Showing papers in "Management Science in 2003"
TL;DR: Online feedback mechanisms harness the bidirectional communication capabilities of the Internet to engineer large-scale, word-of-mouth networks as discussed by the authors, which has potentially important implications for a wide range of management activities such as brand building, customer acquisition and retention, product development and quality assurance.
Abstract: Online feedback mechanisms harness the bidirectional communication capabilities of the Internet to engineer large-scale, word-of-mouth networks. Best known so far as a technology for building trust and fostering cooperation in online marketplaces, such as eBay, these mechanisms are poised to have a much wider impact on organizations. Their growing popularity has potentially important implications for a wide range of management activities such as brand building, customer acquisition and retention, product development, and quality assurance. This paper surveys our progress in understanding the new possibilities and challenges that these mechanisms represent. It discusses some important dimensions in which Internet-based feedback mechanisms differ from traditional word-of-mouth networks and surveys the most important issues related to their design, evaluation, and use. It provides an overview of relevant work in game theory and economics on the topic of reputation. It discusses how this body of work is being extended and combined with insights from computer science, management science, sociology, and psychology to take into consideration the special properties of online environments. Finally, it identifies opportunities that this new area presents for operations research/management science (OR/MS) research.
2,519Â citations
TL;DR: In this article, the authors provide an integrative framework for organizing the literature on knowledge management and identify where research findings about knowledge management converge and where gaps in our understanding exist, as well as emerging themes in knowledge management.
Abstract: In this concluding article to the Management Science special issue on "Managing Knowledge in Organizations: Creating, Retaining, and Transferring Knowledge," we provide an integrative framework for organizing the literature on knowledge management. The framework has two dimensions. The knowledge management outcomes of knowledge creation, retention, and transfer are represented along one dimension. Properties of the context within which knowledge management occurs are represented on the other dimension. These properties, which affect knowledge management outcomes, can be organized according to whether they are properties of a unit (e.g., individual, group, organization) involved in knowledge management, properties of relationships between units or properties of the knowledge itself. The framework is used to identify where research findings about knowledge management converge and where gaps in our understanding exist. The article discusses mechanisms of knowledge management and how those mechanisms affect a unit's ability to create, retain and transfer knowledge. Emerging themes in the literature on knowledge management are identified. Directions for future research are suggested.
2,046Â citations
TL;DR: A formal model of information seeking is proposed in which the probability of seeking information from another person is a function of knowing what that person knows; valuing what thatperson knows; being able to gain timely access to that person's thinking; and perceiving thatseeking information from that person would not be too costly.
Abstract: Research in organizational learning has demonstrated processes and occasionally performance implications of acquisition of declarative (know-what) and procedural (know-how) knowledge. However, considerably less attention has been paid to learned characteristics of relationships that affect the decision to seek information from other people. Based on a review of the social network, information processing, and organizational learning literatures, along with the results of a previous qualitative study, we propose a formal model of information seeking in which the probability of seeking information from another person is a function of (1) knowing what that person knows; (2) valuing what that person knows; (3) being able to gain timely access to that person's thinking; and (4) perceiving that seeking information from that person would not be too costly. We also hypothesize that the knowing, access, and cost variables mediate the relationship between physical proximity and information seeking. The model is tested using two separate research sites to provide replication. The results indicate strong support for the model and the mediation hypothesis (with the exception of the cost variable). Implications are drawn for the study of both transactive memory and organizational learning, as well as for management practice.
2,042Â citations
TL;DR: It is suggested that two mechanisms--alliances and the mobility of inventors--can serve as bridges to distant contexts and, thus, enable firms to overcome the constraints of contextually localized search.
Abstract: Recent research suggests that, due to organizational and relational constraints, firms are limited contextually--both geographically and technologically--in their search for new knowledge. But distant contexts may offer ideas and insights that can be extremely useful to innovation through knowledge recombination. So how can firms reach beyond their existing contexts in their search for new knowledge? In this paper, we suggest that two mechanisms--alliances and the mobility of inventors--can serve as bridges to distant contexts and, thus, enable firms to overcome the constraints of contextually localized search.Through the analysis of patent citation patterns in the semiconductor industry, we first demonstrate both the geographic and technological localization of knowledge. We then explore if the formation of alliances and mobility of active inventors facilitate interfirm knowledge flows across contexts. We find that mobility is associated with interfirm knowledge flows regardless of geographic proximity and, in fact, the usefulness of alliances and mobility increases with technological distance. These findings suggest that firms can employ knowledge acquisition mechanisms to fill in the holes of their existing technological and geographic context.
