Gyula Vastag

International Environmental Standards and Corporate Policies: An Integrative Framework

Corporations engaged in international business face increasingly complex challenges in preparing environmental management policies for their plants or sites in different operating environments. Rapidly evolving international standards such as ISO 14000 encourage corporations to certify their environmental management systems, but leave them broad discretion in formulating environmental policies. Certification of corporate environmental policies and management systems, however, may not be adequate for companies with plants that use different technologies and production processes or that are located at sites with different environmental characteristics. This article proposes a framework that can help international corporations develop tailored environmental policies for their plants based on their environmental risks.

The theory of performance frontiers

Abstract This paper seeks to illustrate how the basic theory of performance frontiers proposed by Schmenner and Swink [Schmenner, R.L., and Swink, M.L., 1998. On theory in operations management. Journal of Operations Management, 17, 97–113] can be extended to apply to a broader range of operations management issues. It extends the scope of the proposed theory to include a “between-firm” level analysis which can be useful in assessing a firms competitive position and for strategic decision making. In addition, this paper provides a link between the resource-based view of organizations that has gained some prominence in the strategy literature and the proposed theory of performance frontiers. This paper argues that the operating frontiers of organizations represent unique resources and they are more important than the asset frontiers in achieving a competitive advantage because these unique resources are valuable, rare and specific to a given firm, and they are difficult to replicate. Future research directions and research methods focusing on the internal resources of competitive advantage are also discussed.

Causal modeling alternatives in operations research: Overview and application

Abstract This paper uses the relationships between three basic, fundamental and proven concepts in manufacturing (resource commitment to improvement programs, flexibility to changes in operations, and customer delivery performance) as the empirical context for reviewing and comparing two casual modeling approaches (structural equation modeling and Bayesian networks). Specifically, investments in total quality management (TQM), process analysis, and employee participation programs are considered as resource commitments. The paper begins with the central issue of the requirements for a model of associations to be considered causal. This philosophical issue is addressed in reference to probabilistic causation theory. Then, each method is reviewed in the context of a unified causal modeling framework consistent with probabilistic causation theory and applied to a common dataset. The comparisons include concept representation, distribution and functional assumptions, sample size and model complexity considerations, measurement issues, specification search, model adequacy, theory testing and inference capabilities. The paper concludes with a summary of relative advantages and disadvantages of the methods and highlights the findings relevant to the literature on TQM and on-time deliveries.

American and European manufacturing practices: An analytical framework and comparisons

This paper presents a general analytical framework for making bilateral comparisons of manufacturing practices. The approach suggests a grouping of the data, defines a conservative test called a pure regional effect, and matches the data types to the appropriate statistical tests. The methodology is used to compare manufacturing practices in North America with those in Western Europe using data compiled by the Global Manufacturing Research Group. The broad hypothesis tested is that the two regions are more similar than different. For the two industries studied (small machine tools and nonfashion textiles), this hypothesis holds. Fewer than 10% of the 119 variables investigated have a significant pure regional effect. This suggests that the lack of success of joint ventures between North American and European firms must be attributed to factors other than differences in manufacturing practices. These variables for which significant effects were found reflect differences in external orientation, asset utilization and the management of details. Despite the overall similarities, differences in these factors could be important for American Managers contemplating partnerships with European companies.

Linkages among manufacturing concepts, inventories, delivery service and competitiveness

In this paper, we analyze a model that states that investing in progressive manufacturing programs, combined with a modern approach to supplier issues, has a direct effect on inventory level and structure, which in turn directly affects delivery service and delivery related competitive advantages . The model was tested on data from the Global Manufacturing Research Group . This data was broken up into three groups : the United States, Western Europe and Transitional Economies of Central and Eastern Europe . The results of a set correlation analysis showed that in all three groups of countries : (1) investing in progressive manufacturing programs and using modern approaches in dealing with suppliers were significantly linked to inventory level and structure ; (2) inventory level and structure were linked to delivery service ; (3) delivery service was related to competitive advantage . Companies from the transitional economies differed from the other two groups in that they did not show a relationship between inventory structure and competitiveness . This may demonstrate that management in transitional economies may still be working to achieve a more successful linkage between inventory structure_ and competitiveness .

Manufacturing practices: differences that matter

Abstract This paper presents a comparison of manufacturing practices between Hungary, Western Europe and North America. The supposition is that differences in operational practice may matter in the success of joint ventures or other strategic alliances. The comparison is based on a survey of firms in the small machine tool and non-fashion textile industries. The survey covered practices ranging from forecasting and planning procedures to shop floor decision making. Multivariate analyses were performed to find those areas of practice for which there were differences between the regions and industries. The differences were grouped into three broad categories: “metabolism” (the frequency, horizon, and increment for planning, forecasting and reacting to change), external orientation (the closeness to the market and degree of export sales), and managerial practices in several areas. The differences between the industries were judged less important than those between regions.

