Joan P. Mileski

The challenge of effective governance: the case of Swiss Air

Purpose – The purpose of this paper is to address corporate governance structures. Effective corporate governance can lead to managerial excellence but managerial ethical excellence does not always exist without effective corporate governance. Embedded in both effective corporate governance and managerial excellence is the “rightness of decisions” or the ethical decision making process. This paper analyzes this key process in the case of the failure of Swissair.Design/methodology/approach – The authors examine the key corporate governance structure through an explanatory case analysis of Swissair. They look at the structure by applying institutional theory rather than agency theory. It is hypothesized that corporate governance structures must comply with the norms generated by various stakeholders as well as economic incentives. No one set of norms may dominate the compliance; otherwise a corporation loses legitimacy and resources. It is contended that this lack of compliance of all stakeholder norms led ...

Using antimicrobial solution for irrigation in appendicitis to lower surgical site infection rates

BACKGROUND The use of antimicrobial solutions for irrigation in appendicitis is controversial. Numerous antiseptic and antibiotic solutions have been suggested for use as an intraoperative irrigant. We sought to determine whether there was a difference in postoperative surgical site infections (SSIs) comparing normal saline (.9%), antiseptic solution (Dakins, .25%), and an antibiotic solution (imipenem 1 mg/mL). METHODS We performed a retrospective study of adult appendectomies from January 1997 through November 2007 at a single institution The data were evaluated by multivariate logistic regression analysis and chi-square test. The incidences of postoperative overall SSI, wound infection, and abdominal abscess were compared. RESULTS A total of 1,063 cases were identified. Saline (n = 661) had an SSI rate of 9.8% (65/661), a wound infection rate of 7.3% (48/661), and an abdominal abscess rate of 4.2% (28/661). Dakins (n = 208) had an SSI rate of 20.7% (43/208), a wound infection rate of 15.9% (33/208), and an abdominal abscess rate of 9.1% (19/208). Imipenem (n = 194) irrigation had an SSI rate of .5% (1/194), a wound infection rate of .5% (1/194), and an abdominal abscess rate of .5% (1/194). CONCLUSIONS These results suggest that abdominal irrigation with an antibiotic solution (imipenem 1 mg/mL) is superior to both normal saline and Dakins solution.

The relative efficiency and financial risk assessment of shipping companies

Since shipping companies are highly competitive, we ask whether financial risk assessment tools impact company performance and, therefore competitiveness and efficiency. Stochastic Frontier Analysis (SFA) is used in the evaluation. Based on distinct features of the risk-return relationship, three cargo segments in the shipping industry are studied—dry bulk, liquid bulk, and containerized cargo. The influence of the risk assessment indicators on market and operational efficiency is subsequently determined using a panel regression to determine whether different asset allocation and risk management techniques improve the performance of shipping companies. In this analysis, 79 international shipping companies listed in Bloomberg Shipping Indices are included in the data collected from Thomson One for the period of 2001–2010. Efficiency estimation from the SFA shows that containerized cargo firms have better performance in both market and operating efficiencies. Operating efficiency performance is achieved by lowering liquidity. Market efficiency is improved by well-managed leverage level.

Heuristic estimation of container stacking and reshuffling operations under the containership delay factor and mega-ship challenge

ABSTRACT This paper addresses a highly researched area, the reshuffling problem in ports, using a new paradigm-modified containership service order in light of credit risk assessment. Container stacking and reshuffling operations can cause ship delays and additional risk. In deep-sea terminals, outbound containers are tightly stacked according to the retrieval sequence. Due to lack of space, terminals stack containers in multiple tiers. This means any delay in the arrival of a ship can impose extra handlings and reshuffling of containers delaying future cargo handling. This paper addresses the reshuffling problem with a concept similar to the credit scoring and rating of creditworthiness used in the banking industry. By utilizing this comparison to the banking credit risk concept, a heuristic estimation model is proposed that illustrates the side effects of unscheduled modifications in containership service order. Further, the mega-ship trend amplifies the reshuffling debate. Probability of delay, reshuffles given delay, and call size at delay are introduced as the three-point risk metrics of the model. Numerical simulations illustrate the functionality to develop terminal stacking strategies as well as emphasize the mega-ship phenomenon and its side effects on terminals (i.e. yard operation deadlock).

The Three Dimensions of Quality Service: The Case of Service Quality Gaps in the U.K. National Health Service?

Abstract United Kingdom hospitals have traditionally defined quality as the level of service provided whereas patients define quality as service that meets their expectations. These two definitions highlight a focus difference and result in “service quality gaps.” This article develops a model of service quality gaps built on three dimensions: the focus of service organisation management, the perceiver of the service, and strategy implemented. The model is empirically tested using a 2001 survey of the chief executive of each of hospitals in England and Wales. We find where gaps exist, there is interconnectedness between them, and strategic focus change provides improved quality.

How to Thwart Success in Piracy: Core Strategies of Security

Many piracy security experts agree that the level of lethal violence will continue to accelerate resulting in “small wars” on the open sea [Christie C (2011) Piracy likely to escalate into small wars says expert. Maritime Reporter and MarineNews Magazine Online (March 24, 2011). Available online www.marinelink.com/news/escalate-likely-piracy337708.aspx]. If the events begin to resemble “small wars” then new security defenses are needed. Vessel operators can learn from military strategy to adopt company strategies that reduce the ability of pirates to be successful.

