International Journal of Applied Decision Sciences (21 papers in press)
Designing Information Ecosystems to Process Citizen Input and Improve Public Sector Decision Making
by Ram Gopalan
Abstract: Recent advances in technology and social media have enabled average, individual citizens to forcefully voice their opinions on various public-sector issues. To fully harvest this new tide of technology-enabled activism, information ecosystems must be proactively designed and scientifically managed to receive and process citizen input. In this paper, an activist is a term broadly used to connote any citizen interested in engaging in participative government, usually mediated by the use of technology. The collective set of measures that need to be rigorously undertaken to bring citizen activism to fruition is referred to as activism science in this paper. This position paper examines five case studies wherein citizen activism has already proved successful. The learnings from these case studies leads to a synthetic proposal for managing activism scientifically, incorporating citizen inputs, management science models, technology and data architectures and suitable participative process design. The proposed activism science framework (ASF) is applied to envision improvements in the delivery of online education and urban services.
Keywords: Smart government; Open data portals; Public sector decision making.
Multi-order scheduling optimization considering product operation and worker allocation in divisional seru
by Zhe Zhang, Yulong Wang, Yong Yin
Abstract: This paper focuses on the allocation and scheduling problem in divisional seru production system, which is a new production mode originating in Japan and has been proved to be both efficient and flexible in practice. According to the production process, the allocation and scheduling problem considered in this paper includes worker allocation, operation allocation and order scheduling. A bi-objective nonlinear model is established to minimise the total completion time and optimise the production balance. Subsequently, since seru scheduling is a natural NP-hard problem, therefore, the solution method which combines the clustering analysis and genetic algorithm is designed. Finally, the numerical example is presented to verify the effectiveness of proposed model and solution method. The experimental results show that the satisfactory production scheduling scheme in divisional seru can be obtained effectively, and the performance of the divisional seru production system is better than that of the assembly line.
Keywords: divisional seru; worker allocation; operation allocation; order scheduling; genetic algorithm.
Jumping to Conclusions: A Theory of Decision-Making at Technology Incubators
by Ali Ahmad
Abstract: The technology incubation process is used for taking nascent ideas through to market-based commercialisation. The client selection decision is arguably the most important stage in this process. The predominant view in the literature is that client selection ought to be carried out using robust selection criteria linked to critical success factors. The results of this research question the value of such approaches. Assessors at incubators do not follow a wholly rational process linking client attributes to critical success factors. Instead, a combination of both rational and non-rational or intuitive processes help assessors chose clients which 'appear' most promising on a range of both written and un-written criteria. Due to limitations inherent in traditional information collection mechanisms, assessors consistently use 'stereotyping' and 'attribute substitution' to make selection decisions. A new 'entrepreneurial readiness' heuristic was discovered and the reasons behind the strategic misalignment between client selection outcomes and incubator service portfolios is explained.
Keywords: Decision Processes; Business Incubator; Heuristics; Biases; Case Study.
Authentic leadership competences and positional favouritism: impact on positive and negative organisational effectiveness.
by Isaac Akuffo, Kurmet Kivipõld
Abstract: The world of business has become complex and, therefore, it is important for organisations to employ leaders with authentic principles. With this in mind, we explored how authentic leadership internal and external competences together with positional favouritism influence positive organisational effectiveness (job satisfaction and perceived organisational performance) and negative organisational effectiveness (turnover intentions and organisational politics). The sample consisted of 997 subordinates and 127 managers surveyed from public and private banks across Ghana. Second order confirmatory factor analysis and hierarchical multiple regression were used to analyse the data. We found that authentic leadership, internal and external competences increase positive organisational effectiveness while negative organisational effectiveness is decreased. Positional favouritism increases negative organisational effectiveness while positive organisational effectiveness is decreased. Authentic leadership internal competence together with positional favouritism had a negative influence on positive organisational effectiveness.
Keywords: Authentic leadership; internal and external competence; positional favouritism; job satisfaction; perceived organisational performance; organisational politics; turnover intentions.
