We investigate the trade-off between acquisition and retention efforts when customers are sensiti... more We investigate the trade-off between acquisition and retention efforts when customers are sensitive to the quality of service they receive, i.e., whether they get timely access to a company's resources when requested. We model the problem as a multi-class queueing network with new and returning customers, time-dependent arrivals, and abandonment. We derive its fluid approximation; a system of ordinary linear differential equations with continuous, piecewise smooth, right-hand sides. Based on the fluid model, we propose a novel approach to determine optimal stationary staffing levels for new and returning customer queues in anticipation of future time-varying dynamics. Using system accessibility as a proxy for service quality and staffing levels as a proxy for investment, we demonstrate how to apply our approach to two families of time-varying arrival functions motivated by real-world applications: an advertising campaign and a clinical setting. In a numerical study, we demonstrate that our approach creates staffing policies that maximize throughput while balancing acquisition and retention efforts more effectively (i.e., equitable abandonment from each customer class) than commonly used near-stationary methods such as segmentation-based square-root staffing policies. Our model confirms that acquisition and retention efforts are intimately linked; this has been found in empirical studies but not captured in the operations literature. We suggest that in time-varying environments, focusing on either alone is not sufficient to maintain high levels of throughput and service quality.
Abstract In this work, we analyze the financial viability of U.S. hospitals by investigating the ... more Abstract In this work, we analyze the financial viability of U.S. hospitals by investigating the impact of clinical and experiential quality as its determinants. We adopt Simar and Wilson's two-stage bootstrapped truncated regression approach. Specifically, we use data envelopment analysis (DEA) in the first stage to estimate efficiency scores. Then, we use truncated regression estimation with the double-bootstrap method to test the significance of the quality variables. Given the financial problems recently experienced by U.S. hospitals, we use readmission rates and costs as our outputs to investigate how well hospitals can lower readmission rates while minimizing their costs, since recent policy changes have tied a portion of hospital reimbursements to their readmission rates, making both variables crucial outcome goals. We find that both clinical and experiential quality are significantly associated with the higher financial viability of hospitals. Further, focusing on these two quality dimensions together has additional benefits.
This paper investigates the effects of supply chain absorptive capacity on customization, product... more This paper investigates the effects of supply chain absorptive capacity on customization, production innovation, and in turn, business performance. Building upon the organization and strategy literature, we constructed multi-item measurement scales that tap into five dimensions of absorptive capacity, which were adapted to supply chain management context. Using survey-based data gathered from 174 U.S. supply chain managers, we applied structural equation modeling to assess the influence of supply chain absorptive capacity on business performance and provide empirical insights regarding the mediating role of customization and product innovation capabilities between absorptive capacity and business performance. Our study provides empirical insights that the construct of absorptive capacity is relevant to supply chain management research and practice.
We investigate the trade-off between acquisition and retention efforts when customers are sensiti... more We investigate the trade-off between acquisition and retention efforts when customers are sensitive to the quality of service they receive, i.e., whether they get timely access to a company's resources when requested. We model the problem as a multi-class queueing network with new and returning customers, time-dependent arrivals, and abandonment. We derive its fluid approximation; a system of ordinary linear differential equations with continuous, piecewise smooth, right-hand sides. Based on the fluid model, we propose a novel approach to determine optimal stationary staffing levels for new and returning customer queues in anticipation of future time-varying dynamics. Using system accessibility as a proxy for service quality and staffing levels as a proxy for investment, we demonstrate how to apply our approach to two families of time-varying arrival functions motivated by real-world applications: an advertising campaign and a clinical setting. In a numerical study, we demonstrate that our approach creates staffing policies that maximize throughput while balancing acquisition and retention efforts more effectively (i.e., equitable abandonment from each customer class) than commonly used near-stationary methods such as segmentation-based square-root staffing policies. Our model confirms that acquisition and retention efforts are intimately linked; this has been found in empirical studies but not captured in the operations literature. We suggest that in time-varying environments, focusing on either alone is not sufficient to maintain high levels of throughput and service quality.
ABSTRACT This study investigates the role of organizational structure in facilitating the develop... more ABSTRACT This study investigates the role of organizational structure in facilitating the development of mass customization (MC) capability in various manufacturing settings. Specifically, three dimensions of organizational structure are considered—flatness, centralization, and employee multifunctionality. We model organizational structure as a second-order factor whose value is captured on a mechanistic-organic continuum, where the organic form is characterized by a flat, decentralized structure with a wide use of multifunctional employees. We propose that a positive relationship exists between the organic organizational structure and MC capability. Additionally, building upon contingency theory, we argue that this positive relationship is moderated by mass customizer type—full mass customizers, which customize products at the design or fabrication stage of the production cycle, versus partial customizers, which customize products only at the assembly or delivery stages. Based on a study of 167 manufacturing plants from three industries and eight countries, we find that, for the overall sample, organic structure plays a significant role in enabling firms to pursue MC capability. However, an analysis of full versus partial mass customizers shows that the positive impact of organic structure on MC capability is statistically significant only for full mass customizers, not for partial mass customizers.
