Reconfiguration: a key to handle exceptions and performance deteriorations in manufacturing operations

During a manufacturing operation, exceptions may occur dynamically and unpredictably. Their occurrence may lead to the degradation of system performance or, in the worst case scenario may interrupt the production process by causing errors in the schedule plan. This paper classifies three families of exceptions: (1) out-of-order events such as machine breakdowns, (2) operational out-of-ordinary events such as rush orders and (3) deteriorations of manufacturing resource performance such as reductions of machines' utilization. In all cases, in order to maintain an adequate level of system performance, it is necessary to detect exceptions, to diagnose them quickly and to recover them by taking …

Networking strategy as a strategic management tool

Many research studies in operations and strategic management have investigated how different kinds of decisions regarding business relationships can positively affect firm’s operations performance, resources endowment, and competitive position. Very few studies exist trying to illuminate the actual behavior of managers when making strategic decisions concerning their company relationships with other companies as opposed to normative theory. By collecting data from 13 business agreements from 3 firms, the purpose of this paper is explore linkages between the “set” of strategic objectives that managers are willing to pursue and the “set” of networking decisions that they actually consider whe…

Environmental Sustainability Orientation, Reward-Based Crowdfunding, and Venture Capital: The Mediating Role of Crowdfunding Performance for New Technology Ventures

Extant literature has investigated the effects of new ventures’ environmental sustainability orientation (ESO) on the crowdfunding (CF) performance and on the ability to secure venture capital, separately and with mixed results. In this article, we address the study of these relationships simultaneously. Specifically, we examine how the presence of ESO features influences new technology-based ventures’ ability to secure funding in reward-based CF campaigns and how the CF performance mediates the effect of such features on attracting subsequent venture capital. Using a sample of new hardware ventures that have launched a CF campaign on Kickstarter, we document a negative effect of the presen…

Open Innovation practices on firm performance: evidences from biotech industry

The research presented in this paper explores the effect of Open Innovation (OI) on firm performance in the biotech-pharma industry sector. Specifically, although existing researches on OI effectiveness have separately investigated the effect of OI practices on innovation and financial performance, this study evaluates the concurrent effect of all those practices on both such performance dimensions in a single framework. We claim the importance for a manager to explore concurrently the influence of specific OI practices both on innovation and economic-financial performance. We empirically test our framework on a sample of 120 companies listed on NASDAQ Biotechnology Index.

CORPORATE VENTURE CAPITAL AND THE PROBABILITY TO ACQUIRE THE BACKED START-UP: A REAL OPTION PERSPECTIVE

To sustain their competitive positions, an increasing number of corporates access new knowledge and technologies from emerging start-ups by engaging in Corporate Venture Capital (CVC) investments. CVC investments provide corporates the option to in-source start-ups’ knowledge and technologies through follow-on acquisitions. However acquiring a backed start-up is not always a guarantee of success. Then, corporates should consider which are the most appropriate conditions under which it is beneficial to acquire a CVC backed start-up. Utilizing the theoretical lens of Real Option, we examine the conditions under which a CVC investment may evolve into an acquisition of the backed start-up. We p…

CROWDSOURCING COMMUNITY NETWORK AND SOLVERS’ SUCCESS

Real Options: an Application to RMS Investment Evaluation

Competition in Innovation Systems: a Minority Games Approach to Schumpeterian Competitions

Network position and innovation capability in the regional innovation network

This paper investigates the positioning of actors characterized by different natures in a regional innovation network and explores how these actors improve their innovation capabilities by assuming prominence or brokering positions. Innovation capability is widely seen to be the driving force in building regional competitive advantage, therefore investigating how the positioning of actors improves their innovation-related activities is relevant in terms of regional competitiveness. This paper builds on a survey conducted on the Sicilian regional area in Italy. A questionnaire was used to collect data concerning the relationships established between actors and the extent to which these relat…

The interaction between inter-firm and interlocking directorate networks on firm's new product development outcomes

This paper explores the interaction between a prominent board of directors and the network of inter-firm rela- tionships on new product development. Specifically, we posit a positive interaction effect between a prominent board and the inter-firm network and structural holes positions on the number of new products developed by the firm. We test the theoretical framework on a sample of 1758 agreements among 1890 biopharmaceutical firms over the period 2006–2010. We find that by filtering, complementing and legitimizing information coming from the inter-firm network, a prominent interlocking directorate network can improve the inter-firm network's effects on new product development. We discus…

Inter-firm relationship design for achieving supply network responsiveness

The developers' perspective in Mobile App Markets: an empirical analysis of price drivers

A strategic needs perspective on operations outsourcing and other inter-firm relationships

Abstract This paper considers two issues: the formation of inter-firm relationships, and the choice of governance form. These have been widely investigated in both the strategic management and operations management fields. This paper contributes to the literature in three ways. First, we address why firms enter inter-firm relationships by hypothesizing that managers enter them to pursue three strategic needs, that is: efficiency/effectiveness, knowledge/learning, and global market access. Our first contribution evidences the relationship between the above strategic needs and a number of operational objectives that managers normally pursue in an inter-firm relationship. Second, we hypothesiz…

Manufacturing Strategy: Production Problem Analysis for Assessing Focused Flexibility

The objective of this chapter is to define an operationalization pattern which supports decision makers and managers in determining the level of manufacturing flexibility competences, given the business strategy and the manufacturing structure of the firm. This should drive the production system design and configuration activity. Specifically, this chapter presents an innovative approach to develop a manufacturing strategy, which is based on the idea that information on potential production problems that the manufacturing system could face throughout a given long-term planning horizon should be used as a starting point to determine the level of flexibility that the system should possess.

Change Is Good, But Not Too Much: Dynamic Positioning in the Interfirm Network and New Product Development

This research considers the dynamic positioning of an enterprise in an interfirm network and its propensity for new product development. Specifically, we explore how firms reconcile the dichotomy between central and structural holes network positions, by dynamically shifting from a central to a structural holes position (and vice versa) over time. By grounding this research in network dynamics theory, we argue how prior strong central (structural holes) network positions in the interfirm network increase the likelihood the firm will benefit from structural holes (central) positions in the following time period. We also propose that these positions can be modeled by an inverted U-shaped rela…

Does firm’s network position enhance open innovation performance? Evidences from the biopharmaceutical industry

This paper explores the relationship between open innovation (OI) and firm's network position on enhancing firm's innovation performance, such as new product development (NPD). We build a theoretical framework and test it on the biopharmaceutical context. Our result shows how firm's network position influences NPD performance obtained through OI practices.

