International Journal of Management and Decision Making (13 papers in press)
- A multicriteria fuzzy method for selecting the location of a solid waste disposal facility
by Anna Corinna Cagliano, Maria Teresa Pilloni, Carlo Rafele
Abstract: Facility location is a multicriteria decision process that has important operational and economic impacts and that typically involves uncertainty and vagueness of evaluations.
A fuzzy-based method supporting preliminary decision-making about siting solid waste incinerators is proposed building on a structured classification of criteria for location selection developed from the existing literature. The application to a case study revealed the advantages of the methodology. The work intends to provide a general and comprehensive taxonomy of decision criteria that may be adapted to various facility location problems together with a fuzzy inference process that is useful for companies and public administration institutions looking for rigorous but relatively simple decision-making tools in uncertain environments. Future research will compare the developed method with the most common tools for making location decisions. The approach will be then extended to different kinds of facilities.
Keywords: strategic planning, facility design, facility location selection, multicriteria decision-making, facility location criteria, fuzzy logic, waste disposal facilities
- Influence of insight and manoeuvre inertia on information technology investments and strategic change
by Mathias Cöster, Carl-Johan Petri
Abstract: IT is transforming the global economy. The technology may inspire as well as hinder the development of business strategies. The concept of organizational inertia highlights factors that prevent organizations from making changes necessary to realize such strategies. In this article, writings on the inertia concept are summarized and used as a framework to analyse how organisational inertia influences decisions on IT investments and strategic change. The empirical data consists of minutes from board meetings regarding investments in information technology (IT) in a Swedish newspaper and printing company during the years 1971-1989.
The analysis shows that it was various aspects of manoeuvre inertia that postponed the necessary changes to take place and furthermore that the frame of reference used still is valid in order to analyse and understand organizational inertia. To a manager in a business world that is in a state of constant change (often spurred by various IT innovations) the inertia concept can contribute to deepening the analysis of factors that may influence the change necessary to realize the full potential of an IT investment.
Keywords: Organizational inertia, organizational transformation, IT, longitudinal study
- High-Growth Firms and the Use of Formalised Planning and Control Systems
by Leona Achtenhagen, Anders Melander, Alexandra Rosengren, Andrea Standoft
Abstract: With growing size firms increasingly rely on more formalized control systems. Based on a multi-method study, this paper addresses what kind of systems high-growth companies perceive as most beneficial for their development. A pilot study served to identify which control systems medium-sized firms most commonly employ as well as how these are perceived in relation to business growth. Findings from the pilot study were translated into an email survey administered to the entire population of medium-sized high-growth firms (gazelles) in Sweden, generating a response rate of 35.2%. In the pilot study, three formalized control systems were identified as most commonly used. A clear majority of the surveyed gazelles use one or several of these systems and perceive them as important for achieving continuous growth. However, the integration of the three sub-systems addressed (strategic planning process, management systems, and enterprise resource planning) was rather low. Overall, strategic planning was the system relied on the most, while management systems were used the least. The originality of this paper lies in the exploration of the use of different formalized control systems and their perceived relation to high-growth.
Keywords: Growth, formalized control system, gazelle company, strategic planning, ERP, management system
- The effect of organizational culture on attitude and intention toward knowledge sharing: a study of Iranian SMEs
by Javad Khazaei Pool, Ali Asadi, Peter Forte, Mohammad Reza Ansari
Abstract: The aim of this study is to examine the effect of organizational culture on knowledge sharing in small and medium sized enterprises. In order to explore the factors influencing employees' knowledge sharing in small and medium sized enterprises, the Denison organizational culture model (involvement, consistency, adaptability and mission), which has a significant effect on knowledge sharing, is used. The research method is descriptive; the survey and data collection tool is the questionnaire. The statistical population of this study is employees of small and medium sized enterprises in Nowshahr in Iran. To analyze the data SPSS and PLS software were used. Research results were analyzed using a structural equations model. Research findings show that the organizational culture and its traits (involvement, consistency, adaptability and mission) are significant predictors of employees attitudes and intentions with regard to knowledge sharing. Hence by recognizing which factors influence knowledge sharing in small and medium sized enterprises, it is possible to encourage employees to share knowledge and to improve organizational culture by developing these factors.
