Haskayne School of Business Research & Publications

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Open Access
Globalization and Focus in FT-50 OSCM Journals, 1952-2018: Implications for Academia
(IUP Publications, 2021-11) Balakrishnan, Jaydeep; Kenworthy, Thomas P.; Cheng, Chun H.; Eliasson, Janice B.
The study analysis enhances our understanding of the nature of Operations and Supply Chain Management (OSCM) authorship, scholarship globalization, international collaboration activity, research topics and trends, and research funding. Thus the authors expect the findings to be relevant to a variety of stakeholders including doctoral students, junior faculty, promotion and tenure committees, and business school administrators. For example, it has to be recognized that emphasizing publications in only the journals examined in this paper can be a risky strategy for those faculty in tenure track positions. Further it must be recognized that this strategy can be resource intensive for business schools.
Open Access
Workplace Diversity in a Canadian Context: Evaluating Moderators as a Means of Improving Organizational Performance
(2021-04) Islam, Tahsin; Weatherhead, Julie
Open Access
Bullwhip effect in the oil and gas supply chain : a multi-case study
(Elsevier, 2019-11) Zhu, Tianyuan; Balakrishnan, Jaydeep; da Silveira, Giovani J. C.
The bullwhip effect has been extensively studied in the retail, wholesale and manufacturing industries. However, it has been rarely explored in the context of resource extraction industries such as oil and gas, despite their economic impact and distinct features. This paper investigates the factors that impact the bullwhip effect in the oil and gas supply chain using case study evidence from six companies in North America, which cover refining and marketing, exploration and production, integrated oil and gas, and drilling. For each type of company studied, the operational causes of the bullwhip effect proposed in the literature and other factors of influence are examined. The findings indicate that the existing theories of the bullwhip effect have limitations in explaining the phenomenon in the oil and gas industry. Information sharing, a widely advocated countermeasure of the bullwhip effect may not be relevant in the integrated oil and gas company. Regarding the factors that drive or mitigate the bullwhip effect in different types of companies in the oil and gas supply chain, seven propositions are developed and several additional findings are obtained. All of these results enable better understandings of the bullwhip effect in academia, oil and gas organisations and related industries, and may provide guidance for potential countermeasures in practice.
Open Access
Balancing openness and prioritization in a two-tier Internet
(2018-10-03) Nault, Barrie R.; Zimmermann, Steffen
Open Access
Pricing in C2C sharing platforms
(2017-07-23) Angerer, Peter; Provin, Daniel; Zimmermann, Steffen; Nault, Barrie R.
Sharing platforms such as Zilok.com enable the sharing of durable goods among consumers, and seek to maximize profits by charging transaction-based platform fees. We develop a model where consumers that are heterogeneous in their need to use a durable good decide whether to purchase and share (i.e., be a lender) or borrow (i.e., be a borrower), and a monopoly sharing platform decides on the platform fees. We find first that consumers with a greater need to use a durable good purchase and share, and that consumers with a lesser need borrow. Second, sharing platforms maximize profits only if the supply of a durable good matches demand – that is, the market must clear for platform fees to be profit maximizing. Third, the market-clearing condition requires that lender and borrower fees are classic strategic complements. Fourth, to maintain the market-clearing condition, sharing platforms have to increase their lender fee or decrease their borrower fee in response to increases in the sharing price, increases in usage capacity, and decreases in the purchase price of a durable good, and vice versa. These findings indicate that commonly applied one-sided pricing models in sharing platforms can be improved.
