scholarly journals How regulatory changes are driven by a need for control in reputational scandals: a case study in the German insurance industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amra Tica ◽  
Barbara E. Weißenberger
Keyword(s):  
Media Coverage ◽  
Control Mechanism ◽  
Behavioral Control ◽  
Insurance Industry ◽  
Real Life ◽  
Content Type ◽  
Industry Regulation ◽  
Insurance Firms ◽  
Reputational Capital

Purpose This paper aims to contribute to the understanding of the mechanisms that evolve during reputational scandals and lead to changes in industry regulation. It explores the processes by which a demand for external industry regulation evolves, also addressing the consequences of firms’ competitive behaviors which lead to substantial misbehavior and the destruction of reputational capital. The authors are interested in whether and how regulatory activities – in the case analyzed here, changes in insurance regulation regarding sales commissions for insurance brokers – are used as a costly, external behavioral control mechanism (third-loop learning) to terminate a reputational scandal that cannot be stopped by internal controls at a firm level (first-loop and second-loop learning) anymore. Design/methodology/approach The paper explores a real-life case in the German insurance industry that peaked in 2012 and has been well documented by broad media coverage, complemented by interviews with leading industry representatives. Using causal process tracing as a methodology, the authors study the factors in the case that led to an industry scandal. The authors further analyze why the insurance firms involved were not able to limit the scandal’s impact by internally controlling their behaviors, but had to call for external regulation, thus imposing costly restrictions on sales and contract processes. To identify the mechanisms underlying this result, theories from the fields of economics (game theory) and sociology (vicious cycle of bureaucracies), as well as organizational learning theory, are used. Findings The authors find that individual rationality does not suffice to prevent insurance firms from scandalous business practices, e.g. via implementing appropriate internal behavioral control measures within their organizations. If, as a result, misbehavior leads to reputational scandals, and the destruction of reputational capital spills over to the whole industry, a vicious cycle is set in motion which can be terminated by regulation as an externally enforced control mechanism. Research limitations/implications This study is limited to the analysis of a single case study, combining published materials, e.g. broad media coverage, with interviews from representatives of the insurance industry. Nevertheless, the underlying mechanisms that have been identified can be used in other case studies as well. Practical implications The paper shows that if firms want to avoid increasing regulation, they must implement strong reputational risk management (RRM) to counteract short-term profit pressure and to avoid restrictive regulation imposed on the industry as a whole. Furthermore, it sheds light on the relevance of spillover effects for RRM, as not only employee behavior within an organization might lead to the destruction of reputational capital but also that from other firms, e.g. from elsewhere within an industry. Originality/value The paper contributes by emphasizing a direct causal link between corporate scandals, loss of reputation and regulatory change within the insurance industry. Furthermore, the paper contributes by combining economic theories with organizational theories to understand real-life phenomena.

Design workshops in the age of climate change

2017 ◽  
Vol 6 (1) ◽  
pp. 48-63 ◽  
Author(s):  
Jeroen De Waegemaeker ◽  
Eva Kerselaers ◽  
Maarten Van Acker ◽  
Elke Rogge
Keyword(s):  
Climate Adaptation ◽  
Real Life ◽  
Water System ◽  
Added Value ◽  
Policy Makers ◽  
Content Type ◽  
Regional Project ◽  
Design Workshop ◽  
Specific Barriers

Purpose As policy makers address the issue of climate adaptation, they are confronted with climate-specific barriers: a long-term horizon and a high degree of uncertainty. These barriers also hamper the development of spatial planning for climate adaptation. So how can spatial planners encompass these barriers and steer the general debate on climate adaptation? The paper aims to discuss these issues. Design/methodology/approach This research analyzes the strengths and weaknesses of an international design workshop on climate adaptation, and drought issues in particular. Design workshops are originally an educational setting but they are increasingly employed as a tool to explore alternative futures on a complex, real-life design problem. The case study illustrates how climate-specific barriers emerged throughout the design workshop and clarifies how they were encompassed by the participating design students. Findings The research clarifies the added value of a design workshop on climate adaptation. The paper highlights specific promising characteristics of the design workshop: the visualization of future adaptation challenges and the current water system, the focus on a regional project instead of sectoral adjustments and the integration of the adaptation challenge with other socio-economic goals. In the case study Flanders, however, the necessary participation of climate experts and policy makers of other domains proved challenging. Originality/value The paper argues that a design workshop has the potential to enrich the debate and policy work on climate adaptation. In many countries with low-planning tradition, however, additional tools are needed to help set the “adaptation agenda.”