CVC AND INNOVATION PERFORMANCE: THE EFFECT OF TECHNOLOGICAL DISTANCE WITH STARTUPS AND COINVESTORS

Firms are increasingly opening their boundaries by engaging in corporate venture capital (CVC) programs as potential gateway into knowledge and technologies of innovative startups. By investing in promising startups across diverse industries with different technological knowledge from the knowledge base of the investing corporate, CVC programs constitute a vehicle for corporates to both exploit and explore innovation opportunities. We first examine the relationship between more explorative CVC investments portfolio and the innovation performance of the corporate. Then, we argue that when syndicating the CVC investments with a co-investor, the portfolio of syndication partners may affect the…

DIGITAL BUSINESS ECOSYSTEM: BUSINESS DISCOVERY APPLICATIONS SUPPORTING SME NETWORKS AND ICT ADOPTION

Distributed intelligent control of exceptions in reconfigurable manufacturing systems

In order to react to the continuous and unpredictable changes in product demand, in product variety, and in process technologies, reconfigurable manufacturing systems allow quick adjustment of production capacity and functionality by rearranging or changing their modular components. In this kind of system, operation management issues, such as exception handling policies, become more complex since correct reconfiguration strategies have to be selected. This paper explores the potential of the reconfigurability feature to be a basis for the development of new strategies to handle out-of-the-ordinary events in the production process; in particular, maintaining production flow when machine brea…

A Simultaneous Approach for IMS Design: a Possibility Based Approach

IMS investments are characterised by high fixed costs and long life cycles. On the other hand, their redditivity and risk coverage depend on their manufacturing efficiency that is mainly defined during the design phase by fixing the system configuration. Due to the flexibility required to IMS, system configuration depends not only from technological information, such as product routing table and service times, but also from marketing data such as the typology of products to be manufacture and their production volumes. Moreover, the evaluation of the redditivity and the risk of the investment depends on market information such as product prices as well. Such interdependencies make the invest…

Fostering SMEs networking through Business Ecosystem and ICT

Multiobjectives Approach for Process Plan Selection in IMS Environment

Abstract In Integrated Manufacturing Systems (IMS) evaluating the most suitable process plan is a very complex task. Technology, quality, production and market requirements are objectives to be pursued in the selection process, subject to the constraints due to the several part types simultaneously manufactured. The paper proposes a new approach to the process planning selection, based on a possibilistic fuzzy programming model in order to face the vagueness coming from the formalization of the objectives and constraints in the selection problem.

Technology standard diffusion and negative network externalities: a lesson from the third Browser War

This paper presents a new model for technology standard diffusion that highlights the importance of negative network externalities in some fields of technology product such as web browsers. Again, as often happened in this research field, motivation and suggestion for such a research has been acquired from the evolution of the web browser war. So, in the paper, the main literature concerning standard diffusion has been reviewed in conjunction with web browser evolution, and the necessity of a new development of technology standard diffusion models is highlighted and supported by empirical evidences.

Production planning in reconfigurable enterprises and reconfigurable production systems

Reconfigurable enterprises and reconfigurable production systems represent nowadays one of the key responses towards the organisational and manufacturing needs arising in the new era known as mass customization. The paper proposes an Agent Based approach for the production planning activities in reconfigurable enterprises, characterized by complex, articulated and geographically distributed production capacities contended by many product families and composed by reconfigurable production systems that allow quick adjustment of production capacity and functionality consenting to manufacture different products of the same part family.

‘To own or not to own?’ A study on the determinants and consequences of alternative intellectual property rights arrangements in crowdsourcing for innovation contests

Due to copyright restrictions, the access to the full text of this article is only available via subscription. Firms are increasingly engaging in crowdsourcing for innovation to access new knowledge beyond their boundaries; however, scholars are no closer to understanding what guides seeker firms in deciding the level at which to acquire rights from solvers and the effect that this decision has on the performance of crowdsourcing contests. Integrating property rights theory and the problem-solving perspective while leveraging exploratory interviews and observations, we build a theoretical framework to examine how specific attributes of the technical problem broadcast by firms affect the see…

Control system requirements for achieving hardware and operations reconfiguration of a manufacturing cell

Open innovation and firms performance: state of the art and empirical evidences from the bio-pharmaceutical industry

The research presented in this paper explores the effect of inbound, outbound and coupled open innovation practices on firms' performances in the biopharmaceutical industry. Specifically, although existing researches on open innovation effectiveness have separately investigated the effect of open innovation practices on innovation and financial performance, this study evaluates the concurrent effect of these practices on both such performance dimensions in a single framework. We state the importance for a manager to explore concurrently the influence of specific open innovation practices both on innovation and economic-financial performance. We empirically test our framework on a sample of …

A DSS for Strategic Planning

This chapter presents an innovative approach for assisting entrepreneurs in making long term capacity decisions in Advanced Manufacturing Systems (AMSs). AMSs require high investment costs in manufacturing equipment, human resources and technology knowledge. Such high investments together with the wideness and the variability of the competition scenario contribute to increase the perception of the risk for industrial entrepreneurs especially in SMEs. This problem could be approached by providing the entrepreneur with a Decision Support System (DSS) able to assist her/him in making long term capacity decision in AMS. The DSS proposed in this chapter allows the entrepreneur to plan its produc…

AN AGENT BASED ARCHITECTURE FOR MANUFACTURING E-MARKETPLACES

This chapter presents the Agent Based Architecture developed within the research project, titled "Process and Production Planning in manufacturing Enterprise Networks". As mentioned in Chapter 1, the architecture has been developed to support “added value services” in neutral linear e-marketplaces, i.e. in virtual districts. In this chapter the architecture will be described from a functional and dynamic point of view by using the formalisms used in the project. In particular, from a functional perspective, the architecture is described by using the IDEF0 formalism, while its dynamics are specified by UML activity diagrams.

Evaluating multi-lateral negotiation policies in manufacturing e-marketplace

Price dispersion and competition in business routes: An empirical analysis

Product Recalls and Supply Chain Responsiveness

The increase in product recalls which occurred in recent years is mainly due to the globalization of the supply chains, in particular the outsourcing and offshoring of manufacturing and distribution. Besides being the main cause of recall, in this paper we argue that outsourcing (domestic and international) and offshoring may also affect the supply chain responsiveness in managing the recall itself. We test a number of hypotheses on this theme empirically on the pharmaceutical sector by using data collected from the American Food and Drug Administration (FDA).

The Role of Ambidexterity and Vacillation on Firms' Innovation: an Inter-firm Network Perspective

This article examines the underexplored balancing between exploration and exploitation in inter-firm network dimension by applying an ambidexterity and vacillation behavior and how this impacts on different firm’s innovation performances. We propose reconciliation between exploration and exploitation within a network of inter-firm ties, by matching two specific structural network embeddedness positions that are centrality and structural holes. We observe how a firm reconciles exploitation and exploration in their inter-firm networks by adopting two different behaviors, ambidexterity and vacillation. According to the former a firm statically assumes in the same time a network position charac…

A strategic framework for firm networks in manufacturing industry: An empirical survey

Firm networking is becoming more and more the most important competitive strength in nowadays competitive environment. Such an evidence is partially neglected by the classical strategic analysis of firms competitiveness which mainly looks at the firm strength and weakness not in relationship with its capacity to build competitive networks. For such a reason, in the last years, many theoretical approaches have stressed the importance of networks to gain competitive advantage. In this paper, the most significant theories on firm networking are reviewed and an innovative strategic framework that mainly underlies at firm networks organisation is proposed. Very briefly, it is argued that network…

CHAPTER VII: IMPLEMENTATION, NUMERICAL EXAMPLES AND TESTS

How strategic needs influence alliance formation and their governance modes: An empirical study in the Italian biopharmaceutical industry

Firms enter strategic alliances for various reasons, and the motives behind formation of these alliances are one of main research subjects in the management field. The large literature on the issue has highlighted how alliances answer to a strategic need for collaboration that is the need to improve competitive strength through collaboration agreements. However, the study here addresses the strategic need perspective to alliances under a more specific point of view. We question what kind of competitive strengths firms aim at acquiring through inter-firm relationships. By reviewing of the most relevant literature on the issue we assume that alliances respond to three principal strategic need…

Il ruolo delle ICT nel turismo rurale

High Level Planning of Reconfigurable Enterprises: a Game Theoretic Approach

Reconfigurable Enterprises (REs) represent production networks made of different and geographically dispersed plants that, in case of unpredictable market changes, can be reconfigured in order to gather a specific production objective. However, REs effectiveness and efficiency depend on the extent to which global performance is obtained. Basically two approaches are available to reach coordination: centralised or decentralised planning tools. In this paper, the authors propose a novel cooperative game theoretical approach for distributed production planning at high level of a RE; the proposed approach has been benchmarked in front of both a distributed one, based on negotiation, and a centr…

