Domenic Sculli

Factors affecting intentions to purchase via the internet

Purpose – To investigate web‐shopping behaviour in Hong Kong: identification of the general attitude towards web‐shopping; relationships between past web‐shopping experience, attitude towards web‐shopping, adoption decisions, search behaviour and web‐shopping intentions; and influences of promotional offers and product categories on web‐shopping intentions.Design/methodology/approach – Relevant hypotheses were constructed and a web‐based questionnaire survey was than conducted using technically educated subjects. The proposed hypotheses were statistically tested and principal components analysis and structural equations were used to produce a structural model.Findings – Web‐shopping intentions are directly affected by web‐search behaviour and web‐shopping adoption decisions, and are indirectly affected by web‐shopping attitudes, past web‐shopping experiences and past experience with the web. Web‐search behaviour was a stronger factor than adoption decision in terms of influencing web‐shopping intentions. ...

An inter-organizational information system for supply chain management

Abstract The deployment of the emerging concepts of information technology, strategic alliances, and business process re-engineering within the intra/inter-organizational context have become a popular prescription in enhancing supply chain management. This paper reviews the theoretical foundations for the study of inter-organizational relationships within a supply chain management context, and analyzes the contingencies of deploying inter-organizational information systems (IOIS). A framework is proposed which deploys IOIS from an IOIS providers perspective. The framework is discussed from the viewpoint of using a strategic information system within the context of the China to Hong Kong to importing country supply chain.

The role of trust, quality, value and risk in conducting e‐business

Risks and uncertainties inherent in the Internet often deter consumers from using it as a shopping channel. Companies usually assume that advanced technologies will solve such problems. This paper argues that many of these problems require non‐technical solutions: solutions that are associated with good business practice. Customer feedback may not only raise technical issues such as security and privacy, but also non‐technical issues such as guaranteed delivery time and the ability to talk live to customer services representatives for help. This paper analyses four aspects of running a business – trust, quality, value, and risk – in an Internet setting and offers three solutions. While there is no complete guarantee of sustainability and profitability in any business, the careful consideration of the issues discussed will help shield the business from pitfalls, which if not detected and dealt with, can cause the closure of an otherwise healthy business.

An outsourcing decision model for sustaining long-term performance

Outsourcing is a strategically important activity that enables an enterprise to achieve both short and long term benefits. An important but less well researched issue concerns outsourcing in relation to the long-term performance of an enterprise. This paper addresses this issue from the point of view of the protection of core competencies during outsourcing and by considering the trade-off necessary when certain amounts of knowledge transfer/sharing is inevitable. Two major outsourcing decision variables have been identified and quantified—the significance of the component/process technology involved and the risk of disclosing this technology to suppliers. Nine scenarios are generated by considering each of the two variables at three levels of severity: high, medium and low. Each scenario is explored in terms of the appropriate outsourcing approach, the appropriate management of the core competencies/knowledge, and the selection of suppliers. The validity of the outsourcing decision model is established using four products with 861 components from four manufacturing companies based in China.

A portfolio approach to managing procurement risk using multi-stage stochastic programming

Procurement is a critical supply chain management function that is susceptible to risk, due mainly to uncertain customer demand and purchase price volatility. A procurement approach in the form of a portfolio that incorporates the common procurement means is proposed. Such means include long-term contracts, spot procurements and option-based supply contracts. The objective is to explore possible synergies among the various procurement means, and so be able to produce optimal or near optimal results in profit while mitigating risk. The implementation of the portfolio approach is based on a multi-stage stochastic programming model in which replenishment decisions are made at various stages along a time horizon, with replenishment quantities being determined by simultaneously considering the stochastic demand and the price volatility of the spot market. The model attempts to minimise the risk exposure of procurement decisions measured as conditional value-at-risk. Numerical experiments to test the effectiveness of the proposed model are performed using demand data from a large air conditioner manufacturer in China and price volatility data from the Shanghai steel market. The results indicate that the proposed model can fairly reliably outperform other approaches, especially when either the demand and/or prices exhibit significant variability.

