7_mgmt res abstracts - 2003 - jan - mar
TRANSCRIPT
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inance, Accounting, and Bankinginance, Accounting, and Bankinginance, Accounting, and Bankinginance, Accounting, and Bankinginance, Accounting, and Banking
. Re fo r m in g Ve n tu r e C a p it a l i n
India
. W hy Go od A cco un ta nt s d o Ba d
Audits
. Market Microstructure: A Pract i-
tioners Guide
. C or p or at e Re p u ta tio n an d Su s -
ta ined Superior F inancia l Per-
formance
. Is Pe rfo rm a n ce Dr iv en b y In -
du stry-or Firm -specific Factors?
. C ar d ho ld e rs A tt it u d e an d Ba n k
Credit Card Usage in Malaysia
Marketing and AdvertisingMarketing and AdvertisingMarketing and AdvertisingMarketing and AdvertisingMarketing and Advertising
. Re th ink ing Market ing P rograms
for Emerging Markets
. Th e Do t.co m Re ta il Fa il u re s o f
2000: Were Ther e Any Win ner s?
. M od e lin g C on su m er Dem a nd fo rVariety
0. Can Dist r ibu t ion Channe ls Ex-
plain Differences in Marketing
and Sales Performance Measure-
ment Systems?
1. Customer-relat ionship Levels
From Spurious to True Relation-
ships
2. Delineat ing Consumer Aversion
to Foreign Goods
Organizational BehaviourOrganizational BehaviourOrganizational BehaviourOrganizational BehaviourOrganizational Behaviour
3. Does e-Business Require Different
Leadership Characteristics?
4. Excessive Change : Coping Me-
chanisms and Consequ ences
5. Bu i ld i n g t h e C o m p l em e n t a r y
Board
6. Work Context and the Definit ion
of Self
7. Confl ict Management and Team
Effectiveness in C hina
8. Corrupt ion and Organizat ion in
Asian Management Systems
) * 5 6 4 ) +
Ind ian Management Research
Mitali Sarkar
Human Resource ManagementHuman Resource ManagementHuman Resource ManagementHuman Resource ManagementHuman Resource Management
19. What Happens After Working Part
Time?
20. Using Profit Sharing to Enhance
Employee Attitud es
21. A Model of Organizational Justice
and Workp lace Aggression
22. Compliance , Collaboration, andCod es of Labor Practice
23. C au s e s an d C o n se qu e n ce s of
Declining Early Depa rtu res from
Foreign Assignments
24. More is Not Necessar ily Bet ter :
The Re la t ionsh ip be tween the
Quan tity and Quality of Training
Efforts
Operations ManagementOperations ManagementOperations ManagementOperations ManagementOperations Management
25. The Supp ly Chain Impact of Smart
C u s t o m e r s i n a P r o m o t i o n a l
Environment
26. A Study of the Value and Impact
of Electronic Commerce
27. Supp l ie r Se lect ion and Assess-
ment
28. I m p l em e n t i n g a D is t r ib u t i o n -
Network Decision-Support Sys-
tem at Pfizer/ Warner-Lambert
29. Global Competit ion, Insti tut ions,
and the Diffusion of Organiza-
tional Practices
30. Calculated Risk: A Framework forEvaluating Prod uct Developm ent
Information Systems ManagementInformation Systems ManagementInformation Systems ManagementInformation Systems ManagementInformation Systems Management
31. The Dynamic Synchronization of
Strategy an d Inform ation Techno-
logy
32. Managements Role in Informa-
tion Secur ity in a Cyber Econom y
33. O n l in e Su p p o r t fo r Co m m e r ce
Processes by Web Retailers
34. IT Tools to Improve the Perfor-
man ce of Metalwor king SMEs
35. Cross-Cultural Software P
tion and Use
36. I n t e r- O rg a n i z a t io n a l Tr u
Business- to -Bus iness E
merce
General ManagementGeneral ManagementGeneral ManagementGeneral ManagementGeneral Management
37. St ra t eg ic P lanning , Hype
petition, and Know ledge Mment
38. G lo b a l M a n a ge m e n t Co n
and Local Adaptations
39. The Choice Between Joint V
and Wh olly Owned Subsid
40. Perceived Fairness, Decisio
trol, and Comm itment in In
tional Joint Ventu re Manag
Teams
41. Configura t ions o f In te rna
Joint Ventures
42. The Emp ire Strikes Back
EconomicsEconomicsEconomicsEconomicsEconomics
43. Bus iness Cycles in Devel
Coun tries: Are th ey Differe
44. A M o d e l- ba sed A sse s sm
I n d i a s P r o g r e s s i n R e d
Poverty in th e 1990s
45. Effect ive Aid
46. Globa li za tion , Expor t -or
E m p l o y m e n t f o r W o m e
Social Policy
Agriculture, Natural ResourAgriculture, Natural ResourAgriculture, Natural ResourAgriculture, Natural ResourAgriculture, Natural Resour
and Rural Developmentand Rural Developmentand Rural Developmentand Rural Developmentand Rural Development
47. Broad-based Agricul tura l
lopment versus Food Self-
ciency
48. Rice Trade Libera l iza t io
Poverty
49. Why Loca l Resources Ma
ment Institutions Decline
50. Socio-economic Impact of
shed Development
features summary of articles pub
Indian and international journspecial emphasis on India an
emerging markets.
Abstracts is sponsored by the Indian Council of Social Science Research, New Delhid i d d f ili I di h
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nance, Accounting, and Bankingnance, Accounting, and Bankingnance, Accounting, and Bankingnance, Accounting, and Bankingnance, Accounting, and Banking
Dossani, Rafiq (2002), Reforming VReforming VReforming VReforming VReforming Venture Capital inenture Capital inenture Capital inenture Capital inenture Capital in
dia: Creating the Enablin g Environmen t for Info rmationdia: Creating the Enablin g Environmen t for Informationdia: Creating the Enablin g Environmen t for Info rmationdia: Creating the Enablin g Environmen t for Informationdia: Creating the Enablin g Environmen t for Information
chnologychnologychnologychnologychnology,,,,,Int ernational Journal of Technology M anagement,
1/ 2), 151-164.
hough Indias share in the world software market has
reased impressively, i t is now felt that to achieve a
t a ined growth in fu ture , i t would be necessa ry to
ntinu ously outcompete other countries in the su pp ly ofntract programming services and keep moving up the
ue chain. The object ive of this paper i s to see the
sibilities by which venture capital (VC) can help India
intain its comp etitive advantage in su pp lying software
v ices o r pu t more r igh t ly , j umpsta r t l ead ing edge
inesses. In this context, this paper reviews current VC
ulations, proposals for change m ade by the VC ind ustry
ulator, and the recent regulations put into law by the
nistry of Finance and SEBI. Ind ia has an act that allow s
sts to be created for p rofit-mak ing p ur pos es. Since 1996,
en SEBI annou nced th e first set of guid elines for VC fun ds,tru st structures has been a p ermissible form for VC firm s.
w ever, the problem with th e Indian tax structure is that
s available only for specified p ur poses. The criteria for an
al environment for the growth of VC includ e p olitical
eptability, intend ed u se, intend ed reward s, prud ent u se,
estor protection. Each criteria needs to be adequately
vered either by regu latory, tax, or currency environ men t.
e regulatory environment is found to be relevant to all
criteria. It is, how ever, believed tha t the tax environm ent
n be structured to sup port the regulatory environment to
hieve intended use and to directly influence intended
wards. As for currency environmen t, it is suggested that
e n s u r e s s a m e s e t o f r u l e s f o r i n v e s t m e n t a n d
investments (intended use) and intended rewards for
erseas venture capitalists, domestic venture capitalists
d emp loyees of investee firms. An ideal environment is
posed, benchmarked against the US environment and
d to d evelop a set of prop osals for reform. For instance,
s prop osed t hat (1) SEBI wou ld be th e sole regulator of
firms operating in or from India; (2) once registered
h SEBI, VC firms would automatically obtain the tax
ss- through; (3) a l l inst i tut ional investors should be
owed to invest in VC fun ds; (4) fun ds form ed w ithin a
istered VC fund , would not be restricted in legal structure;
comp anies receiving VC from registered VC fun ds shou ld
allowed to issue preferred stock; (6) the floor on ind ividual
estm ent in a VC fun d sh ou ld be raised from Rs.100, 000
Rs.500,000. The Ind ian v ent u re capita l regu lator, the SEBI,
ently accepted a report based on these proposals. An
alysis of the accepted prop osals shows th e least progress
currency reform an d in p rud ent expert rules.
