Showing papers by "HEC Montréal published in 2009"
TL;DR: In this paper, the authors present a critical review of the blanket test procedures and suggest new ones for goodness-of-fit testing of copula models, and describe and interpret the results of a large Monte Carlo experiment designed to assess the effect of the sample size and the strength of dependence on the level and power of blanket tests for various combinations of Copula models under the null hypothesis and the alternative.
Abstract: Many proposals have been made recently for goodness-of-fit testing of copula models. After reviewing them briefly, the authors concentrate on “blanket tests”, i.e., those whose implementation requires neither an arbitrary categorization of the data nor any strategic choice of smoothing parameter, weight function, kernel, window, etc. The authors present a critical review of these procedures and suggest new ones. They describe and interpret the results of a large Monte Carlo experiment designed to assess the effect of the sample size and the strength of dependence on the level and power of the blanket tests for various combinations of copula models under the null hypothesis and the alternative. To circumvent problems in the determination of the limiting distribution of the test statistics under composite null hypotheses, they recommend the use of a double parametric bootstrap procedure, whose implementation is detailed. They conclude with a number of practical recommendations.
995 citations
TL;DR: In this article, the authors provide a brief account of the development in the field of exact algorithms and heuristics for the VRP and present a metaheuristic for the problem.
Abstract: The Vehicle Routing Problem (VRP) was introduced 50 years ago by Dantzig and Ramser under the title “The Truck Dispatching Problem.” The study of the VRP has given rise to major developments in the fields of exact algorithms and heuristics. In particular, highly sophisticated exact mathematical programming decomposition algorithms and powerful metaheuristics for the VRP have been put forward in recent years. The purpose of this article is to provide a brief account of this development.
785 citations
01 Aug 2009
TL;DR: The Vehicle Routing Problem was introduced 50 years ago by Dantzig and Ramser under the title “The Truck Dispatching Problem” and has given rise to major developments in the fields of exact algorithms and heuristics.
Abstract: The Vehicle Routing Problem (VRP) was introduced 50 years ago by Dantzig and Ramser under the title “The Truck Dispatching Problem.” The study of the VRP has given rise to major developments in the fields of exact algorithms and heuristics. In particular, highly sophisticated exact mathematical programming decomposition algorithms and powerful metaheuristics for the VRP have been put forward in recent years. The purpose of this article is to provide a brief account of this development.
762 citations
TL;DR: A recent proof of NP-hardness of Euclidean sum-of-squares clustering, due to Drineas et al. (Mach. 56:9–33, 2004), is not valid and an alternate short proof is provided.
Abstract: A recent proof of NP-hardness of Euclidean sum-of-squares clustering, due to Drineas et al. (Mach. Learn. 56:9---33, 2004), is not valid. An alternate short proof is provided.
750 citations
TL;DR: In this paper, the authors explored the effects of time and relationship strength on the evolution of customer revenge and avoidance in online public complaining contexts, and found that strong relationships with a firm's best customers have the longest unfavorable reactions (a longitudinal love-becomes-hate effect).
Abstract: This article explores the effects of time and relationship strength on the evolution of customer revenge and avoidance in online public complaining contexts. First, the authors examine whether online complainers hold a grudge—in terms of revenge and avoidance desires—over time. They find that time affects the two desires differently: Although revenge decreases over time, avoidance increases over time, indicating that customers indeed hold a grudge. Second, the authors examine the moderation effect of a strong relationship on how customers hold this grudge. They find that firms' best customers have the longest unfavorable reactions (i.e., a longitudinal love-becomes-hate effect). Specifically, over time, the revenge of strong-relationship customers decreases more slowly and their avoidance increases more rapidly than that of weak-relationship customers. Third, the authors explore a solution to attenuate this damaging effect—namely, the firm offering an apology and compensation after the online com...
700 citations
TL;DR: In this article, the authors explore the theoretical underpinnings of IS research on continuing IT use and call for empirical research that directly compares and contrasts the consensus theory of continued IT use with rival theories that place much greater emphasis on unplanned and unreasoned action.
