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Article
Publication date: 5 February 2024

Yong Liu, Chang-Xue Lin and Gang Zhao

The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on…

Abstract

Purpose

The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a two-part tariff coordination mechanism.

Design/methodology/approach

To deal with this pricing conflict problems of dual-channel supply chain consisting of dominant manufacturer and a retailer, considering the fact that online reviews and in-sale service are important factors on consumers’ purchase decisions, the authors establish some basic models and exploit them to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a profit-sharing coordination mechanism.

Findings

The results show that the optimal online direct selling price is positively correlated with product perceived quality obtained from online reviews and negatively correlated with the in-sale service. The traditional retail price is positively correlated with the in-sale service and weakly correlated with online reviews. For the manufacturer and retailer, whether decentralized decision or coordination contract, their profits increase with the increase of the in-sale service in a certain range and quality perceived from spontaneous online reviews. Online reviews and in-sale service are important factors on consumers’ purchase decisions. Positive in-sale services and online reviews can provide consumers with a better shopping experience, thereby promoting their enthusiasm for shopping and improving their quality of life. The two-part tariff coordination mechanism improves the profits of the manufacturer and the traditional retailer, respectively, through the transfer fee.

Originality/value

The proposed approach can well analyze the channel conflicts and pricing problems between retailers and manufacturers with respect to product offline price and online price. The analysis and results can inform decision-making for manufacturers and retailers.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 8 August 2023

Jia Jia Chang and Zhi Jun Hu

This study aims to investigate the effects and implications of overconfidence in a competitive game involving multiple newsvendors. This study explores how overconfidence…

Abstract

Purpose

This study aims to investigate the effects and implications of overconfidence in a competitive game involving multiple newsvendors. This study explores how overconfidence influences system coordination, optimal stocking strategies and competition among newsvendors in the context of the well-known newsvendor stocking problem.

Design/methodology/approach

The study applies robust optimization theory and the absolute regret minimization criterion to analyze the competitive game of overconfident newsvendors. This study considers the asymmetric information held by newsvendors regarding market demand and obtains a closed-form solution for the competing game. The effects of overconfidence on system coordination and optimal stocking strategies are examined.

Findings

The results of the study indicate that overconfidence can act as a positive force in reducing the effects of overstocking caused by competition and asymmetric information among newsvendors. The analysis reveals that there exists an optimal level of overconfidence that coordinates the ordering system of multiple overconfident newsvendors, leading to first-best outcomes under certain conditions. Additionally, numerical examples confirm the obtained results. Furthermore, considering newsvendors' expected profit, the study finds that a higher degree of overconfidence does not necessarily result in lower actual expected profit.

Research limitations/implications

Despite the significant contributions of this study to theoretical and managerial insights, this study does have certain limitations. First, in the establishment of the belief demand function, the substitution ratio, which quantifies the transfer, is assumed to be an exogenous variable. However, in reality, this is often influenced by factors such as the price of goods and the distance between stores. Therefore, one direction worth studying in the future is to explore the uncertainty associated with the demand substitution ratio and integrate that as an endogenous variable into the optimization model. Second, this study does not address the type of product and solely focuses on quantitatively analyzing the effect of salvage value on the optimal stocking strategy. Future studies can explore the effect of degree of perishability and selling period of the product on the stocking. Third, the focus of uncertainty in this study revolves around market demand, and the implications of this uncertainty are significant. A recent study (Rahbari et al., 2023) addressed an innovative robust optimization problem related to canned foods during pandemic crises. The recent study's findings highlighted the effectiveness of expanding canned food exports to neighboring countries with economic justification as the best strategy for companies amidst the disruptions caused by the coronavirus disease 2019 (COVID-19) pandemic. Incorporating the issue of disruptions into the authors' research would be interesting and challenging.

Practical implications

From a managerial perspective, the authors' study provides a research paradigm for game-theoretic inventory problems in scenarios where the market demand distribution is unknown. While most inventory problems are analyzed and solved based on expectation-based optimization criteria, which rely on an accurate distribution of market demand, obtaining this information in practice can often be challenging or expensive for decision-makers. Consequently, a discrepancy arises between real-world observations and theoretical identifications. This study aimed to complement previous research and address the inconsistency between observations and theoretical identification.

Social implications

The authors' research contributes to the existing understanding of overconfidence and assists individuals in making appropriate stocking strategies based on the individuals' level of overconfidence. Diverging significantly from the traditional view of overconfidence as a negative bias, the authors' results show the view's potential positive impact within a competitive environment, resulting in greater actual expected profits for newsvendors.

