International Journal of Management and Decision Making (8 papers in press)
An integrated core competence evaluation framework for portfolio management in the oil industry
by Khalid Hafeez, Pantea Foroudi, Bang Nguyen
Abstract: Drawing upon resource-based theory, this paper presents a core competence evaluation framework for managing the competence portfolio of an oil company. It introduces a network typology to illustrate how to form different types of strategic alliance relations with partnering firms to manage and grow the competence portfolio. A framework is tested using a case study approach involving face-to-face structured interviews. We identified purchasing, refining and sales and marketing as strong candidates to be the core competencies. However, despite the company's core business of refining oil, the core competencies were identified to be their research and development and performance management (PM) capabilities. We further provide a procedure to determine different kinds of physical, intellectual and cultural resources making a dominant impact on company's competence portfolio. In addition, we provide a comprehensive set of guidelines on how to develop core competence further by forging a partnership alliance choosing an appropriate network topology.
Keywords: competence portfolio; resource-based view; core competence; resource-asset-capability; network topology; collective learning.
An advanced platform for power system security assessment accounting for forecast uncertainties
by Emanuele Ciapessoni, Diego Cirio, Andrea Pitto, Nicolas Omont, Leonel M. Carvalho, Maria Helena Vasconcelos
Abstract: Accounting for the increasing uncertainties related to forecast of renewables is becoming an essential requirement while assessing the security of future power system scenarios. Project iTesla in the Seventh Framework Program (FP7) of the European Union (EU) tackles these needs and reaches several major objectives, including the development of a security platform architecture. In particular, the platform implements a stochastic dependence model to simulate a reasonable cloud of plausible 'future' states - due to renewable forecast - around the expected state, and evaluates the security on relevant states after sampling the cloud of uncertainty. The paper focuses on the proposed model for the uncertainty and its exploitation in power system security assessment process and it reports the relevant validation results.
Keywords: Nataf transformation; pair copula decomposition; power systems; principal component analysis; renewables; security assessment; uncertainties.
Assessing the impacts of circular economy: a framework and an application to the washing machine industry
by Gianmarco Bressanelli, Marco Perona, Nicola Saccani
Abstract: The literature usually depicts circular economy as a path to embrace sustainability into economic systems. Shifting from a linear to a circular economy leads to environmental and social benefits. However, despite a growing attention from academia, policymakers and businesses, circular economy implementation projects are still scarce. One of the reasons is that circular economy scenarios may be challenging from an economic perspective. In order to spur a transition towards circular economy, new methods to support the assessment of economic, environmental and social impacts of circular economy scenarios are needed. This paper presents a systemic framework to support a simplified evaluation of circular economy scenarios. The framework, developed specifically for durable goods, is applied to the washing machine industry, thanks to a case study. The application results show how the framework adoption may contribute to reduce the uncertainties that are often an obstacle to the transition towards circular economy.
Keywords: circular economy; servitised business model; closed-loop supply chain; washing machine; impact assessment; systematic framework.
The effects on anchoring of increasing quantities of disconfirming evidence
by Tom Downen, Zhan Furner, Bryan Cataldi
Abstract: Anchoring has been shown to influence judgements in a wide variety of contexts, often in a dysfunctional manner (particularly when anchors are deemed unreliable). Identifying methods for mitigating the effects of anchors is important. Our experimental study utilises three abstract settings and arbitrary anchor values. We find strong anchoring effects in initial judgements. Providing disconfirming evidence of moderate helpfulness does, however, reduce the anchoring effects. Specifically, providing one or two items of disconfirming information is shown to have significant incremental benefits in reducing or even eliminating anchoring effects. However, surprisingly, providing three items of disconfirming information, in our setting, did not further reduce anchoring, suggesting some diminishing effect of additional evidence. This is consistent with prior research suggesting that individuals adjust until they are 'close enough', and then stop considering additional information. Our results have implications for a wide variety of judgement contexts, and the results are encouraging in suggesting that a relatively small quantity of disconfirming evidence could be sufficient for overcoming anchoring.
Keywords: anchoring; overcoming anchoring; adjustment; judgement; decision making; disconfirming information; information quantity; diminishing effect.