Portfolio Management Strategies of Cryptocurrencies
by Ebenezer Fiifi Emire Atta Mills, Kailin Zeng
Abstract: This study explores the portfolio management of cryptocurrencies by assessing the out-of-sample performance of selected portfolio strategies in the literature. Using daily data from 500 randomly selected cryptocurrencies with monthly and weekly revision, the scaled and stable mean-variance-Entropic Value-at-Risk (MVE) portfolios outperform other portfolio strategies closely followed by 1/N portfolios. The mean Sharpe ratio with transaction costs of both MVE and 1/N was higher than that of benchmark, Coinbase index. Indeed, diversification across cryptocurrencies does improve investment results and mitigates risk exposure. The findings of this research are crucial for practitioners as they showcase a coherent manner to aid fund managers and investors in their investment practices.
Keywords: cryptocurrencies; portfolio strategy; diversification; risk.
Using genetic algorithms for order batching in multi-parallel-aisle picker-to-parts systems
by Jose Cano, Alexander Correa, Rodrido Gomez
Abstract: This article aims to introduce a metaheuristic to solve the order batching problem in multi-parallel-aisle warehouse systems to minimize the travelled distance. The proposed metaheuristic is based on an item-oriented genetic algorithm (GA) using a new chromosome representation where a gen represents a specific customer order to guarantee feasibility in the mutation operator, decreasing the computing time in the correction of chromosomes generated by the crossover operator, and avoiding the calculation of the minimum number of feasible batches. The fitness function of each chromosome was measured with the travelled distance provided by the s-shape strategy in small, medium, and large-sized warehouses. When comparing the performance of the proposed algorithm with the first-come-first-served (FCFS) rule in 360 instances, we found average savings of 11% (up to 24%) in travelled distance and 2% (up to 17%) in the number of batches.
Keywords: order batching; genetic algorithms; travelled distance; picker-to-parts systems; warehouse management.
A review of supply chain integration constructs and a framework for future research
by Sukran N. Atadeniz, Yavuz Acar, V. Sridharan
Abstract: The purpose of this study is to assess the consistency of construct definition and measurement in the survey-based supply chain integration literature. A lack of consistency has been widely recognized and has contributed to a certain indiscernibility concerning the relationship between supply chain integration and performance. This study includes a comprehensive and systematic review of integration constructs and their measurement items, as well as on-site interviews with vice presidents responsible for overseeing supply chain operations in global corporations. Our analysis reveals the inconsistencies within the existing integration constructs and demonstrates how this may have contributed to a lack of consensus across the findings of existing empirical studies. To address this problem, we present the dimensions of supply chain integration and their interrelationships in a logical framework revealing the multiplicity of the integration dynamics. The framework will enable future researchers to consistently define and operationalize integration in supply chain research studies.
Keywords: supply chain; integration; construct measurement; systematic review; survey.
A bi-objective green multi-period inventory-routing problem with multi-speed vehicles
by Abdul Sattar Safaei, Hossein Jandaghi, Ali Divsalar
Abstract: Vendor managed Inventory (VMI) becomes an important trend in the logistics. Inventory Routing Problem (IRP) is one of the most important problems in this context. In practice, any distribution plan in a IRP may cause CO2 emission produced by transportation of vehicles. In this research, an optimization model is developed to handle both the conventional inventory routing problem and its environmental impacts. The two objective functions are minimizing sum of distance cost, as well as minimizing fuel consumption and produced CO2 emissions. A bi-objective mixed-integer linear model is developed and the ?-constraint approach is used to solve its randomly generated instances. Numerical tests for several instances of the problem are performed using CPLEX. Moreover, sensitivity analyses are also performed to find which parameters are more important in terms of both model complexity and managerial insights.
Keywords: Inventory-routing problem; Bi-objective; Green supply chain; fuel consumption; CO2 emission; ?-constraint.
It Is About Beating the Competitors
by Jiali Tang, Khondkar Karim
Abstract: This paper examines how a firms long-term earnings rankings within the industry convey valuable information about its competitive advantages. Earnings rankings are isolated from industry and market-wide factors, therefore, contain firm-specific information that reflects the rareness of the firms resources and strategies. A higher ranking also indicates more effective value creation and difficulty in imitation, which translates into more sustainable future performance. Since a firms competitive advantages are defined by rareness, imitability, value, and sustainability, earnings rankings provide a numeric summary of competitive advantages. We decile rank a firms earnings within the industry and conduct a principal component analysis to measure competitive advantages. The findings confirm a significant positive association between earnings rankings and competitive advantages. In particular, long-term earnings rankings, measured by the 5-year moving averages, should be the most informative. Our results shed light on the usefulness of accounting numbers in implementing strategic management based on competitive advantages.
