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Book part
Publication date: 1 November 2008

Functions, trust, and value in business relationships

Thomas Ritter and Achim Walter

Managers and academics alike focus on value creation in business relationships. This paper adds to existing literature by analyzing functions of business relationships and…

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Abstract

Managers and academics alike focus on value creation in business relationships. This paper adds to existing literature by analyzing functions of business relationships and their impact on value perception. Applying a customer perspective, direct relationship functions are concerned about payment, quality, and volume. Indirect functions include innovation, access, and scouting. Furthermore, trust and number of alternative suppliers are included in the study. The empirical results illustrate the important role of direct and indirect functions for value creation. Understanding these functions is instrumental for driving customer value, both for the supplier and the seller. Direct functions do have a much stronger impact on value than indirect functions that still do have a significant impact. Thus, increasing direct function fulfillment is much more effective in order to gain key supplier status than relying only on indirect functions. But indirect functions may offer ample differentiation opportunities. Being a strong driver of relationship value, trust is also driven by function fulfillment. Thus, relationship value depends on rational elements (functions) and social elements (trust). Availability of alternative suppliers increases the importance of relationship function fulfillment on customer value and customer trust. In highly competitive markets, suppliers need clear understanding and communication of relationship value in order to succeed.

Details

Creating and managing superior customer value
Type: Book
DOI: https://doi.org/10.1016/S1069-0964(08)14004-2
ISBN: 978-1-84855-173-2

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Article
Publication date: 26 November 2020

Radial basis Taylor series method and its applications

Armagan Karamanli

The study aims to present a new meshless method based on the Taylor series expansion. The compact supported radial basis functions (CSRBFs) are very attractive, can be…

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Abstract

Purpose

The study aims to present a new meshless method based on the Taylor series expansion. The compact supported radial basis functions (CSRBFs) are very attractive, can be considered as a numerical tool for the engineering problems and used to obtain the trial solution and its derivatives without differentiating the basis functions for a meshless method. A meshless based on the CSRBF and Taylor series method has been developed for the solutions of engineering problems.

Design/methodology/approach

This paper is devoted to present a truly meshless method which is called a radial basis Taylor series method (RBTSM) based on the CSRBFs and Taylor series expansion (TSE). The basis function and its derivatives are obtained without differentiating CSRBFs.

Findings

The RBTSM does not involve differentiation of the approximated function. This property allows us to use a wide range of CSRBF and weight functions including the constant one. By using a different number of terms in the TSE, the global convergence properties of the RBTSM can be improved. The global convergence properties are satisfied by the RBTSM. The computed results based on the RBTSM shows excellent agreement with results given in the open literature. The RBTSM can provide satisfactory results even with the problem domains which have curved boundaries and irregularly distributed nodes.

Originality/value

The CSRBFs have been widely used for the construction of the basic function in the meshless methods. However, the derivative of the basis function is obtained with the differentiation of the CSRBF. In the RBTSM, the derivatives of the basis function are obtained by using the TSE without differentiating the CSRBF.

Details

Engineering Computations, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/EC-05-2020-0256
ISSN: 0264-4401

Keywords

  • Compactly supported radial basis functions
  • Taylor series expansion
  • Meshless method
  • Strong formulation
  • Element free

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Article
Publication date: 27 October 2020

Can joint-contract functions promote PPP project sustainability performance? A moderated mediation model

Mengyuan Cheng, Guoliang Liu and Yongshun Xu

The role of conventional contracts in achieving sustainability goals in public–private partnership (PPP) projects has been questioned. From the multifunctional perspective…

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Abstract

Purpose

The role of conventional contracts in achieving sustainability goals in public–private partnership (PPP) projects has been questioned. From the multifunctional perspective of contract theory, joint-contract functions that combine contractual control, coordination and adaptation may be a potential approach for improving PPP project sustainability performance. This research intends to investigate the link between the joint-contract functions and PPP project sustainability performance, and their underlying mechanism, by analyzing the mediating role of relationship quality and moderating roles of environmental uncertainty and behavioral uncertainty.

Design/methodology/approach

Based on 170 valid survey data collected from the Chinese PPP professionals, partial least squares structural equation modeling (PLS-SEM) was adopted to test the hypothesis.