Open Access
An internet-Enabled Move to the Market in Logistics
(2016-01-21) Gong, Fengmei; Nault, Barrie R.; Rahman, Mohammad Saifur
Logistics outsourcing has increased with the commercialization of the Internet, implying a reduction in the corresponding transaction costs. The Internet – with its universal connectivity and open standards – radically enhanced information technology (IT) capabilities, and we hypothesize this has reduced external transaction costs relatively more than internal governance costs. Using transaction cost theory as a lens, we examine whether the commercialization of the Internet coincided with a move to the market in logistics – one of the most connected industries in the economy. We estimate the relationship between IT and outsourced logistics in a production function based on two datasets from 1987 to 2008. We find that the effects of IT on outsourced logistics have changed in the post-Internet era. After the commercialization of the Internet, an industry’s own IT investment and outsourced logistics became complements whereas they were not before. It suggests that because of the unique characteristics of the Internet as an enabler, IT reduced external transaction costs relatively more than internal governance costs. Consequently, industries favored the market form of the provision of logistics. We also find similar impacts of customers’ IT investments on a focal industry’s outsourced logistics. Previous studies argued that IT led to the shift from hierarchies to markets, or provided indirect evidence through measures of firm size or integration. Using a production theory model our study provides systematic empirical evidence to support that the Internet enabled a move to the market in the provision of logistics.
Open Access
Information technology substitution revisited
(2014-12-26) Zhang, Dawei; Cheng, Zhuo (June); Mohammad, Hasan A. Qurban H.; Nault, Barrie R.
Taking advantage of the opportunities created by the price adjusted performance improvement in IT depends in part on the ability of IT capital to substitute for other inputs in production. Studies in the IS literature as well as most economics training that examine substitution of IT capital for other inputs use the Allen elasticity of substitution (AES). We present a less-well-known measure for the elasticity of substitution, the Morishima Elasticity of Substitution (MES). In contrast to the AES which is misleading when there are three or more inputs – such as non-IT capital, labor and IT capital – the MES provides a substitution measure where the scale is meaningful, and the measure differs depending upon which price is changing. This is particularly important for IT capital as prices have been declining and there is evidence that IT capital can substitute for non-IT capital or labor in a qualitatively different way than non-IT capital and labor substitute for each other. Methodologically we also show the impact of imposing local regularity – for example, monotonicity of output from increases in inputs – that we do through Bayesian methods employed to estimate the underlying functions that are used to calculate various measures of substitution. We demonstrate the importance of the MES as an under-recognized measure of substitution and the impact of imposing local regularity using an economy-wide industry-level dataset covering 1998-2009 at the three-digit NAICS level. Our MES results show that reductions in the price of IT capital increase the quantity of IT capital in use but are unlikely to change the input share of IT capital – the value of IT capital as a proportion of the value of all inputs, in contrast to major studies using the AES. In addition, estimates for both elasticities of substitution are more stable after imposing local regularity. Both of these advances – that is, the MES and imposing local regularity – have potential to impact future work on IT productivity, IT pricing, IT cost estimation and any type of analysis that posits the substitution of IT capital for non-IT capital or labor.
Open Access
Emergent themes in the interface between economics of information systems and management of technology
(Wiley, 2017-04) Ba, Sulin; Nault, Barrie
In this article, we look at research published over a five‐year time span in the economics of information systems (IS) area in four premier journals, including Management Science, Information Systems Research, MIS Quarterly, and Production and Operations Management, to identify research themes that have implications for future research in the area of Management of Technology (MOT). Through our examination of the literature, we identify three emergent themes that can be used to form foundations for future MOT research from an economics of IS perspective: productivity, vertical relations, and platforms. Within each of these themes, we classify previous research into subthemes, summarize the major findings, and explore future research opportunities within the MOT domain that are relevant to these subthemes. Specifically, we examine how information technology has impacted firm productivity, their product design and development process, innovation capabilities, knowledge management capabilities, and supply chain integration.
Open Access
Organization of public safety networks: Spillovers, interoperability, and participation
(Wiley, 2016-09-14) Liu, Yipeng; Guo, Hong; Nault, Barrie
We analyze trade‐offs in the organization of public safety networks when network assets are distributed across districts and a district values network assets in its own and other districts. Comparing centralized, decentralized, and mixed organization forms, we capture two critical properties: interoperability among distributed technology‐based network assets and the ability of districts to opt‐in or opt‐out of the centralized form. We model the provision of public safety networks, where network assets are chosen by each district or by a federal government, where these assets have a positive cross‐district spillover that depends on interoperability, where investments in effort can be made to improve interoperability, and where districts can opt‐in or opt‐out of centralized provision. With the adoption of centralized, decentralized, or mixed provision as a result of districts' opt‐in or opt‐out choices, we identify conditions that determine when the districts deviate from the social optimum and thus regulatory intervention is beneficial to incent the socially optimal organization form. We show how the socially optimal organization form can be achieved through policy instruments such as a sharing rule for the cost of interoperability effort and direct government grants.