1,499Â citations
TL;DR: This model constructs a price-setting game between a manufacturer and its independent retailer and shows that the mere threat of introducing the direct channel can increase the manufacturer's negotiated share of cooperative profits even if price efficiency is obtained by using other business practices.
Abstract: The advent of e-commerce has prompted many manufacturers to redesign their traditional channel structures by engaging in direct sales. The model conceptualizes the impact of customer acceptance of a direct channel, the degree to which customers accept a direct channel as a substitute for shopping at a traditional store, on supply-chain design. The customer acceptance of a direct channel can be strong enough that an indepent manufacturer would open a direct channel to compete with its own retailers. Here, direct marketing is used for strategic channel control purposes even though it is inefficient on its own and, surprisingly, it can profit the manufacturer even when so direct sales occur. Specifically, we construct a price-setting game between a manufacturer and its independent retailer. Direct marketing, which indirectly increases the flow of profits through the retail channel, helps the manufacturer improve overall profitability by reducing the degree of inefficient price double marginalization. While operated by the manufacturer to constrain the retailer's pricing behavior, the direct channel may not always be detrimental to the retailer because it will be accompanied by a wholesale price reduction. This combination of manufacturer pull and push can benefit the retailer in equilibrium. Finally, we show that the mere threat of introducing the direct channel can increase the manufacturer's negotiated share of cooperative profits even if price efficiency is obtained by using other business practices.
1,449Â citations
TL;DR: The general support for the principal proposition of this paper that "actual usage" may be a key variable in explaining the impact of technology on performance suggests that omission of this variable might be a missing link in IT payoff analyses.
Abstract: The relationship between investment in information technology (IT) and its effect on organizational performance continues to interest academics and practitioners. In many cases, due to the nature of the research design employed, this stream of research has been unable to identify the impact of individual technologies on organizational performance. This study posits that the driver of IT impact is not the investment in the technology, but the actual usage of the technology. This proposition is tested in a longitudinal setting of a healthcare system comprising eight hospitals.Monthly data for a three-year period on various financial and nonfinancial measures of hospital performance and technology usage were analyzed. The data analysis provides evidence for the technology usage-performance link after controlling for various external factors. Technology usage was positively and significantly associated with measures of hospital revenue and quality, and this effect occurred after time lags. The analysis was triangulated using three measures of technology usage. The general support for the principal proposition of this paper that "actual usage" may be a key variable in explaining the impact of technology on performance suggests that omission of this variable may be a missing link in IT payoff analyses.
1,426Â citations
TL;DR: In this paper, a review of the literature and current practices in dynamic pricing is presented, where the focus is on dynamic (intertemporal) pricing in the presence of inventory considerations.
Abstract: The benefits of dynamic pricing methods have long been known in industries, such as airlines, hotels, and electric utilities, where the capacity is fixed in the short-term and perishable. In recent years, there has been an increasing adoption of dynamic pricing policies in retail and other industries, where the sellers have the ability to store inventory. Three factors contributed to this phenomenon: (1) the increased availability of demand data, (2) the ease of changing prices due to new technologies, and (3) the availability of decision-support tools for analyzing demand data and for dynamic pricing. This paper constitutes a review of the literature and current practices in dynamic pricing. Given its applicability in most markets and its increasing adoption in practice, our focus is on dynamic (intertemporal) pricing in the presence of inventory considerations.
1,081Â citations
TL;DR: In this paper, the authors investigate the conditions under which learning-by-hiring (or the acquisition of knowledge through the hiring of experts from other firms) is more likely, and they study the patenting activities of engineers who moved from United States (U.S.) firms to non-US firms.