Bazerm an, Max H ; Loewen stein, George and Moore, Don2002), Why G ood Accountants do Bad Aud its,Why Go od A ccountants do Bad Audi ts,Why G ood Accountants do Bad Aud its,Why Go od A ccountants do Bad Audi ts,Why Go od A ccountants do Bad Aud its,Harvard
siness Review No vem ber 97 102
In response to the vast scale of recent financial scan
President George Bush p ut the accoun ting indu stry u
tightened federal oversight. Attributing the problem
corruption an d criminality of the un ethical accountan ts
P res iden t c rea ted a regu la tory board to moni tor
account ing f i rms and establ ish cr iminal penal t ies
a c c o u n t i n g f r a u d . T h e a u t h o r s c o n s i d e r d e l i b e
corruption as just one of the many serious problem
accoun ting. The real problem with corporate au diting
vulnerability to unconscious bias. Because of the osubjective n ature of accoun ting and the tight relations
between accoun ting firms and their clients, even the m
honest and meticulous of auditors can unintention
distort the numbers in ways that mask a companys
financial status, thereby m isleading the investors, regula
and sometimes management. Three structural aspec
accounting are specifically believed to create substa
opportunities for bias to influence judgment: ambig
attachment, and approval. Besides this, three aspec
human na ture , namely , fami l i a r i ty , d i scount ing ,
escalation, are also stated to amplify unconditional The authors argue that the p roposed reforms in the U
not address the fundamental problem of bias, and h
they will not succeed in solving the crisis in accoun
Another p roposal to imp ose stricter accoun ting stand
is also un likely to imp rove the situa tion. Stricter accoun
rules cannot eliminate am biguity and are thus u nlike
redu ce self-serving bias. The key to imp roving au d its li
eliminating incentives that create self-serving bias.
means that th e new p olicies would be required to redu c
aud itor s interest in wh ether a client is pleased by th e re
o f a n a u d i t . T r u e a u d i t o r i n d e p e n d e n c e w i l l e nfundamental changes to the way the accounting indu
operates, including full d ivestiture of consulting and
services, rotation of aud iting firm s, and fixed-term cont
that p rohibit client comp anies from firing their au di
Although it is true that eliminating all bias may no
possible, but it can be ameliorated if we have a syste
which clients regard auditors as more like tax collec
than p artners or adv isers, the auth ors conclude.
3. Madhavan, Ananth (2002), Market MicrostructurMarket MicrostructurMarket MicrostructurMarket MicrostructurMarket Microstructur
PractitionerPractitionerPractitionerPractitionerPractitioner s Guide,s Guide,s Guide,s Guide,s Guide, Financial A nalyst s Journal, 58(542.
Market microst ructure concerns the process by w
investors latent or hidden demands are translated
executed trades. Interest in market microstructure
increased en ormou sly in the recent years because of the r
stru ctural, techn ological, and regu latory chang es affec
the securities indu stry. This article prov ides a p ractitio
oriented review of the academic literature with a focu
information and offers a conceptual framew ork that w
be useful in tackling the current and future p roblems
a r t i c l e i s o r g a n i z e d a r o u n d f o u r t o p i c s r o u g
correspond ing to the h istorical evolution of microstruc
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tatic and dyn amic issues, (2) market stru cture and design
sues, including the relationship between price formation
nd trading protocols, (3) information, especially market
ansparency and (4) the interface of microstructure with
orpor ate finan ce, asset pricing, and intern ational finan ce.
hese ca tegories roughly correspond to the histor ica l
evelopm ent of research into the informational aspects of
microstructure. The literature surv ey reveals that m arkets
re a great deal more complex than commonly believed.
ne of the major achievements of the microst ructureterature is the illum ination of the back box by which pr ices
nd quantities are determined in financial markets. The
ecognition that order flows can have long-lasting effects
n p rices has ma ny p ractical imp lications. It is clear from
he survey that microst ructure mat ters . Under cer ta in
rotocols, markets m ay fail and large d eviations between
und amental value an d price may occur. These issues are
ar ticularly relevant for exchan ge officials, operators of
ading systems, regulators, and tr aders. On the basis of the
ur vey resu lts, it is felt that one-size-fits-all app roaches
o regulation and policy making should be avoided. Fornstance, greater transparency does not always enhance
quidity. Finally, the in terface of microstructu re w ith oth er
reas of finance emerges as an exciting n ew ar ea. It is believed
hat di f ferences in l iquidi ty over t ime would expla in
ariations in the risk premium and thus influence stock-
r ice levels.
. Roberts, Peter W and Dowling, Grahame R (2002),
Corporate Repu tation and Su staine d Su perior FinancialCorporate Repu tation and Su stained Sup erior FinancialCorporate Repu tation and Su staine d Su perior FinancialCorporate Repu tation and Su stained Sup erior FinancialCorporate Repu tation and Su stained Sup erior Financial
erformance,erformance,erformance,erformance,erformance, Strategic Management Journal, 23(12), 1077-
093.A good corporate repu tation is believed to have strategic
alue for firms, not only because of its potential for value
reation but also because its intangible character makes
eplication by comp eting firms considerab ly more difficult.
Although som e stud ies have shown th e expected benefits of
ood rep utations, they have not ad dressed th e issue fully.
his paper fi l ls this gap by examining the relat ionship
etween repu tation and the persistence of superior profit
utcomes over time. Reputation literature su ggests that a
e p u t a t i o n - p e r f o r m a n c e e f f e c t m a y o p e r a t e i n b o t h
i rec t ions: a f i rms f inancia l performance affects i t s
eputation and its reputation affects its performance. To
ccomm od ate this issue, this analysis accounts for the fact
hat a firm s financial performa nce history affects its current
epu tation. More specifically, the auth ors d ecompo se each
rms overall repu tation into a comp onent th at is pred icted
y its previou s finan cial perform ance (financial reputa tion),
nd that which is left over (residual reputation). Results
rom both autoregressive profit models and proportional
aza rds regress ion mode l s cons i s t en t ly sugges t tha t
u p e r i o r- p e r f or m i n g f ir m s h a v e a g r e a t e r ch a n c e o f
ustaining superior performance over t ime if they also
o sse s s r e l a t i v e l y g o o d r e p u t a t i o n . T h e se f i n d i n g s
r e p u t a t i o n a n d f i n a n c i a l p e r f o r m a n c e b y e x p l
articulating the d ynam ic imp lications of good reputa
At the same time, they are consistent with the growing
of strategy research tha t links high -quality intang ible
with su stained sup erior performance. The futu re ver
the research is suggested to examine the impact
r e p u t a t i o n o f t h e o t h e r g r o u p o f s t a k e h o l d e r s ,
customers, employees, and sup pliers on th e firms fin
performance.
5. Ha wa win i, Gabreil; Sub ram anian , Venka t and Verd i
(2003), Is Performance Driven by Industry-or Is Performance Driven by Industry-or Is Performance Driven by Industry-or Is Performance Driven by Industry-or Is Performance Driven by Industry-or
specific Factors? A New Look at the Evidence,specific Factors? A New Look at the Evidence,specific Factors? A New Look at the Evidence,specific Factors? A New Look at the Evidence,specific Factors? A New Look at the Evidence, St
Management Journal, 24(1), 1-16.
Research on the relative imp ortance of firm and in
effects has trad itionally relied on raw accou nting v al
returns on assets (ROA) as the p erforman ce measure
accounting-based measures, however, are not con
with v alue m aximization. This stud y therefore uses
based m easures of performance such as econom ic pr
residual income and market-to-book value. The f
reflects the operating performance in a given year,
the latter reflects the markets expectations of the
future op erating performances. It also uses a new d
a n d a d i f f e r e n t s t a t i s t i c a l a p p r o a c h f o r t e s t i n
significance of the indep end ent effects. The stud y exa
the influen ce of ou tliers on firm a nd ind ust ry effe
the nu mber of firms that outp erform the indu stry incr
the greater is expected to be the intra-indu stry d ispe
and lower will be the importance of industry effects
stud y explores to extent the p resence of these few excep
firms w ithin an indu stry may be respon sible for th
level of firm effects found in the past studies, an
wh ether the stru ctural effects of the ind ustry have a d i
level of imp act for the rest of the ind ustr ys firm s. The r
confirm p revious find ings that ind ustry factors, on av
matter little to firm p erforman ce, whether performa
measured by operating values su ch as EP or ROA or m
valu es such as MV. Fur ther, ind ust ry-specific factor
have different meaning for different types of firms
an ind ustry. Ind ustry factors may have a large imp act
per forman ce of the also-ran firms, wh ile for the ind
leaders an d losers, it is firm factors that d omin ate. M
the intra-industry variance is believed to be due
performance of a few firms. Thu s only for a few dom
value creators (leaders) and destroyers (losers) do
specific assets seem to matter significantly more th
indu stry factors. For m ost other firms that are n ot n
leaders or losers in their indu stry, however, the ind
effect turns ou t to be more imp ortant for performan c
firm-specific factors, the auth ors confirm.
