The Effects of JIT on the Development of Productivity Norms

Low inventory, or just-in-time (JIT) manufacturing systems, enjoy increasing application worldwide, yet the behavioral effects of such systems remain largely unexplored. Operations Research (OR) models of low inventory systems typically make a simplifying assumption that individual worker processing times are independent random variables. This leads to predictions that low-inventory systems will exhibit production interruptions. Yet empirical results suggest that low-inventory systems do not exhibit the predicted productivity losses. This paper develops a model integrating feedback, goal-setting, group cohesiveness, task norms, and peer pressure to predict how individual behavior may adjust to alleviate production interruptions in low-inventory systems. In doing so we integrate previous research on the development of task norms. Findings suggest that low-inventory systems induce individual and group responses that cause behavioral changes that mitigate production interruptions

Using Real Options in ERP-Systems for Improving Delivery Reliability

Today’s machinery and equipment industry is a highly volatile market, giving rise to frequently instable and inapprehensiblebuyer-supplier-relationships and to turbulences with respect to reliability of deliveries. With this paper we propose a minimalinvasive approach how to overcome existing capability limitations in production planning, scheduling and procurement ofERP-systems by using real options as means for coordinating the divergent interest of buyers and suppliers. Following thedesign research paradigm, we first describe how real options can be integrated in a contemporary ERP-system. In asupplemental evaluation, the attitude toward using this approach is discussed. This final discussion provides insights whethercompanies in the machinery and equipment industry are willing to adopt our real options approach, or if they prefer the use ofother, not necessarily IT-enabled, means for handling the poor delivery reliability

Measurement costs and control in outsourcing relationships

Past research suggests that when an organization outsources an activity, its control over the execution of the service is reduced whilst service quality monitoring increases. Little accounting research has been documented on the links between measurement costs and control sharing in contracts entailing the provision of industrial services. We analyse 35 contracts involving 80 non-spot transactions and 749 contract terms at an iron and steel mill in Brazil. The study complements this data with information from 32 interviews. We find that the measurement costs of the contracted services are associated with the complexity of activities and the tightness of control maintenance by the contractor. Where such costs are high, legal contract enforcement and use of extra-contractual coordination mechanisms is low. Additionally, variances between the conceptually expected enforcement mix and that operating in practice is associated with service performance level

Emerging East-West collaborative networks: An appraisal

Although an extensive amount of literature reviews emerging patterns of east-west co-operation, it is not easy to grasp the state of the art. Too many of the books, articles and papers tend to mark the trees rather than to map the forest. The paper analyses recent trends from the point of view of modern economics which emphasizes the growing use of a wide variety of new types of co-operative mechanisms between firms in organizing international business. It takes an appraising look at the outcome of a recent research project of a group of scholars from east and west. The paper comes to the conclusion that east-west integration is proceeding at a considerable rate. But it is dominated by shallow modes - by arm's length transactions and contract work. To a certain extent, this might reflect new patterns of inter-firm co-operation. But this might also be an indication that co-operation with partners in CECTs is still in a flat state. Eastern firms find it hard to obtain an adequate position in international networks. Their lack of competence, reliability and reputation is often an insurmountable barrier. Accordingly, they must improve upon their technological and organizational standards to be considered by western firms as competent, reliable and trustworthy and, hence, equal partners in collaborational networks.

Incentives and Careers in Organizations

This paper surveys two related pieces of the labor-economics literature: incentive pay and careers in organizations. In the discussion of incentives, I first summarize theory and evidence related to the classic agency model, which emphasizes the tradeoff between insurance and incentives. I then offer econometric and case-study evidence suggesting that this classic model ignores several crucial issues and sketch new models that begin to analyze these issues. In the discussion of careers in organizations, I begin by summarizing evidence on wages and positions using panel data within firms. This evidence is sparse and far-flung (drawn from industrial relations, organizational behavior, and sociology, as well as from labor economics); I identify ten basic questions that merit more systematic investigation. Turning to theory, I describe building-block models that address one or a few pieces of evidence, but focus on more recent models that address broad patterns of evidence.

Dual use of budgeting in uncertainty contexts: Explorative study of senior sales and marketing managers

Based on prior accounting literature and Simons’ framework (1990, 1995), the authors explore the use of budgets in PEU situations in a qualitative study. They conducted a field-based study and interviewed 14 senior sales and marketing managers from various industries, using projective techniques imported from psychological research.budgeting; uncertainty; perceived environmental uncertainty (PEU); interactive control system (ICS); sales and marketing managers

Hybrid Modes of Organization. Alliances, Joint Ventures, Networks, and Other 'Strange' Animals

The central message conveyed in this chapter is that there is a whole class of economic organizations that contribute substantially to what Coase (1992) called "the institutional structure of production". These arrangements fall neither under pure market relationships nor within 'firm boundaries'. They have multiplied because they are viewed as efficient in dealing with knowledge-based activities, solving hold-up problems, and reducing contractual hazards. They have properties of their own that deserve theoretical attention and empirical investigation.Hybrids, Alliances, Joint Ventures, organization theory, transaction costs, incomplete contracts

Postcards from the Edge: A Review of the Business and Environment Literature

Environmental issues, while of growing interest, have been outside the main focus of business scholarship. This position on the periphery may have been a good thing. It allowed scholars of business and the environment to consider unusual theories and evaluate overlooked phenomenon. In doing so, they created a body of research that provides new insights on two topics of mainstream interest -- the sources of competitive advantage and the origin and function of self-regulatory institutions.competitive advantage;business and environment;environmental issues