The transfer of western management to China: Context, content and constraints

This paper examines the issue of transferring Western management knowhow to China, focusing on the context, content and constraints of the transfer. A model of the transfer of management knowhow is developed which contains five closely-related stages: selection, adaptation, application, evaluation and integration. Factors which influence management transfer are identified as environmental, organisational, and cultural and behavioural; while cultural constraint are discussed in detail. It concludes that China cannot depend on the West for the solutions to its problems but develop its own indigenous knowhow by blending the best of both East and West

How Social Reputation Networks Interact with Competition in Anonymous Online Trading: An Experimental Study

Many Internet markets rely on ‘feedback systems’, essentially social networks of reputation, to facilitate trust and trustworthiness in anonymous transactions. Market competition creates incentives that arguably may enhance or curb the effectiveness of these systems. We investigate how different forms of market competition and social reputation networks interact in a series of laboratory online markets, where sellers face a moral hazard. We find that competition in strangers networks (where market encounters are one-shot) most frequently enhances trust and trustworthiness, and always increases total gains-from-trade. One reason is that information about reputation trumps pricing in the sense that traders usually do not conduct business with someone having a bad reputation not even for a substantial price discount. We also find that a reliable reputation network can largely reduce the advantage of partners networks (where a buyer and a seller can maintain repeated exchange with each other) in promoting trust and trustworthiness if the market is sufficiently competitive. We conclude that, overall, competitive online markets have more effective social reputation networks.reputation systems, e-commerce, internet markets, trust

Supplier-Buyer networks and Buyer's innovation

Conceptual Framework and Literature. Hypotheses development. Research Design. Results. Discussion and Conclusions

Contract risks and credit spread determinants in the international project bond market

International bond markets have become an increasingly important source of long-term capital for infrastructure projects in emerging market economies over the past decade. The Ras Laffan Liquified Natural Gas (Ras Gas) project represents a milestone in this respect: its $1.2 billion bond offering, completed in December 1996, has been the largest for any international project. The Ras Gas project has the right to extract, process, and sell liquefied natural gas (LNG) from a field off the shore of Qatar. The principal off-taker is the Korea Gas Corporation (Kogas), which resells most of the LNG to the Korea Electric Power Corporation (Kepco) for electricity generation. In this clinical study the authors analyze the determinants of credit spreads for the Ras Gas project in terms of its contractual structure, with a view to better understanding the role of contract design in facilitating access to the global project bond market. Market risk perceptions have long been recognized to be a function of firm-specific variables, particularly asset value as embodied in contracts. The authors therefore study the impact of three interlocking contracts on the credit spreads of the project's actively traded global bonds: the 25-year output sales and purchase agreement with Kogas-Kepco, the international bond covenant, and an output price-contingent debt service guarantee by Mobil to debt holders. Using a sample of daily data from January 1997 to March 2000, the authors find that the quality of the off-taker's credit-and, more important, the market's assessment of the off-taker's economic prospects-drive project bond credit spreads and pricing. In addition, seemingly unrelated events in emerging debt markets spill over to project bond markets and affect risk perceptions and prices in this segment. Judicious use of an output price-contingent debt service guarantee by shareholders can significantly reduce project risks, and markets reward issuers through tighter credit spreads. Bondholders and shareholders share residual risks over time, despite covenants meant to preempt risk shifting. This type of risk shifting originates from incomplete contracts and the nonrecourse nature of project finance. It does not necessarily result from a deliberate attempt by management to increase shareholder value at the expense of debt holders by pursuing high-risk, low-value activities, although project managers and shareholders could still exploit their informational advantages by leaving output supply contracts incomplete in ways beneficial to their private interests. The results hold important lessons for global project finance. Projects incorporating certain design features can reap significant financial gains through lower borrowing costs and longer debt maturities: Judicious guarantees by parents that enjoy a particular hedging advantage enhance a project's appeal, as reflected in favorable pricing. Pledging receivables rather than physical assets as collateral and administering investor cash flows through an off-shore account offers additional security to debt holders. Projects should use their liability structure to create an implicit option on future private debt financing that matches the real option of a project expansion. The finding that bondholders bear residual risks means that shareholders can reduce their risks arising from bilateral monopolies and buy insurance against unforeseen and unforeseeable events.Payment Systems&Infrastructure,Economic Theory&Research,Banks&Banking Reform,Financial Intermediation,Environmental Economics&Policies,Banks&Banking Reform,Financial Intermediation,Economic Theory&Research,Environmental Economics&Policies,Housing Finance