6. Ramayah, T; Noor, Nasser and Choo, Lim Hee (
Cardholders Attitude and Bank Credit Card UsCardholders Attitude and Bank Credit Card UsCardholders Attitude and Bank Credit Card UsCardholders Attitude and Bank Credit Card UsCardholders Attitude and Bank Credit Card Us
Malaysia: An Exploratory StudyMalaysia: An Exploratory StudyMalaysia: An Exploratory StudyMalaysia: An Exploratory StudyMalaysia: An Exploratory Study,,,,, Asian Acade
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hile cred it cards have been pop ular in developed countries
ce ages, their introduction in developing countries like
laysia is relat ively recent. The credit card business
abled the bank to a t t rac t new customers as wel l as
aining existing customers in order to build a stronger
tomer base. It has, how ever, been foun d that m any credit
d ho lde rs in Malays ia a re non-ac t ive ca rdholde rs
hough a significant propor tion of them m ight be having
re than one banks credit card. This study aimed at
idat ing a t t r ibutes that inf luence the di f ferences initudes among active and inactive cardholders. It also
n t i fi es the re la t ionsh ip be tween dem ograph ic and
ividual socioeconomic factors, with credit card usage.
ome , educa t ion , wea l th , and age a re some of the
mograp hic variables which are believed to have a positive
d significant correlations with credit card usage level.
r assessing cardholders attitudes, this study uses the
ltiattribute attitude mod el comp rising of attribute, belief
a sure and impor tance we igh t . Th i r t een impor tan t
ributes were considered as interp retive m easures for the
criminant analysis. These attributes include acceptanceel, credit limit, interest-free repayment period, annual
, appl ica t ion approval per iod, anci l lary funct ions,
nd ling of cardh olders complaints, issuing ban k image,
t/ bonu s to new app licants, card d esign, leaflet to describe
card, and advertising by the issuing bank. The major
iables that contributed to the credit card usage level
nsisted of long interest free period, high credit limit, wid e
ceptance, ancil lary functions, bank image, effective
nd ling of complaints, and heavy ad vertising of the card.
e active cardh older emp hasized m ore on the long interest
e period as compared to the inactive cardholder. Thisplies that mon etary ind ucement played an important role
distingu ishing active and ina ctive cardh older. Based on
results, several suggestions are offered to credit card
uing bank s as a step to stimu late credit cardhold ers usage
el. These includ e work ing closer with v ariou s retailers to
m ote the credit card p ayment m ode, providing adequate
dit limit to cardh olders, extend ing interest free repaym ent
iod from 20 days to 30 days, implementing strategic
ances with firms involved in travelling, entertainment,
urance, and telecommu nications and adv ertising more
as to create a brand n ame for the issuing ban k.
arketing and Advertisingarketing and Advertisingarketing and Advertisingarketing and Advertisingarketing and Advertising
Dawar, Nira j and Chat topadhyay, Amitava (2002) ,
ethinki ng M arketin g Programs for Emerging Markets,ethinki ng M arketin g Programs for Emerging Markets,ethinki ng M arketin g Programs for Emerging Markets,ethinki ng M arketin g Programs for Emerging Markets,ethinki ng M arketin g Programs for Emerging Markets,
ng Range Planning, 35(5), 457-474.
er the past decade, many mu ltinationals have rushed in
the emerg ing marke t s v i sua l i z ing the po ten t i a l o f
um erous customers liberated from planned econom ies
d protectionist barriers. It is, however, realized that in
st cases, their marketing programmes are not adapted
these markets thu s leading to low market p enetration,
study conducted in-depth interviews with manager
companies such as Cadburys, Coca-Cola, Nestle,
Unilever to und erstand th e nature of emerging markets
examine comp any resp onses to the challenges faced in t
markets. The objective was to dem onstrate how the emer
market en vironment ca l ls into qu est ion the p reva
marketing wisdom an d d emand s a shift in emphasis
the globally standardized to locally adapted marke
programmes. The findings were synthesized by grou
the common features of emerging m arket environmentsthree fund am ental categories: (1) low p er capita income
its imp act on consum er behav iour, (2) imm ense variab
in consum ers and infrastructure, and (3) relative cheap
of labour, which is often substituted for capital by
companies and consumers. The effects of each of t
emerging market characteristics are d iscussed around
central pil lars of marketing: segmentation and the
program me ingredients of produ ct, price, distribution
communication.
8. Mahajan , Vijay; Srinivasa n, Raji and Wind , Jerr y (2
The Dot.com Retail Failures of 2000: WThe Dot.com Retail Failures of 2000: WThe Dot.com Retail Failures of 2000: WThe Dot.com Retail Failures of 2000: WThe Dot.com Retail Failures of 2000: Were There ere There ere There ere There ere There
WWWWWinners?inners?inners?inners?inners? Journal of the Academy of Marketing Science, 3
474-486.
The mu ch hyped d ot.com revolution turn ed a deathbe
most of the d ot.com r etailers in the year 2000. The failu
these dot.coms were attributed to the lack of a viable busi
mode l , ques t ionable p rof i t po ten t i a l , h igh cus to
acquisition costs and a lack of expertise in managing
dot.com teams. In this scenario, what seemed impo
was to know if there were any firms w ho could m anag
emerge winners and, if so, then who were they and wlessons could be learned from them. This study focuse
d e f i n i n g t h e se w i n n e r s a n d p r o p o s i n g a c o n c e p
framework to h ypothesize their possible prod uct and
profile, finally seeing if this hyp othesized pr ofile mat
the r eality. Based on the stud y of 48 d ot.com retailers, 1
contacts.com was identified as the sole winner u sing
performance indicators: percentage change in stock p
since the initial pu blic offering and stock op tions un derw
It is argued that w ell-perform ing d ot.com retailers are l
to be firms th at offer (1) digital good s as opp osed to p hy
prod ucts, (2) search good s as op posed to experiential go(3) exist ing products as opposed to new-to- the-w
prod ucts, and (4) customization of prod ucts. Besides
winners are also l ikely to have offl ine expert ise a
relatively large nu mb er of alliances. The identified wi
in the study was found to offer a search good, hav
existing prod uct and offline experience but it did not sup
the other th ree characteristics. Comparing the w inner
Amazon.com, i t was found that Amazon also prov
ph ysical prod ucts, search good s, existing p rodu cts, an
prod uct customization. However, un like the w inner, i
a very d iverse produ ct offering and therefore a large numof marketin g alliances but no offline exper ience. Thu
overwhe lming conc lus ion f rom the s tudy i s tha t
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evolution. While it appreciated the alternative channel
pp ortun ity offered by the Internet to trad itional retailers,
h e o p p o r t u n i t i e s i n d i g i t a l p r o d u c t s a n d p r o d u c t
ustomization were not rewarded by the stock market .
How ever, the authors feel that consumers an d firms w ith an
n derstan ding of the retail business wou ld guid e the Internet
evolution in future.
. Kim, Jaehw an ; Allenby, Greg M an d Rossi, Peter E (2002),
Modeling Consumer Demand for VModeling Consumer Demand for VModeling Consumer Demand for VModeling Consumer Demand for VModeling Consumer Demand for Varietyarietyarietyarietyariety,,,,, Marketing
cience, 21(3), 229-250.
onsum ers are often observed to pu rchase more than on e
ariety of a product on a given shopping trip. Standard
hoice mod els are based on a linear u tility stru cture in wh ich
nly on e variety is selected a t each pu rchase occasion. This
aper develops a new uti l i ty-based demand model and
stimation p rocedu re that can accomm odate both interior
nd corner solutions as w ell as diminishing m arginal utility,
h ile nesting th e stand ard linear u tility structure. A Bayesian
ierarchical model of household heterogeneity is u sed to
llow for the computation of household-level parameterstimates that facilitate utility calculations. This model is
pp lied to d ata on pu rchases of varieties of yogur t. Since
he u ltimate goal is to make p olicy recomm endations abou t
ssortment and pricing, the model is enlarged to include
he composite of all other purchases. Estimates from the
ierarchical mod el reveal differences between va rieties in
ase preference as well as different rates of diminishing
marg inal utility. Moreover, hou seholds d iffer greatly in th eir
references for varieties with some households showing
xtreme preference for par t icular f lavours. To bet ter
nderstand the value households placed on par t iculararieties, a comp ensating value was compu ted by hou sehold
or the removal of each flavour. It show ed th at hou seholds
ighly value pop ular flavours and wou ld incur substan tial
tility losses from rem oval of these flavours from the yogu rt
ssortment. Given limited shelf space thus only a su bset of
he p ossible varieties can be d isplayed for pu rchase at any
ne time. If consumers value variety, then a retailer with
ower variety must comp ensate the consumers in some w ay,
uch as low er p rice level. This trad e-off between p rice and
ariety is seen across d ifferent retailing form ats.
0. Loning, Helene and Besson, Madeleine (2002), CanCanCanCanCan
istribution Channels Explain Difistribution Channels Explain Di fistribution Channels Explain Difistribution Channels Explain Di fistribution Channels Explain Differences in Marketingferences in Marketingferences in Marketingferences in Marketingferences in Marketing
nd Sales Performance M easurement Systems?nd S ales Performance M easurement Systems?nd Sales Performance M easurement Systems?nd S ales Performance M easurement Systems?nd Sales Performance Measurement Systems?European
Management Journal, 20(6), 597-609.
his paper compares and contrasts the use of control and
e r f o r m a n c e m e a su r e m e n t a n d m a n a g e m e n t ( P M M )
ystems in marketing and sales to see what m akes marketing
nd sales PMM systems var y. On the basis of semi-ind uctive
nterviews with Sales and Marketing man agers in 21 French
ompanies, the authors identify four m arketing and sales
ontrolling systems categor ies. These includ e (1) comp anies
n the food channe l (marke t -or i en ted (2) companies
(3) selective retailing companies (social or clan), a
direct marketing an d sales comp anies (a mix of bureau
m a r k e t a n d so c i a l c o n t r o l m e c h a n i sm s) . C o m p
belonging to the same m arketing and sales control cate
are believed to sh are some common distribution fea
Case stud ies in each category illustrate th e mark etin
sales PMM systems associated with different distri
channels. Two dimensions, the channel power an
manufacturer-retailer transactional or relational bu
relationship, offer an explanation for the m echanismshape the m arke t ing and sa les con t ro l sys tems
situations are dr awn from these two dimensions. Wh
relatrionship is tran sactional and the retai ler p ow
market mechanisms primarily ensure control. Wh
relationship is transactional but th e man ufacturer p ow
the latter seems to be largely governed by bu reaucratic
of control. When a manufacturer engages in a rela
relationship with selective retailers, social mechani
control prevail. The manu facturer m ight be more pow
than the retailer, looking for better ways to satisfy
customers. However, wh en the retailers are very p owman ufacturers might wan t to enhance a relational bu
relationship with them, in order to prevent pure m
mechanisms. Manufacturers may even seek to avoid th
powerful retailers and build partnerships with a li
nu mber of retailers, the auth ors add .
