Effort exertion and contract design in collaborative product development with fairness concern

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoming Gong ◽  
Liang Gao ◽  
Yuan Chen ◽  
Zun Wu
Keyword(s):  
Product Development ◽  
Theoretic Model ◽  
Collaborative Product Development ◽  
Content Type ◽  
Focal Firm ◽  
Fairness Concerns ◽  
Game Theoretic ◽  
Fairness Concern ◽  
The Impact

Purpose This study aims to model collaborative product development (CPD) among a focal firm (FF) and a fairness-concerned external partner (EP). The model is used to explore the impact of fairness concerns on revenue distributing contract and innovation efforts. The study also examines the role of follow-up sales in product development decisions. Design/methodology/approach A sequential game-theoretic model is developed to analyze product development decisions between the two parties, where participants exert innovation efforts to promote the product value and a revenue-sharing contract is used to distribute the revenue. Findings Fairness concern of EP has significant impacts on decisions. FF has incentives to change the contract in that fairness concerns might decrease his profit. Conditions and results change when the contract is endogenously decided. First, FF tends to develop the product independently. Second, FF may share a smaller revenue fraction with EP, as FF relies more on his own efforts during CPD. Third, FF cannot benefit from fairness concerns, as his profit is not higher than that in the benchmark. Finally, the existence of follow-up sales does not change FF’s decision about whether to collaborate with EP. Originality/value This study incorporates fairness preference into CPD decisions. Besides, a new concept of fairness called “effort-related fairness” is proposed.

A game-theoretic model for roadway performance management

2014 ◽  
Vol 4 (1) ◽  
pp. 40-54 ◽  
Author(s):  
Hesham Osman ◽  
Mazdak Nikbakht
Keyword(s):  
Asset Management ◽  
Decision Makers ◽  
Theoretic Model ◽  
Theoretic Approach ◽  
Political Decision ◽  
Content Type ◽  
Road Users ◽  
Game Theoretic ◽  
The Impact ◽  
Asset Managers

Purpose – The purpose of this paper is to present a socio-technical approach to modeling the behavior of roadway users, asset managers, and politicians toward roadway performance and asset management. This approach models the complex interactions that occur between these agents in a complex system. Most modeling approaches in the domain of infrastructure asset management take a purely asset-centric approach and fail to address these socio-technical interactions. Design/methodology/approach – Interactions among political decision makers, asset management strategy developers, and road users are modeled using a game-theoretic approach. The interactions are modeled as a non-cooperative game in which politicians, asset managers, and road users are the main players. Each player is autonomous and aims to come up with the set of moves to maximize their respective level of satisfaction in response to other players’ moves. Multi-attribute utility theory is used to deal with multitude of players’ goals, and the Nash equilibria of the game are south out to develop appropriate strategies for different players. Findings – An illustrative example for a road network of a Canadian city is used to demonstrate the developed methodology. The developed methodology demonstrates how behaviors of various agents involved in the sphere of asset management impacts their collective decision-making behavior. Originality/value – The developed framework provides asset managers and political decision makers with a valuable tool to evaluate the impact of public policy decisions related to asset managers on road performance and the overall satisfaction of road users.

Integration of online and offline channels in retail: feasibility of BOPS?

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qinyi Zhang ◽  
Wen Cao ◽  
Yongmei Liu ◽  
Zhichao Zhang
Keyword(s):  
Original Research ◽  
Optimal Price ◽  
Compensation Strategy ◽  
Content Type ◽  
Dual Channel ◽  
Fairness Concerns ◽  
Fairness Concern ◽  
Offline Channels ◽  
The Impact ◽  
Service Strategies

Purpose As one of the omnichannel sales models, “buy online and pick up in store” (BOPS) not only is used in the commercial field but also has gradually attracted many scholars’ interests. However, although there are numerous research ideas, most of the current work is still limited to theoretical and empirical research, and few scholars study BOPS through models. This paper aims to discuss the best market conditions and opportunities for the implementation of BOPS against the backdrop of omnichannel by means of mathematical models and data simulations and discuss the optimal price–service strategies under different sales models. Design/methodology/approach First, from the perspective of different consumer shopping types, this paper separately divides consumers into different groups in traditional “dual channel” and BOPS models. Then, the authors analyze the impact of company market size, consumer service sensitivity and the scale of BOPS on companies’ strategies and the profit of the supply chain. Subsequently, they conduct an empirical analysis through specific values. Finally, the authors further expand the model on the basis of the original research, and discuss the retailer’s fairness concerns and unit compensation strategy to ensure that the research content is more rigorous. Findings It is observed that whether companies adopt BOPS depends on consumers’ service sensitivity degree and the scale of BOPS consumers and online retailers: when the sensitivity and the proportion of online consumers are high or the number of BOPS consumers is large, it is more advantageous for companies to implement BOPS. Moreover, companies should not only consider the market scale and production cost but also have a precise orientation of consumers’ experience sensitivity and willingness to engage in extra consumption when making price and service strategies. At the same time, the compensation strategy of companies and the peer-regarding fairness concern behavior of offline retailers will affect the optimal price and service strategy in the BOPS model. Social implications These results provide managerial insights for companies preparing to implement BOPS and promote the development of relevant theories in the channel field. Originality/value At present, most of the research on BOPS is based on empirical reviews. However, this paper analyzes the applicability and feasibility of implementing BOPS by using specific models, and it will provide some reference for companies preparing to implement BOPS. In addition, this paper also discusses the unit compensation strategy and peer-regarding fairness concern behavior in the BOPS model, which have not been studied by relevant scholars.

