Scale properties in data envelopment analysis

Recently there has been some discussion in the literature concerning the nature of scale properties in the Data Envelopment Model (DEA). It has been argued that DEA may not be able to provide reliable estimates of the optimal scale size. We argue in this paper that DEA is well suited to estimate optimal scale size, if DEA is augmented with two additional maintained hypotheses which imply that the DEA-frontier is consistent with smooth curves along rays in input and in output space that obey the Regular Ultra Passum (RUP) law (Frisch 1965). A necessary condition for a smooth curve passing through all vertices to obey the RUP-law is presented. If this condition is satisfied then upper and lower bounds for the marginal product at each vertex are presented. It is shown that any set of feasible marginal products will correspond to a smooth curve passing through all points with a monotonic decreasing scale elasticity. The proof is constructive in the sense that an estimator of the curve is provided with the desired properties. A typical DEA based return to scale analysis simply reports whether or not a DMU is at the optimal scale based on point estimates of scale efficiency. A contribution of this paper is that we provide a method which allows us to determine in what interval optimal scale is located.DEA; efficiency

Learning Paths to Offshore Outsourcing - From Cost Reduction to Knowledge Seeking

A corporation’s offshore outsourcing may be seen as the result of a discrete, strategic decision taken in response to an increasing pressure from worldwide competition. However, empirical evidence of a representative cross-sector sample of international Danish firms indicates that offshore sourcing in low-cost countries is best described as a learning-by-doing process in which the offshore outsourcing of a corporation goes through a sequence of stages towards sourcing for innovation. Initially, a corporation’s outsourcing is driven by a desire for cost minimization. Over a period of time the outsourcing experience lessens the cognitive limitations of decision-makers as to the advantages that can be achieved through outsourcing in low-cost countries: the insourcer/vendor may not only offer cost advantages, but also quality improvement and innovation. The quality improvements that offshore outsourcing may bring about evoke a realization in the corporation that even innovative processes can be outsourced.Offshore outsourcing, cost reduction, innovation, experiential learning, low-cost countries

A Dynamic, Operation Mode Perspective

While the extant literature on offshore outsourcing deals with this operation mode in isolation, and typically with a focus on cost effects, we address the broader question of how companies choose and use outsourcing as part of foreign operation mode development and as a contributor to internationalization. We use a case study of the Danish company SimCorp and the development of its operations in Kiev, Ukraine, to show how learning in various forms, control concerns, and relations with foreign partners may interact and build momentum for mode change. SimCorp’s experience demonstrates that outsourcing can be used proactively to promote expanded international operations

A generic method for assignment of reliability scores applied to solvent accessibility predictions

<p>Abstract</p> <p>Background</p> <p>Estimation of the reliability of specific real value predictions is nontrivial and the efficacy of this is often questionable. It is important to know if you can trust a given prediction and therefore the best methods associate a prediction with a reliability score or index. For discrete qualitative predictions, the reliability is conventionally estimated as the difference between output scores of selected classes. Such an approach is not feasible for methods that predict a biological feature as a single real value rather than a classification. As a solution to this challenge, we have implemented a method that predicts the relative surface accessibility of an amino acid and simultaneously predicts the reliability for each prediction, in the form of a Z-score.</p> <p>Results</p> <p>An ensemble of artificial neural networks has been trained on a set of experimentally solved protein structures to predict the relative exposure of the amino acids. The method assigns a reliability score to each surface accessibility prediction as an inherent part of the training process. This is in contrast to the most commonly used procedures where reliabilities are obtained by post-processing the output.</p> <p>Conclusion</p> <p>The performance of the neural networks was evaluated on a commonly used set of sequences known as the CB513 set. An overall Pearson's correlation coefficient of 0.72 was obtained, which is comparable to the performance of the currently best public available method, Real-SPINE. Both methods associate a reliability score with the individual predictions. However, our implementation of reliability scores in the form of a Z-score is shown to be the more informative measure for discriminating good predictions from bad ones in the entire range from completely buried to fully exposed amino acids. This is evident when comparing the Pearson's correlation coefficient for the upper 20% of predictions sorted according to reliability. For this subset, values of 0.79 and 0.74 are obtained using our and the compared method, respectively. This tendency is true for any selected subset.</p

Genomic analyses reveal an absence of contemporary introgressive admixture between fin whales and blue whales, despite known hybrids

Fin whales (Balaenoptera physalus) and blue whales (B. musculus) are the two largest species on Earth and are widely distributed across the world's oceans. Hybrids between these species appear to be relatively widespread and have been reported in both the North Atlantic and North Pacific; they are also relatively common, and have been proposed to occur once in every thousand fin whales. However, despite known hybridization, fin and blue whales are not sibling species. Rather, the closest living relative of fin whales are humpback whales (Megaptera novaeangliae). To improve the quality of fin whale data available for analysis, we assembled and annotated a fin whale nuclear genome using in-silico mate pair libraries and previously published short-read data. Using this assembly and genomic data from a humpback, blue, and bowhead whale, we investigated whether signatures of introgression between the fin and blue whale could be found. We find no signatures of contemporary admixture in the fin and blue whale genomes, although our analyses support ancestral gene flow between the species until 2.4-1.3 Ma. We propose the following explanations for our findings; i) fin/blue whale hybridization does not occur in the populations our samples originate from, ii) contemporary hybrids are a recent phenomenon and the genetic consequences have yet to become widespread across populations, or iii) fin/blue whale hybrids are under large negative selection, preventing them from backcrossing and contributing to the parental gene pools

Mode Combinations and International Operations: Theoretical Issues and an Empirical Investigation

An enduring characteristic of extant literature on foreign operation modes is its discrete choice approach, where companies are assumed to choose one among a small number of distinctive alternatives. • In this paper, detailed information about the operations of six Norwegian companies in three key markets (China, UK and USA) is used as the basis for an exploration of the extent to which, and how and why, companies combine clearly different foreign operation modes. We examine their use of foreign operation mode combinations within given value activities as well as within given countries. • The study reveals that companies tend to combine modes of operation; thereby producing unique foreign operation mode “packages” for given activities and/or countries, and that the packages are liable to be modified over time – providing a potentially important optional path for international expansion. • The data show considerable variation across cases; ranging from extensive use of mode combinations to a singular focus on a specific mode of operation. The study contributes to a refinement of our understanding of the path of internationalisation, and throws up a number of awkward theoretical questions about the process