Abstract: To investigate the conditions under which learning-by-hiring (or the acquisition of knowledge through the hiring of experts from other firms) is more likely, we study the patenting activities of engineers who moved from United States (U.S.) firms to non-U.S. firms. Statistical findings from negative binomial regressions show that mobility is more likely to result in interfirm knowledge transfer when (1) the hiring firm is less path dependent, (2) the hired engineers possess technological expertise distant from that of the hiring firm, and (3) the hired engineers work in noncore technological areas in their new firm. In addition, the results support the idea that domestic mobility and international mobility are similarly conducive to learning-by-hiring. Thus, our paper suggests that learning-by-hiring can be useful when hired engineers are used for exploring technologically distant knowledge (rather than for reinforcing existing firm expertise) and also for extending the hiring firm's geographic reach.
916Â citations
TL;DR: In this article, the authors present a framework and empirical estimates that quantify the economic impact of increased product variety made available through electronic markets, and they show that this variety can be a significantly larger source of consumer surplus gains.
Abstract: We present a framework and empirical estimates that quantify the economic impact of increased product variety made available through electronic markets. While efficiency gains from increased competition significantly enhance consumer surplus, for instance, by leading to lower average selling prices, our present research shows that increased product variety made available through electronic markets can be a significantly larger source of consumer surplus gains.One reason for increased product variety on the Internet is the ability of online retailers to catalog, recommend, and provide a large number of products for sale. For example, the number of book titles available at Amazon.com is more than 23 times larger than the number of books on the shelves of a typical Barnes & Noble superstore, and 57 times greater than the number of books stocked in a typical large independent bookstore.Our analysis indicates that the increased product variety of online bookstores enhanced consumer welfare by $731 million to $1.03 billion in the year 2000, which is between 7 and 10 times as large as the consumer welfare gain from increased competition and lower prices in this market. There may also be large welfare gains in other SKU-intensive consumer goods such as music, movies, consumer electronics, and computer software and hardware.
883Â citations
TL;DR: Findings indicate that learning is located not only in actors' cognitions or past experiences, but also in relations among actors, and that viewing learning as a social process helps solve problems regarding knowledge transfer and learning in markets.
Abstract: As a complement to the literature on learning in firms, we investigate learning in markets, a nascent area of study that focuses on how learning occurs between, rather than within, firms. The core idea behind our framework is that networks shape knowledge transfer and learning processes by creating channels for knowledge trade and reducing the risk of learning. In developing our framework, we elaborate on the knowledge transfer capabilities of different types of social ties, the informational properties of public and private knowledge, and how types of knowledge transfer and forms of learning follow from the networks within which firms embed their exchanges. We conducted fieldwork at Chicago-area banks to examine our framework's plausibility and application to learning in financial lending markets, a setting relevant to most firms. Findings indicate that learning is located not only in actors' cognitions or past experiences, but also in relations among actors, and that viewing learning as a social process helps solve problems regarding knowledge transfer and learning in markets.
874Â citations
TL;DR: This work examines how and why elements of organizational design depend on one another and identifies sets of design elements that encourage broad search and others that promote stability, and identifies circumstances in which vertical hierarchies can lead to inferior long-term performance.
Abstract: We examine how and why elements of organizational design depend on one another. An agent-based simulation allows us to model three design elements and two contextual variables that have rarely been analyzed jointly: a vertical hierarchy that reviews proposals from subordinates, an incentive system that rewards subordinates for departmental or firm-wide performance, the decomposition of an organization's many decisions into departments, the underlying pattern of interactions among decisions, and limits on the ability of managers to process information. Interdependencies arise among these features because of a basic, general tension. To be successful, an organization must broadly search for good sets of decisions, but it must also stabilize around good decisions once discovered. An effective organization balances search and stability. We identify sets of design elements that encourage broad search and others that promote stability. The adoption of elements that encourage broad search typically raises the marginal benefit of other elements that provide offsetting stability. Hence, the need to balance search and stability generates interdependencies among the design elements. We pay special attention to interdependencies that involve the vertical hierarchy. Our findings confirm many aspects of conventional wisdom about vertical hierarchies, but challenge or put boundary conditions on others. We place limits, for instance, on the received wisdom that firm-wide incentives and capable subordinates make top-level oversight less valuable. We also identify circumstances in which vertical hierarchies can lead to inferior long-term performance.