Keywords: organizational culture, knowledge management, knowledge sharing, Denison model
- Efficiency Evaluation of Production Lines Using Maximal Balance Index
by Reza Farzipoor Saen, Taliva Badiezadeh
Abstract: Determining efficiency and ranking of production lines are important issues in operations management. In this paper, we calculate the efficiency of production lines using network data envelopment analysis (NDEA) model in the presence of desirable and undesirable outputs. However, in NDEA several production lines may become efficient which makes ranking impossible. For the first time, maximal balance index and NDEA are combined to rank production lines. A case study determines efficiency scores of seven Iranian factories. Case study shows advantage of our model over previous ones.
Keywords: Network DEA; Data envelopment analysis; Maximal balance index; Efficiency ranking; Undesirable output.
- A Fuzzy Optimal Search Approach: Real Applications in Crisis and Mine Detection
by Soheil Sadi-Nezhad, Alireza Sotoudeh-Anvari, Kaveh Khalili-Damghani
Abstract: The classical optimal search model is seeking to find a strategy to minimize the searching costs or time of a particular object. An object may probably present in a specific location. The detection of the object by a searcher has defined probability. All these may affect each other. So, optimal search problem has stochastic-dynamic nature. In this paper a fuzzy search model, in which the time or cost of the search can be fuzzy parameters, is presented to minimize the cost of search. The proposed models are applied in two practical problems namely panning for lost individuals in natural disasters and mine finding. Considering the significance of resources (i.e., time and cost) of searching a particular object, the proposed fuzzy optimal search model can be applied in several cases such as detection of a mine, search for illegal computer servers, detection of oil fields, and rescuing lost people.
Keywords: Classical Optimal Search; Fuzzy Optimal Search; Lost Family, Mine Detection.
- GROUP DECISION MAKING PROCESSES AND GROUP DECISION QUALITY: MODERATION OF MUTUAL INTEREST
by Aziz Bakay, Jun Huang, Yundong (William) Huang
Abstract: Considering the existence of mutual interest in work groups within organizational context, we investigated three main decision making processes: Personal task participation, negative socio-emotional behavior, and information domination. To illustrate the relationship between group decision making processes and decision quality, we developed and tested a process model in which the final group decision quality could be predicted by abovementioned decision making processes. Testing the moderation effect of mutual interest is considered as focus of study and its implications are discussed. Further expansion of our model involves process satisfaction as an intervening variable. The overall assessment of the group decision making process was captured in the process satisfaction construct and its association with decision quality was analyzed. Findings suggested that our first model supported the moderation of mutual interest with one exception. Findings of the second model suggested that satisfaction of the group members about decision processes is strongly associated with decision quality.
Keywords: Group decision process, group decision quality, mutual interest, process satisfaction.
Special Issue on: "Special issue on Interface between Marketing and Operation Management"
- Decisions of retail channel choices for the traditional retailer competing with a pure play online retailer
by Chao Liu, Ting Zhang, Qinglong Gou, Liang Liang
Abstract: The rapid development of online retailing has promoted some top traditional retailers to implement the brick-and-click strategy by expanding business to online channel. While online channel usually implies lower operation cost, most consumers believe that they will bear disutility cost of purchasing online because of various disadvantages of online shopping. Considering such online disutility cost and the competition from a pure play online retailer, we investigate a traditional retailers decisions on retail channel choices. In detail, we construct competitive pricing games between the traditional retailer and the pure play online retailer by assuming that consumers are heterogeneous in the online disutility cost, and that for each consumer, his online disutility cost from the online branch of the brick-and-mortar store is lower than that from the pure play online store. Equilibrium results show that introducing an online branch helps the traditional retailer improve overall profitability under certain conditions.
Keywords: Retail Channel Choices, Brick-and-Click, Online Channel, Traditional Channel, Pricing Model
- A DEA-based Measurement of Effectiveness of Provincial Image Advertisement for Local Tourism Destination: Evidence from China
by Hua-Qing Wu, Yi-Xian Liu, De-Lin Zhuang, Wei-Dong Zhu
Abstract: Global economic depression makes competition of tourism industry shift from individual tourist attraction to tourism region covering many tourist attractions in order to save operating costs, and regional image advertising of destination has become an important tool to coordinate the operation behaviors among different managers of tourist attractions. However, is the regional image advertising effective? This paper firstly introduces data envelopment analysis (DEA) to evaluate the efficiency of provincial image advertising in China; furthermore, estimates a regression model to identify the impact factors of advertising efficiency. Results show that the overall efficiency of Chinese provincial image advertising is relatively low. In terms of regional distribution, the east and west areas are more efficient than the central. And gross provincial production, the distribution density of scenic spots and marketing size of destination are the important impact factors influencing advertising efficiency, with the former two exerting a significantly positive effect while the latter a negative one.