The Importance of Social Embeddedness: Churn Models at Mobile Providers

This article argues the importance of social embeddedness at mobile providers by examining the effects of customers’ network topological properties on churn probability—the probability of a customer switching from one telecommunication provider to another. This article uses data from regional snowball sampling—the only practically feasible network sampling method—to identify groups with significantly different churn ratios for customers with different network topological properties. Clear evidence indicates that individual network characteristics (node-level metrics) have considerable impact on churn probabilities. The inclusion of network-related measures in the churn model allows a longer-term projection of churners and improves the predictive power of the model. With no possibility to carry out repeated sampling, sample stability was checked through simulation results. On the one hand, this article highlights the importance and effectiveness of the providers tailored marketing campaigns by showing that customers targeted by direct marketing campaigns are less threatened by churn than nontargeted customers. On the other, this article shows that social embeddedness blocks the impact of the very same marketing efforts. This article forwards the idea that social embeddedness, also prevalent in vendor switching, can be extended to understanding the development of professional societies threatened by membership churn.

The importance of social embeddedness

This article argues the importance of social embeddedness at mobile providers by examining the effects of customers’ network topological properties on churn probability—the probability of a customer switching from one telecommunication provider to another. This article uses data from regional snowball sampling—the only practically feasible network sampling method—to identify groups with significantly different churn ratios for customers with different network topological properties. Clear evidence indicates that individual network characteristics (node-level metrics) have considerable impact on churn probabilities. The inclusion of network-related measures in the churn model allows a longer-term projection of churners and improves the predictive power of the model. With no possibility to carry out repeated sampling, sample stability was checked through simulation results. On the one hand, this article highlights the importance and effectiveness of the providers tailored marketing campaigns by showing that customers targeted by direct marketing campaigns are less threatened by churn than nontargeted customers. On the other, this article shows that social embeddedness blocks the impact of the very same marketing efforts. This article forwards the idea that social embeddedness, also prevalent in vendor switching, can be extended to understanding the development of professional societies threatened by membership churn.

Strategic programming for environmental management: Sonoco's take-back policy

T he spiraling worldwide demand for environmental protection is thrusting a bewildering set of challenges upon international corporations. The regulatory system that requires U.S. companies to reduce noxious emissions into the air and water and dispose of hazardous waste safely is spreading to other nations as the threats to human health from environmental pollution become better known. Many countries, especially in Europe, are moving beyond the regulation of end-of-pipe emissions to pollution prevention. The global concern with waste disposal, for example, has led to greater pressures on international companies to reduce packaging in consumer and industrial products, recycle materials, and lower waste disposal costs for manufacturers, retailers, and consumers. At the same time, these corporations face equaliy serious challenges in responding strategically to the business implications of ever-changing environmental regulations. The parameters of strategic action are often set by external forces, but beyond complying with local laws, corporations have wide latitude in how they adapt to envirc bnmental standards. Translating broad corporate “green” policies into environmental management systems requires companies to understand those forces, develop a vision of the future, and articulate operational strategies for achieving it. Some management theorists, such as Henry Mintzberg, argue that strategic planning, as it has been practiced by most corporations, is really Str~teX’icproRrammi~g. Companies that understand the differences between planning and strategic thinking engage in a strategy-making process that captures what managers learn from experience and synthesizes that learning into programs for achieving their “vision” for the future. Most firms have both environmental policies and business strategies that must be reconciled if they are to be implemented effectively. Strategic programming elaborates and operationalizes the strategy making process. It involves: 1. co&@ation-clarifying and explicating strategies so that their consequences can be worked out in detail; 2. elaboration-articulating policies into plans and actions that specify what must be done to realize each strategy; and 3. conve&or+making changes in the firm’s operations, budgets, and performance controls to attain corporate objectives. IMintzberg contends that corporate strategic programming should combine formal and informal methods of analysis, thereby drawing heavily on the judgments and experience of operating managers as well as on formal planning tools. The process often evolves through a continuing dialogue in which options are identified, assessed, tested, and reformulated over time. Rather than attempting to produce a one-shot plan, strategic programming continuously builds on the knowledge and experience of managers to develop

Analyzing the international competitiveness of metropolitan areas: The MICAM model

The foundation of metropolitan economic development is rapidly changing as inter-national trade and investment become more critical forces in national, regional, and urban economic growth. Economic globalization will require metropolitan areas to create a business climate that supports and attracts internationally competitive firms and industries. Conventional approaches to urban economic analysis focus primarily on the internal characteristics of metropolitan areas and treat international market trends as exogenous variables when they are taken into consideration at all. The Metropolitan International Competitiveness Assessment Model (MICAM) examines an urban regions strengths and weaknesses in the context of international trade and investment requirements.