Findings

The results reveal that joint-contract functions are positively associated with the PPP project sustainability performance. This relationship is strengthened by environmental and behavioral uncertainty. Moreover, the relationship between the joint-contract functions and PPP project sustainability performance is mediated by relationship quality.

Research limitations/implications

This research extends contract governance theory and sustainability research in PPP projects. The research implications are as follows: (1) joint-contract functions are a second-order construct consisting of three first-order dimensions: control, coordination and adaptation and are positively associated with PPP project sustainability performance; (2) joint-contract functions enhance the sustainable benefits of PPP projects during environmental uncertainty and behavioral uncertainty; (3) informal relationships are a critical bridge connecting formal institutions with the sustainability performance of PPP projects.

Practical implications

In general, these findings guide project participants who aim to achieve sustainable outcomes in PPP projects. (1) Project participants should consider the process of contract design and sign contracts that focus on joint-contract functions. (2) Project participants should investigate the degree of uncertainty of a PPP project before designing contracts, and design the contracts with corresponding complexity. (3) Project participants should work to enhance PPP sustainable benefits by improving the relationship between partners, such as encouraging mutual trust and joint problem-solving.

Originality/value

This research verifies the relationship between joint-contract functions and PPP project sustainability performance, and the boundary and intermediary conditions between them.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/ECAM-06-2020-0419
ISSN: 0969-9988

Keywords

  • Organization
  • Project management
  • Construction

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Article
Publication date: 28 October 2020

Internal audit as an antecedent of economic growth

Abdulaziz Alzeban

This paper reports a study that examines the role of the internal audit function as a cornerstone of corporate governance, on economic growth.

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Abstract

Purpose

This paper reports a study that examines the role of the internal audit function as a cornerstone of corporate governance, on economic growth.

Design/methodology/approach

Data were obtained from 108 countries for the period 2011–2015. The World Bank, the Institute of Internal Auditors Research Foundation and the Transparency International Corruption Perception Index were the data sources. Two statistical techniques were used: regression analysis to test the study hypotheses and the Chi-squared test to determine whether variations between countries.

Findings

The findings suggest that conformance with internal audit standards and maturity (in years) of the internal audit department contribute to economic growth. They also reveal a relationship between the professional standing of internal audit staff (represented by professional qualifications and number of training hours annually) and the contribution to economic growth, that being that the greater the professional standing of staff, the greater internal audit conformance to the standards and the higher the contribution to economic growth. Further, the findings reveal that the impact of internal audit on economic growth varies among countries according to income classifications.

Originality/value

The consideration of internal audit as one of the four fundamental bases of corporate governance, and therefore, its relationship with economic growth is a neglected topic in the research arena. This study addresses that shortcoming by providing worldwide evidence on the contribution of internal audit to economic growth and, thus, makes a new contribution to the literature. Further, evidence is provided to enlighten poorly performing economies of the value of mandating the presence of internal audit and the compliance of it with international internal audit standards.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/JES-08-2019-0350
ISSN: 0144-3585

Keywords

  • Internal audit
  • Economic growth
  • Foreign direct investment (FDI)
  • Corruption
  • Internal audit standards
  • Internal audit age

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Article
Publication date: 13 October 2020

Mobilizing resources in product development by organizational interfaces across firms, units and functions

Viktoria Sundquist and Lisa Melander

This paper aims to investigate how various organizational interfaces between firms, units and functions, and the interplay between them, are developed and mobilized in…

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Abstract

Purpose

This paper aims to investigate how various organizational interfaces between firms, units and functions, and the interplay between them, are developed and mobilized in product development processes.

Design/methodology/approach

The theoretical framework is based on the industrial network approach, including interactive resource development and the concept of organizational interfaces. A single case study is conducted at a world-leading industrial tool manufacturer, illustrating how resources are combined over time, crossing boundaries of firms, units and functions in the development of a hand-held digitalized tool for quality assurance in the production of cars. Data have been collected through semi-structured interviews, with additional data in the form of project reports, internal documents and practices for external collaboration.

