investigation of Its Relational Implications and Impact on Supplier Accommodation

Existing research on supply chain relationships suggests that one of the underlying tensions between supply chain partners is that of opposing perspectives and goals in the customer?supplier relationship. In today's business world with requirements in constant flux, suppliers are often asked to accommodate “special” requests made by their customers, not part of the contractual agreement. Suppliers frequently fill requests to protect the relationship with the customer, even if they fall outside of what they consider their role as a supplier. Issues of supplier role conflict emerge when customers and suppliers have different views of what the supplier's role should entail. There is little research examining the potential for supplier role conflict in supply chains. Specifically, this research draws on literature from multiple disciplines to consider supplier role conflict that may stem from accommodation and the impact of this role conflict and supplier accommodation on the supply chain relationship and future accommodation behavior. Hypotheses are tested using two scenario‐based experiments. Results suggest that supplier adaptation and flexibility both have positive relational effects. If suppliers perceive accommodation requests as outside of their contracted role, supplier role conflict can have detrimental effects on the supplier's relationship perceptions and their willingness for future accommodation.