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  • Inventory financing a risk-averse newsvendor with strategic default

    Purpose: The paper aims to explore the optimal strategies of inventory financing when the risk-averse retailer has different objectives, in the presence of multi-risk, i.e. demand risk, non-operational risk and retailer's strategic default risk. Design/methodology/approach: This paper develops an inventory financing model consisting of a bank and a risk-averse retailer with strategic default. This paper considers two scenarios, i.e. the capital-constrained retailer cares about its profit or firm value. In the first scenario, the bank acts as a Stackelberg leader determining its interest rate, and the retailer acts as a follower determining its pledged quantity. In the second one, the bank capital market is perfectly competitive. Lagrange multiplier method is adopted to solve the optimization. Findings: The optimal strategies in inventory financing scheme in two scenarios are derived. Only when the initial stock is relatively high, the retailer pledges part of the initial stock. Retailer's risk aversion reduces its pledged quantity and performance. The strategic default reduces its profit. When it is relatively high, the bank refuses to offer the loan. Practical implications: Analytical inventory and financing strategies are specified to help retailers and banks to better understand the interaction of finance and operations management and to better respond to multi-risk. Originality/value: New results and managerial insights are derived by incorporating partially endogenous strategic default and risk aversion into inventory financing, which enriches the interfaces of operations management and finance.

  • Patterns of IT use: the impact on green supply chain management and firm performance

    Purpose: This study aims to explore how different patterns of IT use influence different types of green supply chain management (GSCM) with customers, and in turn, environmental and economic performance. Design/methodology/approach: Based on data collected from 206 manufacturing companies in China, the authors used structural equation modeling (SEM) with the maximum-likelihood estimation (MLE) method to test the conceptual model and the related hypotheses. Findings: The results show that both IT use for exploitation and IT use for exploration are positively related to green strategy alignment and green process coordination, whereas the relationship between IT use for exploration and green strategy alignment is weaker. This study also finds that green strategy alignment has a marginal positive effect on economic performance, whereas its effect on environmental performance is not significant. Green process coordination has a positive effect on environmental performance, whereas its effect on economic performance is not significant. Originality/value: This study extends the value of IT use in the GSCM field, enriching both literature on IT and GSCM. The findings provide significant managerial implications for managers to leverage IT resources to enhance GSCM and the corresponding performance.

  • A dual systems model of online impulse buying

    Purpose: Consumers often communicate with other consumers and perform impulse buying behavior on social commerce websites. Based on stimulus-organism-response framework and dual systems theory, the present study examines the effects of social interactions and self-control on consumers' impulse purchase. Design/methodology/approach: An online survey consisting of 315 participants on social commerce websites was recruited to empirically examine the proposed research model. Partial Least Squares (PLS) was employed to analyze the research model. Findings: Our main findings indicate that (1) source credibility, observational learning and review quality are important antecedents of perceived usefulness of online reviews, (2) source credibility, observational learning and perceived usefulness positively affect positive affect, which further results in urge to buy and impulse buying, (3) self-control weakens the effect of positive affect on urge to buy impulsively and also weakens the effect of urge to buy impulsively on impulse buying behavior. Originality/value: The present study will bring more attention to social interactions in social networks in practice and encourage scholars to pay more attention to the reflective system in online impulse buying.

  • Inventory management of perishable health products: a decision framework with non-financial measures

    Purpose: This research proposes a decision framework for using non-financial measures to define a replenishment policy for perishable health products. These products are perishable and substitutable by nature and create complexities for managing inventory. Instead of a financial measure, numerous measures should be considered and balanced to meet business objectives and enhance inventory management. Design/methodology/approach: This research applies a multi-methodological approach and develops a framework that integrates discrete event simulation (DES), analytic hierarchy process (AHP) and data envelopment analysis (DEA) techniques to define the most favourable replenishment policy using non-financial measures. Findings: The integration framework performs well as illustrated in the numerical example; outcomes from the framework are comparable to those generated using a traditional, financial measures-based, approach. This research demonstrates that it is feasible to adopt non-financial performance measures to define a replenishment policy and evaluate performance. Originality/value: The framework, thus, prioritises non-financial measures and addresses issues of lacking information sharing and employee involvement to enhance hospitals' performance while minimising costs. The non-financial measures improve cross-functional communication while supporting simpler transformations from high-level strategies to daily operational targets.