Findings

In addition to inter-organizational interfaces, the study identifies a typology of scouting, embarking and integration interfaces at unit level (geographically spread units of one multinational corporation) and interpretation and reciprocal interfaces at function level. The conclusions show that these interfaces affect the outcome of three aspects of the product development process: product characteristics and functionality features, system integration and organizational network extent. Existing interfaces serve as a platform for developing interaction further and provide the interfaces with new content, thus moving between different types of interfaces. Product development processes also involve new interfaces where there was no previous interaction between the parties.

Research limitations/implications

This research has implications for the interplay between interfaces in cases involving multiple external and internal actors in resource combining efforts.

Practical implications

External interactions between firms influence and impact internal activities and resources. Managers need to be aware of the complex interdependencies between external and internal interfaces and resources. Managing organizational interfaces is about both exploiting established interfaces and developing new ones. Consequently, existing interfaces may be activated differently to align with new interaction purposes, which, in turn, requires efforts to combine resources according to the new conditions.

Originality/value

Previous research contains a typology of organizational interfaces between customers and suppliers. The study expands on this research by identifying internal interfaces between units and functions.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/JBIM-10-2019-0445
ISSN: 0885-8624

Keywords

  • Product development
  • Interface
  • Cross-functional
  • Firm collaboration
  • Inter-unit collaboration
  • Resource combining

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Article
Publication date: 22 October 2020

Parametric estimation of a gauge function and a measure of technical efficiency

Yongseung Han, Thomas Littlefield and Myeong Hwan Kim

This paper proposes the use of a gauge function as a measure of technical efficiency. The measure of technical inefficiency from a gauge function is desirable as the…

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Abstract

Purpose

This paper proposes the use of a gauge function as a measure of technical efficiency. The measure of technical inefficiency from a gauge function is desirable as the estimation of a gauge function is not subject to the endogeneity problem under the behavioral assumption of profit maximization in the competitive market.

Design/methodology/approach

The authors address three important properties of a gauge function, i.e. linear homogeneity, monotonicity and convexity in inputs and outputs, and show how such properties are utilized in its estimation. Then, the authors apply the estimation of a gauge function to US Blacksmiths in 1850 and 1880 to show that a failure to satisfy such properties may lead to an incorrect inference on the technical efficiency.

Findings

The authors find that the Blacksmiths in the 1850s were technically more efficient than the ones in the 1880s, indicating technical regress in Blacksmithing when the properties are satisfied.

Originality/value

This paper introduces a measure of technical inefficiency from a gauge function and shows how to estimate the gauge function parametrically for the measure. The authors show McFadden's gauge function and its properties, which differ from the properties of other distance functions. The authors emphasize linear homogeneity as well as monotonicity and convexity in inputs and outputs, which must be satisfied in the estimation of a gauge function.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/JES-08-2020-0380
ISSN: 0144-3585

Keywords

  • Gauge function
  • Distance function
  • Technical efficiency
  • Endogeneity
  • Blacksmith
  • D24
  • L61
  • N61

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Article
Publication date: 16 October 2020

A transform of univariable time domain polynomial for extraction of temporal arcs

Binesh Thankappan

This paper aims to present a special transformation that is applied to univariable polynomials of an arbitrary order, resulting in the generation of the proposed offset…

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Abstract

Purpose

This paper aims to present a special transformation that is applied to univariable polynomials of an arbitrary order, resulting in the generation of the proposed offset eliminated polynomial. This transform-based approach is used in the analysis and synthesis of temporal arc functions, which are time domain polynomial functions possessing two or more values simultaneously. Using the proposed transform, the submerged values of temporal arcs can also be extracted in measurements.

Design/methodology/approach

The methodology involves a two-step mathematical procedure in which the proposed transform of the weighted modified derivative of the polynomial is generated, followed by multiplication with a linear or ramp function. The transform introduces a stretching in the temporal or spatial domain depending on the type of variable under consideration, resulting in modifications for parameters such as time derivative and relative velocity.

Findings

Detailed analysis of various parameters in this modified time domain is performed and results are presented. Additionally, using the proposed methodology, the submerged value of any temporal arc function can also be extracted in measurements, thereby unraveling the temporal arc.

Practical implications

A typical implementation study with results is also presented for an operational amplifier-based temporal arc-producing square rooting circuit for the extraction of the submerged value of the function.

