Ching Chyi Lee

Knowledge value chain

Introduces the knowledge value chain model as a knowledge management (KM) framework. The model consists of knowledge infrastructure (knowledge worker recruitment, knowledge storage capacity, customer/supplier relationship and CKO and management), the process of KM (knowledge acquisition, knowledge innovation, knowledge protection, knowledge integration, and knowledge dissemination), and the interaction among those components resulting in knowledge performance. Further to the discussion of knowledge value chain (KVC), the following viewpoint was proposed: KM guides the way a corporation performs individual knowledge activities and organizes its entire KVC. It was suggested that competitive advantage grows out of the way corporations organize and perform discrete activities in knowledge value chain which should be measured by the core competence of corporation. This article also provides a cross‐reference for e‐commerce researchers and practitioners.

Who should control inventory in a supply chain

In view of the recent popularity in supply chain management to transfer the stock level decision and the stock keeping responsibility to the upstream, we consider in this paper whether a two-member supply chain (the upstream vendor V and the downstream retailer R) operating in a newsboy environment should adopt this new mechanism. The supply chain can be operated in one of two ways: the traditional way, in which the downstream retailer decides the inventory level and keeps the inventory, or the new way in which inventory-keeping responsibility and stock level decision switch to the upstream vendor. By comparing the expected payoffs in these two cases, we find that transferring demand-uncertainty risk from R to V does not necessarily lead to a higher expected payoff for R or a lower one for V. In general, we find that the critical fractile used in a newsboy problem to determine the optimal stock level can often be used as a yardstick to quickly assess the merits of adopting the new mechanism. Furthermore, we show that when the critical fractile of V is greater than that of R, adopting the new mechanism always makes both V and R better off, provided some kind of risk-sharing rule could be implemented.

Strategic information sharing in a supply chain

Abstract We consider a two-member supply chain that manufactures and sells newsboy-type products and comprises a downstream retailer and an upstream vendor. In this supply chain, the vendor is responsible for making stock-level decisions and holding the inventory, and the retailer is better informed about market demand. In each period, the retailer receives a signal about market demand before the actual demand is realized, and must decide whether to reveal the information to the vendor, at a cost, before the vendor starts production. We assume that any information that the retailer reveals is truthful. We model the situation as a Bayesian game, and find that, in equilibrium, whether the retailer reveals or withholds the information depends on two things—the cost of revealing the information and the nature of market demand signal that the retailer receives. If the cost of sharing the information is sufficiently large, then the retailer will withhold the information from the vendor regardless of the type of signal that is received. If the cost of sharing the information is small, then the retailer will reveal the information to the vendor if a high demand is signaled, but will withhold it from the vendor if a low demand is signaled. In general, reducing the cost of sharing information and increasing the profit margin of either the retailer or the vendor (or reducing the cost of the vendor or retailer) will facilitate information sharing.

Quality/productivity practices and company performance in China

Examines the relationships between quality and productivity improvement approaches currently adopted by Chinese firms and the quality, operating, and financial performances of these firms. Three major hypotheses were formed, namely: a company’s quality performance is correlated to its quality and productivity improvement approaches; a company’s operation performance is correlated to its quality and productivity improvement approaches; and a company’s financial performance is correlated to its quality and productivity improvement approaches. The hypotheses were tested by using sample data collected from 373 companies in the People’s Republic of China. The first two hypotheses were confirmed, although the second was only weakly supported. The findings of this paper are to large extent consistent with those of previous studies.

The knowledge value of customers and employees in product quality

Seeks to understand whether the level of knowledge acquisition from customers and the participation of employees in knowledge dissemination have an impact on the product quality. Proposes a structural model of the impact of knowledge management on the quality of a new product. Employing confirmatory factor and regression analysis, examines the relationship between KM and product quality, and finds some interactions between KM and moderators also have significant effect on product quality. These findings imply that if organizations fail to understand the subtle ways by which different features of KM influence product quality, they may fail to harvest the full value of KM.

