Antonis Pavlou, Michalis Doumpos and Constantin Zopounidis
The optimization of investment portfolios is a topic of major importance in financial decision making, with many relevant models available in the relevant literature. The purpose…
Abstract
Purpose
The optimization of investment portfolios is a topic of major importance in financial decision making, with many relevant models available in the relevant literature. The purpose of this paper is to perform a thorough comparative assessment of different bi-objective models as well as multi-objective one, in terms of the performance and robustness of the whole set of Pareto optimal portfolios.
Design/methodology/approach
In this study, three bi-objective models are considered (mean-variance (MV), mean absolute deviation, conditional value-at-risk (CVaR)), as well as a multi-objective model. An extensive comparison is performed using data from the Standard and Poor’s 500 index, over the period 2005–2016, through a rolling-window testing scheme. The results are analyzed using novel performance indicators representing the deviations between historical (estimated) efficient frontiers, actual out-of-sample efficient frontiers and realized out-of-sample portfolio results.
Findings
The obtained results indicate that the well-known MV model provides quite robust results compared to other bi-objective optimization models. On the other hand, the CVaR model appears to be the least robust model. The multi-objective approach offers results which are well balanced and quite competitive against simpler bi-objective models, in terms of out-of-sample performance.
Originality/value
This is the first comparative study of portfolio optimization models that examines the performance of the whole set of efficient portfolios, proposing analytical ways to assess their stability and robustness over time. Moreover, an extensive out-of-sample testing of a multi-objective portfolio optimization model is performed, through a rolling-window scheme, in contrast static results in prior works. The insights derived from the obtained results could be used to design improved and more robust portfolio optimization models, focusing on a multi-objective setting.
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Bo Xu, Zhangxi Lin and Bingjia Shao
As a type of electronic commerce, online C2C markets have experienced a rapid growth in both sales volume and user numbers. Buy‐it‐now (BIN) auction is a mechanism to facilitate…
Abstract
Purpose
As a type of electronic commerce, online C2C markets have experienced a rapid growth in both sales volume and user numbers. Buy‐it‐now (BIN) auction is a mechanism to facilitate online auctions, and is adopted by the major online C2C marketplaces. This study aims to investigate consumers' purchase and adoption of risk relief service in BIN auctions in the online C2C market from the perspective of perceived risk.
Design/methodology/approach
A research model is developed based on relevant theory. Data are collected from American and Chinese consumers through a web‐based experiment system that simulates the transaction process on online C2C markets. The proposed hypotheses are tested with logistic and multiple linear regressions.
Findings
The results show that buyer's purchase behavior and usage of risk relief service for a transaction in BIN auctions are determined by the perceived risk, which is influenced by the buyer's risk attitude, seller online reputation, and the product price and type.
Practical implications
This study provides an in‐depth understanding of consumers' behaviors on online C2C markets at transaction level, and makes implications for online marketplace operation and business strategy making.
Originality/value
The primary value of this paper lies in providing a better understanding of consumers' behaviors on online C2C market, and investigating the factors that influence the consumers' purchase and adoption of risk relief service in online BIN auctions from the perceived risk perspective.
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Leopoldo Gutierrez, Bart Alex Lameijer, Gopesh Anand, Jiju Antony and Vijaya Sunder M
The purpose of this study is to theorize and test the relationships among lean operations and lean supply chain practices, learning- and innovation-oriented lean cultures and…
Abstract
Purpose
The purpose of this study is to theorize and test the relationships among lean operations and lean supply chain practices, learning- and innovation-oriented lean cultures and dynamic capabilities (DCs) microfoundations. Further, this study aims to assess the association of DCs microfoundations with process innovation.
Design/methodology/approach
The researchers combine primary data collected from 153 manufacturing firms located in five continents using a survey designed for the purpose of this study with archival data downloaded from the Bureau Van Dijk Orbis database and test the hypothesized relationships using structural equation modelling.
Findings
Results support the contribution of lean operations and lean supply chain practices to the development of DCs microfoundations, which further lead to greater process innovation. Additionally, while a learning-oriented lean culture positively moderates the relationships between both lean operations and lean supply chain practices and DCs microfoundations, an innovation-oriented lean culture only moderates the relationship between lean operations practices and DCs microfoundations.
Practical implications
This study identifies DCs microfoundations as the key mechanisms for firms implementing lean practices to achieve greater levels of process innovation and the important role played by lean cultures. This study provides direction for managers to put in place DCs through lean implementations, enabling their firms to be ready to respond to challenges and opportunities generated by environmental changes.
Originality/value
While previous research has confirmed the positive effects of lean practices on efficiency, the role of lean practices and cultures in developing capabilities for reacting to environmental dynamism has received little attention. This study offers an empirically supported framework that highlights the potential of lean to adapt processes in response to environmental dynamics, thereby extending the lean paradigm beyond the traditional focus on operational efficiency.
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Leopoldo Gutierrez-Gutierrez and Jiju Antony
This study aims to analyse the existing literature on continuous improvement (CI) initiatives and dynamic capabilities (DCs) development to explore the question whether CI…
Abstract
Purpose
This study aims to analyse the existing literature on continuous improvement (CI) initiatives and dynamic capabilities (DCs) development to explore the question whether CI initiatives foster development of DCs in organisations.