Abstract: One of the most welcome recent developments in Information Systems scholarship has been the growing interest in individuals' continuing use of information technology well after initial adoption, known in the literature as IT usage, IT continuance, and post-adoptive IT usage. In this essay, we explore the theoretical underpinnings of IS research on continuing IT use. Although the IS literature on continuing IT use emphasizes the role of habitual behavior that does not require conscious behavioral intention, it does so in a way that largely remains faithful to the theoretical tradition of planned behavior and reasoned action. However, a close reading of reference literatures on automatic behavior (behavior that is not consciously controlled) and the influences of emotion on behavior suggests that planned behavior and reasoned action may not provide the best theoretical foundation for the study of continuing IT use. As a result, we call for empirical research that directly compares and contrasts the consensus theory of continuing IT use with rival theories that place much greater emphasis on unplanned and unreasoned action.
626 citations
TL;DR: The authors disentangles fluctuations in disaggregated prices due to macroeconomic and sectoral conditions using a factor-augmented vector autoregression estimated on a large data set.
Abstract: This paper disentangles fluctuations in disaggregated prices due to macroeconomic and sectoral conditions using a factor-augmented vector autoregression estimated on a large data set. On the basis of this estimation, we establish eight facts: (1) Macroeconomic shocks explain only about 15% of sectoral inflation fluctuations; (2) The persistence of sectoral inflation is driven by macroeconomic factors; (3) While disaggregated prices respond quickly to sector-specific shocks, their responses to aggregate shocks are small on impact and larger thereafter; (4) Most prices respond with a significant delay to identified monetary policy shocks, and show little evidence of a "price puzzle," contrary to existing studies based on traditional VARs; (5) Categories in which consumer prices fall the most following a monetary policy shock tend to be those in which quantities consumed fall the least; (6) The observed dispersion in the reaction of producer prices is relatively well explained by the degree of market power; (7) Prices in sectors with volatile idiosyncratic shocks react rapidly to aggregate monetary policy shocks; (8) The sector-specific components of prices and quantities move in opposite directions
458 citations
TL;DR: A new branch- and-cut-and-price algorithm in which lower bounds are computed by solving through column generation the linear programming relaxation of a set partitioning formulation.
Abstract: In the pickup and delivery problem with time windows vehicle routes must be designed to satisfy a set of transportation requests, each involving a pickup and delivery location, under capacity, time window, and precedence constraints. This paper introduces a new branch-and-cut-and-price algorithm in which lower bounds are computed by solving through column generation the linear programming relaxation of a set partitioning formulation. Two pricing subproblems are considered in the column generation algorithm: an elementary and nonelementary shortest path problem. Valid inequalities are added dynamically to strengthen the relaxations. Some of the previously proposed inequalities for the pickup and delivery problem with time windows are also shown to be implied by the set partitioning formulation. Computational experiments indicate that the proposed algorithm outperforms a recent branch-and-cut algorithm.
427 citations
TL;DR: In this article, the authors introduce a special topic forum on sustainable supply chain management, focusing on the relationship between purchasing management and sustainable development by drawing from Kraljic's seminal article on how "Purchasing must become supply management".
Abstract: This paper introduces a special topic forum on “Sustainable Supply Chain Management.” Before introducing the papers included in the forum, the authors provide thoughts on the direction and future of sustainability research, particularly in the context of purchasing and supply chain management. The underlying premise that structures our discussion is straightforward: a company is no more sustainable than its supply chain. As such the purchasing function becomes central in a company's sustainability effort. In doing so, we reflect on the relationship between purchasing management and sustainable development by drawing from Kraljic's seminal article on how “Purchasing Must Become Supply Management.”
386 citations
TL;DR: In this paper, the authors examined the contribution of perceived organizational support and four mindsets of organizational commitment (affective, normative, perceived sacrifice associated with leaving and perceived lack of alternatives) to employee psychological well-being.
331 citations
TL;DR: In this paper, the causal relationship between corporate social performance (CSP) and financial performance (FP) has been investigated on a sample of 179 publicly held Canadian firms and use the measures of CSP provided by Canadian Social Investment Database for the years 2004 and 2005.