Networking Strategies as Enabler for Competitive Advantage Creation: market-based and resource-based Perspectives

This paper explores the potential of networking strategy as a source of competitive advantage by integrating market-based and resource-based logics. It contributes to production economics literature by considering not just supply chain network structures but also others kinds of network that can emerge from horizontal agreements (i.e. alliances, partnerships, joint ventures, consortia, etc.). The paper reviews the literature and develops propositions regarding how make/buy/make together decisions, governance mechanisms and network-base structures allow firms both to pursue pre fixed operations performance objectives and obtain/create valuable resources. The practical applications of the pro…

Possibilistic Programming and Gas for Aggregate Production Planning under Vague Information

In production planning activities, aggregate planning is surely the phase where the lack of information is more relevant. The reasons for that can be summarised in: a) the planning product is an aggregate one, very often not corresponding to actual products; b) the delay from the actual production is relevant so that information regarding actual production resources availability and performances are vague; c) the planning activity is often based on forecasts. On the other hand, all the subsequent production planning activities are based on the result of aggregate planning. In the paper a research going on at the Workgroup for Soft Computing Application in Manufacturing is presented. A Decis…

Human factor policy testing in the sequencing of manual mixed model assembly lines

In this paper the human resource management in manual mixed model assembly U-lines is considered. The objective is to minimise the total conveyor stoppage time to achieve the full efficiency of the line. A model, that includes effects of the human resource, was developed in order to evaluate human factor policies impact on the optimal solution of this line sequencing problem. Different human resource management policies are introduced to cope with the particular layout of the proposed line. Several examples have been proposed to investigate the effects of line dimensions on the proposed management policies. The examples have been solved through a genetic algorithm. The obtained results conf…

MANUFACTURING E-MARKETPLACES: INNOVATIVE TOOLS FOR THE EXTENDED ENTERPRISE

This Chapter introduces the research carried out under the research program titled “Distributed process and production planning in manufacturing enterprise networks” and funded by the Italian Ministry of Education, University and Research (MIUR) under the program PRIN2001. The research program aimed at developing an innovative concept of neutral linear e-marketplace able to support manufacturing enterprises networks in transactional, information sharing and exchange and collaborative relationship. The Chapter discusses the needs of innovative tools for supporting the new paradigm of the “extended enterprise” showing how the e-marketplace concept, when specific added value services are desig…

The role of Intellectual Property Rights in the value capturing of crowdsourcing for innovation contests

In this study, we investigate the role of IPR arrangements in crowdsourcing for innovation challenges. Integrating Property Rights Theory and the open innovation literature, we propose that specific challenge attributes affect the seekers organizations’ choice between alternative IPR arrangements and how this choice, in turn, affects the self-selection of external solvers into solving the challenge. We collected multi-source, interview data with open innovation directors and we built a unique data set of 729 awarded challenges broadcasted on InnoCentive platform from 2010 to 2016. Our findings contribute to the emerging literature on open innovation and crowdsourcing literature by bringing …

The effect of reshoring announcement on company share price

The reshoring trend has gained momentum among manufacturing companies, which increasingly decide to relocate their production activities back to their home country. In this article, we explore the relationship between the motivations guiding the decision to reshore and the companies’ shareholder value. Particularly, taking an eclectic paradigm perspective, we aim to understand whether the motivations driving the companies’ decisions to reshore explain changes in the shareholder value. Empirically, we built an ad-hoc database based on 370 reshoring decisions involving the USA as a reshoring destination and announced in the 10-year time window ranging from 2009 to 2018. Our results highlight…

How risk considerations can affect inter-organization relationship decisions

The new trends in inter-organization relationships push towards network solutions: companies are interested in relationships with partners and customers to overcome resource dependence, enter too risky market or simply differentiate their business portfolio. The present study focuses on network organization aiming at highlighting threats and opportunities to investigate the double nature of the risk concept. In literature the risk concept is often associated to the amount and probability of business losses and the effort is on manage the risk at operative level. In this paper the risk is evaluated in pair with the opportunities is brought in and the risk management is tackled both at strate…

The role of product-based crowdfunding in attracting traditional startup funding

Governance forms drivers in bio-pharmaceutial inter-firm relationships

Networking benefits are acknowledged by many studies in the industrial organization and strategic management fields; transaction cost theory agency and property right theory provide the economic foundations to the market-hierarchy dilemma; while Resource based-view (RBV), relational and evolutionary theories provide the strategic foundation of the inter-firm relationships. All this theoretical strands investigate reasons that push firms to formalize their relationship in different governance structures. The bio-pharmaceutical industry has the characteristics to offer to the potential partners both exploitation or exploration alliances benefits. In particular some elements play a “pivot” rol…

From the crowd to the market: The role of reward-based crowdfunding performance in attracting professional investors

Abstract We focus on new technology-based entrepreneurial ventures engaging in reward-based crowdfunding and examine the effect of their performance in such funding channel on the likelihood of securing subsequent funding from professional investors. We also study how this effect is influenced by the presence of patents granted for the new product idea and the entrepreneur social capital. Results from a sample of technology projects launched on Kickstarter demonstrate that pledging a higher amount of money in crowdfunding can ignite professional investors’ interest and thus help secure subsequent funding. However, this positive evidence is effective only when complemented by the presence of…

The role of IPR arrangements in the crowdsourcing for innovation contest: an empirical investigation of the Innocentive challenges

In this study, we identify three different Intellectual Property Right arrangements- strong IPR (acquiring an IP), weak IPR (licensing agreement) and flexible IPR. Integrating Property Rights Theory and the open innovation literature, we propose that specific challenge attributes affect the seekers organizations’ choice between alternative IPR arrangements and how this choice, in turn, affects the self-selection of external solvers into solving the problem. We collected multi-source, interview data with open innovation directors and a unique data set of 819 closed and awarded challenges broadcasted on InnoCentive platform from 2010 to 2016. Our findings contribute to the emerging literature…

Generic Advertising, Brand Advertising and Price Competition: An Analysis of Free-Riding Effects and Coordination Mechanisms

The main purpose of generic advertising is to enlarge the total market demand rather than capturing further slices from competitors. Several studies point out emergence of free-riding behavior under independent contribution and suggest use of coordination mechanism. However, existing literature does not shed light on the conditions under which generic advertising can be detrimental (beneficial) to stronger firms weakening (strengthening) their competitive advantage. Also, under a setting including both price and brand advertising competition, coordination in generic advertising has not been unraveled. In order to deal with such issues, we consider a one-stage duopoly game in which two firms…

CORPORATE VENTURE CAPITAL SYNDICATION STRATEGIES: A DYNAMIC NETWORK PERSPECTIVE

Corporate Venture Capital (CVC) syndication is embraced by over 80% of corporates which co-investing the same startups with other corporates create a CVC syndication network. In this paper, we aim at exploring the evolutionary dynamics of the CVC syndication network. Specifically, we address this topic adopting two different perspectives. First, we investigate the architectural evolution of the CVC syndication network examining five dimensions that characterize the evolution of the network structure (i.e. degree distribution, connectivity, clustering, density and degree assortativity). In addition, we study how three network strategies (i.e. prominence, entrepreneurial and relational) evolv…

Networking strategies as enabler for competitive advantage creation: a market-based and a resource-based perspectives