Keywords: Image Advertising; Tourism Destination; Efficiency Evaluation; Data Envelopment Analysis.
- A Dynamic Pricing Model with Goodwill Influenced by Price-Quality Effect
by Jing Huo, Ting Zhang
Abstract: In this paper, we consider an important phenomenon of price-quality effect in goodwill formulation process, that high price indicates high quality thus has a positive impact on goodwill. Based on the familiar Nerlove-Arrow models, we set up a dynamic model, in which the firm maximizes the profit by setting optimal price and quality, and price-quality effect is considered that high price could increase the sales through enhancing the goodwill if quality has reached a threshold level. Our result shows that (i) in the high quality strategy scenario, the quality is set at the quality threshold of the existence of price-quality effect, and the optimal price is increasing in the degree of price-quality effect and the quality threshold and (ii) in low quality strategy scenario, the quality is set at zero, and the optimal price is decreasing in the quality threshold.
Keywords: Pricing, Quality, Price-quality effect; Nerlove-Arrow mode, Goodwil, Dynamic, Equilibrium, Monopoly
- Effect of New Inflation-Brought Competitive Purchasing and Leasing Demand Functions on Revenue of a Joint Inventory-Pricing Decision Making Model
by Sina Keyhanian, Masoud Rabbani
Abstract: Inflation lessens the purchasing power of money generally leading to reduction in demand for purchasing products. That is also why companies may choose to increase advertising of their products in order to alleviate the shock. This paper considers a new customer reaction to inflation growth and caused advertising policy alteration, namely cautious behavior, according to which customers react differently in the beginning phases of inflation that is they might assume that theres a possibility for the situation to continue getting worse; although it may not, thus they decide to purchase the required products as soon as possible. This leads to an initial demand enhancement, though following a decreasing trend after the prices reach a sufficiently unaffordable level. On the other hand inflation growth increases demand for leasing, which is a suitable option to satisfy needs of products that are to be used only in a specific duration. These assumptions lead to a competition between purchasing and leasing demand for which new exponential functions are designed in this paper and applied to a joint pricing and inventory mathematical model proposed to find the revenue of an integrated finance lease-sales system. Sensitivity and trends of decision variables optimal values are analyzed in terms of caution coefficient and inflation vectors for different numerical examples.
Keywords: Demand Function, Customer Behavior, High Inflation, Finite Pricing, Finance Lease, Mathematical Model, Revenue Management, Engineering Economy, Sensitivity Analysis.
- To Overstate or Not: How to describe new products online for e-tailers considering full return policy
by Wei Xiong, Jin Qin
Abstract: In order to compete with online and offline rivals, e-tailers need to pay specific attention to online product description to attract customers and get their orders. Most e-tailers also provide full return service to lower customers risk perception of online purchase and minimize their possible loss. How to describe product online in consideration of full return policy is a difficult problem for e-tailers since overstatement may increase sales but incur more returns, otherwise the sales may decrease as well as the return cost. In this paper, we study e-tailers optimal description strategy for new products which have low salvage values. Our results indicate that monopoly e-tailer will not overstate in new product description considering the full return policy. In duopoly case, low quality e-tailer will not overstate while high quality e-tailer will do under certain conditions, and high quality e-tailers overstatement will benefit both e-tailers under full return policy.
Keywords: full return policy; overstatement; e-tailing; B2C; online purchase; product description; consumer risk perception; retailer deception.
- Data Mining the Adoption Intention of E-Procurement System for Chinese Companies
by Sharma Pillutla, Dong-Qing Yao , Xiaolin Li
Abstract: We conduct a structured survey among Chinese firms in the City of Suzhou on the adoption of e-procurement systems. We analytically mine the data to explore the impact of operations as well as supply chain performance measures on organizational behavioral intention to adopt e-procurement systems. The results demonstrate that a series of operations and supply chain performance measures, such as improved supply chain efficiency, improved operational efficiency, and reduced inventory level, are critical drivers for the adoption of e-procurement systems among Chinese companies. The findings highlight the importance of operations and supply chain performance benefits of an e-procurement systems as well as the importance of strategic marketing by e-procurement systems vendors to promote those benefits.
Keywords: e-procurement, technology adoption, operations & supply chain performance, strategic marketing