TL;DR: The role of the small, research-intensive firm is to create a repository of knowledge; to act as an organizational mechanism to combine the capabilities of versatile scientists within and outside the boundaries of the firm; and to manage the selection of scientific ideas to produce valuable technical innovations.
Abstract: This study looks at the United States biotechnology industry as a community of practice caught between two evolutionary logics by which valuable scientific knowledge and valuable innovations are selected. We analyze the publications and patents of 116 biotechnology firms during the period 1988--1995. In models that link scientific capabilities to patent citations, we show that scientific ideas are not simply inputs into inventions; important scientific ideas and influential patents follow different and conflicting selection logics. Publication, collaboration, and science intensity are associated with patented innovations; however, important scientific papers are negatively associated with high-impact innovations. These results point to conflicting logics between science and innovation, and scientists must contribute to both while inhabiting a single epistemic community. We identify individuals listed on patents and scientific papers and find they effectively integrate science with innovation, leading to more successful innovations. Our findings suggest that the role of the small, research-intensive firm is to create a repository of knowledge; to act as an organizational mechanism to combine the capabilities of versatile scientists within and outside the boundaries of the firm; and to manage the selection of scientific ideas to produce valuable technical innovations.
TL;DR: In this paper, a simple recursive residuals (out-of-sample) graphical approach is proposed to evaluate the predictive power of popular equity premium and stock market time-series forecasting regressions.
Abstract: Our paper suggests a simple, recursive residuals (out-of-sample) graphical approach to evaluating the predictive power of popular equity premium and stock market time-series forecasting regressions. When applied, we find that dividend ratios should have been known to have no predictive ability even prior to the 1990s, and that any seeming ability even then was driven by only two years, 1973 and 1974. Our paper also documents changes in the time-series processes of the dividends themselves and shows that an increasing persistence of dividend-price ratio is largely responsible for the inability of dividend ratios to predict equity premia. Cochrane's (1997) accounting identity--that dividend ratios have to predict long-run dividend growth or stock returns--empirically holds only over horizons longer than 5--10 years. Over shorter horizons, dividend yields primarily forecast themselves.
TL;DR: A longitudinal test of the ability of various relationship safeguards to preserve performance outcomes and future expectations given varying levels of ex post opportunism in the relationship is provided and results indicate that given lower levels of opportunism, bilateral idiosyncratic investments and interpersonal trust enhance performance outcomesand future expectations, while goal congruence has no discernable effect.
Abstract: Opportunism is a central construct in exchange theory. Economists contend that despite the firm's best efforts to erect governance structures that reduce opportunism and preserve outcomes, there is always some opportunism that remains once the transaction is in place. Despite this, there are few studies that systematically investigate thesafeguarding efficacy of relationship attributes in the presence of such ex post opportunism. In this research, we develop a theoretical framework and provide a longitudinal test of the ability of various relationship safeguards to preserve performance outcomes and future expectations given varying levels of ex post opportunism in the relationship. Our survey results from over 300 buyers and suppliers indicates that given lower levels of opportunism, bilateral idiosyncratic investments and interpersonal trust enhance performance outcomes and future expectations, while goal congruence has no discernable effect. However, at higher levels of opportunism, goal congruence becomes a more powerful safeguard, while interpersonal trust becomes less effective. Bilateral idiosyncratic investments continue to preserve performance outcomes and future expectations even at higher levels of opportunism. Implications for the long-term management of interorganizational alliances are discussed.
TL;DR: The study illustrates the usefulness of accounting for network effects for better understanding individual performance in virtual groups by showing that centrality mediates the effects of functional role, status, and communication role on individual performance.
Abstract: Communication technologies support virtual RD however, the indirect effects were more consistent in both time periods. The clearest findings were that centrality mediates the effects of functional role, status, and communication role on individual performance. Interestingly, centrality was a stronger direct predictor of performance than the individual characteristics considered in this study. The study illustrates the usefulness of accounting for network effects for better understanding individual performance in virtual groups.
TL;DR: This publication contains reprint articles for which IEEE does not hold copyright and which are likely to be copyrighted.
