Regional wage differences in the Netherlands: Micro-evidence on agglomeration externalities

Based on micro-data on individual workers for the period 2000–2005, we show that regional wage differentials in the Netherlands are small but present. A large part of these differentials can be attributed to individual characteristics of workers. Remaining effects are partially explained by variations in employment density, with an elasticity of about 3.8 percent and by Marshall-Arrow-Romer externalities, where doubling the share of a (2-digit NACE) industry results in a 2.4 percent higher productivity. We find evidence for a negative effect of competition (associated with Porter externalities) and diversity (associated with Jacobs externalities).

Applying the Decision Model and Notation in Practice: A Method to Design and Specify Business Decisions and Business Logic

Proper decision-making is one of the most important capabilities of an organization. Therefore, it is important to make explicit all decisions that are relevant to manage for an organization. In 2015 the Object Management Group published the Decision Model and Notation (DMN) standard that focuses on modelling business decisions and underlying business logic. DMN is being adopted at an increas-ing rate, however, theory does not adequately cover activities or methods to guide practitioners mod-elling with DMN. To tackle this problem this paper presents a method to guide the modelling process of business decisions with DMN. The method has been validated and improved with an experiment using thirty participants. Based on this method, future research could focus on further validation and improvement by using more participants from different industries

Identifying Challenges in Business Rules Management Implementations Regarding the Governance Capability at Governmental Institutions

As the number of BRMS-implementations increases, more and more organizations search for guidance to design such solutions. Given these premises, more implementation challenges experienced from practice become evident. In this study, we identify the main challenges regarding the governance capability as part of BRM, in the Dutch governmental context. To be able to do so, we utilized a four-round focus group and a three-round Delphi study set-up to collect our data. The analysis resulted in eight implementation challenges experienced by the participants. The presented results provide a grounded basis from which empirical and practical research on best practices can be further explored

A Business Rules Management Reference Process for the Dutch Government

Business Rules Management (BRM) is increasingly being applied in the governmental context. However, currently, many of those governmental institutions apply different BRM processes, but are expected to work together in their task of delivering products and services to citizens and companies in the Netherlands. An initiative from the Dutch government was started with the goal to investigate currently applied processes and develop a BRM reference process to promote cooperation. This paper elaborates upon the process of comparison of currently applied BRM processes and development of the BRM reference process for the Dutch government. The resulting BRM reference process consists of seven main processes with twenty sub-processes and a common vocabulary which can guide (Dutch) governmental organizations to design and implement their BRM solution as well as to achieve better cooperation due to increased commonality. In terms of future research, the emphasis should lie on more thorough validation, using quantitative research methods, but we argue that other industries should be explored as well

The Decision Transparency Framework: A framework and key transparency indicators to measure the business decisions and business logic transparency

Business decisions and business logic are an important part of an organization’s daily activities. In the not so near past they were modelled as integrative part of business processes, however, during the last years, they are managed as a separate entity. Still, decisions and underlying business logic often remain a black box. Therefore, the call for transparency increases. Current theory does not provide a measurable and quantitative way to measure transparency for business decisions. This paper extends the understanding of different views on transparency with regards to business decisions and underlying business logic and presents a framework including Key Transparency Indicators (KTI) to measure the transparency of business decisions and business logic. The framework is validated by means of an experiment using case study data. Results show that the framework and KTI’s are useful to measure transparency. Further research will focus on further refinement of the measurements as well as further validation of the current measurement

Agglomeration externalities, innovation and regional growth: Theoretical perspectives and meta-analysis

Technological change and innovation and are central to the quest for regional development. In the globally-connected knowledge-driven economy, the relevance of agglomeration forces that rely on proximity continues to increase, paradoxically despite declining real costs of information, communication and transportation. Globally, the proportion of the population living in cities continues to grow and sprawling cities remain the engines of regional economic transformation. The growth of cities results from a complex chain that starts with scale, density and geography, which then combine with industrial structure characterised by its extent of specialisation, competition and diversity, to yield innovation and productivity growth that encourages employment expansion, and further urban growth through inward migration. This paper revisits the central part of this virtuous circle, namely the Marshall-Arrow-Romer externalities (specialisation), Jacobs externalities (diversity) and Porter externalities (competition) that have provided alternative explanations for innovation and urban growth. The paper evaluates the statistical robustness of evidence for such externalities presented in 31 scientific articles, all building on the seminal work of Glaeser et al. (1992). We aim to explain variation in estimation results using study characteristics by means of ordered probit analysis. Among the results, we find that the impact of diversity depends on how it is measured and that diversity is important for the high-tech sector. High population density increases the chance of finding positive effects of specialisation on growth. More recent data find more positive results for both specialization and diversity, suggesting that agglomeration externalities become more important over time. Finally, primary study results depend on whether or not the externalities are considered jointly and on other features of the regression model specification

A Framework for Traceability of Legal Requirements in the Dutch Governmental Context

In the past decades, research and practice focused a lot of attention towards traceability in the context of software requirements, food supply chains, manufacturing, and aviation industry. As legislation and regulations in software systems become increasingly relevant, traceability of legal requirements is of great importance. In this study, we aimed to create a framework in which the basis for traceability of legal requirements is addressed. To be able to do so we conducted five case studies at five Dutch governmental institutions, which was followed by a three-round focus group. The resulting framework comprises 22 (layered) traceability elements in relation to three domains that offers a reference model to determine how traceability can be applied in software system design, in the context of the Dutch government

Identifying Challenges in Business Rules Management Implementations regarding the Elicitation, Design, and Specification Capabilities at Dutch Governmental Institutions

Proper decision making represent one of an organization’s most important capabilities. To manage decisions and underlying business rules, an increasing number of organizations have begun to use business rules management (BRM). However, given BRM research’s and practice’s nascence, we need to more deeply understand the challenges in implementing BRM capabilities. As such, from collecting and analyzing two three-round focus groups and two three-round Delphi studies, we identified 28 main challenges that five Dutch governmental institutions experienced in eliciting, designing, and specifying business rules. We also discuss directions for future research

A Classification of Modification Categories for Business Rules

Business rules play a critical role in an organization’s daily activities. With the increased use of business rules (solutions) the interest in modelling guidelines that address the manageability of business rules has increased as well. However, current research on modelling guidelines is mainly based on a theoretical view of modifications that can occur to a business rule set. Research on actual modifications that occur in practice is limited. The goal of this study is to identify modifications that can occur to a business rule set and underlying business rules. To accomplish this goal we conducted a grounded theory study on 229 rules set, as applied from March 2006 till June 2014, by the National Health Service. In total 3495 modifications have been analysed from which we defined eleven modification categories that can occur to a business rule set. The classification provides a framework for the analysis and design of business rules management architectures

Compliance Principles for Decision Management Solutions at the Dutch Government

Since decision management is becoming an integrated part of business process management, more and more decision management implementations are realized. Therefore, organizations search for guidance to design such solutions. Principles are often applied to guide the design of information systems in general. A particular area of interest when designing decision management solutions is compliance. In an earlier published study we took a general perspective on principles regarding the design of decision management solutions. In this paper, we re-address our earlier work, yet from a different perspective, the compliance perspective. Thus, we analyzed how the principles can be utilized in the design of compliant decision management solutions. Therefore, the purpose of this paper is to specify, classify, and validate compliance principles. To identify relevant compliance principles, we conducted a three round focus group and three round Delphi Study which led to the identification of eleven compliance principles