Showing papers by "London Business School published in 1995"
TL;DR: A brief survey of recent empirical work on entry can be found in this paper, which summarizes what is generally understood about what drives entry, and about the effects that entry has on markets.
2,034 citations
TL;DR: In this article, the authors investigated the relation between the number of analysts following a security and the estimated adverse selection cost of transacting in the security, controlling for the effects of previously identified determinants of liquidity.
818 citations
TL;DR: The authors argued that there are three distinct paradigms in manufacturing strategy: competing through manufacturing; strategic choices in manufacturing; and best practice, and the relationship between them is discussed and a cycle of manufacturing strategy is proposed.
Abstract: Over the past 20 years, the field of manufacturing strategy has developed many different approaches. Argues that there are three distinct paradigms in manufacturing strategy: competing through manufacturing; strategic choices in manufacturing; and best practice. Each is reviewed and its strengths and weaknesses discussed. Finally, the relationship between them is discussed and a cycle of manufacturing strategy is proposed.
488 citations
TL;DR: In this article, the authors focus on consumers' understanding and use of the words quality and satisfaction; respondents report whether or not they think quality and customer satisfaction differ, and if so, on what dimensions or under what circumstances.
436 citations
TL;DR: In this paper, the authors provide an economic explanation for this phenomenon and empirically test the hypotheses that emerge from the analysis and show that refocusing is associated ex post with profitability improvements.
Abstract: During the 198Os, many conglomerates and other diversified firms reduced their diversification by refocusing on their core businesses. This paper provides an economic explanation for this phenomenon and empirically tests the hypotheses that emerge from the analysis. It is shown that refocusing is associated ex post with Profitability improvements.
425 citations
TL;DR: Action research is particularly valuable for theory building, as has been seen in the fields of Organizational Behavior (OB) and Management Information Systems (MIS), where qualitative methods have often been employed rather than traditional scientific methods as discussed by the authors.
Abstract: The continuing debate on production and operations management (POM)
research has led to a new emphasis on empirical methods. Claims that,
while surveys and case research are increasingly recommended to POM
researchers, action research has been relatively neglected. The distinct
characteristic of action research is the intervention by the researcher
in the situation under study. The nature of the intervention, and of
action research outputs, differs however from consulting or from the
applications reported by APICS. Explains these differences and offers a
simple model of action research. Action research is particularly
valuable for theory building, as has been seen in the fields of
organization behaviour (OB) and management information systems (MIS),
where qualitative methods have often been employed rather than
traditional scientific methods. POM researchers can learn from the
experience of other disciplines and use action research to create new
theory. Since many POM researchers will be unfamiliar with action
research, explores some practical aspects of conducting such
investigations with illustrations from the author′s own research
experience. Concludes by showing that a properly conducted action
research project can be as rigorous as other methods.
351 citations
TL;DR: This paper examined cyclical patterns of innovative activity in the United Kingdom over the period 1948-83 and found that these clusters of innovation did not cause cyclic variations in economic activity but did Granger cause changes in innovative activity.
Abstract: This paper examines cyclical patterns of innovative activity in the United Kingdom over the period 1948-83. Innovative activity turns out to have many of the properties of a random walk but does show a tendency to cluster during booms. There is clear evidence of a long-term secular relation between the level of innovative activity and the level of economic activity, although this may have changed in the 1980s. Finally, the data provide no reason for thinking that these clusters of innovation cause cyclic variations in economic activity but variations in economic activity do Granger cause changes in innovative activity. Copyright 1995 by Royal Economic Society.
284 citations
TL;DR: In this paper, the authors focus on NPA signals, which they define as new product announcements in advance of market introduction, and develop a set of hypotheses regarding incumbent reactions to such signals.
Abstract: The authors focus on NPA signals, which they define as new product announcements in advance of market introduction. They develop a set of hypotheses regarding incumbent reactions to NPA signals and...
231 citations
TL;DR: In this article, the authors report the results of a large-scale survey among senior executives in the U.S., the UK, Germany, and Austria and find that country and industry type have significant effects both with regard to identification of ethical problems and the comprehensiveness of written ethics policies and ethics training.
Abstract: This paper reports the results of a large-scale survey among senior executives in the U.S., the U.K., Germany and Austria. The research provides empirical evidence on the variation of perceptions of ethical issues by country and type of firm. Our findings suggest that country and industry type have significant effects, both with regard to identification of ethical problems and the comprehensiveness of written ethics policies and ethics training.
160 citations
TL;DR: In this paper, the asymptotic local power of unit root tests with the same data span is shown to be independent of sampling frequency, and a measure of the power trade-off between sampling frequency and time span for distinct alternatives is derived using an approximate slopes approach.
128 citations
TL;DR: In this paper, the authors investigated the effect of fund managers' performance evaluation on their asset allocation decisions and concluded that incentive provisions for portfolio managers are an important factor in their decision.
