Eduardo Werner Benvenuti, Andrea Cristiane Krause Bierhalz, Carlos Ernani Fries and Fernanda Steffens
The purpose of this paper is to develop a decision-making protocol to meet the new requirements in an atypical panorama, such as the economic instability, in the textile industry.
Abstract
Purpose
The purpose of this paper is to develop a decision-making protocol to meet the new requirements in an atypical panorama, such as the economic instability, in the textile industry.
Design/methodology/approach
The methodology consists of analyzing technical criteria, costing parameters and efficiency scores of knitted fabrics using the data envelopment analysis (DEA) and classification and regression (C&R) trees models, together with statistical techniques. From these tools, it is possible to guide the portfolio management of these products in a textile company, identifying those that are inefficient and require immediate management measures. The results are expected to be replicated in other companies because the DEA and C&R trees analytical procedures are applicable to different portfolios, whether in the same industry or not.
Findings
The results allowed identifying inefficient textile products regarding the input-output relationship and the main technical reasons related to the most significant inefficiencies, such as fiber composition and knitted fabrics rapports used in manufacturing.
Originality/value
DEA and C&R trees, in combination with the study of textile technical parameters, can be fundamental to investigating the efficiency and profitability of industries in periods of economic instability or other adverse situations. In addition, it is noteworthy that there are practically no studies in the literature on DEA applied in the textile industry, indicating excellent development potential.
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It is shown that the widely used risk measures standard deviation and value at risk do not always reflect risk preferences accurately. To overcome these problems in risk…
Abstract
It is shown that the widely used risk measures standard deviation and value at risk do not always reflect risk preferences accurately. To overcome these problems in risk measurement a class of coherent risk measures has been proposed. We introduce the idea behind these measures and provide an overview of suggested coherent risk measures. Finally it is shown where the limitations of such measures in practical applications are and how regulatory bodies responded to their introduction in the literature. We find that most contributions on coherent risk measurement come from the actuarial sciences and propagate a widening of the discussion among researchers and practitioners in other industries.
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The benefits of value at risk (VaR) are its simplicity and broad applicability. However, the limitations of VaR are only just being openly discussed by researchers and…
Abstract
The benefits of value at risk (VaR) are its simplicity and broad applicability. However, the limitations of VaR are only just being openly discussed by researchers and practitioners. This article provides a brief review of problems faced when applying VaR as a risk management tool. The author shows that VaR is not always a good risk measure and is often prone to substantial measurement error. The author concludes that VaR remains a useful risk management tool when appropriately applied with an understanding of its limitations.
Recent evidence suggests that financial analysts have substantial conflicts of interest when publishing their research reports. We argue that not only investors but also listed…
Abstract
Recent evidence suggests that financial analysts have substantial conflicts of interest when publishing their research reports. We argue that not only investors but also listed companies benefit from analyst coverage and suggest that the financial burden of such coverage be shifted entirely to those companies. This article presents a detailed evaluation of a not‐widely‐known proposal that stock exchanges ensure analyst coverage for the companies they list through a levy on their listing fees. We discuss key aspects of the regulatory framework required to ensure the independence of these financial analysts as well as some of its shortcomings. We conclude that this proposal has the potential to ensure the independence of financial analysts more efficiently than the current regulatory approach does.
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Financial institutions have been subject to minimum capital requirements for considerable time while other companies do not face any such regulation. This paper investigates the…
Abstract
Purpose
Financial institutions have been subject to minimum capital requirements for considerable time while other companies do not face any such regulation. This paper investigates the capital requirements of companies and how it should relate to the assets of a company.
Design/methodology/approach
The theoretical approach in this paper integrates aspects of liquidity, asset characteristics and capital requirements into a single setting to address the problem of capital requirements for non‐financial companies.
Findings
The paper develops a framework in which the impact losses have on the future performance of the company are used to develop three categories of capital and suggest a measure for each category. The paper then relates these categories to properties of the assets the capital should be invested in, which include aspects of liquidity as well as the source of this capital. It is finally pointed out how cost considerations can be used to obtain the optimal asset and capital structure of a company.
Research limitations/implications
This paper presents the conceptual basis for the determination of capital requirements of companies and future research is needed to formalize the ideas presented here more thoroughly and gain additional insights into the relationship to the asset structure.
Practical implications
The results of this paper can be used by companies as a first guide towards deciding on their capital requirements, taking into account the properties of the assets they invest their capital in and how to optimize their capital structure.
Originality/value
The paper provides a first insight into the relationship between capital requirements, asset structure, and risks for non‐financial companies.
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Bjoern Niehaves and Andreas Krause
The paper seeks to investigate into the shared services phenomenon in the context of government reforms. It especially aims to address the emergence and shaping of shared…
Abstract
Purpose
The paper seeks to investigate into the shared services phenomenon in the context of government reforms. It especially aims to address the emergence and shaping of shared services. The paper seeks to develop the notion of shared service centres (SSCs) and shared service networks (SSNs).
Design/methodology/approach
An interview‐ and document analysis‐based multiple case study was conducted in Germany. The qualitative analysis covered two shared service projects on the local government level.
Findings
Important preconditions for shared service emergence are identified, including cost pressure as motive, the existence of key actors as well as the existence of prior cooperation. Moreover, the paper provides evidence that the structure of previous cooperation exerts influence on if shared services are organized in a centralised (SSC) or decentralised format (SSN).
Research limitations/implications
The case selection is a possible limitation of the presented study. The selected cases give an insight into the topic of shared service configuration. The findings derived constitute indicators of possible patterns, which have to be approved by further research in order to identify reliable causal relationships and improve generalisablity of the results presented here.
Originality/value
An insight into conditions of adaptation and shaping of shared services is given, suggesting causal relationships for further theory testing and development.
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Andrea S. Patrucco, Davide Luzzini, Daniel Krause and Antonella Maria Moretto
The authors empirically examine purchasing strategy typologies based on strategic intent (i.e. competitive priorities) and practices used to achieve these priorities. The authors…
Abstract
Purpose
The authors empirically examine purchasing strategy typologies based on strategic intent (i.e. competitive priorities) and practices used to achieve these priorities. The authors further investigate the implementation conditions of such strategies based on perceived uncertainty and strategic purchasing.
Design/methodology/approach
The authors utilize case study data from 11 international service and manufacturing firms with global supply chains. Each company was profiled based on the level of perceived environmental uncertainty, the characteristics of strategic purchasing, the use of relevant purchasing practices and its ability to create value through purchasing.
Findings
The study findings show that four purchasing strategy types exist: Purchasing Rationalization, Supply Base Optimization, Purchasing as a Service and World-Class Supply Base Management. Lower levels of perceived environmental uncertainty favor the adoption of rationalization strategies (i.e. Purchasing Rationalization and Supply Base Optimization), while increased uncertainty leads companies to switch to relationship-focused strategies (i.e. Purchasing as a Service and World-Class Supply Base Management). Further, that specific components of strategic purchasing (i.e. strategic planning, maturity, status and report level) enable the successful implementation of different strategy types.
Originality/value
This research contributes to the existing literature by outlining the different types of purchasing strategies and the external and internal factors that need to be considered to achieve strategic alignment and value creation in purchasing, and by classifying purchasing strategy types at the functional level based on empirical evidence.