Achieving competitive advantage through effective communication in a global environment

Considerable research has been conducted to analyze the effects of elements such as information technology, efficiency, and innovation on the performance of a company (Bhatt & Grover, 2005; Bowonder et al, 2010; Ogrean et al, 2009; Piccoli & Ives, 2005). However, company success is dependent on effective communication particularly in a multicultural and competitive global environment yet the types of effective communication that impact competitiveness have not been well explored. Although companies are aware of the importance of communication, far less attention is paid to promoting the use of effective communication within and outside the organization as compared to other factors. The Macondo oil spill crisis in the Gulf of Mexico provides a topical case study of how global companies can suffer performance losses due to ineffective communication. Traditional views of organizational competitive advantage have failed to directly address the importance of communication as a differentiator. This paper addresses the importance of effective communication in building and maintaining performance success (Tucker et al 1996) and explores three key types of effective communication in maintaining success through competitive advantage. These three types include the right combination of “soft” and “hard” information gathering, superior interpersonal communication and the appropriate use of information and communication technologies. We use the Macondo case study as a venue to test the successes and failures of communication on performance We find where there is a lack of effective communication an organization’s global competitive ability is severely impaired. Further, we address how communication impacts the other elements that contribute to competitive advantage such as efficiency, responsive public Received: August, 2017 1st Revision: October, 2017 Accepted: December, 2017 DOI: 10.14254/20718330.2018/11-1/4 Journal of International Studies S ci en ti fi c P a pe rs

A game theory application of a cruise value chain – the case of China

Purpose Regardless of the facts showing a booming Chinese cruise market, cruise operations in China are very different from the current practices of the two major cruise markets – the US and the Mediterranean Sea. This study aims to quantify pricing strategies and possible incentive mechanisms of cruise operations in China. Design/methodology/approach Using optimization in economic-based game theory, the complexity of the pricing strategies and interaction and/or possible coordination within the cruise value-added chain can be captured. Findings The results show that a coordinative pricing strategy with Shapley profit redistribution within the value-added chain offers benefits to both cruise passengers and service suppliers. With two subsidy scenarios, one to the passenger and the other to the travel agent, a cooperative pricing strategy outperforms other strategies and successfully increases market shares and total revenue. Originality/value The advantages of coordination between participants in cruise value chain are quantified. Effective strategies for attracting players participating in cruise value chain are designed. This paper will provide market participants with strategies to enhance their decision-making processes.

Performance obligations for “revenue from contracts with customers” principle in the shipping industry

Purpose The aim of this paper is to investigate the gap between cost-based and time-based revenue recognition schemes in the accounting of ship-owning corporations, and to propose cost-based revenue recognition (as in general accounting practice) in connection with the performance obligations. Design/methodology/approach For a comparative analysis of time-based (traditional approach) and cost-based schemes, a sample of dry bulk ships is selected and voyage estimations are performed by certified professional shipbrokers (Fellow of the Institute of Chartered Shipbrokers) (data collection and voyage estimation by practitioner). Performance obligations are also defined by certified shipbrokers (i.e. survey and expert opinion) and certified public accountant based on common shipping business practice and accounting practice in general. Findings Empirical results indicate the significant gap between two alternative schemes. Cost-based revenue recognition accelerates the revenue recognition (benefit of shipowner), and it enables comparability among other industries since cost-based allocation is the common practice in accounting (matching principle, Generally Accepted Accounting Principles). Research limitations/implications It is obviously impossible to observe all kinds of freight market transactions for all different kinds of vessel particulars. The sample size does not undervalue the current study since the central idea of this paper is not the verification of the cost-based recognition in all possible transactions. Practical implications The proposed approach debiases the existing recognition practice as well as improving the speed of revenue recognition. In the existing practice, time-based recognition is still based on voyage estimations (time estimation). Voyage estimations conventionally answer two questions: “What is the cost of the voyage?” and “What is the duration of the voyage?” Therefore, the proposed approach does not require any additional work done. Common practice also clarifies the cost-based schedule for revenue recognition. Originality/value This paper addresses the unconventional accounting practice and its incomparability problem for the first time. To the best of the authors’ knowledge, this paper is also the first study on accounting economics of the shipping business. This paper proposes a practical solution to the debate raised by Financial Accounting Standards Board 2014-09 regulation on accounting standards by utilizing a staging approach and cost-based revenue allocation.

Port Sophistication and Country Economic Status: Seaports as Indicators of Economic Development

Historically, seaports (hereinafter “ports”) have been critical to a country’s economic development and serve as a central and necessary component in facilitating trade. At the same time, the level of sophistication of port operations, infrastructure, and abilities must be congruent with the level of the country’s economy it serves. Ports have undergone important processes of evolution.1 The function of ports has traditionally been related to some aspect of inland growth and economic progress.2 Changes in trade flows and mix, whether imports or exports, set the framework for port infrastructure. Each individual product has different logistics characteristics,3 which in turn has an impact