The purpose of this work is to explore the potential of networking strategy as a source of competitive advantage by integrating market-based and resource-based logics. According to the former logic a firm identifies operations performance objectives as drivers for achieving its wished competitive position and advantage. According to the latter logic the firm achieves a competitive advantage through the obtainment and/or the creation of valuable, rare, imperfectly imitable, and not substitutable resources. Both operations performance objectives and strategic resource needs should, thus, directly affect networking strategy decisions. The question is whether they effectively do and how. In thi…

Networking strategy for competitive advantage

This paper explores the potential of networking strategy as a source of competitive advantage by integrating market- based and resource-based logics. It contributes to operations management literature by considering not just supply chain structures but also others kinds of network that can emerge from horizontal agreements (i.e. alliances, partnerships, joint ventures, etc.). The paper reviews the literature and develops propositions regarding how make/buy/make together decisions, governance mechanisms and network-base structures allow firms both to pursue operations performance objectives and obtain/create valuable resources. A case study supports the propositions and shows a practical app…

The impact of fairness on the performance of crowdsourcing an empirical analysis of two intermediate crowdsourcing platforms

This research aims to investigate mechanisms available to the seeker to encourage participation of solvers to a challenge. We hypothesize that specific crowdsourcing mechanisms, reducing the information asymmetry of solvers on the challenge, increase solvers’ perception of procedural and distributive fairness and incentive their self-selection process. Moreover, posing problem in an ‘open’ manner exposes seekers to possible opportunism risks. Thus, seekers utilize many safeguard contractual mechanisms to mitigate these risks and protect the information shared in a challenge. By using data from two intermediate crowdsourcing pltaforms, we provide that safeguard mechanisms may have a drawback…

Why corporates syndicate their investments with a specific partner? An explorative analysis of corporate venture capital co-investments

The 80% of corporates that engage in CVC activities, make these investments with other corporates, recognizing the strategic benefits provided by co-investors. Despite the relevance of this phenomenon, no studies focus on the motivations that drive a corporate to syndicate its investments and most important there are no researches that investigate antecedents that drive a corporate in choosing the partner with whom to syndicate the CVC investments. Thus, the aim of this paper is to study why corporates syndicate their CVC investment with a specific partner. Based on the CVC and the alliance literatures we propose a research framework that considers two main elements characterizing a CVC syn…

Strategic alignment of business network forms and single companies’ objectives

In this paper the most significant theories on firm networking are reviewed and an innovative strategic perspective that underlies at firm network organization is proposed. It is argued that networks are differently organized according to three basic strategic objectives: gaining efficiency, collecting knowledge, pursuing globalization. The research is supported by secondary data analysis based on a sample of about 115 case studies published in different journals and magazines.

A methodology for the reduction of imprecision in the engineering process

Abstract Engineering design is characterized by a high level of imprecision, vague parameters, and ill-defined relationships. In design, imprecision reduction must occur to arrive at a final product specification. Few design systems exist for adequately representing design imprecision, and formally reducing it to precise values. Fuzzy set theory has considerable potential for addressing the imprecision in design. However, it lacks a formal methodology for system development and operation. One repercussion of this is that imprecision reduction is, at present, implemented in a relatively ad-hoc manner. The main contribution of this paper is to introduce a methodology called precision converge…

An Agent based architecture for added value services in manufacturing neutral e-marketplaces

How the purpose of the inter-firm relationships influences the choice of the governance form: evidence from the machine tool and the pharmaceutical industries

In today's competitive landscape, the choice of the appropriate mode to govern an inter-firm relationship is a critical factor for companies. In the literature several theoretical strands have examined the impact of the purpose of inter-firm relationships on the forms of governance. Building on a robust literature review on the topic, this study focuses on a specific issue influencing the choice of the form of governance in inter-firm relationships, i.e. the purpose of inter-firm relationships with relation to partner's resources. We gather in a unique framework three typologies of partner's resources, i.e. production, R&D and marketing, and through two empirical analyses in two different I…

Pricing Policies of Excess Capacity in Make to Order Production Systems

The research concerns a make to order manufacturing environment and two classes of customers who submit orders. The core customers have a contract with the firm at fixed services level (price and due date). The short-term customers submit the orders based on the price set by the firm. In this paper, it is proposed a pricing policy based on fuzzy logic to set the price for the short-term customers. The fuzzy approach captures the state of the manufacturing systems in terms of congestion in order to set the price. The policy proposed is compared to a fixed price, and to a state-dependent policy based on three levels of price. A discrete event simulation environment is used to test the propose…

Designing multi-attribute auctions for engineering services procurement in new product development in the automotive context

Abstract In recent years, use of multi-attribute auctions has been consolidating as a powerful mechanism in procurement settings where multiple drivers affect the transaction outcome. This paper provides a project management approach for multi-attribute auction design for standardized engineering services procurement in the context of new product development in automotive industry. Two variables are taken into account in the bidding process: price and duration of the given engineering activity. From a theoretical viewpoint, we fully determine optimal suppliers’ bidding strategies and expected outcomes, i.e. score/utility, price and duration, for the buyer under both first score sealed bid a…

Factors influencing the pricing of applications in the Apple App Store: A developers’ perspective

Many know how Apple Inc. owes its success in Mobile Commerce to the introduction of the new “App Store” business model. This new market is characterized by the opening to third party mobile apps, which are distributed to consumers through the App Store. This paper investigates factors that might influence the pricing of applications in the Apple Mobile Application Store. By reviewing the existing literature on the issue and analyzing the strategic features characterizing the App Store, we detect three main factors that could influence prices for apps, that is the number of developed apps, the presence of two-sided network externalities and developer’s specialization. An empirical analysis o…

Business agreements objectives and decisions: a field research

PurposeMany research studies in operations management (OM) and strategic management (SM) investigate how different kinds of firm decisions regarding business relationships can positively affect a firm's operations performance, resource endowment, and competitive position. Very few studies exist, however, that have attempted to illuminate the actual behaviors of managers when making strategic decisions about their intercompany relationships; rather, most existing studies focus on normative theory. The purpose of this paper is to explore linkages between the “set” of strategic objectives that managers are willing to pursue, the “set” of networking decisions they make, and the “set” of busines…

THE EFFECT OF INBOUND, OUTBOUND AND COUPLED INNOVATION ON PERFORMANCE

The focus of this paper is on exploring linkages among Open Innovation practices and firm performance. While, in the last ten years, a certain amount of papers facing such issue has been published, most of them treat inbound, outbound, and coupled innovation practice processes separately respect to different dimensions of innovation and financial performance. We argue that the concurrent influence of specific Open Innovation practices on both innovation and economic-financial firms' performance has not been investigated so far into the literature and it is of primary managerial importance. We empirically test our framework on a sample of 105 companies listed on the Industrial Machinery and…

Order allocation in a multiple suppliers-manufacturers environment within a dynamic cluster

This study faces the problem of how to evaluate order allocation strategies in a multiple suppliers-manufacturers environment within a dynamic industry cluster that is an environment in which suppliers adopt a policy based on their performance to select the clusters in which to operate. Therefore, the allocation strategy performed by the manufacturers is crucial to keep a long-term supply chain partnership with a specific industry cluster. We use simulation to evaluate order allocation strategies under different market conditions. We show how an allocation strategy that takes into account the whole supply chain’s perspective leads to a sustainable development of the clusters of suppliers.