11. Liljan d er, Veron ica an d Roos, Ing er (2002), CustCustCustCustCust
re la t ionship Leve l sFrom Spur ious to re la t ionship Leve l sFrom Spur ious to re la t ionship Leve l sFrom Spur ious to re la t ionship Leve l sFrom Spur ious to re la t ionship Leve l sFrom Spur ious to
Relationships,Relationships,Relationships,Relationships,Relationships, Journal of Services Marketing, 16(7), 59
Relationship marketing (RM) has been widely accep
an imp ortant d eterminant of long-term bu siness succeis believed to b e par ticularly well suited for serv ices.
past research h as focused mainly on th e advan tages
less a t tent ion has been paid to re la t ionships f ro
customer s point of view. This pap er suggests that cus
relationships can be described along a continuu m, ra
from spu rious to tru e relationships, based on relatio
benefits, trust and commitment. A qualitative stud
conducted among af ter-sa les service customers
authorized car dealer with the objective of ident
custom er service relationsh ip levels. The compa ny o
customers two different types of interaction with s
employees: a personal re la t ionship wi th an appo
service representative and a pseudo-relat ionship
different em ployees p erform th e service from one oc
to the next. In the case of this company, it was foun
more than trust, it was the product-specific aspect
increased customer tolerance of fai lure. Custome
effectively tied to authorized repair shops even w
experiencing relationship benefits. They were found
high ly behaviou rally comm itted to after-sales servic
their affective comm itment w as in m ost cases interpre
low or mod erate. Although th ey had a h igh positive at
toward s the d ealer, they could not be stated to h ave
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ceived n o d ifferences between the d ealer s repair shop s
d the competitors services. Customers w ere also foun d
have a generalized bu t latent tru st in authorized car repair
long as they experienced no major problems. Since
tomers trust in g eneral extended to all authorized repair
vices, it h ad no effect on after-sales or car-brand loyalty.
the other h and , it has been observed that few comp anies
able to deliver the delight-provoking service that is
eded to instil high trust and commitment. It is argued
t the compan ies that are able to delight customers an dvelop kn owled ge- and id entification-based tru st may find
tronger relat ionship developing between after-sales
vices and car-bran d loyalty.
Klein, Jill Gabreille (2002),Us VUs VUs VUs VUs Versus Them, or Us Versus Them, or Us Versus Them, or Us Versus Them, or Us Versus Them, or Us Versusersusersusersusersus
eryone? Delineating Consumer Aeryone? Delineating Consumer Aeryone? Delineating Consumer Aeryone? Delineating Consumer Aeryone? Delineating Consumer Aversion to Foreignversion to Foreignversion to Foreignversion to Foreignversion to Foreign
ods,ods,ods,ods,ods, Journal of International Busin ess Studies, 33(2), 345-
3.
framing strategies for global brand s, managers n ormally
nsider consu mer familiarity, lingu istic imp lications of the
nd nam e, consum er culture, and the coun try-of-origin
positioning th e brand . Two add itional constructs that
ve come up recently as affecting purchase behaviour
lude consum er animosity toward a prod ucing nation and
nsumer ethnocentrism. While animosity refers to the an ger
ated to the pol i t ica l , mi l i tary, or economic events ,
nsumer ethnocentrism is the belief that bu ying foreign
ods m eans dam aging the dom estic economy and is hence
ppropriate and immoral. This study proposes that the
e of each construct wil l depend upon the choice set
ailable to consum ers. Consum er ethnocentrism w ould be
st relevant when a dom estic produ ct is available in the
oice set, wh ile anim osity shou ld be most significant w hen
oosing am ong good s from foreign countries, whenever
consumer h olds animosity toward one of these countries.
ests the an imosity mod el of foreign p rodu ct purchase in
context of US consumers and Japanese products to
e rmine i f some Amer icans avo id buying Japanese
d ucts, not because of their beliefs concerning prod uct
ality, but because of th eir attitudes tow ard Japan . The
d y also investigated wh ether the animosity model can
supported in a context where anger toward a foreignuntry is not very strong. Results show that animosity
wa rd a foreign na tion is related to choices between foreign
ods, w ile consum er ethn ocentrism is related to choices
ween do mestic and foreign good s. Thu s if the choice is
t w e e n a d o m e s t ic a n d f o re ig n g o o d , t h e n h i g h l y
nocentric consumers are likely to choose the domestic
du ct. If the choice is between tw o foreign goo d s, one of
ich comes from a country that is the target of hostility,
n animosity w ill pred ict th e choice. Furth er, the constructs
re found to have d ifferent consequences both for prod uct
gments and choices between p rodu cts. Implications ofse find ings are discussed for d ecisions concerning global
sus local branding strategies
Organizational BehaviourOrganizational BehaviourOrganizational BehaviourOrganizational BehaviourOrganizational Behaviour
13. Horner-Long, Penny and Schoenberg, Richard (20
D o e s e - B u s i n e s s R e q u i r e D i f D o e s e - B u s i n e s s R e q u i r e D i f D o e s e - B u s i n e s s R e q u i r e D i f D o e s e - B u s i n e s s R e q u i r e D i f D o e s e - B u s i n e s s R e q u i r e D i f f erent Leaderferent Leaderferent Leaderferent Leaderferent Leader
Characteristics? An Empi rical Inves tigation,Characteristics? A n Empi rical In ves tigation,Characteristics? An Empi rical Inves tigation,Characteristics? A n Empi rical In ves tigation,Characteristics? An Empirical Investigation, Euro
Management Journal, 20(6), 611-619.
Universal theories of leadership contend that all effec
leaders share an identifiable set of common attribu
Contingency theories contest this view arguing th at the
appropriate leadership characteristics will be depenupon the unique requirements of each organizat i
personnel , l i fe s tage and environmental se t t ing.
viewpoint assumes relevance in the different situati
context of e-comm erce with its new business m odels
organ izational form s. This pap er emp irically explores t
opp osing argum ents to see if e-business really requ i
different leadership profile compared to traditional br
and mortar organizations. It analyses the d ata collecte
the traits, behaviour and skills possessed by leaders of
e-business and tradit ional bricks and mortar busine
Overall, the results suggest tha t the majority of leadercharacteristics are equally valu ed rega rdless of the con
in wh ich th ey operate. These include p ersonal traits su
being adaptable, energetic, decisive and inspiring
respond ents acknow ledged the imp ortance of motivati
behaviours and the ability to inspire a shared vision, as
as the capacity to an ticipate new opp ortun ities. In ad di
the need for strong communication and strategy ana
skills was u niversally agreed up on. There were, how
certain char acteristics that distingu ish e-world lead ers
their bricks ad mortar counterparts. Leaders of e-busine
were noted as being significantly mor e entrepreneu rial,taking and less conservative than traditional leaders,
were rated as more collaborative and as having gre
integrity. The ability to networ k extensively and pr ior
ac t iv i t ie s were h igh l igh ted as p a r t i cu la r ly imp or
comp etencies for e-business leaders. Similarly, informa
technology and project management skills were viewe
defining features for e-leaders. The stud y thu s suggests
the comp etencies that will be increasingly deman ded o
future leaders are actually the skills and behaviours
differentiate the e-bu siness leaders of tod ay.
14 . S tensaker , Inge r ; Meyer , Chr i s t ine Benedic
Falkenberg, Joyce and Haueng, Anne Cathr in (20
Excess ive Change: Coping Mechani sms E x c e s s i v e C h a n g e : C o p i n g Me c h a n i s m s Excess ive Change: Coping Mechani sms E x c e s s i v e C h a n g e : C o p i n g Me c h a n i s m s Excess ive Change: Coping Mechani sms
Consequences,Consequences,Consequences,Consequences,Consequences, Organizational Dynamics, 31(3), 296-3
While strategic change is an accepted norm in tod
organ izations, it is increasingly felt that excessive ch
may n ot be desirable. This article focuses on consequ e
that arise when change becomes excessive. It begin
dev eloping a d efinition of excessive chan ge on the bas
the perceptions of the change recipients in three ca
Excessive chang e is stated to occur w hen th e organizapursues seve ra l , seemingly unre la t ed and somet i
c o n f l i c t i n g c h a n g e s s i m u l t a n e o u s l y o r w h e n
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rganization introd uces new changes before the previous
hange is completed an d evaluated. It was, how ever, realized
hat not everyone in th e same organization experienced the
ame set of changes as excessive. The data revealed that
n d i v i d u a l s i n m i d d l e m a n a g e m e n t a n d l o w e r
rganizational positions often experienced stra tegic changes
s excessive whi le top level managers considered the
ifferent components of change as clearly connected and
eading to the same overall goals. The consequences of
xcessive change were examined at both individual andrgan izational levels. While a diverse arr ay of reactions an d
oping mechanisms were un covered at th e individu al level,
he consequ ences at the organizational level were related to
tructural and performance issues. The coping m echanisms
or dealing w ith excessive chan ge in the three case stud ies
nclud ed BOHICA (bend o ver, here it com es again), pa ralysis,
xi t sabotage, se l f -contro l , and loyal ty. These cop ing
mechanisms encompass responses that are both p assive and
ctive, and they either promote change or p romote the status
u o. The structur al consequ ences at the organ izational level
e r e f o u n d i n s i t u a t i o n s su c h a s i n m u s i c a l c h a i r s ,rchestrating without a cond uctor, and shaky foun dations.
erforman ce consequences, on th e other han d, w ere a result
f imp lementa tion failure and loss of effectiveness. Finally,
he authors su ggest three ways by w hich m anagers can avoid
erceptions of excessive change at the midd le and lower
rganizational levels. This includes introducing fewer
hanges in the organization, comm un icating how each stage
f chan ge fits with th e other chan ge projects, and increasing
he em ployees capa city for chang e.