Keywords: earnings rankings; competitive advantages; firm-specific information; sustainable performance; accounting information.
Determining the Main Factors for Recidivism in Boston
by Odysseas Kanavetas, Aylin Kosar
Abstract: The goal of our study was to identify the specific reasons why recidivism occurs in Boston. Boston prison data was combined with stop and frisk data. This paper would help identify if individuals are being stopped by the police for crimes they might not have committed or were in the process of committing one and then were stopped by the police. Multinomial logistic regression and chi-square was used to see if any correlations among the variables seen in the frisk data can be found. The results for both methods showed there was a correlation among the variables from the frisk data such as age, race, category of crime, and police district.
Keywords: Recidivism; Data analysis; Regression; Hypothesis Testing.
Promoting Fashion Customer Relationship Management Dimensions Based On Customer Tendency to Outfit Matching: Mining Customer Orientation and Buying Behavior
by Sina Shokoohyar, Sajjad Shokohyar, Niloofar Raja, Vipul Gupta
Abstract: The purpose of this study is to mining dimensions of customer relationship management (CRM) based on consumer tendency to outfit matching. Consumers are clustered into groups based on descriptive variables, consumer desire to outfit matching and customer relationship dimensions. According to the results of this research, female customers with the age 30 or younger, who have a bachelor degree and are single, are inspired to outfit matching and prefer customer involvement dimensions. Also, long term partnership is the most significant dimensions of CRM for consumers who do not engage in outfit matching. Then, association rules were applied for extracting customer buying behavior that influence customer tendency to outfit matching. These results can be useful for the fashion industry to apply more effective CRM systems and customize them with customers preferences and behavior analysis. Compared with traditional techniques, the data mining methods have great potential for investigating customers preferences.
Keywords: Behavior Analysis; Data Mining; Customer Relationship Management (CRM); Fashion Industry; Match up Clothing.
Major Projects Optimal Capacity and Timing with Time-To-Build and Investment Cost Dependency on Capacity
by Skander Ben Abdallah, Alexandre Croutzet, Janosch Ortmann
Abstract: This paper acknowledges the dependency of the project schedule, known also as the time-to-build, on the project capacity and proposes a real options model to determine the project optimal capacity, timing and value. In particular, we show that the dependency of the time-to-build on the capacity implies that the optimal capacity depends on the projet time-to-build even in the waiting region. We also show that a greater sensitivity of the time-to- build to project capacity leads to a lower optimal capacity. Moreover, as the underperformance of major projects in terms of costs and schedule is frequent, we quantify the loss associated with the late completion of a major project. By doing so, we provide practitioners with a tool to evaluate the expected losses associated with project underperformance consistent with the reality of major projects.
Keywords: major projects; real options; delays; cost overruns; optimal timing; optimal capacity; investment cost dependency on capacity; time-to-build dependency on capacity; major projects underperformance.
Self-Efficacy Beliefs and Direct Selling Sales Performance
by Victoria Crittenden, Robert Peterson, Gerald Albaum
Abstract: In the context of personal selling and sales management research, self-efficacy has typically been studied as positively related, and usually antecedent, to sales performance. Thus, the more efficacious a sales person is, the more effort and persistence he or she is believed to exhibit in prospecting new customers, maintaining relationships with existing customers, and generating sales. The present study differs from prior studies of self-efficacy in that it explores: 1) whether a direct selling experience, in and of itself, can enhance business-related self-efficacy and personal life self-efficacy; 2) whether business-related self-efficacy and personal life self-efficacy in turn relate to self-reported sales performance and non-selling job performance. Data collected from current and former direct sellers indicated that direct selling experience benefitted business-related and personal life skills. Additionally, more current direct sellers than former direct sellers believed that their self-efficacy had been enhanced by their direct selling experience and that they were more successful as direct sellers than others in their company. Self-efficacy was significantly related to self-reported sales performance and performance on a non-direct selling job. The findings possess important practical as well as theoretical implications.
Keywords: direct selling; sales performance; self-efficacy; business skills; personal life skills.