Abstract: This paper investigates the effect of fund managers' performance evaluation on their asset allocation decisions. We derive optimal contracts for delegated portfolio management and show that they always contain relative performance elements. We then show that this biases fund managers to deviate from return-maximising portfolio allocations and follow those of their benchmark (herding). In many cases the trustees of the fund who employ the fund manager prefer such a policy. We also show that fund managers in some situations ignore their own superior information and "go with the flow" in order to reduce deviations from their benchmark. We conclude that incentive provisions for portfolio managers are an important factor in their asset allocation decisions.
TL;DR: In this article, the authors report the results of a study of operational practice and performance in 663 manufacturing sites in Finland, Germany, the Netherlands and the UK, and review the competitiveness of manufacturing in each country against a "world class" scale.
Abstract: This article reports the results of a study of operational practice and performance in 663 manufacturing sites in Finland, Germany, the Netherlands and the UK. It reviews the competitiveness of manufacturing in each country against a “world class”scale. The results are examined in more detail examining differences between countries, factors influencing competitiveness such as site size and origin of parent, and agendas for individual countries. Overall a broad spread is found in Northern Europe with disappointingly few world class sites but many reasons for cautious optimism. The best companies are realistic about their position, but the worst are dangerously over-optimistic.
TL;DR: The authors used both unobtrusive measures (archival data) and direct questions to induce multi-line providers to induce their salespeople to sell house brands, and found that the extent to which salespeople ad...
Abstract: How can multiline providers induce their salespeople to sell house brands? Using both unobtrusive measures (archival data) and direct questions, the authors model the extent to which salespeople ad...
TL;DR: The basic tasks of a business are straight-forward -getting and keeping customers and making profits, both set within the context of the short and long term as discussed by the authors, and explicit in these is not only a need for marketing and manufacturing to work well in themselves but to work together.
Abstract: The basic tasks of a business are straight‐forward – getting and keeping customers and making profits, both set within the context of the short and long term. Explicit in these is not only a need for marketing and manufacturing to work well in themselves but to work well together. Companies, however, typically fail in this provision. To move to a more competitive response in today′s difficult markets requires more than co‐existence, it requires a shared partnership between the core parts of the firm. Shared understanding of marketing and manufacturing′s approach is the starting point. The other is building on a shared understanding of the market itself. In such a way, a move to being customer‐driven starts to take shape.
TL;DR: As well as being generalizations based on repeated empirical evidence, good empirical generalizations have five other characteristics: scope, precision, parsimony, usefulness, and a link with theory as discussed by the authors.
Abstract: As well as being generalizations based on repeated empirical evidence, good empirical generalizations have five other characteristics: scope, precision, parsimony, usefulness, and a link with theory.
TL;DR: The evolution of lean production connecting the work of Taylor to its development at Toyota is reviewed, and this is used to propose three key elements of operations management in the 1990s, namely, the core, interfaces and convergence.
Abstract: SUMMARY
This paper sets out to review past and current research in operations management, and to explore current and future issues facing the area. It reviews the history of the area, and the patterns of research content and type. It reviews the evolution of lean production connecting the work of Taylor to its development at Toyota, and uses this to propose three key elements of operations management in the 1990s, namely, the core, interfaces and convergence. Current issues relating to research in operations management are explored and it is argued that there is a need for aggressive research agendas. Finally, possible future agendas for the area are explored.
TL;DR: Ghoshal and Bartlett as mentioned in this paper argue that large, diversified companies which flourised in the early decades following the Second World War are in deep trouble, and the organizational structure of this period which provided the elixir, has proved incapable of meeting the changed world environment and the new demands of the 1990s.
Abstract: This paper examines the effects of the production of major innovations and patents on various measures of corporate performance. The analysis draws on panel data for 440 UK firms over the period 1972-1982. The observed direct effects of innovations on performance are relatively small. The paper also shows that little evidence can be found on innovation spillovers, associated with the production of either innovations or patents elsewhere in each firm's two-digit industry, raising performance. The benefits from innovation are more likely to be indirect, namely for user industries. However, innovative firms seem to be less susceptible to cyclical pressures than non-innovative firms. Firms in a competitive environment also seem more likely to engage in innovative activities than other firms ...
TL;DR: In this paper, the authors describe how the 43 firms analyzed in a case study project in Czechoslovakia, Hungary, and Poland reacted to systemic changes between 1990 and 1992 and highlight the need for a coherent privatization program as part of a successful transition strategy.
TL;DR: A System Dynamics model to simulate the substitution of installed household appliances by more efficient ones is presented and it allows the calculation of total energy savings under different scenarios.
Abstract: A System Dynamics model to simulate the substitution of installed household appliances by more efficient ones is presented. The model allows the construction of scenarios and also the analyses of several other issues such as: alternatives for technology penetration, electricity consumption growth, gas consumption growth and effects of pricing policies on various energy demands. The proposed methodology has been applied to assist the decision process in relation to gas penetration policies. The model also supports policy making on energy efficiency and it allows the calculation of total energy savings under different scenarios. Furthermore, government underpricing policies on tariffs and appliance acquisition (longer loan terms, lower interest rates and grace periods) may also be analysed.