5. Roberts, John (2002), Building the ComplementaryBuilding the ComplementaryBuilding the ComplementaryBuilding the ComplementaryBuilding the Complementaryoard: The Woard: The Woard: The Woard: The Woard: The Work of the Plc Chairman,ork of the Plc Chairman,ork of the Plc Chairman,ork of the Plc Chairman,ork of the Plc Chairman,Long Range Planning,
5(5), 493-520.
his article ad dr esses the critical issue of board effectiveness,
nd in particular the cond itions un der w hich the chairmen
s well as other n on-execut ives can mak e an effective and
ositive contribution to the strategic direction and control
f the companies. Drawing upon qual i ta t ive research
nte rv iews wi th cha i rmen, ch ie f execu t ives and non-
xecutive d irectors in the UK, the auth or explores how actual
oard processes and practices have changed under thenfluence of various codes and how different individu als
ave d eveloped the now separate role of comp any chairman.
rom an agen cy theory p erspective, the separation of roles
s desirable as a w ay to resist managerial entrenchment and
o ensu re n on-executive ind epend ence. Close relationships
etw een execut ives and n on-execut ives are feared for their
ollusive poten tial. How ever, organizational theorists argu e
ha t on ly th rou gh su ch c loseness can non-execut ives
ontribute to the development of executive strategy. This
rticle describes how non-executives can reconcile these
pparent ly contradic tory injunct ions about thei r rolehrough a discussion of the cond itions for and d ynam ic of
omplementary board relationships. The qu alitative research
role as second best and therefore make little attem
d e v e l o p t h e r o l e . T h e se in d i v id u a l s e n su r e m i
comp liance with th e variou s codes of practice. By co
other chairmen hav e come to und erstand the imp orta
the role despite its non-executive d esignation. Drawing
the directors experiences, the article examines the
that underpin the positive potential of compleme
b o a r d r e l a t io n s h i p s t h r o u g h w h i ch a c h a ir m a
contribu te directly to the perform ance of the chief exe
as well as create the cond itions for other non -executicontribu te to the perform ance of the executive team.
e x p l o re s t h e n e g a t iv e d y n a m i cs o f c o m p l e m e
re la t ionsh ips be tween execut ives and non-exec
directors and discusses how these may inad vertently w
board accoun tability and create the cond itions for an ex
crisis of confidence.
16. McAllist er, Daniel J an d Bigley, Greg or y A (2002),
Context and the D efini tion of S elf: How OrganizaContext and the D efini tion of Se lf: How OrganizaContext and the D efini tion of S elf: How OrganizaContext and the D efini tion of Se lf: How OrganizaContext and the D efini tion of S elf: How Organiza
Care Inf luen ces O rganizat ion-based Se l f -EstCare Inf luen ces Organizat ion-based S e l f -EstCare Inf luen ces O rganizat ion-based Se l f -EstCare Inf luen ces Organizat ion-based S e l f -EstCare Inf luen ces O rganizat ion-based Se l f -Est
Academy of M anagement Journal, 45(5), 894-904.
Organiza t ion-based se l f -e s t eem (OBSE) re f l ec
emp loyees evaluation of his or her personal ad equac
worthiness as an organizat ional member and the
perceived value that individuals have of themsel
organizational members acting within an organiza
context. This research looks into th e aspects of wor k c
that are par ticularly relevan t to OBSE dev elopm ent an
the psychological mechanisms th rough wh ich context
about self-definition. It presents organizational c
defining the central aspects of work context and des
how it influences employees OBSE through the pperception s of organizational fairness and job au tho
is proposed that the employees of organizations
va lues an d organ iz ing p r inc ip les cen te r on fu l
emp loyees needs an d acting in their best interests will
high er levels of OBSE. It is furth er argu ed th at perce
of organizational fairness and job authority media
relationship through the social-psychological proc
reflected app raisal. An analysis of data from a sam
man agers and professionals from 69 different organ iza
settings su pp ort this m odel. Organiza- tional fairne
job aut hority seem to rep resent for employees high ly s
reflected appraisals from organizations that empl
internalize through assessment or reassessment of the
worth as organization members. The authors, how
adm it that there are several limitations of this stud
that longitud inal and experimental research is requi
fully establish the findings. Moreover, this model m
underspecified insofaras global self-esteem, as a h
stable trait, is mod eled as an O BSE antecedent. The a
suggest that th e find ings be viewed as an initial em
test of the proposed theoretical framework intend
continued r esearch on the found ations of organization
self-esteem.
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anagement and Tanagement and Tanagement and Tanagement and Tanagement and Team Efeam Efeam Efeam Efeam Effect iveness in China: Thefect iveness in China: Thefect iveness in China: Thefect iveness in China: Thefect iveness in China: The
diat ing Role o f Just i ce ,dia t ing Role o f Just i ce ,dia t ing Role o f Just i ce ,dia t ing Role o f Just i ce ,dia t ing Role o f Just i ce , As ia-Pacific Journ al of
nagement, 19(4), 557-572.
ams a re inc reas ing ly recognized as impor tan t fo r
ective or gan izational w ork. Wh ile in th e West, conflict
n agement is highlighted as a means for achieving teams
ectiveness, it has not been app licable so far in China an d
er collectivist cultures. This study argues that conflict
n agement contributes to team effectiveness in China as
promotes justice, a central concern in the region. It is
oposed tha t cons t ruc t ive conf l i c t management i s a
ble, practical way to develop fairness within teams in
ina, thereby making teams effective. It specifically
estigates the extent that cooperative but n ot comp etitive
avoiding ways of managing conflict develop justice in
distributive, procedural, and interactive forms which
omotes team effectiveness. Cooperative conflict was
p o t h e s i z e d t o i n d u c e h i g h l e v e l s o f p r o c e d u r a l ,
tributive, and interactive justice while competitive and
oiding conflict man agemen t was expected to indu ce low
els of justice. High levels of justice were expected to
ult in team effectiveness. Both the correlational and
uctu ral equation an alyses of da ta prov ided by 126 MBA
d ents involved in group projects in China indicated that
w conflict wa s app roached affected its usefulness. When
m m e m b e r s r e p o r t e d t h a t t h e y d i s c u s s e d t h e i r
omp atible activities in a cooperative m anner and tried
resolve their d ifferences for mu tual ben efit, distributive,
cedural, and interactive justice had been developed.
scussing conflict in a win-lose competi t ive way was
ch less successful an d was negatively correlated w ith
tice in the d istributive and interactive forms thou gh n ot
procedural form. Also consistent wi th the theory,
oiding conflict was found to predict injustice in i ts
tributive, procedural and interactive forms and team
ectiveness. Unexpectedly, a competitive approach was
as consistently related to injustice as avoid ing conflict.
erall, the findings suggest that orienting members to
nage conflict cooperatively can strengthen justice and
ectiveness in teams in China.
Luo, Yadong (2002), Corruption and Organization inCorruption and Organization inCorruption and Organization inCorruption and Organization inCorruption and Organization in
ian Management Systems,ian M anagement Sys tems,ian Management Systems,ian M anagement Sys tems,ian Management Systems, A sia-Pacific Journ al of
nagement, 19(2,3), 405-422.
r rup t ionthe misuse of publ i c power fo r p r iva te
nefitsis rampant in Asian countries. It derives from
merous factors such as nontransparent governmental
h a v i o u r a n d d e c i si o n s , w e a k c o u n t e r - co r r u p t i o n
titutions, intertwined gift-giving culture and bribery,
biguous business-government relat ions, shortage of
epen dent and well-functioned m arket mechanisms and
titutions, and poor quality of pu blic service.Corruption
seen as an organizat ional behaviour seeking socia lwork advan tages. How ever, there has been no research
the diagn osis of how corrup tion is associated w ith overall
concept and natu re of corrup tion, clarifying the differe
between corruption and Chinese guanxithe concep
draw ing on interp ersonal connections for securing favo
It is argued that contrary to guanxi, corruption mo
involves m oney, and is illegal, d eviating from social n
It then p resents the organizational persp ective of corrup
i llust ra t ing th at th is i s a f ront ier i ssue of mainst r
management and that Asian management has some un
opportunities as well as responsibilities to take a lea
role in add ressing this frontier issue. Corruption is statown both benefits and costs. Transaction cost econom
argue th at corrup tion can help a specific transaction to re
tran saction costs from increased institut ional privileg
regulatory barriers. Looking at an overall organizat
effect of corrup tion, howev er, the combin ed organ izati
losses may significantly ou tweigh t he gains from a sp e
t ransact ion. Corrup t ion makes the organizat ion su
enormously from many visible or invisible damages
are so endu ring and far-reaching that no single transac
gains can compensate. This paper shows corruptio
represen t ing a f i rms evo lu t iona ry haza rd , s t ra timped iment, comp etitive disadvantage, and organizati
deficiency in the long run. Together, these effects w
definitely lead to inferior overall or long ru n organizati
performance, the author conclud es.