A Production Scenarios Generation Tool for Manufacturing Strategy Characterization

Integrating ERP SYSTEMS IN VERTICAL SUPPLY CHAINS WITH NEGOTIATION TOOLS

A Theoretical Framework For Collaborative Engineering In New Product Development In The Automobile Industry

Drivers influencing the governance of inter-firm relationships in the biopharmaceutical industry: an empirical survey in the Italian context

This paper focuses on factors influencing the choice of the governance form in inter-firm relationships (IFRs) between pharmaceutical and biotechnology companies. By reviewing the relevant literature on transaction cost economics, property right theory, real option and resources-based view, we located some drivers that might influence such relationships and we formulated a set of hypotheses linking them to governance forms. Such a theoretical framework has been empirically tested through a survey conducted among the Italian companies associated to Farmindustria. Empirical results provide some interesting insights on how shaping bio-pharmaceutical deals; we found that the developmental stage…

Strategic drivers influencing the governance of inter-firm relationships between biotechnology and pharmaceutical companies: an empirical survey

This paper investigates the drivers influencing the choice of the governance form in inter-firm relationships (IFRs) between pharmaceutical and biotech companies. By analyzing the relevant literature on the issue, we have located the main drivers that might influence such relationship and a set of hypotheses linking them to governance forms. Such theoretical framework has been empirically tested through a survey conducted among the companies associated to Farmindustria. The result of the empirical analysis provides some interesting insights on how shaping bio-pharmaceutical deals; we found that the developmental stage of the product object of the deal, the existence of previous collaboratio…

Price dispersion in the Italian airline industry: the role of competition and online travel agents

R&D supply chain and innovation performance: the contingent role of the firm’s position in the network

This paper conceptualizes the supply chain of innovation as a sub-set of the whole innovation network. We focus on the relationship between the activities of purchasing/selling R&D and the firm’s innovation performance. Specifically, we examine how the position of the firm within its innovation network moderates this relationship. Our empirical setting consists in cross-sectional data about 1772 agreements signed by biotech companies between 2006-2010. We find, first, anecdotal evidence of both the existence of the innovation supply chain and the phenomenon of firms’ positioning along it. Second, we find that information richness positively moderates the effect of purchasing R&D services on…

Multipass machining optimization by using fuzzy possibilistic programming and genetic algorithms

The paper deals with optimal determination of the cutting parameters in multipass machining operations. A new optimization approach is proposed which uses a possibilistic formulation of the classical optimization problem and optimizes the resulting possibilistic model using a genetic algorithm. The proposed approach makes it possible to find the optimal value of all the cutting parameters, including the depth of cut, in just one step. A numerical example is provided to compare the performance of the proposed method with other recent methods proposed in the literature. Furthermore, fuzzy data must be used in the formulation of the optimization problem and therefore a fuzzy possibilistic app…

Network embeddedness and new product development in the biopharmaceutical industry: The moderating role of open innovation flow

This paper explores the role of centrality and structural holes positions on the likelihood to develop new products and the moderating role of the open innovation flow, a measure of the net knowledge flow crossing the firm’s boundaries, on the aforementioned relation. We argue that network positions provide the information content to the firm, whilst open innovation flow describes how the firm uses such content, thus the combination of these two concepts has a significant impact on new product development. We test the theoretical framework on a large sample of 544 public companies and data from 1758 agreements among 1890 bio-pharmaceutical firms through the period 2006–2010. Our results sho…

Shaping collaboration in new product development through negotiation and auctions

How do I rule my solver’s relationship? An empirical investigation of governance structures in crowdsourcing contests

In order to continually innovate, companies are increasingly opening their boundaries and signing crowdsourcing agreements with solution providers. However, crowdsourcing scholars are no closer to understanding how possible solvers’ opportunistic behaviours affect the governance structure proposed by the seeker at the moment the challenge is broadcast. Building on the managerial-choice approach of transaction cost economics, we aim to examine how contract conditions, specified in the request for proposal (RFP), aiming to reduce the effect of solver’s opportunistic behaviours whilst influencing seekers’ preferences toward proposing contractual agreements to manage the working relationship wi…

How do airlines preferences about engines influence the competition in the commercial aircraft industry: an empirical analysis

This paper examines the competitive context in the commercial aircraft industry. In particular, the aim of the research here presented is to understand what are the main drivers influencing the choice of a specific engine manufacturer in an aircraft, and how such preferences influence the competition between Airbus and Boeing. In order to do that, we have collected data about the fleet composition of the top 25 airlines and we have located the main drivers influencing the engine configuration in: route specialization, business model and maintenance policy. Implications of such empirical findings in the competition among aircraft manufacturers are finally discussed.

Impact of Business Strategy on Production Problem Dynamics

The magnitude of a product recall: offshore outsourcing vs. captive offshoring effects

The escalation in product recalls in recent years is attributed to the rise of globalisation and associated challenges of offshoring. Extant SCM research suggests that product recalls have a significant negative impact on financial performance, but gaps exist relative to the managerial actions to minimise their impact. Recall response strategies have become more important in the press, given that a single recall may result in the mandatory withdrawal of millions of products from the market, with firms incurring enormous logistics costs and brand damage. In this study, we address this gap in the research, and using a measure of product recall defined as the volume of products withdrawn from …

The curvilinear effect of manufacturing outsourcing and captive-offshoring on firms' innovation: The role of temporal endurance

Abstract This paper aims to contribute to the open debate in the literature on the effect of global sourcing strategies on firm performance by studying the consequences of manufacturing outsourcing and captive-offshoring for the innovation capability of the firm. We grounded our hypotheses based on the outsourcing and offshoring literature and by narrowing our focus to the effects of persisting in their adoption over time. We tested our hypotheses using data from a sample of 368 manufacturing companies listed on NASDAQ stock market. The paper provides theoretical explanations and empirical findings for the inverted U-shaped influence of keeping doing captive-offshoring on new product develo…

Negotiation in Distributed Production Planning Environments

Mass customization and global competition push enterprises to adopt proper business models able to capture all the opportunities arising from emerging competition rules. An increasing number of industrial enterprises distribute their production capacity world wide to achieve lower production costs, lower distribution costs (due to the closer proximity to customers), and deeper knowledge of customer needs. As a drawback, coordination of the different production plants and the balance among plants and enterprise goals represent a critical issue in the network management. In this context the paper looks at the production planning problem, adopting a traditional hierarchical time-based perspect…

Business networking strategy: operations management and organizational economics different perspectives

Achieving operations performance objectives through networking strategy

The main objective of this paper is to investigate how firms make strategic networking decisions in order to pursue competitive advantage. Literature analysis with theory building purposes and two case studies to support our theoretical findings and to explore the linkages between networking strategy and operations performance objectives constitute our research methods. Our analysis led to the definition of networking strategy in terms of decisional dimensions, and found effective linkages between networking decisions made by managers and wished operations performance objectives.

How firms are using networking decisions to achieve strategic objectives: Building theories from four case studies

Many research studies in OM literature have investigated how different kinds of focal firm decisions regarding business vertical relationships (i.e. with both suppliers and buyers) can positively affect firm’s operations performance and thus improve its competitive position. In this paper we extend this genre of study by also considering business horizontal relationships (i.e with competitors and firms that own complementary capabilities) and by considering the impact of business relationships not only on focal firm’s operations performance but also on its resources endowment. We present four cases that describe what are the strategic manager intents (in term of operations performance and r…

How do different network positions affect crowd members' success in crowdsourcing challenges?

