An optimization approach to strategic sourcing: A case study of the United States Air Force

The DoD annually procures billions of dollars worth of systems, supplies, and services in support of the national military strategy. Faced with budget cuts and other resource constraints, the DoD must transform its procurement process to ensure cost-effective sourcing of critical supplies and services. One aspect of current transformation in the DoD is the use of a strategic sourcing approach for the procurement of services at military installations. Using the Air Force's strategic sourcing process as our context, we developed an optimization model for selecting a set of proposals from among multiple offerors for services to be performed at multiple installations. The selection achieves the most favorable objective by balancing the confidence level in an offeror's past performance with the cost of services to the Air Force. The research findings, which are based on a realistic scenario, demonstrate improvements over the current sourcing process in both overall performance and cost.     

Exchange rates and bertrand oligopoly

The impact of exchange-rate changes on industrial prices seems ambiguous. Incomplete and even perverse pass-through has been observed: the import prices in the depreciating country decrease while those in the appreciating country increase. To explain these counterintuitive price reactions we consider a situation of international Bertrand competition: two firms, based in different countries, are selling in both countries simultaneously. The profit-maximizing duopolists set the prices for their products in each of the two markets which are segmented on the demand side. We then study the qualitative effect of an exogenous exchange-rate change on the Bertrand-Nash equilibrium. Under the strong assumption of linear demand and cost functions we have normal exchange-rate pass-through. However, allowing for more general cost structures in this simple static model enables us to show that the import prices in both countries might move in counterintuitive directions.     

Öffentliches und Geheimes

In the second half of 2009, the entire media agenda in Germany was dominated by the swine flu, next to the German Federal Parliament elections. Criticism was voiced in the media against the pharmaceutical industry for lobbying the nationwide swine flu vaccination, which was widely considered nothing but a product of the industry’s lobbying power. In order to avoid the usual interviews with lobbyists, we attempted to apply a new methodological framework approach in analysing lobbying processes and key stakeholders in the public sphere—and outside. Crucial to the diversified approach, which involves quantitative content analysis of media coverage and press releases, are interviews with journalists, lobbyists’ network analysis and internet research on biographies. Although a conspiracy could not be conclusively proven, the results do indicate associations that validate the criticism of the industry’s lobbying activities.     

Demokratische Internet-Öffentlichkeit? Ein Vergleich der öffentlichen Kommunikation im Internet und in den Printmedien am Beispiel der Humangenomforschung

The importance of the internet has increased significantly in recent years. The easy access of this »new« medium sparked many hopes for a democratization of the public sphere and of public debate: Many authors argued that the internet will make actors and interpretations of topics visible to those parts of the broader public who are usually marginalized in »old« mass media. In an empirical analysis, we compared print media coverage and internet communication to assess these claims. For the case of human genome research — i.e. a bioscientific topic that reseived extensive media attention in Germany —, we analyzed which actors were given public standing and which frames came to the fore. In contrast to the claims mentioned above, our findings indicate that the debate in the internet does not differ to a significant extent from the offline debate in print media. We could not find a more egalitarian, democratic communication in the internet.     

Procuring Flexibility to Support Germany’s Renewables: Policy Options

To continue balancing supply and demand for power is a growing challenge on Germany’s path to producing 80?% of its electricity from renewable sources by 2050. Large-scale investment into a range of technologies will be required to provide the flexibility necessary for balancing. This paper introduces a simple analytical framework to evaluate the German legislator’s numerous efforts to address this challenge. It then proceeds to make two proposals as to how flexibility can be sourced more cheaply. Priority should be given to measures that enable the existing power markets to generate stronger rewards for flexibility. We thus call for financial incentives for variable electricity tariffs to elicit more consumer response and for investment subsidies instead of feed-in tariffs for more demand-oriented renewable power generation. If additional explicit incentives for flexibility are necessary, they can be provided through a market for flexibility.     