A proposed framework for implementing risk-based Shari’ah audit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suleiman Dalhatu Sani ◽  
Mustapha Abubakar
Keyword(s):  
Financial Institutions ◽  
Real Life ◽  
Financial System ◽  
Practical Work ◽  
System Stability ◽  
Illustrative Case ◽  
Content Type ◽  
Finance Industry ◽  
Islamic Financial Institutions

Purpose This paper aims to recommend a framework that serves as a practical work tool for conducting risk-based Shari’ah audit (RBSA) in Islamic financial institutions (IFIs). Design/methodology/approach Qualitative research method was used through critical in-depth content analysis of documented literature to generate deep insights, further supported with a hypothetical illustrative case study application of the framework on an Islamic bank, aimed at bringing the framework to a practical, near real-life scenario. Findings A robust RBSA framework has been developed which focuses on Shari’ah non-compliance risks to systematically and practically arrive at a rated opinion on the level of an IFI’s adherence with Shari’ah rules and principles as recommended by the Accounting and Auditing Organization for Islamic Financial Institutions, aimed to safeguard the IFI and promote financial system stability at large. Research limitations/implications Practical realities limited the study to the use of a hypothetical case study bank. Future researchers can apply the framework to a real case study of diverse IFIs for effective contextual recalibration in diverse jurisdictions. Practical implications This paper aids the development of both internal and external Shari’ah audit practice using the risk-based approach. Social implications The RBSA framework contributes to promoting public trust and confidence in the Islamic finance industry. Originality/value This paper has proposed this RBSA framework as a practical work tool for Shari’ah auditors in their engagements and regulators in promoting sound governance and financial system stability. It provides foundation for future researchers in the field.

Interval type-2 fuzzy inference-based failure mode and effect analysis model in a group decision-making setting

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
İlker Gölcük
Keyword(s):  
Failure Modes ◽  
Fuzzy Inference ◽  
Real Life ◽  
Effect Analysis ◽  
Inference System ◽  
Content Type ◽  
Proposed Model ◽  
Interval Type

PurposeThis paper proposes an integrated IT2F-FMEA model under a group decision-making setting. In risk assessment models, experts' evaluations are often aggregated beforehand, and necessary computations are performed, which in turn, may cause a loss of information and valuable individual opinions. The proposed integrated IT2F-FMEA model aims to calculate risk priority numbers from the experts' evaluations and then fuse experts' judgments using a novel integrated model.Design/methodology/approachThis paper presents a novel failure mode and effect analysis (FMEA) model by integrating the fuzzy inference system, best-worst method (BWM) and weighted aggregated sum-product assessment (WASPAS) methods under interval type-2 fuzzy (IT2F) environment. The proposed FMEA approach utilizes the Mamdani-type IT2F inference system to calculate risk priority numbers. The individual FMEA results are combined by using integrated IT2F-BWM and IT2F-WASPAS methods.FindingsThe proposed model is implemented in a real-life case study in the furniture industry. According to the case study, fifteen failure modes are considered, and the proposed integrated method is used to prioritize the failure modes.Originality/valueMamdani-type singleton IT2F inference model is employed in the FMEA. Additionally, the proposed model allows experts to construct their membership functions and fuzzy rules to capitalize on the experience and knowledge of the experts. The proposed group FMEA model aggregates experts' judgments by using IT2F-BWM and IT2F-WASPAS methods. The proposed model is implemented in a real-life case study in the furniture company.