Abstract: This paper examines how knowledge is integrated in complex technology and product development settings. By framing the task of knowledge integration as a cycle, we highlight the inability of current knowledge transfer theories to explain the consequences that arise from the path-dependent nature of knowledge. We compare the complexity of this knowledge integration task to previous efforts in terms of its novelty and the organizational properties of specialization and dependence that are required. Drawing on evidence from two empirical studies, we outline three stages of the "knowledge transformation cycle," which addresses the complexity of this integration task. We conclude with the implications of this knowledge transformation cycle on our understanding of knowledge management and organizational learning.
TL;DR: It is concluded that neural network rule extraction and decision tables are powerful management tools that allow us to build advanced and userfriendly decision-support systems for credit-risk evaluation.
Abstract: Credit-risk evaluation is a very challenging and important management science problem in the domain of financial analysis. Many classification methods have been suggested in the literature to tackle this problem. Neural networks, especially, have received a lot of attention because of their universal approximation property. However, a major drawback associated with the use of neural networks for decision making is their lack of explanation capability. While they can achieve a high predictive accuracy rate, the reasoning behind how they reach their decisions is not readily available. In this paper, we present the results from analysing three real-life credit-risk data sets using neural network rule extraction techniques. Clarifying the neural network decisions by explanatory rules that capture the learned knowledge embedded in the networks can help the credit-risk manager in explaining why a particular applicant is classified as either bad or good. Furthermore, we also discuss how these rules can be visualized as a decision table in a compact and intuitive graphical format that facilitates easy consultation. It is concluded that neural network rule extraction and decision tables are powerful management tools that allow us to build advanced and userfriendly decision-support systems for credit-risk evaluation.
TL;DR: A laboratory paradigm for studying organizational culture is introduced that captures several key elements of the phenomenon and subjects overestimate the performance of the merged firm and attribute the decrease in performance to members of the other firm rather than to situational difficulties created by conflicting culture.
Abstract: We use laboratory experiments to explore merger failure due to conflicting organizational cultures. We introduce a laboratory paradigm for studying organizational culture that captures several key elements of the phenomenon. In our experiments, we allow subjects in "firms" to develop a culture, and then merge two firms. As expected, performance decreases following the merging of two laboratory firms. In addition, subjects overestimate the performance of the merged firm and attribute the decrease in performance to members of the other firm rather than to situational difficulties created by conflicting culture.
TL;DR: This paper focuses its attention on the supply chain issues of visibility, supplier relationships, distribution and pricing, customization, and real-time decision technologies that have risen to importance with the prevalence of e-business.
Abstract: Supply chain management is likely to play an important role in the digital economy. In this paper, we first describe major issues in traditional supply chain management. Next, we focus our attention on the supply chain issues of visibility, supplier relationships, distribution and pricing, customization, and real-time decision technologies that have risen to importance with the prevalence of e-business. We present an overview of relevant analytical research models that have been developed in these areas, discuss their contributions, and conclude with a discussion on future modeling opportunities in this area.
TL;DR: The findings of the paper suggest that a balance in combining current knowledge with the knowledge available across large time spans is an important factor that explains the impact of new knowledge.
Abstract: In this paper, knowledge creation is considered as a path-dependent evolutionary process that involves recombining knowledge spread over time. The findings of the paper suggest that a balance in combining current knowledge with the knowledge available across large time spans is an important factor that explains the impact of new knowledge. These ideas are empirically tested using patent data from the pharmaceutical industry. Results from the analysis offer support for the hypotheses developed in the paper.
TL;DR: This article found evidence that the preference for outsider knowledge is the result of managerial responses to the contrasting status implications of learning from internal versus external competitors, and the availability or scarcity of knowledge-internal knowledge is more readily available and hence subject to greater scrutiny, while external knowledge was more scarce, which made it appear more special and unique.
Abstract: This paper compares how managersvalue knowledge from internal and external sources. Although many theories account for favoritism toward insiders, we find that preferences for knowledge obtained from outsiders are also prevalent. Two complementary case studies and survey data from managers demonstrate the phenomenon of valuing external knowledge more highly than internal knowledge and reveal some mechanisms through which this process occurs. We found evidence that the preference for outsider knowledge is the result of managerial responses to (1) the contrasting status implications of learning from internal versus external competitors, and (2) the availability or scarcity of knowledge-internal knowledge is more readily available and hence subject to greater scrutiny, while external knowledge is more scarce, which makes it appear more special and unique. We conclude by considering some consequences of the external knowledge preference for organizational functioning.