In the crowdsourcing challenges, crowd members can interact with each other by, for example, chatting, exchanging feedback, providing advice, discussing, and commenting on ideas. These social interactions shape a network structure, which is a set of social relationships developed by crowd members. This study aims at investigating how occupying diverse network positions within a crowdsourcing challenge network increases the members' likelihood to succeed in a competition. Leveraging prior literature on social networks and crowdsourcing research, we theorize how central and structural hole network positions influence the crowd members' likelihood of winning crowdsourcing challenges by leverag…

THE EFFECT OF ASSUMING DIFFERENT POSITIONS IN THE CROWDSOURCING COMMUNITY NETWORK ON SOLVERS’ SUCCESS

A framework for public purchasing under a decentralized organization: an empirical study in the healthcare sector in Italy

More and more public companies are showing interest in how no conventional purchasing strategies, such as purchasing group solutions, may improve efficiency in purchasing activities by providing consistent saving on public organization budgets. This issue is essential for the healthcare sector, whose public spending is still increasing and represents a significant part of the GNP of many European countries. In this paper, different purchasing strategies have been addressed; more specifically, the main objective is to formalize a framework supporting purchasing strategy formulation, and operazionalize it through an empirical application to the Sicilian Region healthcare industry.

Fostering SMEs networking through Business Ecosystem and ICT

Strategic Planning in Advanced Manufacturing Systems: a Decision Support System

This chapter presents an innovative approach for assisting entrepreneurs in making long term capacity decisions in Advanced Manufacturing Systems (AMSs). AMSs require high investment costs in manufacturing equipments, human resources and technology knowledge. Such high investments together with the wideness and the variability of the competition scenario contribute to increase the perception of the risk for industrial entrepreneurs especially in SMEs. This problem could be approached by providing the entrepreneur with a Decision Support System (DSS) able to assist her/him in making long term capacity decision in AMS. The DSS proposed in this chapter allows the entrepreneur to plan its produ…

THE MODERN LANDSCAPE OF EXTERNAL CORPORATE VENTURING: AN EXPLORATIVE STUDY ON THE CHOICE AMONG NEW AND TRADITIONAL CORPORATE VENTURING MODES

Negotiation mechanisms for capacity allocation in distributed enterprises

Abstract The paper proposes an agent based approach for the capacity allocation in distributed enterprises, characterized by complex and articulated organizations and by geographically distributed production capacities contended by many product families. In such a scenario the process of allocating the production capacity to the single customer order is one the major bottlenecks of the production planning activity as far as many organizational decisional levels are involved and market turbulence implies a continuous retuning of the capacity allocation plan. A high grade of reactiveness is needed. Agent based approaches and negotiation models, by decentralizing the decisional control and sim…

How the strategic objectives pursued in inter-firm relationships influence the choice of the governance form: an empirical study in two high-tech Italian industries

In today’s competitive landscape, the choice of the appropriate mode to governance an inter-firm relationship is an important factor for companies. In literature several theoretical strands have examined the impact of the alliance purpose on the governance forms. Building on a robust literature review on the topic, this study focuses on a specific issue influencing the choice of the governance form in inter-firm relationships, i.e. the alliances’ purpose with relation to partner’s resources. We gather in a unique framework three typologies of partner’s resources, i.e. production, R&D and marketing, and through two empirical analyses in two different Italian industries, machine tool and phar…

Corporate Venture Capital follow-on investments: the role of co-investors

CVC investments allow corporates the option to internalize startups’ knowledge and technologies through follow-on investments. Since acquiring a backed startup is not always a guarantee of success, corporates should consider which are the most appropriate conditions under which it is beneficial to acquire the startup. Under the theoretical lens of Real Option theory, we examine the conditions under which a CVC investment may evolve into different kind of CVC follow-on investments. We suggest that the CVC characteristics that mitigate both endogenous and exogenous uncertainties positively affect the corporate’s decision to acquire a backed startup. In addition, we argue that the presence of …

Machining Economics in FMS by a Fuzzy Approach

Abstract In a conventional manufacturing system, cutting parameters have to be fixed in order to pursue the economical and productive target related to each cutting operation. In a Flexible Manufacturing System (FMS), as a consequence of the unbalanced workload due to the mutual interaction among the shared resources, the optimization of each operation does not allow the optimum of the global production system to be reached. A fuzzy programming model is developed in this paper in order to select cutting speeds of the operations in the production plan as a satisfying compromise solution between single operation and the integrated system targets.

Shaping inter-firm collaboration in new product development in the automobile industry: A trade-off between a transaction and relational-based approach

Abstract Shaping collaboration in the new product development (NPD) has always been a very difficult task, especially in complex industries like the automobile one. This complexity is particularly true during the engineering phase of the NPD process, where different complex systems are to be designed in a collaborative way. Basically, two-kind of approaches have been observed in the literature and industry: one is more related to market transactions, specifically the west car-company style, the other is more relational based, as in the Japanese car-company style. Now, the increasing globalisation of the industry asks for a merge of the two approaches; indeed, the increasing use of standard …

Supply chain of innovation and new product development

This paper conceptualizes the supply chain of innovation of a company as its supply chain not related to physical goods exchanges but to R&D commodities exchanges. R&D commodities, being the outcomes of research activities, are for example patents, technologies, research services, studies, projects, etc. Spe- cifically, we focus on the relationship between the activities of purchasing/selling R&D commodities and the propensity of the firm to develop new products; we examine how the position of the firm within its innovation network moderates this relationship. The empirical setting of the research consists of a cross- sectional dataset of 544 biopharmaceutical companies that hav…

Intellectual property management between buyer-supplier in the crowdsourcing context

In this paper we investigate the antecedents of buyers’ decisions related to the management of the IPR generated by the suppliers in crowdsourcing contests. Leveraging on Property Rights Theory and interview data, we examine how contest’ attributes affect two buyers’ decisions about (1) whether to define an IPR arrangement ex-ante or negotiating it ex-post with the winning supplier; (2) the choice between strong or weak ownership levels of the IPR arrangement. To test the developed hypotheses, we build a dataset of 819 contests broadcasted on InnoCentive (from 2010 to 2016). Our findings contribute to both the operations management and the crowdsourcing literatures.

A Fuzzy Discrete Event Simulator for Fuzzy Production Environment Analysis

Abstract Discrete Event Simulation is a powerful tool to help production managers in planning manufacturing systems. The necessity to rapid react to market conditions is pushing production planners to process requirements and information affected by vagueness. Vagueness is related with event definition, therefore it is not manageable through statistical tools, but more properly by using fuzzy mathematics. Production situations where uncertainty takes body in term of vagueness are referred as Fuzzy Production Environments. Classical Discrete Event simulators are not suitable to deal with fuzzy variables, therefore they cannot be used to model Fuzzy Production Environments. This paper aims to…

Governance Considerations for Seeker–Solver Relationships: A Knowledge-Based Perspective in Crowdsourcing for Innovation Contests

The need to solve innovation problems and insource knowledge has led to an increasing number of organizations engaging in crowdsourcing activities and subsequently establishing working relationships with winning solution providers. Using a knowledge‐based view and the problem‐solving perspective, we develop a theoretical framework suggesting how specific innovation problem attributes (i.e. the decomposability, formulation and search space of the problem) influence the governance decision (unilateral vs. bilateral) of seekers to manage the relationship with winning solvers. We empirically analyse the framework using 582 challenges broadcast on the NineSigma crowdsourcing platform. Our result…