Entrepreneurial-oriented strategic renewal in a Brazilian SME: a case study

2020 ◽  
Vol 27 (2) ◽  
pp. 219-236
Author(s):  
Débora Monteiro Moretti ◽  
Flávia Chaves Alves ◽  
José Vitor Bomtempo
Keyword(s):  
Business Performance ◽  
Quantitative Methods ◽  
Real Life ◽  
Holistic View ◽  
Content Type ◽  
Strategic Renewal ◽  
Real Life Situation ◽  
Resource Environment ◽  
New Framework

PurposeFirms around the world seek new paths to maintain competitiveness and renew their businesses. Although entrepreneurial-orientation (EO) is extensively researched, there is some ambiguity regarding different variables that mediate the effects of such strategy on business performance. Hence, current literature lacks in-depth studies that provide useful tools for companies to implement effective change, in contrast to the quantitative methods normally applied.Design/methodology/approachThrough an in-depth case study, the authors explored whether the implementation of an entrepreneurial-oriented strategy by an incumbent firm in Brazil would renew its business and potentially increase its performance.FindingsThe study showed that performance is achieved when the pervasiveness of EO activities spurs the company's boundaries, promoting not only intraorganizational changes but also multiple-stakeholder engagement.Research limitations/implicationsThis study reinforces the idea that EO alone may not be sufficient to increase firm performance and must be considered more comprehensively. Although case studies always suffer from the problem of generalization, the authors provide a good illustration of a strategy being implemented in a constrained-resource environment.Practical implicationsThis paper contributes to practice by discussing a real-life situation of a small company from an emerging economy.Originality/valueThe authors provide a holistic view of the firm, presenting the managerial changes in a new framework, which combines EO and inward- and outward-looking perspectives.

Implementation and adoption of CRM and co-creation leveraging collaborative technologies

2020 ◽  
Vol 12 (1) ◽  
pp. 113-132
Author(s):  
Neeraj Kumar Dubey ◽  
Preeti Sharma ◽  
Purnima Sangle
Keyword(s):  
Customer Orientation ◽  
Real Life ◽  
Customer Relationship ◽  
Case Study Method ◽  
Content Type ◽  
Collaborative Technologies ◽  
Customer Centricity ◽  
The Relationship

Purpose This paper aims to study the role of the emerging technology landscape and collaborative platforms in customer relationship management (CRM) unravelling novel opportunities for mutual co-creation in Indian banking context. Design/methodology/approach This study used the case-study method for collecting various sources for “triangulation”. Findings The advancement of technology has drastically increased avenues of dialogue and access and brought transparency in the relationship, offering opportunities for co-creation and increased dependence on technology in CRM. A longitudinal approach explained how bank leveraged technology in multiple aspects of CRM for enhancing relationship quality and outcome. Research limitations/implications The study is exploratory in nature in Indian banking context, and thus it should be viewed as a preliminary step in contributing to the understanding of CRM in a new collaborative technology landscape. Practical implications This study explains the changing shape of CRM and provides relevance of customer orientation and offers insight about co-creation which has taken centre stage because of the emergence of collaborative technologies. Originality/value This study is possibly one of the first to conduct a case study to understand the way collaborative technological advancements are being exploited by organisations to develop superior CRM capability and achieve co-creation. This study analysed and comprehended the design and implementation of CRM in an Indian bank in real-life settings to gain a better understanding of the adoption of new collaborative technological advancements by a bank for customer centricity and facilitating co-creation.

INSPIRE sustainability internships

2019 ◽  
Vol 20 (3) ◽  
pp. 452-469 ◽  
Author(s):  
Carolyn Susan Hayles
Keyword(s):  
Small Sample Size ◽  
Real Life ◽  
Small Sample ◽  
Multiple Sources ◽  
Student Body ◽  
Content Type ◽  
Study Approach ◽  
Life Context ◽  
The University