Originality/value

This study contributes to the existing literature by examining the effects of overconfidence in a competitive game of newsvendors. This study extends the analysis of the well-known newsvendor stocking problem by incorporating overconfidence and considering the implications for system coordination and competition. The application of robust optimization theory and the absolute regret minimization criterion provides a novel approach to studying overconfidence in this context.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 25 August 2023

Fabiano Siqueira de Oliveira, Octávio Ribeiro de Mendonça Neto, Jose Carlos Tiomatsu Oyadomari and Claudio de Araújo Wanderley

This study aims to explore how management accounting practices act as drivers of organizational change in situations of institutional complexity.

Abstract

Purpose

This study aims to explore how management accounting practices act as drivers of organizational change in situations of institutional complexity.

Design/methodology/approach

A case study was carried out in a small company with a strongly rooted social culture, which was acquired by a large conglomerate and underwent a process of strategic change as part of a new control logic. Based on this, the study analyzes the evolution of this change, with a particular focus on the efforts to construct the meaning of the performance through the inscription of objects from the cultural system to which it is attached and the “situated rationality” of the managers who are involved in its production.

Findings

The authors show how managers link their own concepts of performance to accounting practices. At the same time, the authors show how accounting practices unfold through representational gaps that their production generates.

Research limitations/implications

This study acknowledges that bias may arise from reliance on retrospective views of past processes and events, gathered primarily through interviews, documentation and observations.

Practical implications

This study highlights that the way in which the performance concept is presented by accounting practices can have a constructive effect on the organization through the aspirations that its representations entail, thus having the potential to stimulate change in organizations.

Originality/value

This study contributes to the organizational literature by clarifying that accounting practices drive change by providing spaces for debates and questions that affect the way organizations understand and report their performance.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 3 January 2023

Simon Wyke, Søren Munch Lindhard and Jesper Kranker Larsen

Cost and time are two of the primary benchmarks in which construction projects are measured. A variety of factors, however, affect cost and time on construction projects, as…

Abstract

Purpose

Cost and time are two of the primary benchmarks in which construction projects are measured. A variety of factors, however, affect cost and time on construction projects, as identified in previous research. This has led to a need for better understanding how factors affecting cost and time overruns on public construction projects can be managed more efficiently. The purpose of this paper is to address these issues.

Design/methodology/approach

In this study 26 factors affecting cost and time overruns on construction projects were identified, through qualitative interviews with project managers from Danish governmental agencies and through a literature review. Through principal component analyses the 26 factors were subsequently narrowed down to four primary latent factors.

Findings

The identified four latent factors affecting cost and time overruns on public construction projects were lack of quality management, lack of project pre-planning, lack of user management and lack of project management.

Originality/value

Previous research has focussed on increasing knowledge by identifying and ranking factors affecting time and cost performance. This has led to the identification of an overwhelming number of factors to use for managing construction projects. The present research reduced the number of factors by clustering them into key latent factors responsible for most of the deviation in performance, narrowing the scope of construction cost and time management into a few tangible key focus areas. This supports and improves fast decision-making that is necessary in a changeable environment such as construction.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 6 February 2023

Vidya Umakant Khanapure and Sameer S. Shastri

The importance of lean and sustainability integration in sustainable construction (SC) has been extensively studied. However, a practical and thorough implementation methodology…

Abstract

Purpose

The importance of lean and sustainability integration in sustainable construction (SC) has been extensively studied. However, a practical and thorough implementation methodology addressing the project life cycle phases is still inadequate. The present study has developed a novel phase-wise sustainable–lean implementation methodology for high-rise residential projects.

Design/methodology/approach

The current study has identified the 50 direct conceptual interactions between 11 lean principles and 11 sustainability criteria encompassing 44 different attributes covering 174 sustainability actions. A panel of nine experts validated these interactions, and 50 integration vectors were proposed addressing different phases of the project life cycle of high-rise residential buildings. The experts also analysed the identified integration vectors for their current and likely future implementation in high-rise residential projects.

Findings

The interactions between lean and sustainability principles led to the development of a phase-wise implementation methodology. The experts' survey responses on the current level of implementation revealed that 40, 32 and 28% of integration vectors were implemented rarely, sometimes, and frequently, respectively. For likely future implementation, 28 and 72% integration vectors were reported as very likely and extremely likely to implement, respectively. This survey response highlighted the usefulness of identified integration vectors for enhancing the sustainability of high-rise residential projects.

Originality/value

The proposed sustainable–lean implementation methodology acts as a comprehensive guideline for implementing a lean approach to achieve the objectives of SC in high-rise residential projects. This may facilitate the transition from conventional to sustainable building practices using a lean approach.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

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