Search results

In this study, a power law process (PLP) for the failures of an engine, regarded as a complex repairable system, in a minimal repair set‐up (i.e. only a small proportion of the constituent parts of the engine are replaced on repair) with the engine regularly replaced within period T or replaced at the Nth failure after its installation, whichever occurs first, was examined. First of all, the Laplace test was used to check for the existence of a deteriorating trend in the failure data. Second, model parameters of the PLP were estimated using the maximum‐likelihood estimation method. Third, the Cramer‐von Mises test was used to test its goodness of fit. Finally, the optimal replacement policy based on minimising the long‐run expected cost per month for each type of engine was determined. The statistical inference procedure involving the maximum‐likelihood method for the PLP is based on the associated large‐sample theory. This implies the need to have a lot of data before conducting a statistical analysis. Unfortunately, the authors do not have sufficient data to conduct a real statistical analysis and to bring a significant conclusion to the considered application. The paper describes an industrial application of a PLP and a theoretical replacement model.

In this study, we employed a geometric process approach to resolve gearbox maintenance problems. The approach is realistic and direct in modelling the characteristics of a deteriorating system such as a gearbox since a decreasing geometric process can model a gearbox’s successive operating times and an increasing geometric process can model the corresponding consecutive repair times. First, two test statistics were used to check whether the process was geometric or not. Next, model parameters of the geometric process were estimated using the simple linear regression techniques. Finally, the optimal replacement policy based on minimising the long‐run average cost per day was determined for each type of gearbox.

This paper reports on the application of the sequential method, presented in a previous paper by Lai et al. in 2001, to determine optimal strategies of when to carry out a preventive maintenance action for an engine and when to replace an engine in use. The sequential method was run with real data provided by the Kowloon Motor Bus Company Limited in Hong Kong. First, both the maximum‐likelihood density estimation procedure and the nearest‐neighbour density estimation procedure were applied to assess the model parameters, and the goodnesses of fit of the distribution was assessed. Second, some values were assigned to the corrective maintenance indicator and the preventive maintenance indicator. Third, the other input values for the method were assessed. Finally, the optimal preventive maintenance and replacement strategies based on minimising loss were determined. This case study shows that the sequential method can be used to solve a maintenance and replacement problem efficiently, and also shows that the method has advantages over the non‐homogeneous Poisson process model in comparison with the results obtained by the latter.

This paper provides a quantitative review of the literature on the repercussions of idiosyncratic information on firms’ cost of equity (CoE) capital. In total, I review the results of 113 unique studies examining the CoE effects of information Quantity, Precision and Asymmetry. My results suggest that the association between firm-specific information and CoE is subject to moderate effects. First, the link between Quantity and CoE is moderated by disclosure types and country-level factors in that firms in comparatively weakly regulated countries tend to enjoy up to four times greater CoE benefits from more expansive disclosure—depending on the type of disclosure—than firms in strongly regulated markets. Second, a negative relationship between Precision and CoE is only significant in studies using non-accrual quality proxies for Precision and risk factor-based (RFB)/valuation model-based (VMB) proxies for CoE. Third, almost all VMB studies confirm the positive association between Asymmetry and CoE, but there is notable variation in the conclusions reached when ex post CoE measurers are used.

Given the susceptibility of cross‐cultural interaction to misunderstandings and disagreements, conflict management may be especially useful for helping employees develop quality leader relationships with their foreign managers. One hundred and eleven Chinese employees from various industries in Shanghai were interviewed on specific incidents where they had a conflict, defined as incompatible actions, with their Japanese manager or American manager. A qualitative analysis of the incidents and statistical tests of the data supported the hypotheses that a cooperative approach to conflict, rather than competitive or avoidance approaches, help Chinese employees and their foreign managers strengthen their relationship and improve their productivity. Cooperative conflict management may be an important way to overcome obstacles and develop an effective leader relationship across cultural boundaries.

A defining feature of international business is the necessity for people from diverse cultural backgrounds to interact and collaborate but intercultural interaction is difficult and may give rise to disagreement and conflict. I have been working on the dynamics that promote positive intercultural interaction in the international business context, and two streams of my research, one empirical and the other conceptual, are reviewed here. The first stream is concerned with fairness issues surrounding the pay disparity between locals and expatriates in multinational enterprises operating in China, which has implications for MNC operations in other emerging economies. My research has shown that the pay disparity is associated with negative reactions from local employees but some management practices associated with the relationship between locals and expatriates, attributions made by locals, and salient norms about the pay disparity can buffer such negative reactions. In this research program, the focus is not on the actual interaction between locals and expatriates. To address this gap, a conceptual framework is presented, which provides insight about the factors that contribute to positive interaction between locals and expatriates. This paper ends with implications for future research on intercultural interaction in the MNC context.