Frenemies: Corporate Advertising Under Common Ownership

In this paper, we investigate the impact of ownership structure on corporate advertising expenditures. Using mutual fund mergers as an exogenous shock to ownership structure, we find that competing firms owned by the same institutional blockholders experience a significant reduction in advertising expenditure. The reduction in advertising expenditure is more likely to occur in the presence of higher coordination benefits or lower coordination costs. Specifically, this effect is more pronounced for firms in more competitive industries, in higher advertising-intensity industries, with greater common ownership, with more concentrated institutional ownership, and with headquarters located in the same state. Overall, our empirical evidence indicates that ownership by common institutional investors significantly affects corporate advertising strategy. This paper was accepted by Matthew Shum, marketing.

Benefits of the Cloud for Calibration Management Software Systems

The National Institute of Standards and Technology (NIST) was directed by the federal government to define cloud computing to assist federal agencies in implementing cloud architectures. In 2011, NIST published NIST SP 800-145 “The NIST Definition of Cloud Computing” and defined cloud computing as: “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model is composed of five essential characteristics, three service models, and four deployment models. [1]” Cloud computing is a relatively new IT concept and as such, there is much to learn about the benefits that this business model can bring to organizations. Cloud computing will transform how you do business. The objective of this paper is to explain the benefits of using a cloud architecture for calibration management software systems. The following benefits and topics will be discussed: Work From Anywhere, Always On, Reduced IT Costs, Scalability, Automatic Updates, Reduce Coordination Costs, Improved Quality Control, Disaster Recovery, Environmental Sustainability, Increased Competitiveness, Stronger Security, and Compliance Considerations [2].

ANALISIS BIAYA TRANSAKSI USAHATANI PADI DI KECAMATAN BANGKINANG KABUPATEN KAMPAR

The rice plant is one of the agricultural products and is a major food for almost all the people of Indonesia. Farming capital is the production cost that will be spent by farmers during the production process. However, in addition to production costs, there are other costs unwittingly incurred by farmers which are also related to their farming activities. These costs are known as transaction costs. The purpose of this study was to analyze components and total transaction costs and the effect of transaction costs on economic efficiency of rice farming. The data were analyzed using descriptive qualitative and quantitative descriptive approaches. Transaction cost was analyzed by using transaction cost analysis. The results showed that the components of rice farming transaction costs along with their ratio consisting of information costs (0,05), negotiation costs (0,02), coordination costs (0,79), implementation costs (0,03), risk costs (0,08) and transportation costs (0,03). The effect of transaction costs on revenue was seen from the ratio value which wais equal to 0,009. Meanwhile, the factors that significantly affect transaction costs were farming experience and subscription.

Global value chain breadth and firm productivity: the enhancing effect of Industry 4.0

PurposeGlobal value chains (GVC) incorporate internationally fragmented sources of knowledge so as to increase global competitiveness and performance. This paper sheds light on the role of Industry 4.0 technological capabilities in facilitating knowledge access from international linkages and improving firm productivity.Design/methodology/approachDrawing on organizational learning research, the present study argues that the relationship between GVC breadth, analyzed in respect to the geographical fragmentation of production facilities and productivity follows an inverted U-shaped pattern that can be explained by the interplay between external knowledge access and the coordination costs associated with GVC breadth. We test our predictions using a purpose-built survey that was carried out among a sample of 426 Spanish manufacturing firms.FindingsOur results indicate that organizations adhering to a traditional manufacturing system are able to benefit from fewer transnational relationships (concretely 11 foreign facilities) in the search for productivity improvements. This can be largely attributed to the marginal value of the knowledge accessed and the costs of coordinating international counterparts' production and knowledge transfer. However, our study reveals that the adoption of Industry 4.0 technologies has the potential to broaden optimal GVC breadth, in terms of the number of linkages to interrelate with (concretely 131 foreign facilities) so as to obtain productivity gains while mitigating the complexities associated with coordination.Originality/valueThe study unveils that Industry 4.0 technologies enable management of broader GVC breadth, facilitating knowledge access and counteracting coordination costs from international counterparts.

Understanding uptake of community groundwater monitoring in rural Brazil

Resource monitoring is often cited as important for effective common pool resources management. In practice, not all monitoring interventions are successful, particularly when the resource, such as groundwater, is challenging to monitor and measure. We conducted a field experiment on groundwater monitoring in Ceará, Brazil, where communities are increasingly reliant on groundwater yet do not engage in monitoring. Despite careful implementation, uptake of monitoring within the 80 treatment communities was low. To unpack this low uptake, we conduct multimethods exploratory research. We find that uptake is less likely in communities facing high coordination costs, either within the community leadership or across the broader community. Uptake is also less likely when there are physical barriers to monitoring, when there are more substitutes for groundwater, and when there is lower variability in water availability. Our findings can inform future monitoring interventions in similar contexts worldwide.

Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java

Transaction costs was one of imperfect market characteristic. The transaction costs of soybean farming affected profit level, and profit was one factor of capital formation. This research aimed to analyze the structure and the effect of transaction costs on the profitability and the capital formation of soybean farming. This study applied transaction cost analysis and simultaneous equation as the methods. The respondents were determined using simple random sampling by taking the proportion of 25% for the three selected districts, resulting in 120 respondents. The data were the transaction costs in 2014/2015 and household data from 2012 to 2014, comprising the assets of land, vehicles, farm equipment, crop, and livestock. The results revealed that the transaction costs were IDR 144,120.86. The negotiation costs became the highest cost component (60.30%), followed by information costs (14.07%), coordination costs (12.22%), implementation costs (8.03%), monitoring costs (4.23%) and risk costs (1.15%). Transaction costs had a significant effect on the profitability of soybean farming. The highest percentage of capital formation on soybean farming was for farmland, reaching 40.43%. Other capitals included vehicles (24.59%), plants (19.31%), building (7.37%), and supporting tools (3.09%). Transaction costs did not significantly effect on farming capital formation. As a recommendation, collective action was required, farmers should be active on farmers groups to reduce transaction costs.

The strategic choice of contract types in business process outsourcing

PurposeHow to determine the appropriate contractual structure for an outsourcing relationship has been a major theme in the business process outsourcing (BPO) literature. Drawing on transaction cost economics, this study aims to examine how anticipated coordination and adaptation costs in a BPO relationship affect the choice of contract types. Specifically, this research categorizes contracts types (fixed-price, time and materials and hybrid contracts) based on levels of contract design comprehensiveness and flexibility to change.Design/methodology/approachThe research setting is the BPO for a focal firm, involving a contractor. Data from 153 US companies are collected using a structured questionnaire on senior executives of functional areas of marketing, IT and finance. Hypotheses were tested using ordered probit model.FindingsThe results show that maturity is negatively associated with anticipated adaptation costs, while modularity and IT detachability are negatively related to anticipated coordination costs. Furthermore, adaptation costs have a direct impact on the choice, whereas the anticipated coordination costs do not have a significant direct impact on contract choice. The strength of adaptation costs' impact, however, is significantly reduced when coordination costs are high.Originality/valueThis study explicitly examines the role of anticipated coordination and adaptation costs in shaping the strategic choice of contract types in the BPO market. By differentiating the two types of anticipated transaction costs, this research enables a better understanding of the dynamics between transaction characteristics, anticipated transaction costs and contract types in complicated relationships such as BPO relationships.

Practice transformation at scale through a microsystems quality improvement (QI) approach.

e18667 Background: How oncology providers should implement practice transformation for value-based care is unclear, particularly at scale. Organizational size enables efficient “top down” approaches, but also presents challenges such as physician engagement. Dis-economies of scale can be acute in oncology due to physician autonomy and coordination costs. We hypothesized that organizational change based in sense-making models that enhance physician engagement and use a decentralized, iterative microsystems approach will enable practice transformation to scale. Methods: Florida Cancer Specialists & Research Institute (FCS) is a physician led 250-oncologist statewide practice, with regional variation in disease state/mix, patient cohort, etc., making a purely top-down approach to organizational change infeasible. FCS prototyped a transformation strategy starting in June 2017 based on sharing interpreted data with physician and executive leadership. Later implementation directly engaged physicians in a microsystems quality QI strategy focused on regional performance. Interventions targeted disease, health service utilization, location, and individual physicians. Performance was evaluated using data from Medicare’s Oncology Care Model (OCM) and assessed using the one-sided risk target (4% below benchmark). We analyzed 70,239 performance period (PP) episodes at FCS across 35,116 patients. Results: In the pre- intervention period (90% of PP1 episodes, completed by June 2017), FCS was 5.8% above target. Performance was 10.9% above target for the remainder of PP1 (10% of PP1 episodes), then improved to 0.3% above target in PP2 and PP3, and below target by 0.9%, 0.8%, and 0.75% in PP4, PP5, and PP6. Early QI efforts focused on performance in lung cancer, which was 2.5% over target in PP1; it improved to 2.1% under target in PP6. Later regional QI sessions targeted cancer, utilization and providers. Pre-intervention, all 18 regions were above target; by PP6, 11 out of 19 regions were below target. Relative to the pre-intervention period, per-episode inpatient costs increased by 12.1% for the remainder of PP1 and increased by 4.3% and 1.3% in PP2 and PP6; inpatient costs decreased in PP3, PP4, and PP5 by 3.8%, 2.4% and 4.8%. Conclusions: Practice transformation in oncology can achieve scale through models of organizational change that foster physician engagement. Data, when clinically contextualized, is a foundational tool in the sense-making process. Scale can develop through an additive microsystems approach in which QI units are de-centralized, accountability is defined, and iteration becomes part of organizational culture. [Table: see text]