Judgement and supply chain dynamics

Forecasting demand at the individual stock-keeping-unit (SKU) level often necessitates the use of statistical methods, such as exponential smoothing. In some organizations, however, statistical forecasts will be subject to judgemental adjustments by managers. Although a number of empirical and ‘laboratory’ studies have been performed in this area, no formal OR modelling has been conducted to offer insights into the impact such adjustments may have on supply chain performance and the potential development of mitigation mechanisms. This is because of the associated dynamic complexity and the situation-specific nature of the problem at hand. In conjunction with appropriate stock control rules, demand forecasts help decide how much to order. It is a common practice that replenishment orders may also be subject to judgemental intervention, adding further to the dynamic system complexity and interdependence. The system dynamics (SD) modelling method can help advance knowledge in this area, where mathematical modelling cannot accommodate the associated complexity. This study, which constitutes part of a UK government funded (EPSRC) project, uses SD models to evaluate the effects of forecasting and ordering adjustments for a wide set of scenarios involving: three different inventory policies; seven different (combinations of) points of intervention; and four different (combinations of) types of judgmental intervention (optimistic and pessimistic). The results enable insights to be gained into the performance of the entire supply chain. An agenda for further research concludes the paper

The sources of management innovation: when firms introduce new management practices

Management innovation is the introduction of management practices new to the firm and intended to enhance firm performance. Building on the organizational reference group literature, this article shows that management innovation is a consequence of a firm's internal context and of the external search for new knowledge. Furthermore the article demonstrates a trade-off between context and search, in that there is a negative effect on management innovation associated with their joint occurrence. Finally the article shows that management innovation is positively associated with firm performance in the form of subsequent productivity growth

An enactive perspective on comprehending leadership: a comparative case study approach

Leadership is a significant element in the present life of organizations. Recent reviews suggest building novel frameworks through which leadership, as a phenomenon, could be understood comprehensively, considering all the aspects of human experience. The autopoietic perspective on cognition suggests that the quality of human experience is determined by the interplay between the biological and social dynamics of an active situated human agent, we enact our ‘reality’, rather than recognize one. Thus, an integrated approach to the study of any phenomenon in the social domain requires focus on the interrelatedness of the biological, mental and social aspects. This exploratory paper provides an insight into the findings of an empirical study of leadership consonant with an enactive perspective on human experience, including the biological, behavioral and social dynamics of the leadership phenomenon. The research implemented mixed methods under the umbrella of a multidisciplinary comparative case study. Heart rate variability (HRV) demonstrated as the biomarker for physiological data, semi-structured interviews, the Leadership Behavior Development Questionnaire (LBDQ) and a researcher’s reflective diary were used to collect qualitative data and assist in understanding behavioral attributes. The results indicated a correlation between physiology, attitudes and behaviors, social dynamics and performance