Selecting a robust decision making method to evaluate employee performance
by M. Haddad, D. Sanders, N. Bausch
Abstract: This paper investigates how to select a robust decision making method to evaluate employee performance. Two multiple criteria decision making (MCDM) methods are considered for the evaluation of US coast guard officers. Sensitivity analysis is conducted to understand the nature of uncertainty in evaluation criteria and employee performance. Outcomes from this analysis provide an understanding of the most critical factors governing the evaluation. MCDM methods dealing with discrete sets of alternatives are considered. The stability of two MCDM methods' outcomes are compared and the method with the most stable outcome is recommended. The minimum percentage change in criteria weights and performance scores required to alter the outcome of the evaluation is calculated. An MCDM method is recommended based on a best compromise in minimum percentage change required in inputs to alter the outcome of a method.
Keywords: employee performance; decision making; evaluation; sensitivity; stability.
A hybrid approach to determine the network structure of strategic criteria in carpet industries
by Nasrin Hemayatkar, Kaveh Khalili-Damghani, Hossein Didehkhani, Roohalla Samiee
Abstract: Carpet industry is one of the non-oil industries in Iran. So, development of carpet industry through strategic planning may help decision makers in this area. The most important issue in strategic planning is identifying the affecting criteria in the field. A hybrid approach on the basis of DEMATEL and ANP is proposed for ranking of most effective strategic criteria in carpet industry. In the first phase, the most important strategic criteria in carpet industry are selected. Then, the reliability of selected criteria is measured through Cronbach's alpha. In the second phase, the interactive network of selected criteria is quantified using DEMATEL approach and the cause and effect criteria are classified. In the third phase, ANP approach is used to fully rank the criteria and the weights of the criteria are determined. This paper is a case study for ranking and identifying the relationships among key factors of organisational strategy in the carpet industry. The whole approach is applied in the carpet industry in Iran. The final results of the research can help the managers to recognise the complicated interactive network of the cause and effects indicators in development of carpet industry strategies, and to achieve the relative importance of the indicators.
Keywords: decision-making; performance measurement; DEMATEL; analytic network process; ANP; carpet industry.
A multi-criteria decision making model for readiness assessment of vendor managed inventory in healthcare
by Detcharat Sumrit
Abstract: The use of vendor managed inventory (VMI) approach has been increasingly implemented in recent years, especially in the healthcare industry. It causes by cost-ineffectiveness and uncertain information both qualitative and quantitative data. To deal with these obstacles, a hybrid multi-criteria decision making (MCDM) method for VMI assessment is proposed in this article. This integrated MCDM comprises DEMATEL-based analytic network process (DANP) method in order to investigate the relationship among readiness criteria, and to construct the complex evaluation system. Finally, the modified VIKOR is used to evaluate the criteria that influence the adoption of VMI. Based on empirical case study for hospitals in Thailand, the result shows that provincial hospital has the highest potential readiness in VMI adoption, followed by university hospital and private hospital. Besides, the priority criteria improvements of each hospital are quite different, which the findings should assist hospital managers to pay an attention to the readiness assessment before VMI adoption.
Keywords: analytic network process; ANP; decision making trial and evaluation laboratory; DEMATEL; DEMATEL-based ANP; DANP; multi-criteria decision making; MCDM; vendor managed inventory; VMI; Vlse Kriterijumska Optimizacija I Kompromisno Resenje; VIKOR.
An integrated approach of fuzzy AHP and fuzzy TOPSIS in modelling contractual design of supply chain inventory coordination mechanism
by Mukesh Kumar, Dixit Garg, Ashish Agarwal
Abstract: In recent decades, firms are facing the challenges of lack of inventory coordination issues in multi echelon inventory coordination environment. Contractual design of supply chain inventory coordination mechanism (SCICM) are necessary for effective and efficient SCM and not merely better profit distribution within supply chain trading partners (SCTPs), but effective coordination mechanism is key necessity for complex supply flow network. SC structure consists of SV and MB, SC for a multi products flow network considered. SCTPs can be coordinated by better contractual design for perfect SCICM. These criteria are namely controllable lead time and asymmetric information; common replenishment epoch; inventory-level-dependent demand rate; VMI system with stock-out cost sharing; sales rebate contract and VMI. FAHP and FTOPSIS approaches can be used to integrate more consistent evaluation and prioritisation of SCTPs based on five SCICM criterion determined by factor analysis of survey data and expert opinion of retail industry. FAHP is used to calculate relative weight of each SCICM criteria and SCP is ranked based on closeness coefficient. Calculated for each partners are using FTOPSIS.
Keywords: supply chain inventory coordination; SCIC; vendor managed inventory; VMI; supply chain trading partners; SCTPs; fuzzy logic; fuzzy analytical hierarchy process; FAHP; fuzzy TOPSIS.