Purpose This paper aims to explore the outputs of an internship programme, one of a number of campus-based sustainability activities that have been introduced at the University of Wales, Trinity Saint David, to encourage student-led campus-based greening initiatives. Design/methodology/approach A case study approach was undertaken, allowing the researcher to investigate the programme in its real-life context. The researcher used multiple sources of evidence to gain as holistic a picture as possible. Findings Interns report positive changes in their behaviours towards sustainability, s well as encouraging feedback on their experiential learning, the development of their soft skills and the creation of new knowledge. Moreover, students communicated perceived benefits for their future careers. The reported outcomes reflect mutually beneficial relationships for student and institution, for example, raising the profile of campus greening activities and supporting the University’s aim to embed sustainability throughout its campus, community and culture. Research limitations/implications The researcher recognises the limitations of the research, in particular, the small sample size, which has resulted primarily in qualitative results being presented. Practical implications Feedback from previous interns will be used to shape future internships. In particular, Institute of Sustainable Practice, Innovation and Resource Effectiveness (INSPIRE) will look for opportunities to work more closely with University operations, departments, faculties and alongside University staff, both academic and support staff. Social implications Following student feedback, INSPIRE will give students opportunities for wider involvement, including an opportunity to propose their own projects to shape future internships that meet the needs of student body on campus. Originality/value Despite being one case study from one institution, the research highlights the value of such programmes for other institutions.

The rise and decline of TQM in the NHS

2014 ◽  
Vol 26 (5) ◽  
pp. 499-509 ◽  
Author(s):  
Uche Nwabueze
Keyword(s):  
Quality Management ◽  
Sample Size ◽  
Practical Implication ◽  
Real Life ◽  
Leadership Role ◽  
Future Research ◽  
Rapid Decline ◽  
Total Quality ◽  
Content Type

Purpose – The purpose of this paper is to delineate the factors responsible for the decline of total quality management (TQM) in the National Health Service (NHS). It is suggested that if these factors were initially identified and eliminated prior to implementation, the decline of TQM as a strategy for improving the provision and delivery of quality patient care could have been prevented. Design/methodology/approach – The case study approach was chosen because it is the preferred method when “how” or “what” questions are being posed. It is applicable as is evident in this paper where the researcher has little control over events and when the focus is on a contemporary phenomenon within some real-life context. The case study enables the researcher to give an accurate rendition of actual events; it contributes uniquely to the knowledge of individual, organisational, social, and political phenomena. The semi-structured face-to-face interview constituted the main data collection technique of the research. Interviews were held with 23 quality management managers in the British NHS. The central focus of the interview was on “what” factors contributed to the rapid decline of TQM in the NHS. The respondents were chosen because they were directly involved with the implementation of TQM. They were in the vintage position to offer a full insight into the TQM initiative. The analysis of the case is based on Yin's analytic technique of explanation building. Findings – The decline of TQM in the NHS could have been prevented if top executives in hospitals had adopted the sequential steps to quality improvement: In the authors opinion, to land a man on the moon needed a belief in the possibility and breakthrough in the attitudes that viewed space travel as pure science fiction as opposed to a practical reality, and so it should have been with TQM in the NHS. However, the attitude of many NHS managers was that TQM was all right for “other institutions” because “they need it” whereas in the NHS, “we don’t”. This negative attitude should have been overcome if TQM was to be accepted as a corporate, all encompassing philosophy. Research limitations/implications – The limitation of the research may be the sample size of the respondents, which was limited to 23 quality managers that had hands-on experience and the leadership role to lead and implement TQM in the NHS. Future research may consider a broader sample size. It may also be considered for new research to use surveys to identify a broader set of reasons why TQM declined in the NHS. Practical implications – This paper is the first constructive insight to determine reasons for the decline of TQM in the NHS from the individuals who had the sole responsibility for implementation. Any other, group would have amounted to hearsay. Therefore, to constructively delineate the reasons for failure, it was pertinent to learn from the quality managers directly and to ensure that the reasons was representative of their experiences with TQM. The practical implication is to prepare future managers about how to avoid failure. Originality/value – The paper clearly suggests the systematic process required for effective implementation of TQM in a healthcare setting by identifying factors that must be avoided to ensure the successful and sustainable implementation of TQM.