Human Resource ManagementHuman Resource ManagementHuman Resource ManagementHuman Resource ManagementHuman Resource Management
19. OReilly, Jacqueline and Bothfeld, Silke (2002), WWWWW
H a p p e n s A f t e r WH a p p e n s A f t e r WH a p p e n s A f t e r WH a p p e n s A f t e r WH a p p e n s A f t e r Working Part Torking Part Torking Part Torking Part Torking Part Time? Integratime? Integratime? Integratime? Integratime? Integrat
Maintenance or Exclusionary TMaintenance or Exclusionary TMaintenance or Exclusionary TMaintenance or Exclusionary TMaintenance or Exclusionary Transitions in Britainransitions in Britainransitions in Britainransitions in Britainransitions in Britain
WWWWWestern Germanyestern Germanyestern Germanyestern Germanyestern Germany,,,,, Cambridge Journal of Economics, 2409-439.
T h i s p a p e r e x a m i n e s t h e e x t e n t t o w h i c h p a r t - t
emp loymen t facilitates labou r mark et integr ation, focu
o n t h e p r o p o sa l o f G u n t h e r S c h m i d f o r d e v e l o
transitional labour markets. Schmids approach foc
directly on p olicies that seek to weaken the barriers
differences between core and secondary employmen
between those inside and outside the labour market.
u n d e r ly i n g a s su m p t i on b e h i n d t h i s a p p r o a c h i s
transit ion between standard, full-t ime employment
o the r emp loyment s t a tuses o r non-ac tiv ity shoul
encouraged, with the aim of facilitating or maintai
labour m arket integration. The idea p oints to the need
adap ting benefit systems to d iscontinuou s working car
One key issue of debate is the extent to wh ich labour ma
adjustments throug h working-time flexibility represe
deterioration in emp loyment cond itions or a chance for t
p r e v i o u s l y i n a c t i v e o r u n e m p l o y e d t o r e - e n t e r
employm ent. The m ain objective of the present p aper
ident i fy the fac tors that help or hinder integra t iv
exclusionary transit ions. The authors outl ine the m
characteristics of pa rt-time emp loyees and p art-time jo
both the countries and use the household panel dat
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nalysis shows that th e num ber of wom en wh o were able to
se part-time work as a bridge back into a full-time job is
ery small. A substantial proportion was foun d to end up
rop ping out of employment, particularly in German y where
group of wom en withou t children and in relatively high-
ncome hou seholds voluntarily worked p art time. Having
revious emp loyment experience is more likely to hind er
xclusionary transition p atterns, whereas the presence of
more than one child, especially in Germany, is associated
ith drop ping out. The authors sup port Schmids prop osalf ind ividu al empowerment throu gh infrastructural support
or implementing working-time transitions. The n eed for
mproved cooperation in term s of combining tran sfers and
abour market incomes to provide sustainable emp loyment
nd incomes is also stressed.
0. Coyle-Shapiro, Jacqueline A-M; Morrow, Paula C;
ichard son, Ray and Dun n, Steph en R (2002), Using ProfitUsing ProfitUsing ProfitUsing ProfitUsing Profit
haring to Enhance Employee Attitudes: A Longitudinalharing to Enhance Employee Attitudes: A Longitudinalharing to Enhance Employee Attitudes: A Longitudinalharing to Enhance Employee Attitudes: A Longitudinalharing to Enhance Employee Attitudes : A Longitudi nal
xamination of the Efxamination of the Efxamination of the Efxamination of the Efxamination of the Effects on Tfects on Tfects on Tfects on Tfects on Trust and Commitment,rust and Commitment,rust and Commitment,rust and Commitment,rust and Commitment,
Human Resource Management, 41(4), 423-439.
rofit sharing is an organizational-level manifestation of
he nor ms of reciprocity, imp lying the intent of return ing to
mployees a portion of fruits of their collective labour.
espite a reasonable amoun t of research on profit sharing,
here is still little consensus regarding its effectiveness.
raw ing on principal agent, expectancy, and organization al
stice theories, this stud y assesses how perceptions of p rofit
har ing a l ter organizat ional commitment and t rust in
man agement. Data for the stud y were obtained from a UK-
ased m ultinational comp any at tw o time periods: 10 mon ths
rior and 20 month s subsequent to th e introduction of profitharing . The findings confirm and extend em pirical research
up por ting the imp ortance of emp loyee perceptions of profit
haring in achieving d esired attitudinal ou tcomes. It also
heds light on the un derlying mechanism by w hich p rofit
haring can affect emp loyee attitud es. In p articular, the stu dy
nd s that plans that eng ender p ositive perceptions lead to
igher levels of t rust and organizat ional commitment .
H o w e v e r , t r u s t i n m a n a g e m e n t i s n o t a n e c e s s a r y
recondition for perceptions of organizational reciprocity
o enhan ce organizational commitment. It is argued that a
rof it sha r ing pe rcep t ion groun ded in o rgan iza t iona l
eciprocity is a powerful antecedent because i t affects
rganizational commitment independently and / or through
s ability to enhance trust. The results of this study help
xplain w hy p rofit sharing, a comp ensation-related hu man
esource practice, generates favourable outcomes. They
evealed a great deal about the interplay among profi t
haring, how it is perceived, and subsequent impact on
mp loyee attitudes, the author s assert.
1. Jaw ah ar, IM (2002), AAAAA Mod el of Organizational JusticeMode l o f Organizational JusticeMod el of Organizational JusticeMode l o f Organizational JusticeMode l o f O rganizational Justice
nd Wnd Wnd Wnd Wnd Workplace Ag gressi on,orkplace A ggression,orkplace Ag gressi on,orkplace A ggression,orkplace A ggression, Journal of M anagement , 28(6),11-834.
negative rum ours abou t target individu als, withh
i n f or m a t i o n o r r e so u r ce s n e e d e d b y t a r g e t s o r
pu rp osely failing to return ph one calls from them . This
uses organ izational justice persp ective to explain and p
workp lace aggression. It is argued that d ifferent form
combinations of just ice perceptions are l ikely to
different forms of aggressive behaviours that also v
terms of the target of aggression and the man ner in
harm is delivered. A model is developed to sugge
aversive events and actions shap e perceptions of injEight combinations of justice perceptions were des
and the forms of aggression each combination is most
to elicit were proposed. The model suggests that w hen
of the just ice percept ions are viola ted and when
perception s of distribu tive just ice are violated , ind iv
are un likely to enga ge in any form of aggression. Viol
of only interactional justice could lead to expressi
hostility, with th e status of the offender influen cing w
the victim uses d irect or ind irect expressions of hosti
harm the offend ing individu al. When both p rocedu r
interactional justice perceptions are violated, victiml i k e l y t o t a r g e t e x p r e s s i o n s o f h o s t i l i t y t o w a r
organization and the offend ing individu al. And , wh
t h e t h r e e f o r m s o f j u s t i c e p e r c e p t i o n s a r e v i o
individuals are l ikely to use expressions of hos
obstructionism and overt aggression toward the targ
the organization. Moreover, status of the offende
hyp othesized to m oderate aggression tow ard th e off
According to the model, justice perceptions shape
time are likely to elicit more intense acts of aggr
relative to justice perceptions shaped by a single av
event or action. Individual differences likely to mothe re la t ionship between aversive events/ ac t ion
perceptions of injustice, and perceptions of injustic
forms of aggression were also identified. It is hope
this mod el would be u seful for predicting and explai
wide range of aggressive organizational behaviours
22 . F renkne l , S tephen J and Scot t , Duncan (2
Compli ance, Collabo ration, and Codes of Labor PrCompli ance, Collabo ration, and Code s of Labor PrCompli ance, Collabo ration, and Codes of Labor PrCompli ance, Collabo ration, and Code s of Labor PrCompli ance, Collabo ration, and Codes of Labor Pr
The Adidas Connection,The Adidas Connection,The Adidas Connection,The Adidas Connection,The Adidas Connection, California Management R
45(1), 29-49.
The labour stand ard problem ar ises from th e conflict be
the interests of the mu ltinational corporations and of
in te res t g roups and NGOs seek ing to counte r g
inequalities and up hold h um an rights at w ork. It is be
that the application of codes of labour practice by
f i r m s w o u l d u p h o l d c o r e l a b o u r s t a n d a r d s , i m
workers well being, and enhance w orkplace perform
However , di f ferences in global f i rm pract ices le
variations in the w ay contractors implement th e code
basic type of global f i rm-contractor re la t ionshi
distinguished. The compliance pattern is characteri
global firm domination: The global firm develop
introduces the code, communicates its importance
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l a b o r a t i o n p a t t e r n i m p l i e s p a r t n e r sh i p ; t h e c o d e
nstitutes a basis for continual imp rovement of w orkplace
formance and worker w ell-being. Through its code of
our practice, Adidas formalizes employee rights and
fines acceptable m anagement behaviour. However, two
ts very similar contract man ufacturersAlpha and Beta
found to have implemented the code differently and
h substantially d ifferent results. Alph as m anagement
wed th e code as integral to their vision and values and
s enforced it more strictly than at Beta and has beenre effective in building a stable labour practices team.
e Adidas staff reported more effective communication
d u nders t and ing and a more equa l and h a rmonious
ationship w ith their counterparts at Alpha th an w ith those
Beta. A collaborative p artn ership betw een a global firm
d a contractor enhances the possibility of generating
p erior outcomes for both parties and for workers. It is,
w e v e r , n e c e s sa r y t h a t t h e c o n t r a c t o r b r i n g s i n
mplementary asse ts to the re la t ionship. This would
lude senior management commitment to high labour
ndard s as a means of improving w orkplace performance,quent and open commu nication between managers and
rkers to promote mutual un derstanding and respect and
ompetent labour practices team to ensu re that there is no
p between practice and policy.
