Impact of metric-alignment on supply chain performance: a behavioral study

PurposePrevious research has shown that firms are struggling to incorporate collaboration among supply chain partners. This paper presents a new approach to incorporate collaboration using metric-alignment. The analysis provides key insights regarding the usefulness of this approach to synchronize decision-making that leads to reduced bullwhip effect, less backordering and lower supply chain costs.Design/methodology/approachThis research is based on a large-scale behavioral study comprising 556 participants in multi-echelon supply chain games. Supply chain decisions from these experiments are evaluated to study the impact of metric-alignment on managerial decision-making and the corresponding effects on the overall supply chain performance.FindingsResults show that the metric-alignment approach offers an informal and self-enforced governance mechanism that changes managerial decision-making behaviors and improves supply chain performance. Results also show this approach to yield operational and financial benefits for all supply chain partners in the form of reduced bullwhip effect, less backordering and lower supply chain costs.Originality/valueThis is the first behavioral study of its kind that evaluates a new approach to incorporate collaboration in supply chains using metric-alignment. This approach avoids the shortcomings of current industry practices of using monetary penalties, such as on-time in-full (OTIF) mandates in supply contracts. The study shows that metric-alignment approach can improve overall supply chain performance while offering mutually beneficial rewards for all supply chain partners.

Service ecosystems: why the media industry prefers access, not ownership

Purpose Because of the increasing importance of access over ownership, the purpose of this paper is to propose a service ecosystem perspective to help managers navigate hypercompetition. With the rise of cloud-based services and the ongoing recovery from the COVID-19 pandemic, the global economy has shifted toward hypercompetition, a state characterized by organizational advantages that are rapidly created and then destroyed by intense competitive moves. Because advantages are quickly eroded, organizations must be aggressive in the number of actions they take and the speed with which they execute these actions. The service ecosystem perspective focuses on relationships that allow organizations to jointly adjust to one another and to their environment. Design/methodology/approach This paper first reviews traditional strategies for navigating hypercompetition. Then, it presents an explanation of the service ecosystem perspective. Finally, the three north stars and media examples are provided. Findings The service ecosystem perspective asserts “north stars” that can guide managerial decision-making in hypercompetitive environments. These north stars are: cultivate system norms, facilitate feedback loops and embrace servitization. Originality/value In today’s world, organizations are increasingly seeking access to resources instead of ownership of them. The proposed approach suggests that, rather than an organization owning the resources it needs to achieve advantages, organizations are increasingly relying on accessing resources by coordinating with other organizations to draw upon the resource(s) as needed, without incurring the additional burdens of ownership. Examples from the media industry are used to illustrate the three north stars of the service ecosystems perspective.

FORECASTING THE ECONOMIC PROCESS USING ECONOMETRIC ANALYSIS

The article considers the necessity of using econometric research methods in the analysis and forecasting of economic processes and phenomena. A concrete example of managerial decision making examined in the given article is based on the assumption of an econometric model and it’s ability to analyze the effectiveness of applying different types of advertising on the company's activities

Tools for solving management tasks in economic systems of the «organization» type

There is a need to research and determine the composition and content of tools that form and ensure the implementation of professional management tasks. Scientific literature and empirical research have allowed us to choose as such tools methods of performing procedures, methods of managerial decision-making and management elements. The use of these tools for the design of technologies for solving professional management tasks will improve the quality and efficiency of the studied, designed and operated processes and their parts in organizations.

Development of an Approach to the Formation of a Portfolio of Innovative Projects of an Industrial Enterprise

The article is devoted to the issues of increasing the efficiency of innovative activity of an industrial enterprise, which ensures the implementation of the formed portfolio of innovative projects. Innovative development of economic entities is possible if new requirements to the content, organization, forms and methods of management activity are met [1], which means that tools for monitoring the innovative development of an industrial enterprise, methods for assessing innovative opportunities and the effectiveness of managerial decision-making in innovation are needed [3]. To solve this problem, it is proposed to use the algorithm presented in the article for the formation of a portfolio of innovative projects of an industrial enterprise, including the developed methodology for their selection according to efficiency and feasibility indicators, the use of which in management practice makes it possible to make a reasonable assessment of the possibility of successful implementation of these projects and ensure an increase in the probability of achieving a positive result. The selection of innovative projects according to efficiency and feasibility indicators for PJSC "CADVI" was carried out and a portfolio of innovative projects for this enterprise was formed.