Investigating Adoption of Free Beta Applications in a Platform‐Based Business Ecosystem

Planning new product development (NPD) activities is becoming increasingly difficult, as contemporary businesses compete at the level of business ecosystems in addition to the firm‐level product‐market competition. These business ecosystems are built around platforms interlinking suppliers, complementors, distributors, developers, etc. together. The competitiveness of these ecosystems relies on members utilizing the shared platform for their own performance improvement, especially in terms of developing new valuable offerings for end users. Therefore, managing the development of the platform‐based applications and gaining timely end‐user input for NPD are of vital importance both to the ecosystem as a whole and to the developers. Subsequently, to succeed in NPD planning developers utilizing beta testing need a thorough understanding of the adoption dynamics of beta products. Developers need to plan for example resource allocation; development costs; and timing of commercial, end‐product launches. Therefore, the anticipation of the adoption dynamics of beta products emerges as an important antecedent in planning NPD activities when beta testing is used for gaining end‐user input to the NPD process. Consequently, we investigate how free beta software products that are built upon software platforms diffuse among their end users in a cocreation community. We specifically study whether the adoption of these beta products follows Bass or Gompertz model dynamics used in the previous literature when modeling the adoption of stand‐alone products. Further, we also investigate the forecasting abilities of these two models. Our results show that the adoption dynamics of free beta products in a cocreation community follow Gompertz's model rather than the Bass model. Additionally, we find that the Gompertz model performs better than the Bass model in forecasting both short and long out‐of‐sample time periods. We further discuss the managerial and research implications of our study.     

An empirical study of accountability: delegation of responsibility and external disclosure in some Swedish companies

There are increasing requirements for disclosure of future-oriented information, segmental reporting and information about financial risk management, i.e. information traditionally used internally in the management control process. The increasing influence of transnational corporations has contributed to pressure for wider accountability. An empirical study encompassing six transnational companies has been made. The research results suggest that information disclosed about goals for the group and outcome values for segments does not necessarily reflect how the company is managed. For industrial operations there appears to be a clear relationship between organization structure and goal parameters. None of these goal parameters and only certain outcome values for these parameters are disclosed which makes it difficult for external users to find out how the industrial operations are managed. For the financial activities there is no goal parameter used which is related to the goal for the group. Choice of organization structure and risk policy seems to influence disclosure. A lack of clear definitions and guidelines for futureoriented information makes difficult the comparison of what is disclosed with what it is required to disclose. The research results suggest the benefit of dealing with both management accounting and financial accounting when studying accountability.     

Identity work of science-based entrepreneurs in Finland and in Russia

Abstract

This paper investigates the identity work of science-based entrepreneurs in two very different country contexts: Finland and Russia. Building on the literature investigating role identities, we first analyse the identification of individuals with the roles of a scientist and an entrepreneur; and second, how individuals manage the boundary between these two roles. Methodologically, we take a narrative approach, which regards life stories as identity constructions. Our empirical data consist of 23 biographical interviews with science-based entrepreneurs that are inductively analysed. Our findings show that the Russian informants considered being a scientist a salient part of their self-identification, distanced themselves from the role of an entrepreneur, and set discursive boundaries to segment the two roles. For the Finnish informants, identification with the professional roles as a scientist or as an entrepreneur was less salient for the personal identity as they make a clear distinction between ‘what one does’ and ‘who one is’. They also view the two roles as integrated rather than segmented, and have no significant need to justify the border-crossing between them. Our contribution is in demonstrating how science-based entrepreneurs’ identity work is influenced by importance and meanings attached to different work roles, and how these are contextualised.     

Talent or Not? Employee Reactions to Talent Identification

In this article, we examine the effect of talent identification on employee attitudes. Building on social exchange theory, we analyze the association between employees' perceptions about whether or not they have been formally identified as “talent” and the following attitudinal outcomes: commitment to increasing performance demands, building skills, and supporting strategic priorities; identification with the unit and the multinational enterprise; and turnover intentions. Our analyses of 769 managers and professionals in nine Nordic multinational corporations reveal a number of differences between employees who perceive that they have been identified as “talent” and those who either perceive that they have not been identified or do not know whether they have been identified. We found only limited differences between the two latter categories.