Augmenting Employees’ Efforts in Innovation

2021 ◽  
pp. 097674792198917
Author(s):  
Nikita Jain
Keyword(s):  
Theoretic Model ◽  
Wrongful Discharge ◽  
Equilibrium Level ◽  
Game Theoretic ◽  
Game Theoretic Model ◽  
The Impact

Strong labour laws play a major role in motivating innovation among employees. It has been found in the literature that stringency of labour laws is positively linked with employees’ efforts in innovation, in particular, wrongful discharge laws (WDL). However, employees may also bring nuisance suits against employers. Usually, the result of these suits is that both parties settle with each other. Thus, even if employees are justly dismissed, they may be able to bring nuisance suits against employers and gain a settlement amount. This article investigates how the possibility of nuisance suits affects the impact of WDL on employees’ efforts in innovation. In this respect, a game-theoretic model is developed in the article to find the equilibrium level of employees’ efforts in the presence of nuisance suits, where there is a possibility of employees getting discharged from the firm. I find that if nuisance suits are a possibility, the stringency of WDL has no impact on employees’ efforts if defence cost of the firm is low; but for higher defence costs, WDL affects employees’ efforts. The efforts exerted by an employee are found to be weakly increasing in the defence costs of the firm.

Cultivating product innovation performance through creativity: the impact of organizational agility and flexibility under technological turbulence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wilert Puriwat ◽  
Danupol Hoonsopon
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Product Innovation ◽  
New Product ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Organizational Agility ◽  
Content Type ◽  
Technological Turbulence ◽  
The Impact

PurposeThis study is to compare the impact of organizational agility and flexibility on performance of each type of product innovation (radical vs incremental innovation). Additionally, the moderating effect of technological turbulence on the relationship between the two types of organization is examined.Design/methodology/approachBased on gaps in the existing literature, the survey data are collected from managers who are in charge of developing new products in three industries: food and beverage, chemical and machinery (N = 431). Confirmatory factory analysis is used to verify measurement items and regression analysis is used to test hypotheses.FindingsThe results show that organizational agility increases performance in radical innovation both in a certain situation and an environment with technological turbulence. In contrast, the impact of organizational flexibility is limited to increasing performance in both radical and incremental innovation performance in a certain situation.Originality/valueOur study extends the knowledge of organizational agility and flexibility in the domain of product innovation. Adaptation of organization to respond the technological turbulence will stimulate creativity of new product development teams to produce new useful ideas and transform these ideas to product innovation. The different types of organizing a new product development team to handle technological turbulence will provide different results in product innovation performance. In addition, the findings provide a recommendation on how the organization of a new product development team can improve performance in each type of product innovation under technological turbulence.

scholarly journals A multi-dimensional approach for managing open innovation in NPD

2017 ◽  
Vol 37 (10) ◽  
pp. 1366-1385 ◽  
Author(s):  
Hanna Bahemia ◽  
Brian Squire ◽  
Paul Cousins
Keyword(s):  
Product Development ◽  
Competitive Advantage ◽  
New Product Development ◽  
New Product ◽  
Three Dimensions ◽  
Longitudinal Impact ◽  
Product Innovativeness ◽  
Content Type ◽  
The Impact ◽  
Positive Effect