TL;DR: The learning rate under Conditions of related variation is significantly greater than under conditions of specialization or unrelated variation, indicating the possibility of synergy between related learning efforts consistent with an implicit learning or insight effect.
Abstract: Many organizational learning studies have an implicit assumption that the learning rate is maximized through specialization: the more an individual or organization focuses on a particular task, the faster it will improve. However, through contrasting the various learning process theories described in the research on organizational, group, and individual learning, we develop a set of competing hypotheses that suggest some degree of variation might improve the learning rate. Furthermore, such comparison yields competing arguments about how related or unrelated such task variation should be to improve the learning rate. This research uses an experimental study to answer the following research questions: Is the learning rate maximized through specialization? Or does variation, related or unrelated, enhance the learning process? We find that the learning rate under conditions of related variation is significantly greater than under conditions of specialization or unrelated variation, indicating the possibility of synergy between related learning efforts consistent with an implicit learning or insight effect. We find no significant differences in the rates of learning under the conditions of specialization and unrelated variation. These results yield important implications for how work should be organized, and for future research into the learning process.
TL;DR: Using data collected on 93 offshore projects from a leading Indian software vendor, evidence is provided that specific vendor-, client-, and project-related characteristics significantly explain contract choice in these projects.
Abstract: We study the determinants of contract choice in offshore software development projects and examine how the choice of contract and other factors in the project affect project profits accruing to the software vendor. Using data collected on 93 offshore projects from a leading Indian software vendor, we provide evidence that specific vendor-, client-, and project-related characteristics such as requirement uncertainty, project team size, and resource shortage significantly explain contract choice in these projects. Our analysis suggests that contract choice significantly determines project profit. Additionally, some ex ante vendor-, client-, and project-related characteristics known at the time of choosing the contract continue to significantly influence project profits after controlling for contract choice. We also provide evidence to show that project duration and team size affect project profits.
TL;DR: The findings suggest that perceived trustworthiness of an online broker is a significant antecedent to investors' satisfaction, and that perceived environmental security and perceived operational competence impact the formation of trust.
Abstract: Many firms are moving to make virtual interfaces their primary, or even sole, points of customer contact. In this environment, some traditional service quality dimensions that determine customer satisfaction, such as the physical appearance of facilities, employees, and equipment, and employees' responsiveness and empathy are unobservable. In contrast, trust may play a central role here in enhancing customer satisfaction. We model trust as an endogenously formed entity that ultimately impacts customer satisfaction, and we elucidate the linkages between trust and other factors related to the performance of the online service provider and to the service environment. The model is validated using two samples--one comprising 225 online investors of a large online broker, and the other comprising 203 members of the American Association of Individual Investors (AAII). The findings suggest that perceived trustworthiness of an online broker is a significant antecedent to investors' satisfaction, and that perceived environmental security and perceived operational competence impact the formation of trust. The results have important managerial implications.
TL;DR: This work derives the monopolist's optimal group-buying schedule under varying conditions of heterogeneity in the demand regimes, and compares its profits with those that obtain under the more conventional posted-price mechanism.
Abstract: Web-based group-buying mechanisms are being widely used for both business-to-business (B2B) and business-to-consumer (B2C) transactions. We survey currently operational online group-buying markets, and then study this phenomenon using analytical models. We build on the literatures in information economics and operations management in our analytical model of a monopolist offering Web-based group-buying under different kinds of demand uncertainty. We derive the monopolist's optimal group-buying schedule under varying conditions of heterogeneity in the demand regimes, and compare its profits with those that obtain under the more conventional posted-price mechanism. We further study the impact ofproduction postponement by endogenizing the timing of the pricing and production decisions in a two-stage game between the monopolist and buyers. Our results have implications for firms' choice of price-discovery mechanisms in e-markets, and for the scheduling of production and pricing decisions in the presence (and absence) of scale economies of production.
TL;DR: Perceived experts were more likely than nonexperts to emphasize shared knowledge and other member's unique knowledge contributions and socially isolated members participated more in discussions and emphasized more of their unique knowledge than did socially connected members.