The maritime transport industry continues to draw international attention on significant Greenhou... more The maritime transport industry continues to draw international attention on significant Greenhouse Gas emissions. The introduction of emissions taxes aims to control and reduce emissions. The uncertainty of carbon tax policy affects shipping companies’ fleet planning and increases costs. We formulate the fleet planning problem under carbon tax policy uncertainty a multi-stage stochastic integer-programming model for the liner shipping companies. We develop a scenario tree to represent the structure of the carbon tax stochastic dynamics, and seek the optimal planning, which is adaptive to the policy uncertainty. Non-anticipativity constraint is applied to ensure the feasibility of the decisions in the dynamic environment. For the sake of comparison, the Perfect Information (PI) model is introduced as well. Based on a liner shipping application of our model, we find that under the policy uncertainty, companies charter more ships when exposed to high carbon tax risk, and spend more on...
International Journal of Operations & Production Management, 2010
... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been... more ... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been recognized as a generic competitive capability that should be first developed in the sequential progression towards the building of other capabilities (Ferdows and DeMeyer, 1990; Roth ...
This study investigates the influence of an ambidextrous supply chain strategy on manufacturers’ ... more This study investigates the influence of an ambidextrous supply chain strategy on manufacturers’ combinative competitive capabilities – the ability to excel simultaneously on competitive capabilities of quality, delivery, flexibility, and cost – and, in turn, on business performance. Drawing upon March's (1991) notions of exploration and exploitation, an ambidextrous supply chain strategy is conceptualized as a simultaneous pursuit of both explorative and exploitative supply chain practices. We operationalize this concept as a second-order latent construct that captures the co-variation between exploration and exploitation within the context of a manufacturer's supply chain management strategy. Using survey-based data gathered from 174 U.S. manufacturers, we find that an ambidextrous supply chain strategy coincides with combinative competitive capabilities and business performance. Our empirical finding contradicts conventional wisdom that argues for tradeoffs between explor...
... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been... more ... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been recognized as a generic competitive capability that should be first developed in the sequential progression towards the building of other capabilities (Ferdows and DeMeyer, 1990; Roth ...
International Journal of Operations & Production Management, 2010
... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been... more ... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been recognized as a generic competitive capability that should be first developed in the sequential progression towards the building of other capabilities (Ferdows and DeMeyer, 1990; Roth ...
Supply networks are composed of large numbers of firms from multiple interrelated industries. Suc... more Supply networks are composed of large numbers of firms from multiple interrelated industries. Such networks are subject to shifting strategies and objectives within a dynamic environment. In recent years, when faced with a dynamic environment, several disciplines have adopted the Complex Adaptive System (CAS) perspective to gain in- sights into important issues within their domains of study. Research investigations in
Purpose The purpose of this paper is to explore how different forms of integration interact with ... more Purpose The purpose of this paper is to explore how different forms of integration interact with environmental dynamism to influence the outcomes of a buyer–supplier relationship (BSR). Specifically, the authors assess the impact of communication, operational process integration (OPI) and joint knowledge exploration (JKE) on the economic value and competitive differentiation generated by the BSR. Furthermore, the authors assess the moderating role of environmental dynamism in changing the performance implications of these different forms of integration. Design/methodology/approach The authors empirically test the theoretical model using survey data collected from North America. The authors apply techniques such as confirmatory factor analysis, regression and a variety of robustness checks to ensure the validity of the findings. Findings The results indicate that OPI and JKE are useful in generating higher value from key supply chain relationships. However, communication does not dir...
A large body of literature has studied supply chain integration (SCI) at the macro (firm or dyad)... more A large body of literature has studied supply chain integration (SCI) at the macro (firm or dyad) level. However, the micro-foundations of SCI that highlight the range of different activities and choices firms have in implementing integration have not been studied. This paper identifies and analyzes integrative activities or practices that form the micro-units of firm-level SCI. Qualitative analysis yields nine elements of integration that emerge from the large number of integrative practices. In doing so, the paper maps out the structure of the broad SCI construct and discusses the theoretical repercussions of this new approach. New theoretical insights and research directions are identified based on this new micro-level activity-based view of SCI. This paper shifts the focus from where integration is done (customer vs. supplier integration) to what integration entails. SCI has become a very broad construct over time. This paper is a significant and systematic step in unraveling th...