Purpose This paper explores openness within new product development (NPD) projects. The purpose of this paper is to examine the impact of breadth, depth and partner newness on product innovativeness and product competitive advantage. The authors also seek to examine the contingent effects of the appropriability regime. The authors make suggestions to academics and practitioners based on the findings. Design/methodology/approach The authors use a structured survey instrument producing an empirical analysis of 205 NPD projects in the manufacturing sector in the UK. The authors use an ordinary least squares regression model to test hypothesised relationships between openness (breadth, depth and partner newness), product innovativeness, product competitive advantage and the appropriability regime. Findings The authors find that each of the three dimensions of openness, depth, breadth and partner newness, have a significant but differing impact on product innovativeness. Specifically, the study indicates that breadth has a positive effect but only in the presence of a strong appropriability regime, partner newness has a direct positive effect, and depth a direct negative effect. The authors also find that product innovativeness has a positive impact on product competitive advantage. Research limitations/implications Further research should focus on replicating the findings in other countries, search for further moderating factors, such as the stage of the NPD process, and analyse the longitudinal impact of openness within NPD projects. Practical implications Organisations are encouraging managers to be more open in their approach to NPD. The authors’ findings suggest that managers need to think about the three dimensions of openness, breadth, depth and partner newness. Their engagement with each of these dimensions depends on the desired outcomes of the innovation project and the strength of patents. Originality/value The research extends the extant supplier involvement in new product development literature to examine the effect of up to 11 types of external actor in NPD projects. The authors test a new multi-dimensional measurement scale for the openness construct. The authors show that each dimension has a different relationship with product innovativeness.

scholarly journals Early supplier integration in the US defense industry

2019 ◽  
Vol 3 (1) ◽  
pp. 2-28 ◽  
Author(s):  
Garrett Lane Cohee ◽  
Jeff Barrows ◽  
Rob Handfield
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Defense Industry ◽  
Supplier Management ◽  
Project Performance ◽  
Content Type ◽  
Goods And Services ◽  
Supplier Integration ◽  
The Us ◽  
The Impact

Purpose Each year, the US defense industry outsources nearly $400 bn of domestic goods and services through competitive bids. These procurement activities are quite often complex and specialized in nature because of a highly regulated federal acquisition contracting environment. Ongoing calls to improve supplier management and drive innovation in the defense industry offers an opportunity to adopt Early Supplier Integration (ESI) initiatives that have proven successful in the private sector. This paper identifies critical ESI activities and acquisition practices that the defense industry should adopt to ensure enhanced effectiveness in new product development. Design/methodology/approach Leveraging a conceptual ESI model derived from the research, an in-depth case study of 12 product development projects from a major defense contractor was performed. In the context of project performance, critical ESI activities and moderating effects were assessed. Findings Three key ESI activities have the greatest impact on aggregate project performance: system design involvement, design adjustment opportunities and design for manufacturability/assembly/testability involvement. Use of formal supplier agreements also significantly impacts project performance during the development phase. In addition, project complexity and product team maturity were identified as environment moderators; higher complexity projects tended to negatively moderate the impact of ESI upon performance, and higher team maturity levels tended to positively moderate the impact of ESI upon performance. Originality/value The results provide a sound framework for empirical validation through future quantitative studies and defense industry analyses. In addition, insights and recommendations for interpretation and adaptation of federal acquisition regulations to allow increased utilization of ESI within the defense industry are substantiated.

To tell or not to tell? The impact of communicating consumer participation in new product development

2018 ◽  
Vol 27 (2) ◽  
pp. 158-171 ◽  
Author(s):  
Claudia Costa ◽  
Rita Coelho do Vale
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Critical Role ◽  
New Product ◽  
Consumer Involvement ◽  
Consumer Participation ◽  
Product Complexity ◽  
Content Type ◽  
Innovation Ability ◽  
The Impact

Purpose This paper aims to analyze the implications of communicating customer involvement in the ideation and concept stage of new product development (NPD). This paper assesses the extent to which the awareness that a product was co-created jointly by company professional designers and consumers affects observer consumers’ attitudes toward the product and the company. While earlier research has mainly emphasized the positive and desirable consequences of consumer participation in NPD, the present set of studies shows that labeling products as having been co-created is not always valuable; rather, it is dependent on the level of perceived complexity of the products. Design/methodology/approach The hypotheses are tested in four experimental studies using several categories of product complexity (low, medium and high). The data have been collected on young adult samples, measuring the participants’ perceptions of a firm’s innovation ability and product purchase intentions. Findings The results suggest that there are benefits at the corporate level (higher perceptions of innovation ability) to inform the market about consumer involvement, particularly when consumers and company professionals work together. The findings also indicate that product complexity plays a critical role in translating the perceptions of greater corporate abilities (innovation) in purchase intention, and it is particularly beneficial for low-complexity products. Originality/value The previous research has mainly focused on the impact of involving consumers in firms and participating consumers; however, it has neglected the role of observer consumers. This study adds to the innovation literature by showing that the value of learning about other consumers’ involvement in firm NPD is not universally beneficial and that product complexity is a critical boundary condition.

