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Subject(s)
Economics, politics and business environment
Keyword(s)
Reverse privatization, solid waste collection, mixed oligopoly, state-owned enterprises, competition law enforcement, logit regression
JEL Code(s)
L33, L44, L88, H44, K21
After earlier waves of privatization, local governments have increasingly taken back control of local service provisions in some sectors and countries and instead started providing those services themselves (reverse privatization). Using a unique panel dataset on the mode of service provision for solid waste collection for German municipalities that cover the years 2003, 2009, and 2015, we investigate the motives for reverse privatization. Our results show that -- in deciding whether to insource or not -- municipalities react to the cost advantages of private suppliers as well as to the competitive environment and municipal activity: There is more switching to insourcing in concentrated markets and in markets with horizontally or vertically related public services. Local interest groups influence this decision as well.
Pages
43
ISSN (Print)
1866–3494
Journal Article
Journal of Accounting, Auditing, and Finance 36 (4): 826–853
Neil Bhattacharya, Per Olsson, Hyungshin Park (2021)
Subject(s)
Finance, accounting and corporate governance
Keyword(s)
Analyst forecast, earnings announcement, investor sophistication, under-reaction
We decompose analysts’ earnings forecast error into predictable and unpredictable components, and investigate individual vis-à-vis institutional investors’ reactions to each of these components. We find that in the immediate post-earnings announcement window, only individuals under-react to the predictable component, while both individuals and institutions under-react to the unpredictable component. The price drift in this window is driven primarily by investors’ under-reaction to the unpredictable component. This drift remains highly significant in larger firms and intensifies in firms with complex financial reports, suggesting that it likely represents the slow and noisy process of price discovery. Around the next quarterly earnings announcement, only individuals under-react to the previous quarter’s predictable component, and this fixation drives the entire price drift in this window. This drift disappears in larger firms, and gets exacerbated in firms with greater forecast error autocorrelations, suggesting that it is likely attributable to incomplete processing of earnings information by individuals.
​​​​With permission of SAGE Publishing
Volume
36
Journal Pages
826–853
ISSN (Online)
2160-4061
Journal Article
Organizational Research Methods 24 (4): 802–829
Aaron Schecter, Eric Quintane (2021)
Subject(s)
Management sciences, decision sciences and quantitative methods
Keyword(s)
Social network analysis, network dynamics, Relational Events Model
The Relational Event Model (REM) solves a problem for organizational researchers who have access to sequences of time stamped interactions. It enables them to estimate statistical models without collapsing the data into cross-sectional panels, which removes timing and sequence information. However, there is little guidance in the extant literature regarding issues that may affect REM’s power, precision and accuracy: How many events or actors are needed? How large should the risk set be? How should statistics be scaled? To gain insights into these issues, we conduct a series of experiments using simulated sequences of relational events under different conditions and using different sampling and scaling strategies. We also provide an empirical example using email communications in a real-life context. Our results indicate that, in most cases, the power and precision levels of REMs are good, making it a strong explanatory model. However, REM suffers from issues of accuracy that can be severe in certain cases, making it a poor predictive model. We provide a set of practical recommendations to guide researcher’s use of REMs in organizational research.
With permission of SAGE Publishing
Volume
24
Journal Pages
802–829
Journal Article
Harvard Business Review
Subject(s)
Diversity and inclusion; Entrepreneurship; Human resources management/organizational behavior; Strategy and general management
Keyword(s)
contrarian, behavioural traps, diversity, strategy
ISSN (Print)
0017-8012
ESMT Working Paper
ESMT Working Paper No. 19-02 (R3)
Işık Biçer, Florian Lücker, Tamer Boyaci (2021)
Subject(s)
Management sciences, decision sciences and quantitative methods; Product and operations management
Keyword(s)
Product proliferation, lead-time reduction, process redesign, delayed differentiation
Product proliferation occurs in supply chains when manufacturers respond to diverse market needs by trying to produce a range of products from a limited variety of raw materials. In such a setting, manufacturers can establish market responsiveness and/or cost efficiency in alternative ways. Delaying the point of the proliferation helps manufacturers improve their responsiveness by postponing the ordering decisions of the final products until there is partial or full resolution of the demand uncertainty. This strategy can be implemented in two different ways: (1) redesigning the operations so that the point of proliferation is swapped with a downstream operation or (2) reducing the lead times. To establish cost efficiency, manufacturers can systematically reduce their operational costs or postpone the high-cost operations. We consider a multi-echelon and multi-product newsvendor problem with demand forecast evolution to analyze the value of each operational lever of the responsiveness and the efficiency. We use a generalized forecast-evolution model to characterize the demand-updating process, and develop a dynamic optimization model to determine the optimal order quantities at different echelons. Using anonymized data of Kordsa Inc., a global manufacturer of advanced composites and reinforcement materials, we show that our model outperforms a theoretical benchmark of the repetitive newsvendor model. We demonstrate that reducing the lead time of a downstream operation is more beneficial to manufacturers than reducing the lead time of an upstream operation by the same amount, whereas reducing the upstream operational costs is more favorable than reducing the downstream operational costs. We also indicate that delaying the proliferation may cause a loss of profit, even if it can be achieved with no additional costs. Finally, a decision typology is developed, which shows effective operational strategies depending on product/market characteristics and process flexibility.