Relationship dominance – Rethinking management theories from the perspective of methodological relationalism

Questions the universality of theories of management and organizational behaviour on the ground that they have not adequately addressed the factor of culture. Traditionally, these theories consider political, regulatory, social, economic, and technological forces on behaviour, without taking into account the cultural context within which such forces operate. Neglecting the culture factor may be traced to an ideological bias that there is regularity or invariance in human behaviour regardless of cultural variation. Another issue concerns the ideology of methodological individualism. The inadequacy of existing literature and research directions is reviewed first. In conclusion, it is suggested that the traditional research paradigm, which relies on the methodological individualism, employed in decades of management and psychological research should be balanced by a more holistic approach, such as methodological relationalism, which recognizes the individual’s embeddedness in the social network.

A multi-stage financial hedging approach for the procurement of manufacturing materials

This paper addresses the problem of mitigating procurement risk that arises from volatile commodity prices by proposing a hedging strategy within a multi-stage time frame. The proposed multi-stage hedging strategy requires a commodity futures position to be correctly initialised and rebalanced with adequate volumes of short/long positions, so as to reduce the volatility in the total procurement cost that would otherwise be generated by varying commodity spot prices. The novelty in the approach is the introduction of the rebalancing of commodity futures position at defined intermediate stages. To obtain an efficient or near optimal multi-stage hedging strategy, a discrete-time stochastic control model (DSCM) is developed. Numerical experiments and Monte Carlo simulation are used to show that the proposed multi-stage hedging strategy compares favourably with the minimal-variance hedge and the one-stage hedge. A close-form optimal solution is also presented for the case when procurement volume and price are independent.

An approach to the valuation and decision of ERP investment projects based on real options

The risks and uncertainties inherent in most enterprise resources planning (ERP) investment projects are vast. Decision making in multistage ERP projects investment is also complex, due mainly to the uncertainties involved and the various managerial and/or physical constraints to be enforced. This paper tackles the problem using a real-option analysis framework, and applies multistage stochastic integer programming in formulating an analytical model whose solution will yield optimum or near-optimum investment decisions for ERP projects. Traditionally, such decision problems were tackled using lattice simulation or finite difference methods to compute the value of simple real options. However, these approaches are incapable of dealing with the more complex compound real options, and their use is thus limited to simple real-option analysis. Multistage stochastic integer programming is particularly suitable for sequential decision making under uncertainty, and is used in this paper and to find near-optimal strategies for complex decision problems. Compared with the traditional approaches, multistage stochastic integer programming is a much more powerful tool in evaluating such compound real options. This paper describes the proposed real-option analysis model and uses an example case study to demonstrate the effectiveness of the proposed approach.

The implications of Western electronic commerce for Chinese business networks

Examines the application of electronic commerce (EC) in a cross‐cultural context. The problems likely to be encountered by a Chinese organization are analysed and interpreted in terms of conflicting cultural values. The costs associated with EC are also analyzed and two new costs, technology and competition, are introduced. The costs are classified according to the traditional market and the EC market and also by the coordination mechanism. While Chinese firms are showing considerable enthusiasm for EC, it is felt that they may not yet be ready to undertake the major organizational developments and re‐engineering efforts required to successfully implement EC. EC will also present Chinese managers with faceless transactions which may conflict with current cultural values.

Fuzzy chance-constrained programming model for a multi-echelon reverse logistics network for household appliances

Efficient planning and design of an appropriate reverse logistics network is crucial to the economical collection and disposal of scrapped household appliances and electrical products. Such systems are commonly modelled as mixed-integer programs, whose solutions will determine the location of individual facilities that optimize material flow. One of the major drawbacks of current models is that they do not adequately address the important issue of uncertainty in demand and supply. Another deficiency in current models is that they are restricted to a two-echelon system. This study addresses these deficiencies by embodying such uncertainties in the model using the technique of fuzzy-chance constrained programming, and by extending the model to a three-echelon system. A heuristic in the form of a hybrid genetic algorithm is then employed to generate low-cost solutions. The overall objective is to find economical solutions to the general problem of determining the volume of appliances to be moved between the three echelons of customer base to collection sites, collection sites to disposal centres and disposal centre to landfill centre/remanufacturing centre; and to the problems of positioning the disposal centres and the landfill centre/remanufacturing centres within the problem domain. A case example in China is presented and the quality and robustness of the solutions are explored through sensitivity analysis.