Design/methodology/approach
A systematic literature review (SLR) was undertaken. Four databases were included in the structured searches (EBSCOhost, Web of Knowledge, Scopus, ProQuest and Emerald Insight), 19 studies were finally included and analysed in detail.
Findings
The results obtained identify issues such as a growing trend in the publication of studies, the dominant position of the USA and the predominance of empirical papers. The literature was classified according to whether it presents CI as a DC in itself, as an enabler of DC or as a result of the DC. The main critical success factors to be implemented in CI initiatives (CII) were also identified, to enhance the development of DCs. Finally, based on the analysis of the specific DC literature, ten theoretical propositions for possible future research have been developed.
Originality/value
CII such as Lean Management, Six Sigma and Total Quality Management have been widely implemented in organisations. Despite their reputation, the effects of these initiatives on long-term benefits remain debated, this motivates the SLR of CII and DC. The DC theory tackles the question of how firms can sustain their advantage and profits in the long term, making this perspective ideal for tackling controversy on the benefits of CII.
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Leopoldo Gutierrez-Gutierrez, Vanesa Barrales-Molina, Marisel Fernandez-Giordano and Beatriz López-Morales
Once the operational benefits of Six Sigma are well-recognized in the literature, this research advances the strategic advantages of this initiative. Thus, this paper aims to…
Abstract
Purpose
Once the operational benefits of Six Sigma are well-recognized in the literature, this research advances the strategic advantages of this initiative. Thus, this paper aims to analyze how dynamic capabilities (DCs) mediates the relationship between Six Sigma implementation and organizational flexibility, not discussed in the literature yet.
Design/methodology/approach
Data from 66 Six Sigma European firms are used for a structural equation modeling and additional tests –Baron and Kenny’s test and Preacher and Hayes’s test – to analyze the mediating role of DCs. Following the scholars’ recommendations, the authors have created a second-order factor explained by knowledge absorption, organizational learning and knowledge integration to measure DCs. Flexibility, understood as the capacity for organizational adaptation, is measured through its operational and strategic dimensions.
Findings
The results show a significant relationship between Six Sigma practices – team management and statistical metrics – and DCs. In addition, the authors find support for a significant relationship between DCs and the operational and strategic dimensions of flexibility. Finally, the results confirm that DCs act as a mediating variable in the relationship between Six Sigma practices and flexibility.
Practical implications
The study contributes to literature that supports the decision to implement Six Sigma. In particular, key Six Sigma practices are identified for those managers who wish to foster DCs generation and organizational flexibility inside their companies.
Originality/value
This research analyzes the relationship between Six Sigma and strategic variables, answering the call for research about Six Sigma influence on long-term organizational success.
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Mohd Azhar, Mohd Junaid Akhtar, Mohd Nayyer Rahman and Fawaz Ahmad Khan
The present study intends to measure buying intention of Generation Z (Gen Z) on social networking sites (SNSs) incorporating perceived risk with the social commerce adoption…
Abstract
Purpose
The present study intends to measure buying intention of Generation Z (Gen Z) on social networking sites (SNSs) incorporating perceived risk with the social commerce adoption model (SCAM).
Design/methodology/approach
Data were collected via an online questionnaire, and the study used a total of 349 accurate and useable responses. The population of the study includes Indian young consumers coming from the Gen Z cohort. Data were analyzed using SPSS 20 and AMOS 22.0. The proposed hypotheses were statistically tested.
Findings
The empirical results show that perceived risk is a significant and strong predictor of perceived usefulness that, in turn, negatively influences buying intention. Among all the constructs of SCAM, perceived usefulness is the most influential and strongest predictor of buying intention. The proposed model explained approximately 34% of the variance in the behavioral intention.
Research limitations/implications
Based on the findings of this study, many theoretical and practical implications may be inferred that can be used to make recommendations to social commerce companies and help them understand the buying intention of Gen Z.
Originality/value
There are many studies that have examined buying intention and a few have measured it on Gen Z. The present study is novel in itself as it has measured the buying intention of Gen Z using the SCAM in the Indian context. Hence, the present research attempts to comprehend the variables influencing buying intention and analyses the relationship between these factors in the social media setting.
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The purpose of this paper is to explore the factors which determine the degree of knowledge transfer in inter‐firm new product development (NPD) projects. The authors test a…
Abstract
Purpose
The purpose of this paper is to explore the factors which determine the degree of knowledge transfer in inter‐firm new product development (NPD) projects. The authors test a theoretical model exploring how inter‐firm knowledge transfer is enabled or hindered by a buyer's learning intent, the degree of supplier protectiveness, inter‐firm knowledge ambiguity, and absorptive capacity.
Design/methodology/approach
A sample of 153 R&D intensive manufacturing firms in the UK automotive, aerospace, pharmaceutical, electrical, chemical, and general manufacturing industries was used to test the framework. To analyse the data, two‐step structural equation modeling in AMOS 7.0 was used.
