Beate Klingenberg

Impact of environmental management system implementation on financial performance

Environmental management systems (EMS) seek to make companies simultaneously more competitive and environmentally responsible. Improved environmental performance can be sought from the adaptation of techniques that emphasize reduction of waste and process/product redesign in the quest of reducing environmental impact. However, EMS lacks a framework to quantify improvements and much of the evidence of EMSs impact on financial performance is anecdotal. This lack of theoretical development has served to diminish corporate support, thus reducing the likelihood of EMS implementation due to a perceived cost disadvantage. This paper proposes, and tests, a framework to quantify EMS improvements to determine the impact of EMS strategies on financial performance. Our findings suggest that implementation of an EMS strategy does not negatively impact a firms financial performance.

Optimization of residential property management

Purpose – The paper aims to provide an analysis of the principle‐agent relationship between owner (principal) and manager (agent) of investment properties by: developing an optimization model for the net profit scenario that any third party manager of properties in multiple locations faces; and describing the principals (or owners) problem and likewise developing an income optimization model. The model allows illustrating the misalignment of incentives and compensation arrangements common to the business of managing small investment properties.Design/methodology/approach – The paper provides an in depth review of literature on the agency problem, both in general as well as in real estate research and compares the qualitative findings with analytical results provided by the model. The latter is developed by applying a transaction cost framework to the context of income structures in investment properties and their management.Findings – The optimization model shows that profit maximization for the manger ...

Rent control revisited: effects on property management

Purpose – The purpose of this paper is to show how an optimization model previously published by the authors is employed to study the effects of rent control on income optimization for the owner and the manager, as well as on the principal‐agent relationship. The model explains effects on management, maintenance and housing quality observed under rent control.Design/methodology/approach – The optimization model is developed by applying a transaction cost framework to the context of income structures in investment properties and their management. Rent control is introduced into the model as a rent maximum.Findings – Under rent control, the manager is forced to optimize income solely through cost control, without motivation to provide above minimum services. The owner is unable to optimize income. Income and funds available for management and maintenance are reduced by costs uncontrollable by the owner. Consequently, management and maintenance are reduced, if not eliminated, resulting in deterioration of th...

Teaching the Global Dimensions of Technology Management: A Framework for Course Development

Technology management education emerged in order to enable technology- driven firms link strategic management goals to their technological capabilities and requirements. Technology in the broadest sense has become a driver for individual firms and entire industries, as well as being the key component for the increasingly complex global economy. It is therefore a given that technology management programs need to provide a thorough understanding of how technology impacts the global economy, and vice versa, how to manage globalized technology. This paper provides a framework for the development of courses that address this requirement. In particular, the framework focuses on study-abroad courses, which allow integrative, cross-cultural learning while being exposed on-site to the effects of globalization. Two methodologies are combined to build the framework. As part of a vision-driven approach to program development, program and basic course learning objectives are defined. Second, a systems perspective is used to identify the relationships between business, society, and governments, for which technology management education is playing the role as mediator. Course learning objectives are mapped to the identified relationships. Based on these refined learning objectives, the detailed visits and activities for a study-abroad trip are developed. This process is exemplified with the case of a study-abroad trip to China, which is a mandatory course in an existing technology management program. The paper concludes with recommendations to educators on how the framework can be applied in order to customize such courses for visits to different countries or regions.

Real estate risk: heavy tail modelling using Excel

Purpose - – The purpose of this paper is to present a practice briefing in the form of a user’s manual for Excel-based simulation of real estate risk. Based on a generic discounted cash flow model, the simulation incorporates the often ignored heavy tail behaviour of real estate investments, and consolidates Jensen’s inequality. The briefing attempts to explain a model that permits the user to decide whether to include extreme events in real estate risk modelling and how extreme these events may be. Practitioners can generate a variety of modelling outcomes and then choose risk comfort zones in which to contemplate a range of returns. Design/methodology/approach - – The paper provides an overview of the underlying mathematical concepts and challenges, as well as on the perspectives on their application from the current academic literature. It offers a step-by-step walk-through of the Excel model (the model being downloadable at: Findings - – Existing models for real estate risk modelling fall short with respect to realistic simulation of the probability of extreme events due to challenges in the implementation of stable laws. These former barriers to the implementation of stable laws have been overcome by providing a unique combination of Excel-resident functionalities with a stable pseudo random number generator. Research limitations/implications - – Investment advisers no longer need expensive add-ins to estimate risk. The presented Excel model is more robust than common approaches as it considers distribution shapes that are not otherwise easily available. The only apparent limitation is that users need to be familiar with the most basic functionality of Excel. Practical implications - – Practitioners are provided with an easy-to-use Excel model that does not require further software add-ins. The model simulates real estate investment returns, based on a more realistic inclusion of risk behaviour. It allows specifying how much extreme value behaviour characterizes the volatility in future projections modelled to guide investment decisions. Social implications - – Risk is a cost to society. Many recent news events demonstrate the importance of including extreme values in modelling. The paper attempts to contribute to more realistic risk estimation in real estate investment. Originality/value - – This briefing introduces a real estate risk simulation model that includes using stable laws, using Excel, a familiar and widely used platform. Such a model has not previously been reported in the academic or practitioners’ literature.

Hiring for the green economy

Purpose – The purpose of this paper is to investigate how recruiters at a college career fair perceive sustainability and the knowledge business graduates should have about it. It reports on how recruiters understand sustainability and perceive their organization’s engagement and resulting expectations for new hires. The results indicate that recruiters neither understand sustainability well, nor are suitably informed of their organizations’ needs with respect to this topic. Educators, as a consequence, face a dilemma of how to craft adequate educational experiences, as employer needs are not clearly expressed. The paper concludes with suggestions on how educational institutions can nevertheless proceed with offerings in sustainability education. Design/methodology/approach – The study was performed by conducting personal, structured interviews at a college career fair. Findings – While most respondents considered sustainability to be an important topic, there appears to be a lack of thorough understandin...

Teaching Note---Learning Outcome Assessment Using an Integrative Assignment on Location Decision Making

Driven by the need to develop an integrative tool to assess learning outcomes for an Association to Advance Collegiate Schools of Business AACSB accredited MBA program, this teaching note presents a unique assignment that requires students to identify appropriate decision modeling tools for the multi-step analysis to support a location decision. The specific value of this assignment is that although the business scenario is simple but nevertheless realistic, developing the supporting analysis requires application and integration of several decision making models. Students need to exhibit the capability to choose appropriate models, to apply them correctly, and to link the results together to support the final, integrative decision. The assignment therefore allows instructors to evaluate two aspects: 1 proficiency with individual modeling tools and 2 the ability to combine such tools for a comprehensive analysis of a realistic business scenario. The assignment is applicable to learning outcomes assessment for learning objectives such as technological and quantitative skills or critical thinking.