Abstract: This study investigated the effects of social status and perceived expertise on the emphasis of unique and shared knowledge within functionally heterogeneous groups. While perceived expertise did not increase the individual's emphasis of their own unique knowledge, perceived experts were more likely than nonexperts to emphasize shared knowledge and other member's unique knowledge contributions. Additionally, socially isolated members participated more in discussions and emphasized more of their unique knowledge than did socially connected members. While unique knowledge contributions increased the positive perception of social isolates, similar unique knowledge contributions decreased the positive perception of socially connected members. Finally, socially connected group members gave greater attention to the unique knowledge contributions of the socially isolated member than to the contributions of their socially connected other, but more favorably evaluated members to whom they were more favorably connected than those to whom they were not. We discuss the implications of our findings for managing knowledge exchange within diverse groups.
TL;DR: A broad research agenda for issues such as the behavior of online auction participants, the optimal design of online auctions, the integration of auctions into the ongoing operation of firms, and the use of the data generated by online auctions to inform future trading mechanisms is developed.
Abstract: The Internet's computational power and flexibility have made auctions a widespread and integral part of both consumer and business markets. Though online auctions are a multi-billion dollar annual activity, with a growing variety of sophisticated trading mechanisms, scientific research on them is at an early stage. This paper analyzes the current state of management science research on online auctions. It develops a broad research agenda for issues such as the behavior of online auction participants, the optimal design of online auctions, the integration of auctions into the ongoing operation of firms, and the use of the data generated by online auctions to inform future trading mechanisms. These research areas will draw from applied and theoretical work spanning management science, economics, and information systems.
TL;DR: A framework for analyzing the benefits from flexibility in multistage supply chains is presented and a flexibility measureg is developed and it is shown that increasing this measure results in greater protection from these supply-chain inefficiencies.
Abstract: Process flexibility, whereby a production facility can produce multiple products, is a critical design consideration in multiproduct supply chains facing uncertain demand. The challenge is to determine a cost-effective flexibility configuration that is able to meet the demand with high likelihood. In this paper, we present a framework for analyzing the benefits from flexibility in multistage supply chains. We find two phenomena, stage-spanning bottlenecks and floating bottlenecks, neither of which are present in single-stage supply chains, which reduce the effectiveness of a flexibility configuration. We develop a flexibility measureg and show that increasing this measure results in greater protection from these supply-chain inefficiencies. We also identify flexibility guidelines that perform very well for multistage supply chains. These guidelines employ and adapt the single-stage chaining strategy of Jordan and Graves (1995) to multistage supply chains.
TL;DR: Results suggest that interruptions influenceknowledge transfer effort, and both knowledge transfer effort and interruptions are positively related to the acquisition of new work routines.
Abstract: Interruptions have commonly been viewed as negative and as something for managers to control or limit. In this paper, I explore the relationship between interruptions and acquisition of routines-a form of knowledge-by teams. Recent research suggests that interruptions may play an important role in changing organizational routines, and as such may influence knowledge transfer activities. Results suggest that interruptions influence knowledge transfer effort, and both knowledge transfer effort and interruptions are positively related to the acquisition of new work routines. I conclude with implications for research and practice.
TL;DR: The personalization process is conceptualized as consisting of three stages: learning about consumer preferences, matching offerings to customers, and evaluation of the learning and matching processes, with an emphasis on utility-based approaches to estimate preference functions using data on customer interactions with a firm.
Abstract: We present a review of research studies that deal with personalization and synthesize current knowledge about these areas. We identify issues that we envision will be of interest to researchers working in the management sciences, taking an interdisciplinary approach that spans the areas of economics, marketing, information technology (IT), and operations research. We present a framework for personalization that allows us to identify key players in the personalization process as well as key stages of personalization. The framework enables us to examine the strategic role of personalization in the interactions between a firm and other key players in the firm's value system. We conceptualize the personalization process as consisting of three stages: (1) learning about consumer preferences, (2) matching offerings to customers, and (3) evaluation of the learning and matching processes. This review focuses on the learning stage, with an emphasis on utility-based approaches to estimate preference functions using data on customer interactions with a firm.