WHY CORPORATES INVEST IN THE SAME START-UP AN EXPLORATIVE ANALYSIS OF CVC SYNDICATIONS

This study investigates why two or more corporates co-invest in the same start-up syndicating their CVC activities. Based on two strands of literature, the CVC and the alliance, we propose a research framework that explores the possible antecedents of CVC syndications. Particularly, grounded on alliance literature, we look at the CVC syndication by combining two dimensions, relational and technological: the relational dimension describes the competitive or cooperative nature of the relationship between partners of CVC syndications, while the technological one represents the exploitative or explorative technological objectives that corporates could pursue when coinvesting in a start-up. We a…

Coordination policies to support decision making in distributed production planning

Abstract Distributed production networks are considered organizational structures able to match agility and efficiency necessary to compete in the global market. Performances of such organization structures heavily depend on the ability of the network actors of coordinating their activities. The research proposes to model and design coordination problems within production network by using the Multiple Agent Technology. In particular, the paper proposes new strategies for coordinating production-planning activities within production networks. Such models have been developed and tested by using a proper simulation environment developed by using open source code and architecture. The results o…

Economical Models for Reconfigurable Manufacturing Systems

Dedicated manufacturing lines (DML), flexible manufacturing systems (FMS) and reconfigurable manufacturing systems (RMS) are, nowadays, the three production paradigms representing three ways of thinking and implementing production systems. Nevertheless, very few researches aim at clearly defining the convenience of such three manufacturing paradigms with regards to the market and competition characteristics in which the company plans to play. This chapter goes toward such a direction; in particular, an investment model for each kind of manufacturing system (DML, FMS, RMS) is proposed; these models are able to consider several market and competition issues such as product demand dynamic over…

Do horizontal relationships matter to production and operations managers?

This paper shifts the focus of production, operations and supply chain management business relationships from the vertical to the horizontal side and calls for more research on this issue. The main intent is to provide managerially oriented arguments regarding the linkages between the achievement of operations-related goals and decisions related to horizontal business relationships. Specifically, we address the following research question: Does a linkage exist between production and operations objectives and the decisions a company makes about horizontal agreements, particularly horizontal governance mode choice? To answer this research question, we develop literature-based hypotheses and c…

How firm boundaries are drawn

While many studies exist regarding the firm choice to make vs. buy, there has been little study about the choice between make, buy or ally. In this paper we investigate how firms choose among make, buy or make together when they have to organize a particular transaction. In particular we develop theory-based hypothesis that link the theoretical determinants of firm’s boundaries to the governance choice. In order to test such hypothesis we operationalize the main constructs in measurable variables and we collect information for that. The final sample represents 4316 mergers and acquisitions, alliances, and divestitures announced and completed by 88 of the first-ranked 100 members of the 2000…

Developing business networking opportunities for SMEs through business ecosystem and ICT

Globalisation is a new challenge for European small and medium enterprises; indeed, on one hand, it represents a threat, since new emerging companies are entering their domestic market, but on the other hand, it represents the opportunity to enter new emerging and growing markets. In order to win this challenge, European SMEs need to play the networking card; in fact, it is well acknowledged that networking can improve SMEs effectiveness and efficiency which is absolutely necessary to win the globalisation battle. Many public regional institutions are thinking about how to improve the networking capacity of their SMEs through specific programs and investments. This paper reports the results…

How risk influences the choice of governance mode in biopharmaceutical inter-firm relationships

Abstract This paper proposes a new theoretical framework for assessing the influence of risk in shaping the governance form in biopharmaceutical inter-firm relationships. In particular, we propose a multidimensional operationalization of relational and performance risk and, by following Transaction Cost Economics (TCE) and Real Options (RO) theory constructs, we hypothesize a relation between the aforementioned risk components and the choice of governance form. Specifically, following TCE reasoning, we hypothesize that a high level of relational risk leads towards more hierarchical governance forms, while, following RO theory, we hypothesize that a high level of performance risk leads towar…

Factors influencing prices in the mobile apps’ store distribution model: An empirical study

What to show on the wine labels: a hedonic analysis of price drivers of Sicilian wines

Unlike previous literature, we construct a hedonic model of wine price that incorporates all the main categories of variables simultaneously to enable a better evaluation of their importance on wine price formation. A comprehensive model has the advantage of providing more reliable estimates of the attributes' implicit prices thereby facilitating firms' pricing and improving effectiveness of wine production and marketing decisions. We utilize two different datasets of Sicilian wines collecting data from influential wine guides. Our results suggest that wine price strongly depends on objective features such as vintage, alcoholic content, geographical origin, grape variety, producer size and …

Cooperation among competitors: A comparison of cost-sharing mechanisms

Abstract In this paper, we investigate the consequences of using outcome-based versus ex ante-based cost-sharing mechanisms in terms of competing firms' profitability and total welfare. We consider two firms making a joint expenditure, which can positively affect firms' demand and/or unit operating costs, while competing in the final market by setting either price or quantity. We compare two outcome-based cost-sharing mechanisms, i.e., Quantity Proportional (QP) and Total Margin proportional (TM), with the more competitive Fixed Share (FS) mechanism where cost-sharing is set up on an ex ante basis. We show that outcome-based mechanisms, and even a fully collusive behavior induced by the opt…

Internationalisation level, Distribution of Decision-Making Power and Alliance Formation: Evidence from the Italian Machine Tool Industry

We explore how internationalization-orientation and family business-configuration influence the propensity of Italian Machine Tool (MT) firms to sign strategic alliances. Starting from the industry sector analysis and literature review we propose a conceptual framework explaining alliance formation determinants. Our study uses the information provided by a representative sample of Italian MT firms. We argue and our data validate that the centralization of decision-making power acts as a moderator enhancing the positive effect of the internationalization on the firm inclination in signing agreements with other companies.

Price dispersion, competition, and the role of online travel agents: Evidence from business routes in the Italian airline market

Abstract In this article, using data from the Italian airline market, we study the role of online travel agents (OTAs) in driving price dispersion as compared to the effect of airlines’ websites. Specifically, we investigate how distinctive factors between OTAs and airlines’ direct channels influence price dispersion. We find that after controlling for OTAs’ features related to airline competition, price dispersion should be lower in the OTA channel relative to airlines’ direct channels. On the other hand, we also find that OTAs’ features related to the presence of airline competition play in favor of higher price dispersion in such indirect channel.

LEVERAGING CROWDSOURCING COMMUNITY TO INCREASE THE CHANCES OF WINNING CONTESTS: A SIGNALLING THEORY APPROACH

How can I signal my quality to emerge from the crowd? A study in the crowdsourcing context

Crowdsourcing contests are characterized by an intensive level of competition because of the extensive number of solvers that voluntarily self-select to participate in such contests. This study aims at understanding how solvers can signal their quality attributes through the community functionalities, i.e. the online profile and the discussion blog of the crowdsourcing platform, to improve their chances of winning crowdsourcing contests. Drawing on signaling theory, we hypothesize that signaling their skills and capabilities by crafting profiles rich in personal and professional information and by participating actively within the discussion blog by posting and commenting, solvers can influ…

An Object Oriented approach for Flexible Manufacturing Control Systems Analysis and Design using the Unified Modelling Language

In reacting to global competition and rapidly changing customer demands, industrial business organizations have developed a strong interest in flexible automation. The aim of flexible automation focuses on achieving agility in handling uncertainties from internal or external environments. Modeling complex structures, promoting reuse, and shortening the development time cycle are particularly significant aspects in the analysis and design of CIM systems, where heterogeneous elements have to be integrated in a complex control architecture. The design methodology for FMS control software involves the abstraction of an FMS and the estimation of the system performances. The aim of this activity …

POSITIONS IN CROWDSOURCING COMMUNITY NETWORK AND SOLVERS’ SUCCESS

The Impact Of Demand And Inventory Management Policies On Bullwhip Effect In Production Networks

The bullwhip effect is a phenomenon consisting in variance amplification of orders as they move up a supply chain. The immediate bullwhip effect consequences are the increase of inventory costs, poor custoiner services and inefficient utilization of resources due to the difficulties of production planning activities in highly variable conditions. There are many factors that cause the bullwhip effect, but if is particularly due to demand forecasting and inventory management policies. In this paper the impact on bullwhip effect of different policies to manage demand and inventories has been evaluated through discrete event simulation, using the ARENA (R) simulation package.