Pages
52
ISSN (Print)
1866–3494
Subject(s)
Human resources management/organizational behavior
Keyword(s)
Executives, career shocks, coaching
This is a practitioner article based on a recently published academic paper on career shocks of executive. The article explains the phenomenon of a career shocks and offers strategies for dealing with them.
ISSN (Print)
0015-6914
Book
5th ed.,Schäffer-Poeschel
Walther Busse von Colbe, Adolf G. Coenenberg, Peter Kajüter, Ulrich Linnhoff, Bernhard Pellens (2021)
Subject(s)
Strategy and general management
Keyword(s)
Accounting, finance
Grundlegende Fragen der Unternehmensführung, betriebswirtschaftliche Methoden, Werkzeuge und Zusammenhänge verstehen: Das Buch vermittelt Führungskräften und Studierenden die notwendigen BWL-Kenntnisse. Praxisorientiert und leicht verständlich erschließt es - gerade auch für Nicht-BWLer - alle wichtigen Themen: Von der Ausrichtung auf Markt und Wettbewerb, über die Gestaltung interner Strukturen und Prozesse, bis hin zu den Instrumenten der Unternehmenssteuerung und der Finanzberichterstattung.
Für die 5. Auflage wurden sämtliche Beiträge überarbeitet und aktualisiert. Mit Übungsaufgaben, Lösungshinweisen und Kurzglossar wichtiger englischsprachiger Fachbegriffe.
Volume
5th ed.,
Pages
911
ISBN
978-3-7910-3760-8
ISBN (Online)
978-3-7910-4135-3
Online article
Forbes India
Bianca Schmitz, Aparajith Raman (2021)
Subject(s)
Entrepreneurship
Keyword(s)
Design thinking, digital transformation, innovation, customer centricity
Business owner and managers are facing the challenge of how to best drive digital transformation in their organizations. Design thinking might be one method to address these challenges and, at the same time, support a mindset change within the companies.
Subject(s)
Economics, politics and business environment; Information technology and systems; Technology, R&D management
Keyword(s)
Fiber optic technology, state aid, ex-post evaluation, efficiency, OECD countries
JEL Code(s)
C51, C54, H25, L52, O38
The deployment of new broadband networks (NBNs) based on fiber-optic transmission technologies promises high gains in terms of productivity and economic growth, and has attracted subsidies worth billions from governments around the world in the form of various state aid programs. Yet, the effectiveness and the efficiency of such programs remains largely unstudied. We employ panel data from 32 OECD countries during 2002-2019 to provide robust empirical evidence of both. We find that state aid significantly increases NBNs by facilitating the deployment of new connections to 22% of households in the short term and 39.2% in the long term. By comparing the actual amounts of state aid support to the estimated impact on GDP growth, we also find it to be highly cost efficient, as the programs break even after three years on average.
Pages
35
ISSN (Print)
1866–3494
Subject(s)
Management sciences, decision sciences and quantitative methods; Product and operations management; Technology, R&D management
Keyword(s)
Data, machine learning, data product, pricing, incentives, contracting
This paper explores how firms that lack expertise in machine learning (ML) can leverage the so-called AI Flywheel effect. This effect designates a virtuous cycle by which, as an ML product is adopted and new user data are fed back to the algorithm, the product improves, enabling further adoptions. However, managing this feedback loop is difficult, especially when the algorithm is contracted out. Indeed, the additional data that the AI Flywheel effect generates may change the provider's incentives to improve the algorithm over time. We formalize this problem in a simple two-period moral hazard framework that captures the main dynamics among ML, data acquisition, pricing, and contracting. We find that the firm's decisions crucially depend on how the amount of data on which the machine is trained interacts with the provider's effort. If this effort has a more (less) significant impact on accuracy for larger volumes of data, the firm underprices (overprices) the product. Interestingly, these distortions sometimes improve social welfare, which accounts for the customer surplus and profits of both the firm and provider. Further, the interaction between incentive issues and the positive externalities of the AI Flywheel effect has important implications for the firm's data collection strategy. In particular, the firm can boost its profit by increasing the product's capacity to acquire usage data only up to a certain level. If the product collects too much data per user, the firm's profit may actually decrease, i.e., more data is not necessarily better.
Pages
48
ISSN (Print)
1866–3494