Open Access
A dynamic pricing strategy for a 3PL provider with heterogeneous customers
(2015-06-08) Zhang, Jian; Nault, Barrie R.; Tu, Paul Yiliu L.
We study the pricing problem for a third-party-logistics (3PL) provider that provides ware-housing and transportation services. When customers arrive at the 3PL provider, they specify the delivery dates for their freight, and before the specified delivery dates, their freight is stocked in the 3PL provider’s warehouse. We propose a dynamic pricing strategy (DPS) and develop a stochastic-nonlinear-programming (SNLP) model which computes the optimal freight rates for different delivery dates incorporating the 3PL provider’s current holding cost and available transportation capacity for each route. As customers are heterogeneous in their valuations and price sensitivities for delivery dates, and the distributions of the customers’ delivery date preferences are unknown to the 3PL provider, we modify the standard multinomial logit (MNL) function to predict customer choices. Through a simulation experiment, we show that the proposed MNL function can be a good replacement for the mixed MNL function when the mixed MNL function is not applicable. Through simulation we also compare the proposed DPS with a static pricing strategy. We show that with our DPS both the 3PL provider and its customers are better off, and the 3PL provider has different investment incentives for increasing transportation capacity. Our results can be also applied in similar settings that feature holding costs, limited production capacity and delivery-date-sensitive customers. Keywords: dynamic pricing, multinomial logit, third-party logistics, stochastic programming
Open Access
Operating room scheduling and adaptive control using a priority first fit decreasing heuristic
(2015-06) Li, Wei; Mitchell, Victoria L.; Nault, Barrie R.; Brind, Denise
Operating room (OR) scheduling is a critical factor affecting overall hospital performance. We examine OR scheduling from two perspectives. In the first perspective we propose a scheme for OR block scheduling that uses a heuristic developed for a three-machine flow shop where the three phases of the peri-operative process (pre-op, OR, and post-op) correspond to the three-machine flow shop. This approach facilitates a hospital-as-a-system perspective. The second perspective used to examine OR scheduling is adaptive control of the OR slate. Recognizing that there are many factors affecting OR throughput performance, especially preemptions from emergent and urgent cases, adaptive control of the OR slate is necessary. To realistically improve performance, adaptive control of the OR slate should incorporate constraints on how surgeries can be rescheduled. We examine the benefits from adaptive control of the OR slate that uses a priority first fit decreasing (PFFD) heuristic while incorporating constraints on OR slate rescheduling. The PFFD heuristic is a priority-driven variation of the classic FFD heuristic used in bin packing problems. We develop a scheme for OR block scheduling and our PFFD heuristic. We then demonstrate our PFFD heuristic in a simulation-based case study, and subsequently run a simulation using 1000 instances to test the performance of our PFFD heuristic in OR slate scheduling and OR slate adaptive control showing improvements in performance relative to the frequently used first-come-first-served rule.
Open Access
Adoption of Electric Trucks in Freight Transportation
(2019-10-15) Alp, Osman; Tan, Tarkan; Udenio, Maximiliano
Transportation sector is the largest contributor of global greenhouse gas emissions in the USA. Disruptive technological changes in this sector, such as alternative fuel vehicles, are crucial for emission reduction. We analyze how a cost-minimizing strategic transition plan can be developed for a transportation firm that aims to adopt electric trucks in their fully diesel fleet, over time. We consider the case in which the firm needs to invest in charging infrastructure required to support this transition, as the public charging infrastructure is currently inadequate. The congestion effect at the charging stations, the charging times, and the potential loss of productive driving time due to detours to reach charging stations are explicitly considered. By developing an independence property, we are able to model this problem as a linear integer program without any need to explicitly specify origins and destinations. We illustrate the resulting transition plan with a realistic data set. Our results indicate that a transportation firm that operates with high demand density over a given service region significantly benefits from adoption of electric trucks, while also enjoying substantial carbon emissions savings. High demand density also favors smaller battery capacity with shorter ranges under the optimized charging network capacity, even though larger battery capacity would increase productivity with extended ranges. Our analysis also offers insights for governments and regulators regarding the impact of several influential factors such as carbon cost, content of renewable energy in electricity mix, diesel engine efficiency, and subsidizing the charging infrastructure.