Insch , Gary S and Dan iels, John D (2002), Causes andCauses andCauses andCauses andCauses and
nseq uences o f D eclinin g Early D epartures from Foreignnse quen ces of D eclinin g Early D epartures from Foreignnseq uences o f D eclinin g Early D epartures from Foreignnse quen ces of D eclinin g Early D epartures from Foreignnseq uences o f D eclinin g Early D epartures from Foreign
signments,signments,signments,signments,signments,Business Horizons, 45(6), 39-48.
idence suggests a high rate of premature departure of
patriates from their foreign assignm ents. Althoug h there
a controversy about the extent and causes of premature
p artu re, it is clear that com pan ies incur sign ificant costs
erms of finding rep lacements an d d ecreased p rodu ctivity,
ides being discredited for their inability to app oint well-
forming expatriates. This pap er reports th e results of a
estionnaire survey to est imate the current premature
p arture rates for expatriates in US comp anies, discusses
sons for early departure, determines the dynamics of
tors affecting them , and suggests th e evolving H R issues
d practices as changes occur in these rates. The su rvey
d ings suggest a close approximation of a recent ann ual
matu re depar ture rate of 3.2 per cent wh ich is considered
ry low as compared to the domest ic ra tes . Poor job
formance was cited by most of the respond ents as the
me reason for early departure. Other common reasons
lud ed m ore rewarding job offers, non-adjustm ent of the
mily, childrens education, inadequate compensation
ckage, etc. Some of these factors such as predeparture
ining and u pw ard m obility for returning expats, can be
ntrolled by the companies. On the other hand, factors
h as sp ouses desires to careers, quality of infrastru cture
d social services are un controllable. One imp ortan t aspect
his research is its emp hasis on wh y prematu re departu re
es not take place instead of explaining why it does. It
in env i ronmenta l fac tors and corpora te po l i c i e s
pr actices. While imp roved g lobal telecomm un ications
t ransporta t ion help ease family h omesickness, gre
availability of edu cational op portu nities for children
improved med ical care help in family adjustment. How
these same fac tors may presage new or exace rb
international hum an resource challenges, such as gre
c o s t a n d d i f f i c u l t y i n d e v e l o p i n g u p w a r d l y m o
man agers know ledge of internation al operations, requi
new comp any p ractices.
24. Sels, Luc (2002), More is Not Necessarily Better:More is Not Necessarily Better:More is Not Necessarily Better:More is Not Necessarily Better:More is Not Necessarily Better:
Relations hip betw een the Quantity and Quality of TRelations hip be tween the Quantity and Quality of TRelations hip betw een the Quantity and Quality of TRelations hip be tween the Quantity and Quality of TRelations hip be tween the Quantity and Quality of Trairairairairai
EfEfEfEfEfforts,forts,forts,forts,forts,International Journal of Human Resource Managem
13(8), 1279-1298.
In te rna t iona l compar i sons ind ica te tha t the l eve
investment in training by companies differs significa
across OECD countries. Belgian companies, for insta
invest less on training th an th eir French, Dutch, and Ger
counterparts. It has been noticed that the policy effor
encourage training in these countries has alw ays beeterms of the resources invested an d n ot the learning achi
or the qu ality of comp any training p rogramm es. This p
investigates wh ether this inp ut-oriented or resource-b
approach to training is actually effective. It examine
extent to which the companies monitor the system
dev elopmen t of su fficiently effective training pr ocesses
qu ality of trainin g processes is assessed by th eir abili
match th e training processes model. The stud y also exam
if the level of financial investment in company traini
correlated to th e qu ality of training p rocesses. A restr
mu ltiple sector sur vey w as carried ou t in the food, wh olegrap hics, and software sectors. The results of the regres
analysis ind icate that th e companies w hich invest mo
training are not necessarily the ones d evoting more atten
to the quality of the training cycle. This emphasize
par tial value of investmen t as an ind icator of training eff
Moreover, only a few training companies were foun
have a full-fledged training cycle. Thus, the au thor su gg
that intervention in the training market be pursu ed w it
h e l p o f su p p o r t i n g p o l i c y t o o l s w h i c h c a n a s
organizations at the level of their internal operation.
Operations ManagementOperations ManagementOperations ManagementOperations ManagementOperations Management
25. Huchzermeier, Arnd; Iyer, Ananth and Freiheit, J
(2002), The S uppl y Chain Impact of Smart CustomeThe Supp ly Chain Impact of S mart CustomeThe S uppl y Chain Impact of Smart CustomeThe Supp ly Chain Impact of S mart CustomeThe Supp ly Chain Impact of S mart Custome
a Promotional Environment,a Promotional Environment,a Promotional Environment,a Promotional Environment,a Promotional Environment, Manufacturing & Se
Operations Management, 4(3), 228-240.
In a retail environm ent w here the p rice difference of pa c
sizes varies across time, the customers can be expecte
act smart by sw itching their preferences for p ackage siz
different periods, withholding purchases until priceslow enough, s tockpi l ing inventory, and cont inuin
observe pr ice . Such an environment would provi
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ackage sizes (stock keeping units or SKUs). This paper
evelops an SKU-level dem and mod el and u ses it to mod el
nventory costs. It further u ses the inventory mod el and th e
em and response to optimize retail prices and fits the mod el
o a d ata set from the German grocery indu stry and evaluates
he performan ce of the model. The d emand mod el consists
f two pa rts: (a) a custo mer-choice mod el that estimates the
rop ortion of customers wh o choose a particular SKU in a
eriod and (b) a stockpiling m odel of the total dem and for
he p rod uct across SKUs based on th e average p rice acrossrod ucts and customer-segment inventories across SKUs.
he data indicate that customers are smart in that they
alcula te the per-uni t pr ice of the product and adjust
o n su m p t i o n a c r o s s p a c k a g e s i z e s . D u r i n g a p r i c e
rom otion, dem and was found to increase by as mu ch as 36
mes the mean n on-promotion dem and . The d isaggregation
mod el suggests that customers d o choose the lower-priced
rod ucts. As evidenced by th e data, customer reactions to
r ice differences preven t retailers from achieving th e benefits
f price discrimina tion. This mod el can serv e as a valuable
ool to retailers by offering th em an ind icator for choosingh ether or not to u se price differentials for different prod uct
ackages during promotions.
6. Leonard , Lori N K and Cronan , Timoth y Pau l (2002), AAAAA
tudy of the Vtudy of the Vtudy of the Vtudy of the Vtudy of the Value and Impact of Electronic Commerce:alue and Impact of Electronic Commerce:alue and Impact of Electronic Commerce:alue and Impact of Electronic Commerce:alue and Impact of Electronic Commerce:
lectronic Vlectronic Vlectronic Vlectronic Vlectronic Versus Tersus Tersus Tersus Tersus Traditional Replenishments in Supplyraditional Replenishments in Supplyraditional Replenishments in Supplyraditional Replenishments in Supplyraditional Replenishments in Supply
hains,hains,hains,hains,hains, Journal of Organizational Comput ing and Electronic
Commerce, 12(4), 307-327.
he challenge of sup ply chain m anagement is to balance the
equirements of promp t customer service with man agement
osts, thus providing total coordination an d control of alluppl i e s . E lec t ron ic commerce i s a modern bus iness
nformation system m ethodology that add resses the need
o cut costs while imp roving the qu ality of goods an d serv ices
nd increasing the sp eed of service delivery to organ izations,
merchants, and consum ers. The electronic buying and selling
f goods an d services on the sup ply chain is an importan t
p plication of EC. This stud y examines th e SC metrics and
he d ifferences in the value between traditional (manual)
nd electron ic SCs to emp irically evalua te wh ether electronic
Cs are m ore effective th an n onelectronic SCs, given a set of
metr ics. Similar prod ucts from two d ifferent comp anies are
nalysed in p airs of two, one prod uct using an electronic SC
nd one p rodu ct using a nonelectronic SC. A research mod el
s presented th at incorporates the SC and IS organizational
erform ance. To d etermine the effectiveness of th e electronic
C, two customer-supp lier relationships, the d istributor-
etail outlet link an d the sup plier-man ufacturer link of the
C are examined in relation to inventory level, inventory
arrying cost, stockouts, order cycle, fill rate, price, and
vailability. The em pirical find ings ind icate that an electronic
C is more effective than a non electronic SC and imp roves
he SC replenishment process in terms of al l the seven
rod uct p airs. In term s of specific differences, EC allows for
therefore lower inventor y carry ing costs. How ever, sto
are not sign ificantly greater for EC pro du cts at the DC
therefore wh en retail outlets wish to receive p rodu c
vend or is just as likely to have th e EC produ cts as th
EC prod ucts. Also, with few er stockouts, shor ter ord er
and greater availability to the retail outlet custome
retail outlet is less likely to lose custom ers to comp e
On th e whole, the findings su ggest that EC could de
the costs and in crease the availability rate to the cust
wh ile not hav ing to d ecrease the price to the custome
27. Kann an , Vijay R an d Tan , Keah Ch oon (2002), SuSuSuSuSu
Selection and Assessment: Their Impact on BuSelection and Assessment: Their Impact on BuSelection and Assessment: Their Impact on BuSelection and Assessment: Their Impact on BuSelection and Assessment: Their Impact on Bu
Performance,Performance,Performance,Performance,Performance, The Journal of Su pply Chain M anagement
11-21.