Abstract: This study assesses the causal relationship between corporate social performance (CSP) and financial performance (FP). We perform our empirical analyses on a sample of 179 publicly held Canadian firms and use the measures of CSP provided by Canadian Social Investment Database for the years 2004 and 2005. Using the “Granger causality” approach, we find no significant relationship between a composite measure of a firm’s CSP and FP, except for market returns. However, using individual measures of CSP, we find a robust significant negative impact of the environmental dimension of CSP and three measures of FP, namely return on assets, return on equity, and market returns. This latter finding is consistent, at least in the short run, with the trade-off hypothesis and, in part, with the negative synergy hypothesis which states that socially responsible firms experience lower profits and reduced shareholder wealth, which in turn limits the socially responsible investments.
TL;DR: A conceptual framework is proposed to encapsulate the main concepts of institutional theory that are being used in IS research and identifies conceptual and methodological issues that researchers need to address when adopting an institutional perspective.
Abstract: In recent years, a number of studies have adopted institutional theory as a perspective for examining Information Systems (IS)/Information Technology (IT)-related phenomena such as IT innovation, IS development and implementation, and IT adoption and use. The objective of this paper is to take stock of how institutional theory is being used in IS research. To this end, it first proposes a conceptual framework to encapsulate the main concepts of institutional theory. Second, it synthesizes the findings of 53 articles that adopted an institutional perspective to study IS/IT phenomena. Finally, it identifies conceptual and methodological issues that researchers need to address when adopting an institutional perspective.
01 Dec 2009
TL;DR: This study proposes a conceptual model that seeks to support the process of integration of socio-environmental indicators into organizational strategy for sustainability and pays particular attention to one phase of any BI project, the information planning phase.
Abstract: In this paper we explore how management of sustainability in organisations can be supported by business intelligence (BI) systems. We suggest that BI has an important role to play in helping organisations implement and monitor sustainable practices. We pay particular attention to one phase of any BI project, the information planning phase, i.e., the systematic way of defining relevant information in order to integrate it in reporting activities. Using grounded theory, the main contribution of our study is to propose a conceptual model that seeks to support the process of integration of socio-environmental indicators into organizational strategy for sustainability.
TL;DR: In this survey, a classification of 24 asymmetric traveling salesman problem (ATSP) formulations is presented and the strength of their LP relaxations is discussed and known relationships from the literature are reviewed.
TL;DR: A mixed integer programming formulation for the VRPCD, where a set of homogeneous vehicles are used to transport orders from the suppliers to the corresponding customers via a cross-dock, using a tabu search heuristic embedded within an adaptive memory procedure to solve the problem.
Abstract: Over the past decade, cross-docking has emerged as an important material handling technology in transportation. A variation of the well-known Vehicle Routing Problem (VRP), the VRP with Cross-Docking (VRPCD) arises in a number of logistics planning contexts. This paper addresses the VRPCD, where a set of homogeneous vehicles are used to transport orders from the suppliers to the corresponding customers via a cross-dock. The orders can be consolidated at the cross-dock but cannot be stored for very long because the cross-dock does not have long-term inventory-holding capabilities. The objective of the VRPCD is to minimize the total travel time while respecting time window constraints at the nodes and a time horizon for the whole transportation operation. In this paper, a mixed integer programming formulation for the VRPCD is proposed. A tabu search heuristic is embedded within an adaptive memory procedure to solve the problem. The proposed algorithm is implemented and tested on data sets provided by the Danish consultancy Transvision, and involving up to 200 pairs of nodes. Experimental results show that this algorithm can produce high-quality solutions (less than 5% away from optimal solution values) within very short computational time.
06 Jul 2009
TL;DR: In this paper, a unified convex optimization framework was proposed to connect several pari-mutuel mechanisms for centrally organizing contingent claims markets, such as the logarithmic market scoring rule (LMSR), the cost-function formulation of market makers, and the sequential convex parimutuel mechanism (SCPM).