Breaking the Paradigm of Sensing, Seizing, and Transforming - Evidence from Axel Springer

Dynamic capabilities have typically been conceptualized as sensing, seizing, and transforming. This article explores the interplay of these procedural dimensions employing a longitudinal case study of Axel Springer, a leading media corporation that has exercised dynamic capabilities to convert from a print publisher to an internet company. Insightful evidence is produced from interviews with current and former top managers. The case study shows iterations, overlaps, and interconnections between sensing, seizing, and transforming. Sensing-by-seizing is introduced as a dynamic capability to seize concrete opportunities while concurrently sensing them. A conceptual model furnishes implications and recommendations for managerial decision-making.

The use of web technologies in the transportation of medical waste generated during the treatment of COVID-19 on the territory of the Russian Federation

In this study, explores the use of web technologies as a way to ensure that medical waste transportation is undertaken in a proper and safe way. Insofar as an incorrect waste sorting is regarded as a source of an epidemiological threat within further transportation, is proposed a synthesis of a waste sorting model. The model is based on a natural science approach to managerial decision-making. The model enables to identify and prove violations concerning medical waste sorting. Described four interconnected components of the model: an initial stage, when vaccination processes are not taking place; the vaccination is completed and medical waste is sorted according to the rules; the vaccination is completed, but the rules of medical waste sorting are violated; all the problems related to medical waste sorting are solved, so its transportation is possible.

Express method of assessment of compliance of the object of supervision with fire safety requirements

Introduction. The paper considers the new requirements for the activities of the state fire supervision bodies. The ways of solving the problems arising during the implementation of these innovations are given. One of such solutions is the developed by the authors algorithm of the express method for assessing the compliance of the object of supervision with fire safety requirements. The article analyzes the work of inspectors of the state fire supervision during inspections of low-rise retail facilities of small area, taking into account the time spent on them, and the work of the inspector using a new express method of conducting inspections. Problem Statement. The purpose of the study is to increase the efficiency of managerial decision-making in ensuring fire safety based on the criterion of "fire risk", taking into account the minimum fire safety requirements determined by the calculation. Conclusions. The developed algorithm for supporting managerial decision-making on the compliance of the protection of commercial facilities with fire safety requirements will allow inspectors of the state fire supervision during inspections to assess the existence of a threat to human life and health and decide on further actions depending on the presence or absence of this threat.

Risk and Uncertainty Revisited: A Clarification of Theory and Application

In addition to the obvious public confusion and lack of distinction between the terms, risk and uncertainty and other related concepts, the interchangeable use seems to seep into the academic and professional research. According to a 2018 study by De Groot and Thurik, it was reported that 88.3% of articles in this topic, across the related fields, did not adhere to the distinction between risk and uncertainty, rendering all the undesirable theoretical and empirical consequences. This paper is intended to revisit the concepts of risk and uncertainty, not only clarifying the meaning and use of the terms, but also shedding a light on differentiating all the related concepts. The focus is on risk, being the core element directly related to the success and failure of all financial and managerial decision making. The approach is not only conceptual, but also supported by mathematical and numerical applications.

Thriving on adversity: entrepreneurial thinking in times of crisis

Purpose The paper provides evidence-based managerial advice for preparing the organizations to find successful pathways through crises by priming the managerial decision-making towards either entrepreneurial thinking or resource conservation, and hence cascading the inventive or rigid state of mind through all management levels. Design/methodology/approach The general review is based on summarizing the peer-reviewed academic studies of organizational decision-making and acting in crisis situations, illustrated using the turnaround cases of Corticeira Amorim (reinventing itself when faced with emerging technological threats) and Kiddiegarten School (adjusting to the pandemic shock of social/human nature) Findings This study reveals that a set of dimensions in the crisis situation’s cognitive framing determines the firm’s response to adversity, freezing it in a rigid state or unfreezing it to stimulate an organization-wide entrepreneurial search for turnaround strategies. If managers sense having a lack of time to deal with adversity, or a lack of predictability, they become paralyzed with threat-rigidity mechanisms, stubbornly pursuing the established methods of doing business, which often were the cause of crisis in the first place. Hence, in situations requiring an immediate response, the dual threats of urgency and unpredictability become cognitive blinders, preventing organizations from pursuing new opportunities, exposing firms to the risk of being too slow, eroding their competitive advantage and, ultimately, going out of business. Originality/value Integrating the insights of three decades prior research of the topic of managerial decision making in crisis situations, this study proposes the novel leadership framework allowing to stimulate entrepreneurial behavior in adverse contexts.