A revised method for allocating the optimum number of similar machines to operators

2016 ◽  
Vol 65 (2) ◽  
pp. 223-244 ◽  
Author(s):  
Yossi Hadad ◽  
Baruch Keren
Keyword(s):  
Binomial Distribution ◽  
Manufacturing Systems ◽  
Real Life ◽  
Optimal Number ◽  
Production Costs ◽  
Optimum Number ◽  
Content Type ◽  
Manufacturing Operations ◽  
Machine Interference

Purpose – The purpose of this paper is to propose a method to determine the optimal number of operators to be assigned to a given number of machines, as well as the number of machines that will be run by each operator (a numerical partition). This determination should be made with the objective of minimizing production costs or maximizing profits. Design/methodology/approach – The method calculates the machines interference rate via the binomial distribution function. The optimal assignment is calculated by transformation of a partition problem into a problem of finding the shortest path on a directed acyclic graph. Findings – The method enables the authors to calculate the adjusted cycle time, the workload of the operators, and the utility of the machines, as well as the production yield, the total cost per unit, and the hourly profit for each potential assignment of operators to machines. In a case study, the deviation of the output per hour of the proposed method from the actual value was about 2 percent. Practical implications – The paper provides formulas and tables that give machine interference rates through the application of binomial distribution. The practicability of the proposed method is demonstrated by a real-life case study. Originality/value – The method can be applied in a wide variety of manufacturing systems that use many identical machines. This includes tire presses in tire manufacturing operations, ovens in pastry manufacturing systems, textile machines, and so on.

Explaining implementation difficulties associated with activity-based costing through system uses

2018 ◽  
Vol 19 (1) ◽  
pp. 181-198 ◽  
Author(s):  
Elodie Allain ◽  
Claude Laurin
Keyword(s):  
Resistance To Change ◽  
Insurance Industry ◽  
Insurance Company ◽  
Activity Based Costing ◽  
General Applicability ◽  
Content Type ◽  
Cost System ◽  
Scope Of Application ◽  
Costing System

Purpose The purpose of this paper is to explore how and why the uses (enabling or controlling) of an activity-based costing system could cause difficulties in implementing such a cost system. Design/methodology/approach The authors conducted a case study in a French insurance company. Three successive research periods were undertaken: from March to August 2005, between October 2008 and June 2009, and in 2012. In total, 51 interviews were conducted during these periods. Other useful information was also collected through conversations, observation, and through the consultation of internal documents. Findings The results show that designing a cost system aimed at being simultaneously used in controlling and enabling ways can generate important difficulties. Furthermore, the results show that attempting to get around these difficulties could result in investing significant amounts of resources with no guarantee of success. Research limitations/implications Beyond the difficulties of extending the scope of application of case studies, the study was conducted in an organization involved in the insurance industry which could further limit its general applicability. Practical implications Based on the experience at Rassura, the authors argue that managers should be aware that designing and implementing a cost system that can simultaneously be used in both controlling and enabling ways is a very difficult, if not an insurmountable challenge. Originality/value The results highlight that one important characteristic of a cost system, how it is used, could explain, at least partially, implementation difficulties related to technical challenges, resistance to change and lack of resources.

Tweeting to a job: HCL’s recruitment campaign on Twitter

2016 ◽  
Vol 24 (5) ◽  
pp. 4-6 ◽  
Author(s):  
Vivek Kumar ◽  
Arpita Srivastava
Keyword(s):  
Media Coverage ◽  
Creative Thinking ◽  
Low Cost ◽  
Recruitment Process ◽  
Case Study Methodology ◽  
Content Type ◽  
Brand Building ◽  
Study Methodology ◽  
Practical Implications

Purpose This paper aims to describe an innovative recruitment campaign at HCL Technologies, India’s fourth largest information technology company. This campaign received media coverage in 60 national and international news outlets. Design/methodology/approach Using case study methodology, this paper explains how the unique process was carried out. Risks associated with the process are also identified. Findings It reveals that creative thinking and innovate practices can generate high social media engagement at a very low cost, while also fulfilling the task of recruitment. Managing risks inherent in the process is essential for reaping the rewards of this creative recruitment process. Practical implications The process described here can be emulated by other companies too. If executed well, rich dividends can be obtained at a modest cost. Companies can increase their engagement and brad equity at a low cost using this process. Originality/value The case study described here is unique in its approach toward recruitment and brand building.

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