Abstract: Recently, coinciding with and perhaps driving the increased popularity of prediction markets, several novel pari-mutuel mechanisms have been developed such as the logarithmic market scoring rule (LMSR), the cost-function formulation of market makers, and the sequential convex parimutuel mechanism (SCPM). In this work, we present a unified convex optimization framework which connects these seemingly unrelated models for centrally organizing contingent claims markets. The existing mechanisms can be expressed in our unified framework using classic utility functions. We also show that this framework is equivalent to a convex risk minimization model for the market maker. This facilitates a better understanding of the risk attitudes adopted by various mechanisms. The utility framework also leads to easy implementation since we can now find the useful cost function of a market maker in polynomial time through the solution of a simple convex optimization problem.In addition to unifying and explaining the existing mechanisms, we use the generalized framework to derive necessary and sufficient conditions for many desirable properties of a prediction market mechanism such as proper scoring, truthful bidding (in a myopic sense), efficient computation, controllable risk-measure, and guarantees on the worst-case loss. As a result, we develop the first proper, truthful, risk controlled, loss-bounded (in number of states) mechanism; none of the previously proposed mechanisms possessed all these properties simultaneously. Thus, our work could provide an effective tool for designing new market mechanisms.
TL;DR: In this paper, a test of equality between two dependence structures estimated through empirical copulas is developed for independent or paired samples, which is used for calculating p-values of the Cramer-von Mises test statistic.
TL;DR: In this article, the authors combine meta-analysis with structural equation modeling to examine the impact of service quality (SQ) on customer satisfaction (CS), attitudinal loyalty (AL), and purchase intention (PI).
Abstract: This study combines meta-analysis with structural equation modeling to examine the impact of service quality (SQ) on customer satisfaction (CS), attitudinal loyalty (AL), and purchase intention (PI). Findings from 86 articles containing 115 independent samples and 161 effect sizes representing 42,877 customers are used to test a model of the relationships among the above-referred variables. Results show that SQ has a large effect on CS, AL, and PI. Also, SQ is indirectly related to AL and PI. Because AL and PI are critical indicators of a customer's willingness to engage in a relationship with the firm, this study provides clear evidence that SQ plays a vital role in a firm's quest for building long-term relationships with customers. The effect of measurement and contextual moderators is also analyzed.
TL;DR: In this article, the authors examined the relationship of affective organizational commitment and affective commitment to supervisors with turnover intentions and actual turnover, using three independent samples of employees, and found that the negative effect of organizational commitment on turnover intentions was independent of the level of commitment.
Abstract: We examined the relationships of affective organizational commitment and affective commitment to supervisors with turnover intentions and actual turnover, using three independent samples of employees. In Sample I (N = I72) and Sample 2 (N = I86), affective organizational commitment and affective commitment to supervisors were found to exert independent negative effects on turnover intentions. Moreover, in both samples, affective commitment to supervisors was more strongly related to turnover intentions when affective organizational commitment was low. In Sample 3 (N = 431), affective commitment to supervisors was the single significant predictor of actual turnover and interacted with affective organizational commitment such that its effect was stronger when affective organizational commitment was low. The implications of these findings for the understanding of the commitment―turnover relationship are discussed.
TL;DR: In this paper, a sticky-price, dynamic stochastic general equilibrium model with heterogeneous production sectors is presented, where firms in different sectors vary in their price rigidity, production technology and the combination of material and investment inputs.
Abstract: This article constructs and estimates a sticky-price, Dynamic Stochastic General Equilibrium model with heterogeneous production sectors. Firms in different sectors vary in their price rigidity, production technology, and the combination of material and investment inputs. In particular, firms buy inputs from all sectors using the actual Input–Output Matrix and Capital Flow Table of the U.S. economy. By relaxing the standard assumption of symmetry, this model allows idiosyncratic sectoral dynamics in response to monetary policy shocks. The model is estimated by the Generalized Method of Moments using sectoral and aggregate U.S. time series.
TL;DR: This paper shows how local branching can be used to accelerate the classical Benders decomposition algorithm by applying local branching throughout the solution process, and shows how Benders feasibility cuts can be strengthened or replaced with local branching constraints.
Abstract: This paper shows how local branching can be used to accelerate the classical Benders decomposition algorithm. By applying local branching throughout the solution process, one can simultaneously improve both the lower and upper bounds. We also show how Benders feasibility cuts can be strengthened or replaced with local branching constraints. To assess the performance of the different algorithmic ideas presented in this hybrid solution approach, extensive computational experiments were performed on two families of network design problems. Numerical results clearly illustrate their benefits.