TL;DR: A survey of British supermarket customers showed that the factor most strongly associated with claimed brand loyalty is household income as mentioned in this paper, while there is little evidence that store patronage is raised by loyalty to store brands.
Abstract: A mail survey of British supermarket customers shows that the factor most strongly associated with claimed brand loyalty is household income Brand loyal customers also claim to spend more, are more concerned about quality and less about price, are slightly more store loyal and make more use of large out‐of‐town stores Brand loyalty is also related to age; those aged under 25 years and 65 + years are less loyal There is little difference between those who are primarily loyal to store brands and those who are primarily loyal to manufacturer brands, and there is little evidence that store patronage is raised by loyalty to store brands
TL;DR: In this article, a comparison between two sets of estimates of the stock of outstanding debt on a distributed lag of the primary surplus was made to test whether the government's budget is intertemporally balanced.
Abstract: This paper tests whether the government's budget is intertemporally balanced in a number of EC countries by applying a method first developed to detect speculative bubbles in financial markets. The test aims to establish whether the government can engage in buble finance, and is based on a comparison between two sets of estimates. The first is obtained directly by regressing the stock of outstanding debt on a distributed lag of the primary surplus. The second is obtained indirectly from a pair of equations, one relating the current debt stock to next period's primary surplus and debt stock, the other specifying an AR process for the primary surplus. In the presence of a bubble, only the first set of estimates is inconsistent, and hence the two sets differ. It is found that the null of no bubble can be rejected in the cases of Italy, Germany, Denmark and Greece implying that the government is not intertemporally solvent in these countries. The other EC member states appear to be on a sustainable path.
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TL;DR: In this article, the authors present a model of the stock market in which managers have discretion in making investments and must be given the right incentives; and stock market traders may have important information that managers do not have about the value of prospective investment opportunities.
Abstract: In a capitalist economy prices serve to equilibrate supply and demand for goods and services, continually changing to reallocate resources to their most efficient uses. However, secondary stock market prices, often viewed as the most 'informationally efficient' prices in the economy, have no direct role in the allocation of equity capital since managers have discretion in determining the level of investment. What is the link between stock price informational efficiency and economic efficiency? We present a model of the stock market in which: (i) managers have discretion in making investments and must be given the right incentives; and (ii) stock market traders may have important information that managers do not have about the value of prospective investment opportunities. In equilibrium, information in stock prices will guide investment decisions because managers will be compensated based on informative stock prices in the future. The stock market indirectly guides investment by transferring two kinds of information: information about investment opportunities and information about managers' past decisions. The fact that stock prices only have an indirect role suggests that the stock market may not be a necessary institution for the efficient allocation of equity. We emphasize this by providing an example of a banking system that performs as well.
TL;DR: This paper investigated the stability of the correlation between output growth and inflation using a technique that allows for changes in regime and found evidence of changes both in means and variances in both sources of data.
TL;DR: The potential contribution of employee commitment to high quality performance, the difficulties of achieving that commitment and the relationship of the employee contribution to performance improvement was examined in a qualitative and quantitative study with six major British companies as discussed by the authors.
Abstract: Presents summary findings from qualitative and quantitative research with six major British companies. The original intention was to look at the potential contribution of employee commitment to high quality performance, the difficulties of achieving that commitment and the relationship of the employee contribution to performance improvement. Three particular concepts emerged as pivotal: the distinctive focus on process improvement for generating new forms of interaction at work; the importance of employee tacit knowledge for contributing to process improvement; and a new form of trust based on mutual interest between employees and management as a crucial intermediary variable contributing to commitment.
TL;DR: This article showed that low wages in the East would motivate Western businesses to relocate their production lines, moving jobs from the West to the East during the Cold War, which resulted in different industrial structures and a huge gap of real wages.
Abstract: During the Cold War, Western and Eastern Europe experienced a different economic development that resulted in different industrial structures and a huge gap of real wages. When the Iron Curtain fell, there was widespread expectation that low wages in the East would motivate Western businesses to relocate their production lines, moving jobs from the West to the East.
TL;DR: The authors showed that the benefits of callable convertible debt as delayed equity are preserved only if conversion is voluntary, and this appears to be consistent with the empirical evidence, which suggests that the benefit of issuing equity in this delayed manner has been linked to the lower adverse selection properties of convertible debt compared to equity.
TL;DR: In this paper, the authors present le resultats de l'etude de deux populations de banques cooperatives italiennes entre 1936 and 1974, and examine plus particulierement, avec l'aide d'un modele ecologique, les creations qui surviennent dans ce cadre organisationnel.
Abstract: L'A. presente les resultats de l'etude de deux populations de banques cooperatives italiennes entre 1936 et 1974. Il examine plus particulierement, avec l'aide d'un modele ecologique, les creations qui surviennent dans ce cadre organisationnel. Il s'efforce de comprendre les mecanismes de densite-dependance, de repartition des ressources, d'interdependance communautaire et montre que ces facteurs contribuent a expliquer l'evolution de ces processus de fondation