Originality/value

The proposed transform-based approach has major applications in extracting the values of temporal arc functions that are submerged in conventional experimental measurements, thereby providing a novel method in unraveling that class of special functions.

Details

COMPEL - The international journal for computation and mathematics in electrical and electronic engineering , vol. 39 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/COMPEL-01-2020-0029
ISSN: 0332-1649

Keywords

  • Circuit analysis
  • Time-domain modeling
  • Offset eliminated polynomial
  • Weighted modified derivative
  • OEP-based transform
  • Temporal arcs

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Article
Publication date: 21 September 2020

Value of initial relationships in new business start-ups

Jose Novais Santos and Joao Mota

Several studies have focussed on new ventures and the development of their first business relationships. However, the understanding of the value functions and involvement…

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Abstract

Purpose

Several studies have focussed on new ventures and the development of their first business relationships. However, the understanding of the value functions and involvement in those relationships remain inadequate. The purpose of this paper is to explore the relating process of a new venture by combining the value function framework and the notion of the degrees of involvement in business relationships.

Design/methodology/approach

The authors rely on two exploratory longitudinal case studies that focus on two start-ups. In both cases, the evolution of initial relationships with suppliers and customers over a period of time are studied.

Findings

The process of relating can occur through a diversity of business relationships manifested in both their value functions and their degree of involvement. The combination of value functions is not stable over time nor is the degree of involvement in business relationships. Moreover, specific interdependencies emerge between the value functions in the customer base and the supplier base of the new ventures over time.

Originality/value

This paper is among the few that explore the emergence of new ventures by considering both suppliers and customer relationships. From a business network perspective, the paper also shows that combining value functions and degrees of involvement provides a better understanding of the role of relationship diversity in the process of becoming a node in the business network.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/JBIM-01-2020-0007
ISSN: 0885-8624

Keywords

  • Business relationships
  • Involvement
  • Networks
  • Start-up
  • New venture
  • Value functions

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Article
Publication date: 1 November 1998

A computer system for solving inverse and optimization problems

T. Rodič and I. Grešovnik

A system for solving a wide variety of inverse and optimization problems in solid mechanics is introduced. The system consists of a general purpose finite element method…

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Abstract

A system for solving a wide variety of inverse and optimization problems in solid mechanics is introduced. The system consists of a general purpose finite element method (FEM) analysis system “Elfen” and a shell which controls this system. The shell functions as a stand‐alone programme, so the system is physically divided into two separated parts. The “optimization part”, which corresponds to the shell, possesses optimization and inverse problem solution algorithms. The “analysis part”, which corresponds to an FEM system, serves for the definition of the objective function to which these algorithms are applied. The shell has a user interface implemented in the form of file interpreter which imposes a great flexibility at the definition of various optimization and inverse problems, including parameter identification in constitutive modelling, frictional contact problems and heat transfer. Concepts of the shell are discussed in detail.

Details

Engineering Computations, vol. 15 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/02644409810236902
ISSN: 0264-4401

Keywords

  • Engineering
  • Optimization
  • Software

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Article
Publication date: 1 August 2001

Finite element solution improved by full clamping element functions

Zoeljana Nikolic´, Ante Mihanovic´ and Pavao Marovic´

Presents a procedure for obtaining an improved finite element solution of boundary problems by estimating the principle of exact displacement method in the finite element…

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Abstract

Presents a procedure for obtaining an improved finite element solution of boundary problems by estimating the principle of exact displacement method in the finite element technique. The displacement field is approximated by two types of functions: the shape functions satisfying the homogeneous differential equilibrium equation and the full clamping element functions as a particular solution of the differential equation between the nodes. The full clamping functions represent the solution of the full clamping state on finite elements. An improved numerical solution of displacements, strains, stresses and internal forces, not only at nodes but over the whole finite element, is obtained without an increase of the global basis, because the shape functions are orthogonal with the full clamping functions. This principle is generally applicable to different finite elements. The contribution of introducing two types of functions based on the principle of the exact displacement method is demonstrated in the solution procedure of frame structures and thin plates.

Details

Engineering Computations, vol. 18 no. 5/6
Type: Research Article
DOI: https://doi.org/10.1108/EUM0000000005787
ISSN: 0264-4401

Keywords

  • Finite element analysis
  • Shape functions
  • Clamping functions

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