08 Apr 2009-Canadian Journal of Administrative Sciences-revue Canadienne Des Sciences De L Administration
TL;DR: This paper investigated the influence of culture on pro-environmental knowledge, attitudes, and behaviours of Canadian consumers and found that French-Canadians are more knowledgeable and concerned about ecological issues, perceive that it is important to behave in an environmentally friendly fashion, believe that most corporations are acting responsibly toward the environment and consider environmental issues to a greater extent when making a purchase.
Abstract: The past few decades have been undoubtedly characterized by rapid globalization and increased concerns about environmental problems. This research investigates the influence of culture on pro-environmental knowledge, attitudes, and behaviours of Canadian consumers. Results indicate that French-Canadians, as opposed to their English counterparts, (a) are more knowledgeable and concerned about ecological issues, (b) perceive that it is important to behave in an environmentally friendly fashion, (c) believe that most corporations are acting responsibly toward the environment, and (d) consider environmental issues to a greater extent when making a purchase. However, English-Canadians are more likely to recycle and are more willing to pay a premium price for ecologically compatible products. Cross-cultural disparities were also found with respect to the classic “knowledge-attitude-behaviour” model. Implications for marketers and policy-makers as well as opportunities for future research are discussed.
Resume
Les dernieres decennies furent caracterisees par une globalisation rapide des marches et par une preoccupation grandissante de la part de la population face aux problemes ecologiques. Cette recherche examine les differences culturelles des Canadiens relativement a leurs connaissances, leurs attitudes et leurs comportements pro-environnementaux. Les resultats indiquent que les Canadiens-francais, comparativement a leurs homologues Anglais, (a) sont plus informes et preoccupes par les problemes ecologiques, (b) percoivent davantage qu'il est important de se comporter de facon a proteger l'environnement, (c) croient que les entreprises agissent de maniere responsable face a l'environnement, et (d) considerent davantage les repercussions ecologiques lorsqu'ils effectuent un achat. Toutefois, les Canadiensanglais sont plus enclins a recycler et sont prets a payer un prix plus eleve pour des produits compatibles avec l'environnement. Des differences culturelles ont egalement ete observees relativement au modele classique connaissance-attitude-comportement. Des recommandations strategiques et des voies de recherche interessantes sont proposees.
TL;DR: In this paper, a conceptual model of consumer revenge behavior is proposed and adapted to the Lazarus cognitive-emotive model of coping to the revenge context in an attempt to extend revenge to other cultures.
TL;DR: In this article, the authors examined the possible linkage between strategic alignment and traditional competitive priorities in the supply chain, and the type of interactions with suppliers, by measuring the difference between customer's requirements and the emphasis that the organization puts on these same requirements in dealing with its suppliers.
Abstract: Purpose – Over the last decade, competition in the manufacturing sector has increased as globalization and customer requirements have evolved. Now, organizations are competing not only with their internal capabilities but also on their abilities to leverage capabilities in the supply chain. Recent studies suggest that strategic alignment in the supply chain, assessed by the degree of matching between supply management and market requirements, is critical for the success of organizations in the global marketplace. The purpose of this paper is to examine the possible linkage between strategic alignment (or lack of) in the supply chain, based on the traditional competitive priorities (i.e. cost, quality, flexibility and delivery), and the type of interactions with suppliers.Design/methodology/approach – Strategic alignment in the supply chain was measured by the difference between customer's requirements and the emphasis that the organization puts on these same requirements in dealing with its suppliers. The...
TL;DR: In this paper, the authors use a panel data set that combines annual brand-level advertising expenditures for over three hundred brands with measures of brand awareness and perceived quality from a large-scale consumer survey to study the effect of advertising.