Defining collaboration rules in mechatronic Industry

Small and medium companies in order to survive in the global market should promote the creation of partnerships and business networking. Thanks to business networks, in fact, they can reach efficiencies, improve their knowledge and increase their degree of internationalization. The industrial district is a very common type of business network model, especially in Italy. Belonging to an industrial district increases companies inclination to sign inter-firm collaboration contracts such as alliances, outsourcing and joint ventures. However, some Italian districts, mostly those recently constituted and localized in the south of Italy, such as the Sicilian Mechatronic District (SMD), lacks of ac…

The role of the distribution platform in price formation of paid apps

In this paper we study the role of the distribution platform as an important determinant of price of paid apps. We also examine how the distribution platform influences the price implications of important developers' app-level decisions. To these purposes, we construct a hierarchical model of price formation by using an ad-hoc panel dataset consisting of top paid apps from the two major app stores, namely Apple's App Store and Google Play. Our findings show that prices of paid apps strongly depend on the platform where the apps are marketed. Specifically, the App Store is associated with lower prices for paid apps than Google Play. We find evidence that this is because the impact of cross-s…

An empirical analysis of revenue drivers in the mobile app market

Fuzzy methods for analysing fuzzy production environment

Abstract Very recently, in production management research literature, the necessity to extend production systems analysis techniques, such as queue theory, Mean Value Analysis (MVA) and discrete simulation, to Fuzzy Production Environments, i.e. to those production situations in which data are vague, has emerged. Fuzzy set theory is a powerful tool to model vagueness and, therefore, fuzzy mathematics can be used to extend classical production system analysis techniques. This paper proposes a methodology based on fuzzy relation algebra to extend classical MVA and discrete event simulation.

Treating the crowd fairly: increasing the solvers’ self-selection in idea innovation contests

Abstract The success of idea crowdsourcing contests depends on the wideness of the number of solvers that voluntarily self-select to solve the problem broadcast by the seeker and previous research has started to highlight the role of fairness in the self-selection process of solvers. This study aims at deepening the understanding concerning how fairness can influence the solvers’ self-selection. By applying a netnographic research design, we identify possible unexplored facets of fairness in the crowdsourcing context, i.e., prize award, award guaranteed, and non-blind contest. Theoretically, we drew from the organizational justice and fairness literature to develop hypotheses about how the …

A Decision Making Tool in FMS Design

In FMS design one of the initial fundamental decision concerns the flexibility level of the workstations to be implemented. New machining centers offer the possibility to carry out several operations on the workpieces to be processed, thus reducing the workload both of the material handling system and of the resources used to control the part flow in the FMS. In spite of advantages related to the use of the machining centers with high flexibility, the better typology of each workstation must be evaluated taking into account its influence on the tools fleet and on the workload of the handling and tool room subsystems.

Long term capacity decisions in uncertain markets for advanced manufacturing systems incorporating scope economies

Abstract By examining the literature in the field of manufacturing flexibility many researchers have located several form of flexibility by distinguishing them into strategic and operational flexibility forms. Furthermore, many measures and design methods have been proposed for flexible manufacturing systems. Surely scope economies are one of the most important strategic form of flexibility in manufacturing systems and their strategic impact has been acknowledged by the very beginning of the flexible manufacturing era. However, despite several researches are available to address scope economies measurement and design methodologies, very few researches investigate their economic convenience …

Production Planning in Production Networks: Models for Medium and Short-term Planning

Distributed production networks are structures which are considered able to provide the organisational agility and efficiency necessary to compete in the global market. The performance of such organisations heavily depends on the ability of those involved in the network to coordinate their activities. Two approaches are available for managing complex distributed production networks: a centralised approach, where a unique entity (the planner, for instance) has all the necessary information to make planning decisions for the entire network; or a decentralised approach where each entity in the network has the necessary information and knowledge to make autonomous planning decisions, while the …

Business Process-oriented design of Enterprise Resource Planning (ERP) systems for small and medium enterprises

In the last few years, many organizations have used business process modelling as an effective tool for managing organizational changes. However, process modelling has rarely been exploited for supporting the entire business process management life cycle. This includes the design of business processes as well as their implementation and control. The adoption and implementation of Enterprise Resource Planning (ERP) systems is a crucial issue if referred to small and medium-sized enterprises. The main problem is that the cost of implementation of ERP, intended as the process of customization of the ERP system towards the actual enterprise business processes, overtakes the cost of ERP acquisit…

How does disruptive innovation influence the funding decisions of different venture capital investors? An empirical analysis on the role of startups' communication

Entrepreneurs present their ideas in a favorable light through compelling communications that may shape the investors' impressions about the value of the startup's technology and its potential to disrupt. Assessing such communications, venture capital (VC) investors get an impression of the startup's technology and shape their willingness to commit resources to it. Since diverse kinds of VC investors pursue alternative investment objectives, they may develop different impressions of the startup's technology and accordingly make different resource commitment decisions. This paper aims to investigate the resource commitment decisions of VC investors when financing startups communicating disru…

Network Positions and the Probability of Being Acquired: An Empirical Analysis in the Biopharmaceutical Industry

This paper examines the relationship between the firm's direct ties, its inter-firm network prominence and its likelihood of being acquired. The authors argue that firm's direct ties and prominence enhance the firm's visibility and signal its quality – and thus foster the firm's likelihood of being acquired. However, higher levels of direct ties and prominence, by providing access to resources and the firm's status, respectively, increase the firm's ability to remain independent and thus reduce its likelihood of being acquired. Thus, the authors posit the overall relation as an inverted U-shaped. Furthermore, they show that, for firms that undergo an initial public offering, the aforementio…

Building SMEs networks in a value chain perspective: a Business Ecosystem approach

External knowledge sourcing for R&D activities: antecedents and implications of governance mode choice

This paper investigates how internal and external factors affect the choice between alliances and joint ventures (A&JVs) and mergers and acquisitions (M&As) for the external sourcing of research and development (R&D) activities, and whether or not such a choice is really con- tingent, that is, is it the best choice in terms of its impact on firms’ innovative performance under those circumstances? We build a set of hypotheses based on both the transaction-cost theory and the resource-based view, and test them through a secondary data source analy- sis. We found that companies adopt either R&D M&A or A&JV depending on internal (e.g. resources and capabilities, innovation experience) and exter…

An evolutionary approach to multi-objective scheduling of mixed model assembly lines

In this paper a multi-objective genetic algorithm for the scheduling of a mixed model assembly line is proposed, pursuing the line stop time minimisation together with the component usage smoothing. Specific features of the developed GA are step by step random selection of diversified crossover and mutation operators, population control for the substitution of duplicate chromosomes, and in-process updating of GA control parameters. Three different formulation of the fitness function were been tested with some distinct line configurations.

Collaboration Engineering Framework to Support New Product Development in the Automobile Industry

Medium Level Planning of Reconfigurable Enterprises: a Game Theoretical Approach

HORIZONTAL CO-OPERATION IN SUPPLY CHAIN IN AN E-MARKET ENVIRONMENT