Toward a continuum of measurement scales in Just-in-Time (JIT) research – an examination of the predictive validity of single-item and multiple-item measures

We compare the predictive validity of single-item and multiple-item measures utilized in Just-in-Time (JIT) research. The study examines if single-item measures could be used for some of the JIT practices, especially if the object of inquiry is concrete singular and if the attribute to be researched is concrete. Arguments are developed for the concrete nature of the JIT practice of “set-up time reduction” and we examine the ability of a single-item measure of this variable to predict the criterion variable (delivery performance). In addition, the study also examines the efficacy of using multiple-item measures for variables that are abstract in nature, and thereby attempts to develop a continuum of JIT constructs ranging from concrete to abstract. The results obtained by analyzing two sets of survey data show that multiple-item measures are not necessarily more valid than single-item measures for all constructs. The findings provide evidence that multiple-item measures and single-item measures for scale development should be contingent upon the nature of constructs. For concrete constructs, single-item measures are as valid as multi-item measures. Meanwhile, for abstract constructs it is important to ensure that multiple items are considered to capture the multi-dimensional nature of these constructs. Results also reveal that JIT practices display significant differences in terms of abstract/concrete perceptions. The paper presents theoretical and practical implications of the findings, and offers directions for future research.     

Locational-based coupling of electricity markets: benefits from coordinating unit commitment and balancing markets

We estimate the benefits of electricity locational marginal pricing (LMP) that arise from better coordination of day-ahead commitment decisions and real-time balancing markets in adjacent power markets when there is significant uncertainty in demand and wind forecasts. To do so, we formulate a series of stochastic models for committing and then dispatching electric generators subject to transmission limits. In the unit commitment stage, the models optimise day-ahead generation schedules under either the full set of network constraints or a simplified net transfer capacity (NTC) constraint, where the latter represents the present approach for limiting forward electricity trade in Europe. A subsequent redispatch model then creates feasible real-time schedules. Benefits of LMP arise from decreases in expected start-up and variable generation costs resulting from consistent consideration of the full set of network constraints both day-ahead and in real time. Meanwhile, coordinating adjacent balancing markets provides benefits because intermarket flows can be adjusted in real-time in response to changing conditions. To quantify these benefits, we analyse a stylised four-node network, examining the effects of varying system characteristics on the magnitude of the locational-based unit commitment benefits and the benefits of intermarket balancing. We conclude that both categories of benefits are situation dependent, such that small parameter changes can lead to large changes in expected benefits. Although both can amount to a significant percentage of operating costs, we find that the benefits of coordinating balancing markets generally exceed unit commitment benefits.     

Japanese retailers in Southeast Asia: strong local partners,shopping malls,and aiming for comprehensive internationalization

Japanese retailers have a long and mixed history in Southeast Asia with a period of expansion in the 1980s and 1990s being followed by a long period of decline and stagnation. Recently, some Japanese retailers have renewed their interest in Southeast Asia. Based on an overview of the major retail trends in Southeast Asia and identification of those Japanese retailers that are currently expanding in the region, this article develops propositions about the underlying factors and processes. It argues that the interest in Southeast Asia, while being mostly justified by retailers through reference to the growing middle-class populations in host countries, is as much based on developments in Japan itself, such as the saturation and stagnation of markets and the emergence of exportable, flexible, and comprehensive business models. Japanese retailers are intensifying activities at a time when strong domestic companies with retail interests have established themselves in host countries and therefore partnerships with them seem to fulfill more than the need to comply with investment regulations or deal with complex environments. Shopping malls play a role as locations for specialty stores but are also transplanted from Japan. Companies are making efforts toward more comprehensive internationalization and this involves human resources in headquarters in Japan as well as working together with other Japanese companies, thus satisfying the need for local embeddedness but at the same time maintaining corporate identity and advantages.     