Findings
The results indicate that a buyer's learning intent increases inter‐firm knowledge transfer, but also acts as an incentive for suppliers to protect their knowledge. Such defensive measures increase the degree of inter‐firm knowledge ambiguity, encouraging buyer firms to invest in absorptive capacity as a means to interpret supplier knowledge, but also increase the degree of knowledge transfer.
Practical implications
The paper illustrates the effects of focusing on acquisition, rather than accessing supplier technological knowledge. The paper shows that an overt learning strategy can be detrimental to knowledge transfer between buyer‐supplier, as suppliers react by restricting the flow of information. Organisations are encouraged to consider this dynamic when engaging in multi‐organisational, NPD projects.
Originality/value
The paper examines the dynamics of knowledge transfer within inter‐firm NPD projects, showing how transfer is influenced by the buyer firm's learning intention, supplier's response, characteristics of the relationship and knowledge to be transferred.
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Sichu Xiong, Antony Paulraj, Jing Dai and Chandra Ade Irawan
Firms are increasingly digitalizing their business processes and expanding them into digital platforms, which are believed to generate digital and relational resources that can…
Abstract
Purpose
Firms are increasingly digitalizing their business processes and expanding them into digital platforms, which are believed to generate digital and relational resources that can facilitate and deliver innovations for firms. Instead of focusing on the extent of digital integration capability (DI), this paper seeks to empirically evaluate whether the DI asymmetry between the buyer and supplier firms influences bilateral information sharing and the buyer’s product innovation. We also examine the moderating effects of firms’ external (environmental dynamism) and internal (innovative climate) environments on these relationships.
Design/methodology/approach
Primary and secondary archival data on 180 buyer-supplier Chinese dyadic relationships were collected and analyzed using multiple linear regression models. Additionally, the Process macro was used to shed a nuanced light on the moderation effects of environmental dynamism and innovative climate.
Findings
The results show that DI asymmetry negatively impacts buyer firms’ product innovation through decreased information sharing. Environmental dynamism weakens the negative relationship between DI asymmetry and information sharing. Meanwhile, the innovative climate negatively moderates the relationship between information sharing and product innovation.
Originality/value
This study adds knowledge to the literature regarding the dark side of “one-sided digitalization.” By exploring the influences of unbalanced DI in buyer-supplier relationships, this study yields essential theoretical and managerial implications for product innovation success in a digital era.
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Cheong Kim, Francis Joseph Costello, Jungwoo Lee and Kun Chang Lee
This study examines how structured procedures and psychological safety can enhance six sigma processes’ effectiveness and foster individual creativity within an organization.
Abstract
Purpose
This study examines how structured procedures and psychological safety can enhance six sigma processes’ effectiveness and foster individual creativity within an organization.
Design/methodology/approach
This study employs a novel methodological approach, combining structural equation modeling (SEM) and multi-value qualitative comparative analysis (mvQCA).This combination gave us a unique lens through which to view the complex connections between the constructs that were the subject of the investigation.
Findings
The results substantiate that a well-structured six sigma approach, paired with a psychologically safe environment, fosters knowledge exploration and exploitation as well as triggering conducive learning behaviors. These elements, in turn, augment individual creativity, which is found to be instrumental in boosting six sigma performance.
Originality/value
This study is one of the first to combine mvQCA and SEM to investigate the complex interplay between structured methods, psychological safety and individual creativity in enhancing six sigma performance. This research highlights the importance of fostering creativity in strategic management processes and the unrealized potential of combining these methods.
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Aboobucker Ilmudeen and Alaa A. Qaffas
Although information technology (IT) governance and IT capability have been extensively examined, the impact of IT governance mechanisms on IT-enabled dynamic capability (ITDC…
Abstract
Purpose
Although information technology (IT) governance and IT capability have been extensively examined, the impact of IT governance mechanisms on IT-enabled dynamic capability (ITDC) with moderators has received less attention. This study investigates how the impact of IT governance mechanisms on firm performance is achieved through an ITDC through the moderating role of IT governance decentralization and a turbulent environment.
Design/methodology/approach
This study extends from the traditional view of IT capabilities and integrates dynamic capability theory to propose that IT governance is vital for the ITDC. Path analysis, hierarchical regression analysis and moderation analysis were performed using partial least squares (Smart PLS 3.0) as the data analysis methods. This study empirically tests the proposed mediated moderation model by using data collected from 254 firms in China to test the hypotheses.
Findings
Significant and impactful relationships are found in the model that includes turbulent environment moderating effects. Contrary to expectations, IT governance decentralization is also significant but not very strong.
Research limitations/implications
This study’s findings have implications for investigating IT governance, IT-enabled capabilities and moderators. Accordingly, this study has implications for board and executive management to capitalize on dynamic IT capability, to keep pace with the challenges and turbulent conditions associated with business needs and for the productivity paradox in the context of Chinese firms.
Originality/value
This country-specific research study theoretically contributes to the IT governance, dynamic capabilities and turbulent environment in the information systems literature and proposes many practical guides to the board and executive management of companies in the Chinese context.