Jim Hutchison and Sidhartha R. Das
To examine and analyze the decision process that a firm undergoes for acquiring an advanced manufacturing system to obtain manufacturing flexibility for its operations.
Abstract
Purpose
To examine and analyze the decision process that a firm undergoes for acquiring an advanced manufacturing system to obtain manufacturing flexibility for its operations.
Design/methodology/approach
A case study approach is used to examine these decision processes. A conceptual contingency‐based framework from the literature is used to guide the analysis. The framework proposes that four exogenous variables – strategy, environmental factors, organizational attributes, and technology – guide a firm's decisions on choice and adoption of manufacturing flexibility, which has an effect on the firm's performance.
Findings
The analysis shows that these decisions are aligned with the various relationships in the framework. The framework therefore helps understand and explain the above decision processes. Further, the paper expands the concept of “fit” between the variables in the framework.
Research limitations/implications
Several research propositions are developed based on the findings of this study. The findings in this paper are limited to this case study only. The paper does not attempt to validate theory but applies it in the context of examining and analyzing a company's decisions.
Practical implications
The suggested relationships in the conceptual framework are found to be applicable in a business setting. Practitioners can use the conceptual framework to guide them in making decisions when acquiring advanced manufacturing systems to obtain manufacturing flexibility.
Originality/value
This case study captures richness and detail in the decision‐making processes of an individual firm that are missed by other types of research studies. It helps both academics and practitioners to gain a better understanding of these processes.
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Norman Hutchison, Graham Squires, Alastair Adair, Jim Berry, Daniel Lo, Stanley McGreal and Sam Organ
The purpose of this paper is to consider the merits of using projects bonds to finance infrastructure investment projects and considers the pricing of such bonds and the level of…
Abstract
Purpose
The purpose of this paper is to consider the merits of using projects bonds to finance infrastructure investment projects and considers the pricing of such bonds and the level of risk premium demanded by the market.
Design/methodology/approach
The research used a mix of qualitative and quantitative methods with desk-based study and interviews. Interviews were held with policy makers, local authority staff, planners, developers, investors, fund managers and academics. Infrastructure bond data were obtained from the Bloomberg database on all project bonds issued in four Asian countries – Malaysia, China, Taiwan and India – over the period 2003-2014.
Findings
The analysis indicates investor appetite for project bonds and suggests that a risk premium of between 150 and 300 basis points over the comparable government bond is appropriate depending on the sector and the degree of government involvement in underwriting the issue.
Practical implications
The paper argues that the introduction of project bonds would be an important innovation, assisting the financing of infrastructure investment at a time when bank lending is likely to remain fragile. The current conditions in the sovereign debt market, where strong demand has forced down yields, has opened up the opportunity to introduce project bonds offering a higher yield to satisfy institutional investment demand for long term fixed income products.
Originality/value
The originality of this paper stems from the analysis of the merits of using projects bonds to finance infrastructure investment projects, the pricing of such bonds and the level of risk premium demanded by the market.
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Alastair Adair, Norman Hutchison, Jim Burgess and Stephen Roulac
The value of land for development is normally estimated by the use of the comparative method or the residual approach. The aim of the paper is to examine appraisal practice, in…
Abstract
Purpose
The value of land for development is normally estimated by the use of the comparative method or the residual approach. The aim of the paper is to examine appraisal practice, in particular the bases of valuation, availability and utilisation of data, reporting of the value figure and the management of risk.
Design/methodology/approach
The paper reports the findings of a survey of valuers from leading practices throughout the UK, bank lenders and developers. An example of an appraisal of an urban regeneration site is included in order to highlight the key issues within the discussion.
Findings
A variety of reporting practices is found from a tightly drawn range of values to single‐point estimates along with a detailed explanation of the assumptions employed. Developers and lenders favoured the latter, but they appeared to be open‐minded about a range of values or an expression of uncertainty being reported, provided that there is a clear and well supported justification. Risk management approaches are underdeveloped within the profession.
Originality/value
The valuation of urban regeneration land is said to be one of the most vexed issues in the appraisal of projects due to a lack of data transparency in urban regeneration markets, shortcomings in traditional appraisal methodologies and complexities of public sector grant procedures.