Why demotion of older workers is a no-go area for managers

Abstract

Demotion – the reduction of an employee’s rank and salary – is often mentioned by managers and policy-makers as a means of increasing the employability of older workers in an ageing labour force. However, so far in practice demotion is rarely applied. This paper is the first empirical investigation of how managers perceive demotion as an instrument of human resource management. By means of a survey and a vignette study among managers in the Netherlands (N = 355), we examine whether managers consider demotion of poorly performing older workers a fair solution. Three contributions stand out. First, based on attribution theory we find support for the hypothesis that managers judge demotion to be fair in those cases where deterioration in task performance is caused by controllable factors (such as work motivation) and unfair when the causes are uncontrollable (such as age). Second, the expectations of managers about the organization-wide consequences of introducing demotion as a human resource policy play a significant role in considering demotion. Most managers perceive negative organizational externalities (e.g. decrease in loyalty and motivation of staff) to arise when introducing demotion and are reluctant to apply demotion in practice. And a third contribution: positive (negative) beliefs of managers about the hard skills – e.g. creativity, willingness to learn, flexibility – of older workers make demotion less (respectively more) likely.     

Short-term persistence in hybrid mutual fund performance: The role of style-shifting abilities

Our study analyzes the performance of hybrid mutual funds. Based on two extended Carhart models we determine total fund performance by comparing fund returns to investable fund-specific style benchmarks. Using daily returns and a quarterly measurement interval, we present an innovative return-based approach to decompose total performance into in-quarter abnormal performance and style-shifting performance. In addition, we split total style-shifting performance into active and passive components. In this context, we confirm possible benefits of these performance measures by analyzing several simulated investment strategies. Our empirical study covers 520 hybrid mutual funds from 10/1998 to 12/2009 and shows that hybrid mutual funds (i) do not outperform their benchmarks on average, (ii) partially show positive in-quarter abnormal performance and style-shifting abilities, and (iii) exhibit short-term persistence in in-quarter abnormal performance but not in style-shifting abilities.     

How to do more with numbers : Elementary stakes,framing, keying,and the three-dimensional character of numerical signs

This paper investigates the various ways in which the use numbers is involved in the ordering of activity in social situations. Drawing on social studies of finance and accounting, elementary stakes within the situated use of numbers are initially considered, listing alongside the utilization of numbers as bearers of information their impact on opportunities of action, the embedding of situations, and the use of numbers as social resources. Subsequently, Erving Goffman’s method of frame analysis is drawn upon to more closely investigate how the utilization of numbers is interactively regulated. The framing of activity differentiates consumptive and reproductive utilizations of numbers, and processes of keying manage transitions between frames of consumption and reproduction. Through framing and keying, numbers acquire a three-dimensional character combining calculative, symptomatic and existential qualities. This is illustrated by a sketch of the kind of social order which unfolds when participants attempt to regulate at a distance activity embedded in networks of circulating numbers. In conclusion, there appear to be general differences between the use of numbers and the use of letters and written narrative which derive from the more immediate bearing of the use of numbers on the ordering of social situations, and particularly its unique power of upkeying.     

On the long-run evolution of technological knowledge

This paper revisits the debate about the appropriate differential equation that governs the evolution of knowledge in models of endogenous growth. We argue that the assessment of the appropriateness of an equation of motion should not only be based on its implications for the future, but that it should also include its implications for the past. We maintain that the evolution of knowledge is plausible if it satisfies two asymptotic conditions: Looking forwards, infinite knowledge in finite time should be excluded, and looking backwards, knowledge should vanish towards the beginning of time (but not before). Our key results show that, generically, the behavior of the processes under scrutiny is either implausible in the past and plausible in the future, or vice versa, or implausible at both ends of the time line.We would like to thank Ernst-Ludwig von Thadden, seminar participants at the University of Mannheim, two anonymous referees, and the editor for helpful comments. Andreas Irmen likes to express his gratitude to CESifo, Munich, for financial support and its hospitality. JEL Classification Numbers: O11, O31, O40     

Measuring the growth potential of towns in the Western Cape,South Africa

Urban settlements in the Western Cape sustain regional development and are vital to the national spatial economy, but because not all contribute or participate equally they do not grow at the same rate – some flourish while others decline. The Provincial Administration of the Western Cape therefore commissioned a study to evaluate and monitor their functions and performance. This paper assesses the study's methodology and procedures. It describes the variables used and explains how the raw data were transformed into comparative indices and combined into a single composite development potential index. It evaluates the sub-indices and the composite index by mapping the results and uses multivariate statistical techniques to explore the logic and validity of the results. It confirms that the indices created for measuring urban growth potential were well chosen and constructed, laying a sound theoretical and methodological base for future decisions about public investment in rural towns.