We investigate the trade-off between acquisition and retention efforts when customers are sensiti... more We investigate the trade-off between acquisition and retention efforts when customers are sensitive to the quality of service they receive, i.e., whether they get timely access to a company's resources when requested. We model the problem as a multi-class queueing network with new and returning customers, time-dependent arrivals, and abandonment. We derive its fluid approximation; a system of ordinary linear differential equations with continuous, piecewise smooth, right-hand sides. Based on the fluid model, we propose a novel approach to determine optimal stationary staffing levels for new and returning customer queues in anticipation of future time-varying dynamics. Using system accessibility as a proxy for service quality and staffing levels as a proxy for investment, we demonstrate how to apply our approach to two families of time-varying arrival functions motivated by real-world applications: an advertising campaign and a clinical setting. In a numerical study, we demonstrate that our approach creates staffing policies that maximize throughput while balancing acquisition and retention efforts more effectively (i.e., equitable abandonment from each customer class) than commonly used near-stationary methods such as segmentation-based square-root staffing policies. Our model confirms that acquisition and retention efforts are intimately linked; this has been found in empirical studies but not captured in the operations literature. We suggest that in time-varying environments, focusing on either alone is not sufficient to maintain high levels of throughput and service quality.
Abstract In this work, we analyze the financial viability of U.S. hospitals by investigating the ... more Abstract In this work, we analyze the financial viability of U.S. hospitals by investigating the impact of clinical and experiential quality as its determinants. We adopt Simar and Wilson's two-stage bootstrapped truncated regression approach. Specifically, we use data envelopment analysis (DEA) in the first stage to estimate efficiency scores. Then, we use truncated regression estimation with the double-bootstrap method to test the significance of the quality variables. Given the financial problems recently experienced by U.S. hospitals, we use readmission rates and costs as our outputs to investigate how well hospitals can lower readmission rates while minimizing their costs, since recent policy changes have tied a portion of hospital reimbursements to their readmission rates, making both variables crucial outcome goals. We find that both clinical and experiential quality are significantly associated with the higher financial viability of hospitals. Further, focusing on these two quality dimensions together has additional benefits.
This paper investigates the effects of supply chain absorptive capacity on customization, product... more This paper investigates the effects of supply chain absorptive capacity on customization, production innovation, and in turn, business performance. Building upon the organization and strategy literature, we constructed multi-item measurement scales that tap into five dimensions of absorptive capacity, which were adapted to supply chain management context. Using survey-based data gathered from 174 U.S. supply chain managers, we applied structural equation modeling to assess the influence of supply chain absorptive capacity on business performance and provide empirical insights regarding the mediating role of customization and product innovation capabilities between absorptive capacity and business performance. Our study provides empirical insights that the construct of absorptive capacity is relevant to supply chain management research and practice.
We investigate the trade-off between acquisition and retention efforts when customers are sensiti... more We investigate the trade-off between acquisition and retention efforts when customers are sensitive to the quality of service they receive, i.e., whether they get timely access to a company's resources when requested. We model the problem as a multi-class queueing network with new and returning customers, time-dependent arrivals, and abandonment. We derive its fluid approximation; a system of ordinary linear differential equations with continuous, piecewise smooth, right-hand sides. Based on the fluid model, we propose a novel approach to determine optimal stationary staffing levels for new and returning customer queues in anticipation of future time-varying dynamics. Using system accessibility as a proxy for service quality and staffing levels as a proxy for investment, we demonstrate how to apply our approach to two families of time-varying arrival functions motivated by real-world applications: an advertising campaign and a clinical setting. In a numerical study, we demonstrate that our approach creates staffing policies that maximize throughput while balancing acquisition and retention efforts more effectively (i.e., equitable abandonment from each customer class) than commonly used near-stationary methods such as segmentation-based square-root staffing policies. Our model confirms that acquisition and retention efforts are intimately linked; this has been found in empirical studies but not captured in the operations literature. We suggest that in time-varying environments, focusing on either alone is not sufficient to maintain high levels of throughput and service quality.
ABSTRACT This study investigates the role of organizational structure in facilitating the develop... more ABSTRACT This study investigates the role of organizational structure in facilitating the development of mass customization (MC) capability in various manufacturing settings. Specifically, three dimensions of organizational structure are considered—flatness, centralization, and employee multifunctionality. We model organizational structure as a second-order factor whose value is captured on a mechanistic-organic continuum, where the organic form is characterized by a flat, decentralized structure with a wide use of multifunctional employees. We propose that a positive relationship exists between the organic organizational structure and MC capability. Additionally, building upon contingency theory, we argue that this positive relationship is moderated by mass customizer type—full mass customizers, which customize products at the design or fabrication stage of the production cycle, versus partial customizers, which customize products only at the assembly or delivery stages. Based on a study of 167 manufacturing plants from three industries and eight countries, we find that, for the overall sample, organic structure plays a significant role in enabling firms to pursue MC capability. However, an analysis of full versus partial mass customizers shows that the positive impact of organic structure on MC capability is statistically significant only for full mass customizers, not for partial mass customizers.