Explaining Intention to Use Mobile Banking: Integrating Perceived Risk and Trust into the Technology Acceptance Model
by Long Pham, Ha Nguyen, Stan Williamson, Ching-Yuen Chan, Thang Tran, Nam Vu
Abstract: This study explores customers' mobile banking acceptance behavior using the Technology Acceptance Model (TAM) integrated with the variables of perceived risk and trust. Research employed a sample of 403 customers of one of the largest joint stock commercial banks in Vietnam. Results show that the integrated model explains more than 76 percent of the variability of intention to use mobile banking. The results also show that perceived risk is negatively related to trust, perceived usefulness, and intention to use mobile banking. Perceived risk is a second-order construct, consisting of component risk factors. Trust is positively associated with perceived ease of use, perceived usefulness, and intention to use mobile banking. Perceived ease of use is positively associated with perceived usefulness, and intention to use mobile banking. Perceived usefulness is positively related to intention to use mobile banking. Implications are drawn to enhance intention to use mobile banking.
Keywords: Mobile banking; perceived risk; trust; intention to use; technology acceptance model; Vietnam.
CRITICAL DIVERSITY DIMENSIONS INFLUENCING EFFECTIVE DIVERSE WORKFORCE: A GREY-DEMATEL APPROACH
by Mavis Agyapomah Baafi, Jiang Xin-Ying, Ebenezer Fiifi Emire Atta Mills
Abstract: In an attempt to increase organisational innovativeness and productivity, there is a need to identify the key diversity dimensions needed in the telecommunication industry of Ghana and the degree of influence and significance of these diversity dimensions. The contribution of this paper is in the proposed approach that combines the grey-DEMATEL to evaluate relevant diversity dimensions and their influence and significance. Diversity dimensions were sourced from literature and assessed by fifteen experts. The findings revealed that the critical diversity dimensions which influence effective diversified workforce are age, educational level, gender, personality, ethnicity and cultural values, and physical abilities and characteristics. Age and gender are characterised as reason diversity dimensions, i.e., essential diversity dimensions influencing other dimensions. The managerial implication is that in designing 2 M.A. Baafi et al. strategies to achieve an effective and efficient diverse workforce that contributes to higher productivity or increased return on investment, prominence should be placed on the critical diversity dimensions.
Keywords: diversity dimension; workforce; grey-DEMATEL; mobile telecommunication industry; Ghana.
USE OF A MULTICRITERIA MODEL FOR EVALUATIING THE USE OF SUSTAINABLE PRACTICES IN A CLOTHING INDUSTRY
by Deoclécio Junior Cardoso Da Silva, Leoni Pentiado Godoy, Taís Godoy, Daniel Benitti Lorenzett, Roger Da Silva, Clandia Maffini
Abstract: This study aims to use a multicriteria model to evaluate sustainable practices in sectors of a garment industry. Therefore, a theoretical basis was formed and steps were implemented regarding the case study, using not only the sustainability, but also the synchronization of sectors in the company. The multicriteria decision support method Fuzzy TOPSIS was used to evaluate the performance of alternatives. The results showed that the use of this method to evaluate the sectors can help managers to make decisions, so that the company improves more and more in the aspect of a sustainable experience. Other categories, such as the general direction of the company, can be considered in future studies. Previous research focused on theoretical studies on sustainability. This study showed the mathematical models to define the best alternative of sustainability in the manufacturing industries.
Keywords: Sustainable practices; Multicriteria model; Fuzzy TOPSIS; Clothing industry; Sensitivity analysis.
Overstatement of firm diversification effect on bankruptcy risk reduction
by Zahra Faraji, Adam Fleischhacker
Abstract: This paper investigates the causal relationship between firm diversification and bankruptcy risk. Specifically, we examine the causal effect of diversification on the bankruptcy risk for US public firms using the Bayesian g-formula. We confirm the presence of a causal relationship between firm diversification and bankruptcy risk and discover results for US-based firms that are consistent with coinsurance theory; namely, diversification strategy reduces bankruptcy risk. However, the causal relationship is weaker than implied by most previous correlation literature, suggesting that the value of firm diversification has been overstated in related research and that causal techniques are useful in teasing out the true magnitude of an effect.
Keywords: firm diversification; bankruptcy risk; causal inference; Bayesian g-formula.