The impact of user innovator mindset on feedback volume, feedback diversity and new product development performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jiajun Wu ◽  
Matthew O'Hern ◽  
Jun Ye
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Online Survey ◽  
New Product ◽  
Research Database ◽  
Product Diffusion ◽  
Content Type ◽  
Product Improvement ◽  
The Impact ◽  
Npd Performance

PurposeThis study examines the influence of different user innovator mindsets on new product development (NPD) performance. The current research explores the relative impact of a product-focused user innovator mindset vs a customer-focused mindset on feedback volume and feedback diversity and investigates the effect of each type of feedback on product improvement and product diffusion.Design/methodology/approachThis study examines these relationships using two distinct types of data. Data on user innovator mindset, feedback characteristics and user innovator improvisation were obtained via an online survey. Archival data on NPD performance measures were acquired directly from an online research database, and results were obtained using confirmatory factor analysis.FindingsThe authors find that while neither type of user innovator mindset directly influences NPD performance, user innovators, who are highly customer-focused, have a significant advantage in sourcing knowledge from users in the form of a higher volume of feedback and more diverse feedback. In turn, feedback volume appears to positively influence product improvement, while feedback diversity positively influences product diffusion. Finally, the effect of both types of feedback on product improvement is enhanced for user innovators who are highly improvisational.Originality/valueThis research highlights the important role that customer focus plays in directly obtaining knowledge from customers (i.e. customer feedback) and the effects of that feedback on NPD performance. This study provides evidence that a user innovator's interest in accurately understanding the needs of their peers improves their access to external knowledge and enhances their innovation efforts.

The impact of social capital and knowledge sharing intention on restaurants’ new product development

2020 ◽  
Vol 32 (10) ◽  
pp. 3271-3293
Author(s):  
Mesbahuddin Chowdhury ◽  
Girish Prayag ◽  
Vidya Patwardhan ◽  
Nischal Kumar
Keyword(s):  
Social Capital ◽  
Product Development ◽  
Knowledge Sharing ◽  
New Product Development ◽  
New Product ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Optimum Level ◽  
Content Type ◽  
The Impact

Purpose Using social capital theory, this study aims to investigate internal social capital (ISC) and external social capital (ESC) as determinants of knowledge sharing intention (KSI) and new product development (NPD) in high-end restaurants. Design/methodology/approach A theoretical model is developed and tested using data collected from 523 respondents (owners/proprietors, partners and managers) from high-end restaurants in Karnataka, India. Partial least square structural equation modeling is used to analyze the data. Findings The results suggest that ISC has a significant and positive influence on ESC. This highlights the important role of ISC in building ESC. While ISC has a positive relationship with KSI, ESC has no influence on KSI. KSI has a positive effect on NPD. Practical implications Restaurant managers and owners should invest time and resources in building ISC by nurturing relationships with employees and partners. Encouraging and rewarding collaborative behaviors internally will facilitate the development of external relationships. Results also suggest the existence of an optimum level of knowledge sharing with external partners in restaurants. Originality/value To the best of the authors’ knowledge, this is the first study to examine the relationship between ISC and ESC, and test the effects of both KSI and NPD in high-end restaurants.

Prevalence and association of discrimination and bullying and the impact on mental health in an occupational setting

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elizabeth Stratton ◽  
Michael J. Player ◽  
Ariane Dahlheimer ◽  
Isabella Choi ◽  
Nicholas Glozier
Keyword(s):  
Mental Health ◽  
Well Being ◽  
Depression And Anxiety ◽  
Cross Sectional ◽  
Content Type ◽  
Occupational Setting ◽  
Male Dominated ◽  
Relationship Of ◽  
The Impact

PurposeDiscrimination and bullying contribute to mental ill-health in the workplace. At face value, they would seem linked but are often dealt with by different legislations. Workplace studies generally focus on bullying and population studies on discrimination. The authors aimed to evaluate the prevalence and relationship of discrimination and bullying in a male-dominated workforce, associated factors and relative impact on mental ill-health.Design/methodology/approachAn online cohort survey was conducted amongst employees of an Australian mining company, measuring discrimination, bullying, demographics and workplace and health factors over two months. Cross-sectional and prospective analyses assessed the prevalence of each, their association and their effects on depression and anxiety.FindingsA total of 580 employees (82% male) participated. There was no association between workplace bullying (n = 56, 9.7%) and discrimination (n = 160, 27.6%). Discrimination, but not bullying, was associated with higher depression, anxiety and suicidal ideation and lower well-being and resilience. After controlling for demographic, workplace and health and well-being factors, depression had the main effect on discrimination ß = 0.39, p = 0.003. Discrimination predicted an increase in depression scores at follow-up F (1, 129) = 4.88, p = 0.029.Originality/valueIn this male-dominated industry, discrimination was more prevalent than bullying. Discrimination, but not bullying, was associated with poorer mental health both cross sectionally and prospectively. Supporting the need to assess and manage discrimination and bullying in the workplace independently and the need for interventions to reduce a broader range of adverse interpersonal behaviours.

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