There is a recent trend of organizations focusing o
competencies and trying to achieve comp etitive adva
by leveraging their su pp liers capabilities and techn o
A greater dependence on suppliers increases the n
effectively ma nage sup pliers. Effective su pp lier sel
innovative supp lier developmen t strategies, and m eansup plier performance assessment m echanisms are the
most importan t dimensions of sup plier managemen
stud y uses a su rvey to examine the relationships be
t h e p e r c e i v e d i m p o r t a n c e o f su p p l i e r s e l e c t i o
assessment criteria for items being used in prod uctio
bus iness pe r formance . Based on prev ious l i t e r
discussions wi th pract i t ioners , and company-sp
manuals, 30 cri teria were identified as being us
selecting suppliers. These reflect a variety of su
attributes including cost, quality, delivery perform
capability, and cu lture. For each criterion, respond entasked to evaluate its importance to their firm in su
se lec t ion , us ing a f ive -po in t sca le . Thi r t een m
commonly u sed to assess supp lier performance wer
iden t i f i ed and eva lua ted . Bus iness pe r formanc
opera t iona l i zed us ing four measures o f pe r form
reflecting financial, mar ket, and p rod uct perform anc
results demonstrate the importance of supplier sel
and assessment on a bu ying firms business performa
strategic commitment from suppliers is clearly a
determinant of business success. Besides inf lue
directly, it also ha s ind irect benefits. For examp le, it is
to add ress sup plier delivery and quality problems i
is a relationship between buyer an d sup plier. Results in
that alth ou gh soft, non-qu antifiable selection criteria
as a suppliers strategic commitment to a buyer, h
greater imp act on p erforman ce than hard , more quan t
criteria such as sup plier capability, yet they are cons
to be less important. Similarly, assessment of a sup
wi l l ingness and ab i l i ty to sha re in format ion i
considered to be relatively unimportant though it
significant im pact on th e buyin g firm s perform ance.
is thus a need for these firms to reassess their su
ma nagem ent tactics. From the m anag ers poin t of vie
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anges in both how buyers are trained and in how buyer-
p plier comm un ications are condu cted.
Gu pt a, Vijay; Peters, Emm an u el; Miller, Tan a nd Blyd en,
lvin (2002), Implementing a Distribution-NetworkImplementing a Distribution-NetworkImplementing a Distribution-NetworkImplementing a Distribution-NetworkImplementing a Distribution-Network
cision-Support System at Pfizer/Wcision-Support System at Pfizer/Wcision-Support System at Pfizer/Wcision-Support System at Pfizer/Wcision-Support System at Pfizer/Warnerarnerarnerarnerarner-Lambert,-Lambert,-Lambert,-Lambert,-Lambert,
erfaces, 32(4), 28-45.
well-constructed and well-managed decision support
tem (DSS) is believed to be necessary for managing a
ge-scale d istribut ion n etw ork effectively. Warn er-Lam bertmpany (now Pfizer Inc.) developed and implemented
h a system using basic OR tools, such as optimization
d s imula t ion , coupled wi th l a rge -sca le da tabases ,
ead sheet tools, and progr amm ing tools, such as Microsoft
cel and Access. The system is d esigned to sup po rt activities
ging from long-run strategic network design to short-
day-to-day operations and customer service. This pap er
cribes th e different elemen ts of the DSS, the benefits that
enerated, and discusses its imp lementation betw een 1998
d 2000. The m ain pu rpose of Pfizer s DSS was to su pp ort
cisions regarding the US netw ork for distributing finishedod s, includ ing warehou sing, transp ortation, and delivery.
the op erational level, it develop ed a DSS that conta ined
oolkit of diagnostic mod els, analyses, and standard ized
orts. The implementation of the optimization model
ved b usiness need s outsid e the scope of DSS, one example
ng that of Adams confectionery. This paper develops a
ltiplant mod el to help the Adam s division make op timal
cisions about locating m anu factur ing technology. Besides
qu antitative benefits such as increased annu al savings,
min ation of custom er d edu ctions, etc., WLs DSS also ha d
tain qu alitative benefits. It h elped distribution m anagersun derstand the cost and service imp lications of proposed
ategic network alternatives. Fur ther, it led to op timization
d eling in other p arts of the organization, raised p eoples
areness and ability to act on supply chain issues, and
ped the logistics planners understand the operational
p lications of poten tial strategic or tactical decisions abou t
long term.
Guler, Isin; Guillen, Mau ro and Macph erson, John Mu ir
02), Global Compet i t ion , Inst i tut ions , and theGlobal Compet i t ion , Inst i tut ions , and theGlobal Compet i t ion , Inst i tut ions , and theGlobal Compet i t ion , Inst i tut ions , and theGlobal Compet i t ion , Inst i tut ions , and the
ffffffusion of Organizational Practices: The Internationalfusion of Organizational Practices: The Internationalfusion of Organizational Practices: The Internationalfusion of Organizational Practices: The Internationalfusion of Organizational Practices: The Internationalread of ISO 9000 Quality Certificates,read of ISO 9000 Quality Certificates,read of ISO 9000 Quality Certificates,read of ISO 9000 Quality Certificates,read of ISO 9000 Quality Certificates, Administrative
ence Quarterly, 47(2), 207-232.
ality certification has emerged as a key organizational
a c t i c e h e l p i n g c o m p a n i e s w o r l d w i d e e s t a b l i s h
ionalized prod uction processes. The m ost influential and
vasive qu ality p ractice in th e world is associated with
9000 family of certificates spon sored by th e Interna tional
ganization for Standardization (ISO), based in Geneva.
e g o a l o f I S O i s t o p r o m o t e t h e d e v e l o p m e n t o f
ndard ization and related activities in the wor ld w ith a
w to facilitating international exchange of goods and
vices, and to developing cooperation in th e sph eres of
Thi s paper uses the pane l da ta on ISO 9000 qua
certification in 85 countr ies betw een 1993 and 1998 to b
un derstan d the cross-national diffusion of an organizati
pr actice. Follow ing neoinstitu tional theory, the au thor s f
on th e coercive, norma tive, and m imetic effects that re
from th e exposure of firms in a given country to a p ow
source of critical resources, a common pool of rele
technical know ledge, and the experien ces of the firms loc
in other countries. The social network theory is use
develop a systematic conceptu al und erstand ing of how flocated in different coun tries influen ce each other s rat
adoption as a result of cohesive and equivalent netw
relationships. The em pirical results provide strong sup
for the coercive effects of power ful organ izations, suc
t h e s t a t e a n d t h e m u l t i n a t i o n a l s , i n d i c a t i n g
organ iza t iona l p rac t i ces d i f fuse ac ross the wor l
contingent w ays dep ending on the extent to w hich firm
each country are exposed to coercive , normat ive ,
mim etic effects. There is, howev er, no rob ust eviden c
the independent impact of knowledge-based norma
isomorphomism as measured by scientific and technpubl i ca t ions in the a reas o f ope ra t ions , eng inee r
man ufactur ing, or quality. The resu lts have imp lication
both governments and organizations. Governments
affect rates of diffusion of inno vative p ractices not on
purchasers of goods and services, but also through t
policy. In the global econom y, organ izations w ishing to a
the most inn ovative practices are suggested to look to
state, mu ltinational firms, and their foreign trade p art
and comp etitors for new mod els and op portu nities.
30. Davis, Craig (2002), Calculated Risk: A FramewCalculated Risk: A FramewCalculated Risk: A FramewCalculated Risk: A FramewCalculated Risk: A Framewfor Evaluat ing Product Deve lopment ,for Eva luat ing Product Deve lopment ,for Eva luat ing Product Deve lopment ,for Eva luat ing Product Deve lopment ,for Eva luat ing Product Deve lopment , MIT S
Management Review, 43(4), 71-77.
Trad itional finan cial mod els have limited su ccess expo
the num erous produ ct-developm ent risks that und erli
assump tions in a typical business case. Net p resent v
the most common ly used d ecision-making tool in p ro
developm ent, has been criticized for n ot pr operly accoun
for uncertainty and project flexibility. However, a ro
prod uct developm ent process can m ake the inherent
u n d e r s t an d a b l e an d t o so m e d e g r e e m e a su r a b le
controllable. Key to this effort is the stage-gate pro
deve lopment p rocesses in which ideas a re eva lu
incrementally at successive stages of substantiation.
net present value r i sk-adjusted (NPVR) framewor
believed to enhance the stage-gate decision proces
explicitly ad d ressing critical risk factors in trad itional re
on investm ent (ROI) mod els . Trad i t ional ly, pr o
development risk has resisted frequency-based meas
that rely on analysis of repetitive trials. The NPVR m
relies on using experience and judgment to subjecti
assess risk relative to one or more well-defined extr
situations, for example, guaranteed success or failur
assesses the strength of a business case in six key are
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t the business case stage is subjective and numerical
st imates underlying NPV assumptions often introduce
ignificant error, the NPVR model uses a risk scoring
ocabula ry tha t i s common ac ross the four por t fo l