Efficiency evaluation of regional ecological economic systems based on the network DEA model
by Teng Ren, Zhongbao Zhou, Sidi Li, Shijian Wu, Binghua Song
Abstract: This paper proposes a network DEA approach to overcome defects of traditional DEA approach for evaluating the efficiency of regional ecological economic system. Instead of treating decision-making units as a 'black box' for comprehensive evaluation and ignoring internal structure of the system, our approach is able to obtain efficiency values of each subsystem. Based on our approach, the overall efficiency of the composite system and efficiencies of every subsystem are obtained and tested in terms of convergence. Empirical results show that the whole, regional and provincial ecological economic efficiency levels are low because of the inefficiency of the social and ecological subsystems. All subsystems of the ecological economic system in the eastern region are in a leading position. The economic and social efficiencies in the central region are higher than the western regions, but its ecological efficiency is lower than the western region. In addition, the results of efficiency convergence test show that the overall and social efficiencies have a divergence trend, while economic and ecological efficiencies keep steady.
Keywords: regional ecological economy; efficiency evaluation; matrix network DEA model.
A bi-level optimal scheduling model for virtual power plants and conventional power plants considering environmental constraints and uncertainty
by Jun Dong, Lin-Peng Nie, Hui-Juan Huo
Abstract: To effectively realise the distributed energy resources participating in the system scheduling and reduce pollutant emissions from conventional plants, a bi-level stochastic optimal model for conventional plants and VPPs was built considering the uncertainty and environmental constraints. Firstly, a method of scenario generation and reduction is proposed to simulate the output of WPP and PV based on interval method and Kantorovich distance. Secondly, a bi-level stochastic optimal scheduling model for VPPs and conventional plants in a day-ahead plan is constructed. Finally, different simulation scenarios are designed to verify the effectiveness of the proposed model. The results illustrate that the model can overcome the influence of uncertainty and realise optimal economic jointly dispatch for VPPs and conventional plants under environmental constraints, through VPP technology, distributed power generation resources can be integrated effectively and have good environmental effect. Plants with high environmental performance will gain a larger share and generate more power.
Keywords: environment economic dispatching; virtual power plant; stochastic programming; bi-level model; uncertainty.
Sensitivity analysis applied to fuzzy inference on the value of information in the oil and gas industry
by Martin Vilela, Gbenga Folorunso Oluyemi, Andrei Petrovski
Abstract: This paper aims at enriching the value of information methodology by integrating fuzzy logic into the decision-making process; this integration makes it possible to develop a human thinking assessment and coherently combine several economic criteria. To the authors' knowledge, this is the first use of a fuzzy inference system in the specified domain. The methodology is successfully applied to a case study of an oil subsurface assessment where the results of the standard and fuzzy methodologies are compared, leading to a more robust and complete evaluation. Sensitivity analysis is undertaken for several membership functions used in the case study to assess the impact that shifting, narrowing and stretching the membership relationship has on the value of information. The results of the sensitivity study show that, depending on the shifting, the membership functions lead to different decisions; additional sensitivities to the type of membership functions are investigated, including the functions' parameters.
Keywords: value of information; VoI; fuzzy inference system; FIS; sensitivity analysis; oil and gas industry; uncertainty.
A bi-objective multi-period closed-loop supply chain network under uncertain demand
by Marjan Olfati, Nikbakhsh Javadian
Abstract: Due to the competitive environment, supply chain management is an important subject in the world of economy. It affects all of the activities including products manufacturing, flow between facilities and costs. In this research, a mixed-integer linear programming model is considered which included supplier, plants, demand markets, collection centres, and disposal centre. The closed-loop supply chain model is bi-objective. So, it is solved by the e-constraint method and non-dominated sorting genetic algorithm-II. In order to improve the meta-heuristic algorithm's efficiency, its parameters are tuned by Taguchi method. Afterward, the different dimensions of the model are considered and the problem is rewritten as a single-objective model and solved by LINGO software and the genetic algorithm using MATLAB software to compare the efficiency of the LINGO and meta-heuristic algorithm. In small-scale problems, solving by LINGO software and in large-scale problems, solving by meta-heuristic algorithms are more efficient.
Keywords: closed-loop supply chain; CLSC mixed-integer linear programming; MILP; e-constraint; non-dominated sorting genetic algorithm-II; NSGA-II; Taguchi method.