The maritime transport industry continues to draw international attention on significant Greenhou... more The maritime transport industry continues to draw international attention on significant Greenhouse Gas emissions. The introduction of emissions taxes aims to control and reduce emissions. The uncertainty of carbon tax policy affects shipping companies’ fleet planning and increases costs. We formulate the fleet planning problem under carbon tax policy uncertainty a multi-stage stochastic integer-programming model for the liner shipping companies. We develop a scenario tree to represent the structure of the carbon tax stochastic dynamics, and seek the optimal planning, which is adaptive to the policy uncertainty. Non-anticipativity constraint is applied to ensure the feasibility of the decisions in the dynamic environment. For the sake of comparison, the Perfect Information (PI) model is introduced as well. Based on a liner shipping application of our model, we find that under the policy uncertainty, companies charter more ships when exposed to high carbon tax risk, and spend more on...
International Journal of Operations & Production Management, 2010
... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been... more ... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been recognized as a generic competitive capability that should be first developed in the sequential progression towards the building of other capabilities (Ferdows and DeMeyer, 1990; Roth ...
This study investigates the influence of an ambidextrous supply chain strategy on manufacturers’ ... more This study investigates the influence of an ambidextrous supply chain strategy on manufacturers’ combinative competitive capabilities – the ability to excel simultaneously on competitive capabilities of quality, delivery, flexibility, and cost – and, in turn, on business performance. Drawing upon March's (1991) notions of exploration and exploitation, an ambidextrous supply chain strategy is conceptualized as a simultaneous pursuit of both explorative and exploitative supply chain practices. We operationalize this concept as a second-order latent construct that captures the co-variation between exploration and exploitation within the context of a manufacturer's supply chain management strategy. Using survey-based data gathered from 174 U.S. manufacturers, we find that an ambidextrous supply chain strategy coincides with combinative competitive capabilities and business performance. Our empirical finding contradicts conventional wisdom that argues for tradeoffs between explor...
... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been... more ... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been recognized as a generic competitive capability that should be first developed in the sequential progression towards the building of other capabilities (Ferdows and DeMeyer, 1990; Roth ...
International Journal of Operations & Production Management, 2010
... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been... more ... Mehmet Murat Kristal, Schulich School of Business, York University, Toronto, Canada. ... been recognized as a generic competitive capability that should be first developed in the sequential progression towards the building of other capabilities (Ferdows and DeMeyer, 1990; Roth ...
Supply networks are composed of large numbers of firms from multiple interrelated industries. Suc... more Supply networks are composed of large numbers of firms from multiple interrelated industries. Such networks are subject to shifting strategies and objectives within a dynamic environment. In recent years, when faced with a dynamic environment, several disciplines have adopted the Complex Adaptive System (CAS) perspective to gain in- sights into important issues within their domains of study. Research investigations in
Purpose The purpose of this paper is to explore how different forms of integration interact with ... more Purpose The purpose of this paper is to explore how different forms of integration interact with environmental dynamism to influence the outcomes of a buyer–supplier relationship (BSR). Specifically, the authors assess the impact of communication, operational process integration (OPI) and joint knowledge exploration (JKE) on the economic value and competitive differentiation generated by the BSR. Furthermore, the authors assess the moderating role of environmental dynamism in changing the performance implications of these different forms of integration. Design/methodology/approach The authors empirically test the theoretical model using survey data collected from North America. The authors apply techniques such as confirmatory factor analysis, regression and a variety of robustness checks to ensure the validity of the findings. Findings The results indicate that OPI and JKE are useful in generating higher value from key supply chain relationships. However, communication does not dir...
A large body of literature has studied supply chain integration (SCI) at the macro (firm or dyad)... more A large body of literature has studied supply chain integration (SCI) at the macro (firm or dyad) level. However, the micro-foundations of SCI that highlight the range of different activities and choices firms have in implementing integration have not been studied. This paper identifies and analyzes integrative activities or practices that form the micro-units of firm-level SCI. Qualitative analysis yields nine elements of integration that emerge from the large number of integrative practices. In doing so, the paper maps out the structure of the broad SCI construct and discusses the theoretical repercussions of this new approach. New theoretical insights and research directions are identified based on this new micro-level activity-based view of SCI. This paper shifts the focus from where integration is done (customer vs. supplier integration) to what integration entails. SCI has become a very broad construct over time. This paper is a significant and systematic step in unraveling th...
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