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Graham Squires, Norman Hutchison, Alastair Adair, Jim Berry, Stanley McGreal and Samantha Organ
– This research aims to provide an insight into large-scale real estate projects in Europe and how they are using a more innovative blend of finance.
Abstract
Purpose
This research aims to provide an insight into large-scale real estate projects in Europe and how they are using a more innovative blend of finance.
Design/methodology/approach
The methodology involved a mix of desk-based study, interviews and case studies. Interviews were held with financiers, policymakers, developers, investors, fund managers and academics. The specific case projects were Battersea Power Station Development in London; Leipziger Platz site in Berlin; and the Lammenschans site in the city of Leiden, The Netherlands.
Findings
The research found that there is growth in the blend of financial products used in real estate development within large-scale mixed-use projects. This new blend is set with greater equity financing, often from domestic and foreign consortiums generating institutional funds – alongside private debt financing – that utilise a mix of large-scale multi-bank finance.
Practical implications
The scale of the challenge in financing real estate development allied with capital budget constraints has meant that the appetite for innovative finance mechanisms has gained considerable momentum in practice and policy. This research investigates current examples in development finance and provides a discussion of the opinion of key multi-stakeholder participants in the individual cases, and trends more strategically at a broader level.
Originality/value
This detailed study of three major development sites and at a more broader strategic level is significant, in that it provides a better understanding of the differing blends of finance that are being used.
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Alastair Adair, Jim Berry, Stanley McGreal, Joanna Poon, Norman Hutchison, Craig Watkins and Kenneth Gibb
Property performance indices have invariably focused upon prime markets with a variety of approaches used to measure investment returns. However, there is relatively little…
Abstract
Purpose
Property performance indices have invariably focused upon prime markets with a variety of approaches used to measure investment returns. However, there is relatively little knowledge regarding the investment performance of property in regeneration areas. Indeed, there is a perception that such locations carry increased risk and that the returns achieved may not be sufficient to offset the added risk. The main objective of this paper, therefore, is to construct regeneration property performance indicators consistent with the CBRE rent index and average yield monitor.
Design/methodology/approach
Local market experts were asked to estimate rents and yields for hypothetical standardised offerings for a range of regeneration locations throughout the UK, covering the period 1995 to 2002.
Findings
The results show that rental growth was similar in regeneration locations compared to the prime market. However, the analysis highlights a major yield shift for property in regeneration areas in the short to medium term. The downward pressure in yields would suggest that once a regeneration area becomes established and rental growth emerges, investor interest is stimulated resulting in increased competition and a shortening of yields.
Originality/value
The significance of this research is the quantification of property investment performance from regeneration areas that previously has not been available to investment institutions and decision makers. From a policy perspective this analysis is of relevance in confirming the maturing of locations that have received high levels of public sector support and indicating the effectiveness of regeneration policy mechanisms in creating sustainable urban environments capable of meeting private sector investment goals.
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Xiaolu Zhou and Masud Parves Rana
The purpose of this paper is to review the topic “urban green space” focusing on its social benefits and measure techniques in terms of monetary value and accessibility. It…
Abstract
Purpose
The purpose of this paper is to review the topic “urban green space” focusing on its social benefits and measure techniques in terms of monetary value and accessibility. It suggests potential research direction by using an integrated valuation and measurement framework, and concludes that urban green space valuation in the providers’ perspective as well as accessibility analysis in the consumers’ perspective are useful tools that provide significant measure techniques in urban green space planning.
Design/methodology/approach
The paper uses a systematic approach to build up a conceptual framework that quantifies social benefits of green space from provider and consumer perspectives. The literature review indicates some limitations of existing techniques of valuation and accessibility analyses, which entails an integrated model of measurements.
Findings
The paper explores social benefits of urban green space, which includes recreational opportunities, aesthetic enjoyments, adjusting psychological well‐being and physical health, enhancing social ties, and providing educational opportunities. To analyze existing evaluation and measure techniques of urban green space, the paper points out that a single measurement only evaluates certain aspects of urban green space, which may not always be suitable to comprehensively assess social benefits from both providers’ and consumers’ perspectives. Considering this limitation, the paper offers an integrated model to measure urban green space that may deal with current limitations.
Originality/value
The originality of the study resides in designing an integrated model including valuation and measure techniques. It certainly offers an important avenue to evaluate social benefits of urban green space.