Leveraging Big Data for M&A: Towards Designing Process Mining Analyses for Process Assessment in IT Due Diligence

The success of mergers & acquisitions (M&A) depends on the buyer\u27s adequate due diligence (DD) assessment of the target firm. Assessing the target\u27s IT-enabled processes recently emerged as a novel information technology DD (IT DD) responsibility. However, it remains unclear how to operationalize and conduct the process assessment in IT DD. To address this challenge, we propose the big data analytics technology process mining (PM) and follow a design science research approach, based on literature and 12 interviews, to reveal and operationalize requirements for process assessment in IT DD, demonstrate PM to measure the operationalized requirements, and derive design principles and enabling factors to guide the design, implementation, and use of PM for process assessment in IT DD. Consequently, our study contributes to research on IT DD, M&A, and PM and provides practitioners with design knowledge and a prototypical PM artifact to leverage PM for process assessment in IT DD

Essays on Size Asymmetry in Supply Chain Disruptions

While size asymmetry (e.g., large buyer and small supplier) has been discussed in a no-disruption operation context (Lee & Johnson, 2012), little is known whether, how and why a large buyer reacts differently when different-sized suppliers cause different types of disruptions. Extant research suggests in a supplier-induced disruption supplier’s recovery actions yield various effects in a dependence-unbalancing setting, indicating a need for a deeper understanding of what buyers prefer in order to resolve disruptions caused by facing different sized suppliers and the rationales behind the decisions. Accordingly, this dissertation examines whether and how the supplier size and supplier-induced disruption type impact commitment (i.e., enduring desire to maintain the relationship) as well as buyers’ preferred use of mediated power (i.e., use of extrinsic motivation to influence the target party) in Essay 1, and the rationales behind the buyers’ different reactions in supplier-induced disruption in Essay 2

A heuristics approach for classroom scheduling using genetic algorithm technique

Reshuffling and arranging classroom based on the capacity of the audience, complete facilities, lecturing time and many more may lead to a complexity of classroom scheduling. While trying to enhance the efficiency in classroom planning, this paper proposes a heuristic approach for timetabling optimization. A new algorithm was produced to take care of the timetabling problem in a university. The proposed of heuristics approach will prompt a superior utilization of the accessible classroom space for a given time table of courses at the university. Genetic Algorithm through Java programming languages were used in this study and aims at reducing the conflicts and optimizes the fitness. The algorithm considered the quantity of students in each class, class time, class size, time accessibility in each class and lecturer who in charge of the classes

NE- 165 Case Study : CANOLA AS AN EMERGING INDUSTRY: A Processor and Producer Perspective

The canola industry in the United States has been very small with a limited canola oil demand being met through imports. However, an apparent increase in consumer demand for more healthful alternatives to traditional vegetable oils has sparked an interest among domestic processors desiring to be among the first entrants to a U.S. canola oil market. Processor interest has in turn led to some producer experimentation with the crop. This case study documents the early activities of U.S. Canola Processors (USCP), one of two companies processing the U.S. crop, and Ralph King, a Central Illinois canola producer. USCP, a joint venture of Central Soya and Calgene, describes their role in terms of "building an industry," according to General Manager Larry Horn. The company actively participated in amending the 1990 Farm Bill which permitted producers to plant some canola without risking their wheat or corn bases. Also, USCP is pursuing the establishment of U.S. grain inspection standards for canola. Company representatives are holding farmer meetings and elevator training as a means of promoting the crop. The goal for USCP is to establish an infrastructure that would permit the company to secure adequate supplies of canola for their processing needs. Ralph King, an Illinois farmer, had a positive experience with canola the first production season and plans to continue experimenting with the crop. Despite his positive production experience, other producers have been less enthusiastic about canola's production season, volunteer plant problems, questionable suitability of canola varieties to specific geographic areas, and a volatile market situation.Agribusiness, Crop Production/Industries,