Open Access
Flow Experience and Team Performance: The Role of Team Goal Commitment and Information Exchange
(2013-01) Aubé, Caroline; Brunelle, Eric; Rousseau, Vincent
While a number of studies show that the flow experience is related to different outcomes at the individual level, the role of flow in work teams remains unclear. This study contributes to the advancement of knowledge on flow by testing the relationships between this psychological state, team goal commitment and team performance. Data were gathered from 85 teams comprised of graduate and undergraduate students who participated in a project management simulation. The results show that the flow experience is positively related to team performance. This Relationship is mediated by team goal commitment and moderated by the level of information exchange between team members. In practical terms, the results of this study show that managers should implement interventions fostering the flow experience in their teams, while at the same time encouraging information exchange between members.
Open Access
Supply chain relational capital and the bullwhip effect: An empirical analysis using financial disclosures
(Emerald Group Publishing Limited, 2019-08-15) Zhao, Rong; Mashruwala, Raj; Pandit, Shailendra; Balakrishnan, Jaydeep
Purpose: The primary objective of this study is to conduct a large-sample empirical investigation of how relational capital impacts bullwhip at the supplier. Design/methodology/approach: The study uses mandatory disclosures in regulatory filings of US firms to identify a supplier’s major customers and constructs empirical proxies of supply chain relational capital i.e., length of the relationship between suppliers and customers, and partner interdependence. Multivariate regression analyses are performed to examine the effects of relational capital on bullwhip at the supplier. Findings: The findings show that bullwhip at the supplier is greater when customers are more dependent on their suppliers, but is reduced when suppliers share longer relationships with their customers. The results also provide additional insights on several firm characteristics that impact supplier bullwhip, including shocks in order backlog, selling intensity, and variations in profit margins. Further, we document that the effect of supply chain relationships on bullwhip tends to vary across industries and over time. Originality/value: The study employs a novel dataset that is constructed using firms’ financial disclosures. This large panel dataset consisting of 13,993 observations over 36 years enables thorough and robust analyses to characterize supply chain relationships and gain a deeper understanding of their impact on bullwhip.
Open Access
Product Recommendation Algorithms in the Age of Omnichannel Retailing - An Intuitive Clustering Approach
(Elsevier, 2018-01) Balakrishnan, Jaydeep; Cheng, Chun-Hung; Wong, Kam-Fai; Woo, Kwanho
In today’s omnichannel retailing world, product recommendations have become important in retailer strategy. Using big data to recommend complementary products can help improve customer service and thereby increase profitability. A common implementation for studying buying behaviour of customers uses a 0–1 matrix linking the customers to the products they have purchased in the past. However, this raw matrix does not automatically reveal buying patterns. Further processing of this matrix is necessary to find valuable information. In this work, we adopt an intuitive co-clustering algorithm for locating useful patterns in the matrix. The advantage of duplication of products in the clustering process will be shown. A further advantage of the algorithm from a managerial perspective is that it is intuitive rather than a black box type and thus may increase the chances of it being actually adopted.