  • Effects of technical IT capabilities on organizational agility. The moderating role of IT business spanning capability

    Purpose: The purpose of this research is to investigate how critical managerial IT capabilities, such as IT business spanning capability, interact with two pivotal types of technical IT capabilities (i.e. IT flexibility and IT integration) to affect organizational agility. Especially, the authors mainly examine a positive synergy or complementary relationship between IT business spanning capability and IT flexibility and a negative synergy or substitution relationship between IT business spanning capability and IT integration. Design/methodology/approach: The authors develop a research model that integrates IT flexibility, IT integration, IT business spanning capability and organizational agility. Based on a matched-pair, cross-sectional field survey of IT and business managers, they use partial least squares (PLS) to analyze this research model. Findings: IT flexibility and IT integration have been empirically proven to be positively associated with organizational agility. Furthermore, the research results indicate a positive synergy or complementary relationship between IT business spanning capability and IT flexibility, whereas they indicate a negative synergy or substitution relationship between IT business spanning capability and IT integration with regard to organizational agility. This finding demonstrates that IT business spanning capability can differentially influence organizational agility depending on its interaction with specific technical IT capability types. In addition, the effects of IT flexibility on organizational agility are high, whereas the effectiveness of IT integration decreases in the presence of high IT business spanning capability. Each type of technical IT capability displays different effectiveness under high IT business spanning capability. Thus, appropriate technical IT capability types should be carefully deployed, and highly effective technical IT capability types, such as IT flexibility, should be prioritized under high levels of IT business spanning capability. Originality/value: This research highlights the joint effects of IT business spanning capability and two pivotal types of technical IT capabilities (i.e. IT flexibility and IT integration) on organizational agility, ultimately contributing to OM theories and practices.

  • Social capital affects job performance through social media

    Purpose: This study aims to explore the impact of social capital on job performance when workers interact with coworkers through social media in organizations. Design/methodology/approach: Structural equation modeling was conducted, and a sample of 230 workers in Taiwan was investigated. Findings: This study found that bonding social capital has a greater impact on job performance than bridging social capital for interactions among coworkers through social media in organizations. Moreover, bridging social capital affects job performance more strongly for male workers than for female workers, but bonding social capital affects job performance more strongly for female workers than for male workers. Research limitations/implications: This study extended social capital theory by adding the mediating effects of job satisfaction and relational satisfaction and the moderating effect of gender into the model. Practical implications: This study suggests that company managers need to train workers how to use social media to appropriate their affordances and consider the work team relationship to position adequate strategies for male and female workers. Originality/value: This study advances the previous knowledge of social capital theory for workers interacting with coworkers through social media in organizations.

  • Understanding cloud computing success and its impact on firm performance: an integrated approach

    Purpose: This study aims to investigate the determinants of successful implementation of cloud computing and, further, examines how cloud computing success influences firm performance. Design/methodology/approach: The authors developed a conceptual framework based on the integration of several strands of literature in business studies and information systems. To test the proposed model, data were collected from 300 Chinese firms which have adopted cloud computing. To analyze the data, partial least squares structural equation modeling (PLS-SEM) was used. An importance-performance map analysis (IPMA) was also conducted to identify the critical factors that exhibit high importance but low performance. Findings: The results of the study revealed that end-user satisfaction, information quality, system quality, managerial information technology (IT) capability and technical IT capability significantly affect cloud computing success. Additionally, cloud computing success has a strong and positive impact on firm performance. IPMA further confirms that managers need to concentrate more on system quality, information quality, user satisfaction and technical IT capability. Originality/value: This paper is one of the few attempts to integrate several theoretical frameworks (i.e. IT capabilities and resource-based view, expectation-confirmation theory, and information system success theory) to develop a comprehensive model for understanding the key determinants of cloud computing success and its impact on firm performance. This study makes a useful contribution to the conventional information systems (IS) literature and IT management practice.