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In the light of past financial and economic turmoil, there has been a marked increase in the volatility in real estate markets. This has impacted on the pricing of property…
Abstract
Purpose
In the light of past financial and economic turmoil, there has been a marked increase in the volatility in real estate markets. This has impacted on the pricing of property assets, partly through market sentiment and particularly concerning risk. It also limits modelling accuracy model accuracy. The purpose of this paper is to create a new variable and model to enhance analysis of what drives real estate yields incorporating market sentiment to risk.
Design/methodology/approach
This paper specifically considers the modelling of property pricing within a volatile economic environment. The theoretical context begins by analysing the relationship between property yields and government bonds. The analytical context then moves on to specifically include a measurement of risk which stresses its role and importance in investment markets since the Global Financial Crisis. The model thus incorporates macroeconomic and real estate data, together with an international risk multiplier, which is calculated within the paper.
Findings
The paper finds the use of measurements of market sentiment and risk are more powerful tools for modelling yields than previous techniques alone.
Research limitations/implications
This is an initial paper outlining the creation of sentiment and risk measurements in the financial market and showing an example of its application to a commercial real estate market. The implication is that this could add a major new explanatory variable to modelling of yields.
Practical implications
The paper highlights the importance of risk in the pricing of commercial real estate, over and above normal variables. It highlights how this can help explain over and undershooting of yields within commercial real estate which would be of great importance in the investment world.
Originality/value
This paper attempts to explicitly measure market sentiment, pricing of risk and how this impacts real estate pricing.
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Martin Haran, Michael McCord, Norman Hutchison, Stanley McGreal, Alastair Adair, Jim Berry and Anil Kashyap
The purpose of this paper is to explore the implications of the Global Financial Crisis (GFC) on Public Private Partnership (PPP) markets around the world. Specifically, it aims…
Abstract
Purpose
The purpose of this paper is to explore the implications of the Global Financial Crisis (GFC) on Public Private Partnership (PPP) markets around the world. Specifically, it aims to highlight the extent of over reliance on debt finance, as well as the conditions needed to attract enhanced levels of institutional investment into key infrastructural provision.
Design/methodology/approach
Quantitative insight for the paper is derived from the Infrastructure Online Database. The Infrastructure Journal (IJ) Online Database profiles PFI/PPP deals around the world depicting the key actors involved, as well as the capital value of deals and the financial structures applied in terms of debt, equity and Multilateral and Government Finance. The quantitative insight derived from the IJ database is complemented by interview evidence and forum‐based discussion. In total, 38 interviews were conducted with a diverse range of key stakeholder groupings from across the public and private sectors, including government advisers, client side representatives (Health and Education sectors), contractors, financiers and FM providers. Interviewees were drawn from five key PPP markets at different stages in the maturity cycle, namely, Australia, Canada, India, the UK and the USA. In addition to the interviews, three forum‐based discussions were undertaken as part of the investigation exploring the key themes to emerge from the interviews from multi‐stakeholder perspectives.
Findings
The findings from the study highlight a number of inherent deficiencies in the PPP model, including the over reliance on private sector debt. Additionally, the research profiles the extent and form of national government interventions in PPP markets around the world, highlighting the need for a more innovative, sustainable and balanced funding frameworks for essential infrastructure conducive to the next economic/financial cycle.
Originality/value
This study is distinct in that it examines the cross‐jurisdictional implications of the global financial crisis on PPP markets.
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This introductory chapter starts off by discussing the differences and interconnections of visual sociology and urban sociology in their quest to understand human settlements. It…
Abstract
This introductory chapter starts off by discussing the differences and interconnections of visual sociology and urban sociology in their quest to understand human settlements. It then moves to argue for expanding the focus to other disciplines that are equally geared toward researching aspects of the city in visual and multimodal ways, since the urban context cannot be studied comprehensively without engaging a multitude of disciplines and trying to make productive connections between them. The chapter continues with a concise overview and discussion of each of the contributions in this first of two volumes of “Visual and Multimodal Urban Sociology” in the “Research in Urban Sociology” series. These twin volumes explore multiple ways in which the city and city life may be approached, studied, and expressed through visual and multimodal means and methods, thereby as much as possible including sensory experiences other than those related to seeing and hearing. It concludes with drawing some contours and challenges of visual and multimodal urban studies and the critical role of technology in advancing this cross-disciplinary field of inquiry.