Open Access
Theory Usage in Empirical Operations Management Research: A Review and Discussion
(Emerald Group Publishing Limited, 2016-09-05) Kenworthy, Thomas P.; Balakrishnan, Jaydeep
Purpose: The purpose of this paper is to analyze more than three decades of theory testing published in leading operations management (OM) journals. Design/methodology/approach. This piece examines the amount of theory testing, the extent to which theories are tested multiple times, and the disciplinary origins of the theories that are tested. Findings: The analysis revealed that empirical OM researchers have increasingly responded to demands for more theory-driven knowledge over time. OM researchers are developing and using a wide array of domestic theories to understand empirical data. The examination also revealed a substantial focus on theory borrowed from other scientific fields. Originality/value: The findings here suggest that OM is clearly a maturing discipline. As the discipline matures, it is important to consider to what extent borrowed theories and frameworks can offer value to OM. A preliminary vetting model is advanced in order to critically assess foreign theory. It is hoped that future screening promotes only the most useful non-domestic theory, thereby ensuring sufficient journal space for domestic theory and resulting in effective solutions to the pressing, practical problems of the OM field.
Open Access
Recent advances in dynamic facility layout research
(INFOR: Information Systems and Operational Research, 2017-09-08) Zhu, Tianyuan; Balakrishnan, Jaydeep; Cheng, Chun-Hung
It has been nearly two decades since the last major review of the literature in dynamic facility layout. In these intervening years, many advances have been made in modelling as well as in the solution methods. In this study, models and solutions that address the dynamic facility layout problem (DFLP) are examined and categorized. Our review finds that the recent DFLP models consider more complex design features and constraints. Further, only a few DFLP studies have adopted exact methods, while most of the effective algorithms used are heuristics, metaheuristics and hybrid approaches. Future research directions are also identified.
Open Access
An analysis of innovation in oil & gas projects
(Sage Journals, 2018-08-22) Rahimi, Mahmood; Kenworthy, Thomas P.; Balakrishnan, Jaydeep
We examine the effects of predictors from the firm, project, and individual levels on innovative behavior within oil and gas projects. The theory and propositions tested in this study stem from extant work on (1) innovation in poor performance conditions and (2) the availability of slack resources. The research findings revealed that innovative behaviors were present regardless of size, type, and project performance level. Further, it appears that the relationship between slack and innovation depends on when the innovation is introduced (i.e., when project performance is ahead of, or behind, a plan). Finally, the existence of innovation in (1) under-performing projects did not appear to exert any influence on project outcome, and (2) over-performing projects appeared to exert a negative influence on project outcome.
Restricted
Delegation of Stocking Decisions under Asymmetric Demand Information
(2017-11-22) Sen, Alper; Alp, Osman
Headquarters of a retailer delegates stocking decisions to store managers at its various stores. Store managers have complete information of the local demand process, whereas headquarters has partial information. The problem is how to incentivize the managers to make stocking decisions that minimizes headquarters' expected overage and underage costs. We investigate performance measurement schemes in which headquarters incite store managers make stocking decisions in headquarters' best interests using their private information. Adopting such schemes helps retailers reduce stock-outs and attain desired service levels across their stores. Headquarters knows that the underlying demand process at a store for a product over a replenishment cycle is one of J possible Wiener demand processes, whereas store manager knows the specific process with certainty. Store manager creates a single order before the cycle. Headquarters use an incentive scheme which is based on the end-of-period leftover inventory and on a stock-out occasion at a pre-specified inspection time {\it before} the end of a period. Headquarters' problem to determine the inspection time and relative importance of stock-outs to leftover stock is formulated as a constrained non-linear optimization problem in a single period setting and a dynamic program in a multi-period setting. The proposed ``early inspection'' scheme leads to perfect alignment under certain conditions. Under more general conditions, it provides a near-perfect alignment and performs strictly better than stock-out inspection at the end. Using historical sales data of a retailer, we show that this scheme can lead to considerable cost reduction. Even though attaining high on-shelf availability is crucial in retail, stock-out related measures are not reflected in store managers' performance scorecards. We prescribe a novel, easy and practical method for headquarters with which they can increase on-shelf-availability by relying on their store managers' private demand information. The proposed method decidedly outperforms the computer aided ordering systems that are commonly used in practice.
Open Access
Omar Khadr.1
(Centre for Public Legal Education Alberta (CPLEA), 2018-05-04) Bowal, Peter