Abstract: We use a panel data set that combines annual brand-level advertising expenditures for over three hundred brands with measures of brand awareness and perceived quality from a large-scale consumer survey to study the effect of advertising. Advertising is modeled as a dynamic investment in a brand’s stocks of awareness and perceived quality and we ask how such an investment changes brand awareness and quality perceptions. Our panel data allow us to control for unobserved heterogeneity across brands and to identify the effect of advertising from the time-series variation within brands. They also allow us to account for the endogeneity of advertising through recently developed dynamic panel data estimation techniques. We find that advertising has consistently a significant positive effect on brand awareness but no significant effect on perceived quality.
TL;DR: In this paper, the authors investigated the merits of a diverse banking system with a special focus on the performance and role of savings banks in selected European countries where they are still prominent and where they have progressively disappeared.
Abstract: In the aftermath of the financial crisis, the foundations of modern and innovative financial systems developed over decades have suffered serious damage. This has triggered massive state interventions and has led authorities to revamp the regulatory structures and frameworks. While many voices have called for a return to more traditional approaches to banking and finance, no one has argued the merits of diversity. This book investigates the merits of a diverse banking system with a special focus on the performance and role of savings banks in selected European countries where they are still prominent (Austria, Germany and Spain) and where they have progressively disappeared (Belgium and Italy). The theoretical and empirical arguments that are developed in this book tend to support the view that it is economically and socially beneficial to have ‘dual bottom-line’ institutions, such as savings banks. For those who accept this premise, it would suggest that policy-makers should not take or support actions that could jeopardise this valuable element of the financial system in various countries in Europe and of the emerging integrated European financial system.
TL;DR: In this paper, the authors examined the regional effect of Japanese MNEs' foreign subsidiary localization and found that the number of subsequent foreign subsidiaries in a country is in part determined by a firm's prior foreign subsidiary activity at the regional level.
Abstract: This paper examines the regional effect of MNEs' foreign subsidiary localization. We hypothesize that the number of subsequent foreign subsidiaries in a country is in part determined by a firm's prior foreign subsidiary activity at the regional level. We test our hypotheses using data on 1076 Japanese MNEs that created 3466 foreign subsidiaries (1837 wholly owned FDIs and 1629 joint ventures) over the period 1996–2001. We use a multilevel negative binomial approach with three levels of analysis: localization decisions in a country (49 countries), in a region (six regions) and at the headquarters level. In this way, we test the regional effects controlling for country and corporate dimensions. We also run separate models to differentiate wholly owned and joint venture localization decisions. Our results strongly support the semi-globalization perspective in that the regional-level effects are significant and different from the country-level effects for all foreign subsidiaries, for wholly owned subsidiaries and for jointly owned subsidiaries. Japanese MNEs adopt a regional perspective that complements their decisions at the country and firm levels. They seek regional agglomeration benefits and make arbitrage decisions between countries in the same region.
TL;DR: Eckhardt et al. as discussed by the authors developed and validated a multi-item scale to measure consumers' agreement with three main justifications for not engaging in socially responsible consumption (SRC) behaviours, namely the economic rationalist argument, the economic development reality argument and the government dependency argument.
Abstract: This article reports the results of research aimed at developing and validating a multi-item scale to measure consumers’ agreement with three main justifications for not engaging in socially responsible consumption (SRC) behaviours, namely the ‘economic rationalist argument’ founded on the idea that the costs of SRC are greater than its benefits, the ‘economic development reality argument’ based on the idea that ethical and moral aspirations are less important than the economic development of countries, and the ‘government dependency argument’ grounded in the premise that government inaction demonstrates the legal character and the banality of unethical consumption behaviours. The scale items were generated on the basis of a multi-country qualitative study of consumers (Eckhardt et al., 2006, ‘Why Don’t Consumers Behave Ethically’. DVD Document, AGSM). The content validity of the scale was assessed in the first study. The second study was a survey of 157 Canadian adult consumers in which the three-dimensional scale and other scales measuring relevant concepts were administered. The survey results showed that the 28-item resulting scale is reliable and generally behaves as one would theoretically expect. Implications for consumption ethics researchers and policy makers are proposed.
TL;DR: In this paper, a study based on 772 shopper's interviews in two shopping malls, establishes that malls can achieve differentiation from their competitors through the pursuit of singular orientations following the hedonic and utilitarian dimensions of shopping.