  • Trade credit in emerging economies: an interorganizational power perspective

    Purpose: The extant literature recognizes that trade credit is influenced by the power imbalance between buyers and suppliers but most studies focus on either buyer power or supplier power. The purpose of this study is to investigate how buyer power and supplier power interact and jointly influence trade credit. Moreover, this study examines the moderating effects of political ties in an emerging economy context. Design/methodology/approach: A research framework was developed by combining resource dependence theory and institutional theory to investigate the interactive effects of market power (i.e. market share and supplier concentration) and non-market power (i.e. political ties) on trade credit. The proposed hypotheses were empirically tested by a fixed effects model using secondary data from 2,433 listed firms in China. Findings: The results show that a buyer firm's market share promotes trade credit but this effect is weakened by supplier concentration. Moreover, the buyer's political ties enhance the impact of market share on trade credit and attenuate the negative moderating effect of supplier concentration. Originality/value: This study contributes to the trade credit and supply chain power literature by identifying the interactive effects of market share, supplier concentration and political ties in trade credit. It advances our understanding of how trade credit is jointly determined by a variety of factors in emerging economies.

  • Analysis of customers' return behaviour after online shopping in China using SEM

    Purpose: The purpose of this paper is to examine the potential impacts of various variables on product return activities after online shopping. Previous studies on customer behaviour have been predominantly concerned with return on used products and other product-quality-related constructs in the model. This study aims to specially examine the logistics service-related and customer intention–related variables for general products under the e-commerce circumstance. Design/methodology/approach: Structured questionnaire data for this study were collected in the two southeast cities of China (162 useable responses). Structural equation modelling was used to examine the latent variables. Findings: The results confirmed that product return intention has the greatest impact on online shopping returns with a direct effect of 0.63, followed by the flexibility in return (logistics service) with a direct effect of 0.49. Originality/value: Such a model not only enriches the theoretical understanding of customer behaviour studies but also offers online shopping stores and platforms a quantitative benchmark and new perspective on the design of online shopping supply chains by considering product returns so as to improve the customer satisfaction.

  • Corporate social responsibility and innovation: a comparative study

    Purpose: The purpose of this study was to examine how firms' corporate social responsibility (CSR) strategies affect their innovation performance via two mediating variables, employee involvement and supplier collaboration, and compare how this mechanism works in the service and manufacturing industries. Design/methodology/approach: The conceptual model was built on stakeholder theory, the resource-based view (RBV) and service-dominant logic (SDL). Based on survey data from 686 service firms and 1,646 manufacturing firms, the hypothesized relationships were tested using structural equation modeling (SEM). Findings: The empirical results showed that CSR positively affected service innovation and product innovation in service firms and manufacturing firms, respectively, and that these effects were positively mediated by employee involvement and supplier collaboration. However, compared with manufacturing firms, the effect of CSR on innovation performance was greater for service firms. Supplier collaboration and employee involvement also played a stronger role in service firms when mediating the relationship between CSR and innovation performance. Originality/value: By analyzing and validating the direct and indirect effects of CSR on innovation performance in both the service and manufacturing industries, this study addressed the strategic benefit of CSR and extended research focused on the financial benefits of CSR. Therefore, its findings contribute to our understanding of sustainability and innovation issues. From a theoretical perspective, this study extended the RBV, SDL and stakeholder theory to the context of the CSR-innovation relationship, and showed that firms could align CSR and innovation initiatives to achieve strategic synergy. It also revealed the similarities and differences between service and manufacturing firms regarding the mechanism through which CSR affects innovation.

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