Bargaining and Search: An Experimental Study

We study experimentally two versions of a model buyer and a seller bargain over the price of a good; however, the buyer can choose to leave the negotiation table to search for other alternatives. Under one version, if the buyer chooses to search for a better price, the opportunity to purchase the good at the stated price is gone. Under the second version, the seller guarantees the same price if the buyer chooses to return immediately after a search (presumably because a better price could not be found). In both cases, the buyer has a fairly good idea about what to expect from the search, but because the search is costly, he has to weigh the potential benefits of the search against its cost. It turns out (theoretically) that adding search to a simple bargaining mechanism eliminates some unsatisfactory features of bargaining theory.Our experiment reveals that the model can account for some (but not all) of the behavioral regularities. In line with recent developments in behavioral decision theory and game theory, which assume bounded rationality and preferences over the relative division of a surplus, we find that subjects follow simple rules of thumb and distributional norms in choosing strategies, which are reflected in the behavioral consistencies observed in this study.

Synergy, learning and the changing industrial structure

In a set-up of two local firms and one foreign firm, we construct a model to capture the dynamics of local industrial structure induced by formation and breakdown of cross-border joint ventures (JVs). There is a synergic gain to the JV, and the partners learn from each other. Firms play a repeated game. We characterize the resulting industrial configurations under different scenarios as defined by the extent of cost saving. In particular, we show that when cost saving is moderate, an alliance formed between two firms in the first period, breaks up and a new alliance is formed in the second period, but again it breaks up; thereafter the market becomes an oligopoly of all three firms.

The Hidden Value of Knowledge in New Products

The purpose of this article is to evaluate the impact that knowledge management has on new product success. In this study, two aspects of knowledge management—knowledge acquisition and knowledge dissemination—were examined relative to traditional determinant of new product success. Moderating effect of competitive intensity is also investigated. The results generally support the importance of knowledge management to new product success. These findings imply that if organizations fail to understand the subtle ways by which different features of KM influence new product success, they may fail to harvest the full value of KM.

Rhinitis Symptom Utility Index (RSUI) in Chinese Subjects: A Multiattribute Patient-preference Approach

Background: The Rhinitis Symptom Utility Index (RSUI), originally developed in the United States, consists of a patient-preference weighting scheme and a 10-item questionnaire measuring the severity and frequency of rhinitis related symptoms over a 14-day period. This study aimed to determine whether the Chinese RSUI could adopt the US-based multi-attribute utility function (MAUF) in scoring rhinitis symptoms. Methods: In a Hong Kong study, 116 Chinese adults with allergic rhinitis completed the RSUI questionnaire and 36-item Short-Form Health Survey (SF-36) after they had been seen by two otorhinolaryngologists for disease-severity ratings. Respondents then completed computer-administered direct preference measures, i.e., visual analogue scale (VAS) and standard gamble (SG) assessments. The VAS and SG data were used to estimate a MAUF for the Chinese-based RSUI. Results: The derived MAUF was somewhat different than the one developed for the US RSUI. Test–retest reliability for the Chinese RSUI was satisfactory (ICC = 0.71, p<0.001). Scores differentiated among cases with mild, moderate, and severe symptoms (p<0.001); and between those who did and did not require medications to control symptoms (p = 0.031). Findings were significantly correlated with SF-36 domain scores (r = 0.19 to 0.37; p=0.041 to <0.001). When the US-based scoring function was applied to the Chinese subjects, the resulting mean RSUI score was significantly lower (p<0.001). Comparisons between directly measured VAS and SG scores between the US and Chinese samples, demonstrated significant differences (all p<0.05), with the US subjects consistently rating rhinitis symptoms as worse than Chinese subjects. Conclusions: The Chinese RSUI has good measurement properties that reflect patient preferences from the Chinese. Results suggest that there are differences in preference rating between US and Chinese subjects and that use of the US-based preference function for the RSUI would bias the measurement of rhinitis symptom outcomes in Chinese subjects.

Industrial structure and innovation: comparison of innovative performance between South Korea and Taiwan using patent data derived from NBER

South Korea and Taiwan differ significantly in their industrial structures, with the former comprising mainly of Chaebols and the latter SMEs. One interesting question to ask then is whether such a difference may affect their respective innovative ability and performance. Using patent data derived from the NBER website, we find that their performances are very close. The quality of their inventions, as measured by originality and generality, were about equal. Although Taiwan slightly outperformed South Korea in the total number of patents obtained, South Korean inventions seem to result in better commercial values. Finally, we analysed the relationship among the average number of patent citations received, the year and the technology category. The results suggest that (1) innovative performance is related to the technology field and (2) there have been significant changes over time for both countries in the growth rate of patents and in the average number of citations received.