Nitin Joglekar

Exploring Resource Efficiency Benchmarks for Environmental Sustainability in Hotels

Successful environmental sustainability (ES) initiatives aim for simultaneous environmental and economic benefits. Benchmarking these initiatives must therefore account for environmental and economic outcomes. To this end, the authors propose to construct a cost-based resource efficiency measure for ES from reported financial data. This approach links the environmental and economic performance outcomes by extracting information from resource related expenses normalized by RevPAR (revenue per available room). Through exploratory factor analysis of an eight-year panel of 984 U.S. hotels, the authors identified two factors that drive resource efficiency in hotel operations, one of which is operations-centered and the other customer behavior–centered. This two-factor measure quantifies the weights that operations and customer behavior contribute to resource efficiency and measures the systematic variations across key hotel operating characteristics. Such resource efficiency benchmarks complement the practice-focused environmental management systems developed by individual hotel companies and guidelines proposed by government agencies such as the U.S. Environmental Protection Agency.

Pushing the Frontier of Sustainable Service Operations Management: Evidence from US hospitality industry

Purpose – The purpose of this study is to develop a performance measurement system of environmental sustainability in service settings and to empirically examine the relationship between the measured environmental sustainability and operating performance.Design/methodology/approach – This study applies exploratory factor analysis (EFA) to a six‐year panel dataset of 984 US hotels to construct a two‐factor standardized measure of environmental sustainability. The authors then conduct a stochastic frontier analysis (SFA) to investigate the relationship between the measured environmental sustainability and the operating performance frontier, considering the impact of operating structure.Findings – Customer behavior and operational decisions are two key drivers of environmental sustainability. There is a positive link between environmental sustainability and operating performance. Operating structure has a significant impact on the operating performance. The performance frontier varies across market segment a...

Marketing, R&D, and Startup Valuation

The problem focus is on startup decisions associated with staged venture financing, where both R&D and marketing are significant percentages of overall expenses. When should a startup owner acquire working capital, and how should she/he distribute that capital between R&D (to improve product quality) and marketing (to increase sales) to ultimately grow valuation? Also, should the startup owner cap the total R&D and marketing budgets to increase profitability during staged venture financing? We develop a model to study resource acquisition and allocation decisions across successive stages of startup growth. The model incorporates a funding process whereby the startup valuation is positively impacted by improved product quality and market growth. This model provides insights on optimal acquisition and allocation practices and characterizes the impact of changes in productivity, along with the evolution rate of R&D and marketing payoffs, on the underlying decisions. Our results also illustrate conditions for optimal capping of R&D and marketing expenses as a percentage of revenues.

The Effects of Outsourcing, Offshoring, and Distributed Product Development Organization on Coordinating the NPD Process

Outsourcing arrangements continue to evolve from peripheral activities, such as food services and back office transaction processing, to encompass more core activities such as new product development. Some arrangements maintain a clear lead organization while others, such as open source networks, are less centralized. We develop a framework identify the specific impact of different outsourcing arrangements on the search, selection, transformation, and coordination processes involved in new product development new product development.

Production, Process Investment and the Survival of Debt Financed Startup Firms

Over 70,000 firms are launched in the US alone every year. A sizable number of these startups require process investments to reduce their production cost. Whether to invest in process R&D to reduce unit cost and raise future profits, instead of conserving cash to reduce the likelihood of bankruptcy is a dilemma faced by many startups firms after launch. Fehmi Tanr sever, Sinan Erzurumlu, and Nitin Joglekar offer insights for managing this dilemma by examining the production quantity and cost-reducing R&D investment decisions in a two-period model. In this setting, the startup must make predetermined amount of profit at the end of this first period in order to survive and play in the second period. The authors show that with deterministic demand, it is optimal to deploy all-or-nothing R&D investment policy and to produce monopoly quantity. However, under a probabilistic survival constraint, the authors establish conditions when the startup can create operational hedges: make a “conservative” process R&D investment and then increase its survival chances by sacrificing some first period expected profits, i.e. produce less than the monopoly quantity. Alternatively, startups can invest “aggressively” and produce more than the monopoly quantity to cover the higher survival risk associated with aggressive R&D investment.

Self-Cleaning Solar Mirrors Using Electrodynamic Dust Shield: Prospects and Progress

Parabolic trough and power tower technologies provide inherent advantage of thermal energy storage and high efficiency of the Concentrating Solar Power (CSP) systems for utility scale solar plants. High efficiency CSP power generation with minimal water use is one of the SunShot goals of the US Department of Energy. The specular reflectance efficiency of the solar mirrors plays a critical role in the efficiency of power generation. The optical surface of the mirrors and the receiver must be kept clean for efficient operation of the plant. Some environmental challenges in operating the large-scale CSP plants at high reflectance efficiency arise from high concentration of atmospheric dust, wind speed and variation of relative humidity (RH) over a wide range. Deposited dust and other contaminant particles, such as soot, salt, and organic particulate matters attenuate solar radiation by scattering and absorption. Adhesion of these particles on the mirror surface depends strongly by their composition and the moisture content in the atmosphere. Presence of soluble inorganic and organic salts cause corrosion of the mirror unless the contaminants are cleaned frequently.In this paper, we briefly review (1) source of atmospheric dust and mechanisms involved in degradation of mirrors caused by salt particles, (2) loss of specular reflection efficiency as a function of particle size distribution and composition, and (3) an emerging technology for removing dust layer by using thin transparent electrodynamic screen (EDS). Feasibility of integration of EDS on the front surface of the solar collectors has been established to provide active self-cleaning properties for parabolic trough and heliostat reflectors.Prototype EDS-integrated solar collectors including second-surface glass mirrors, metallized acrylic film mirrors, and dielectric mirrors, were produced and tested in an environmental test chambers simulating desert atmospheres. The test results show that frequent removal of dust layer can maintain the specular reflectivity of the mirrors above 90% under dust deposition at a rate ranging from 0 to 10 g/m2, with particle size varying from 1 to 50 μm in diameter. The energy required for removing the dust layer from the solar was less than 10 Wh/m2 per cleaning cycle. EDS based cleaning could therefore be automated and performed as frequently as needed to maintain reflection efficiency above 90% and thus reducing water usage for cleaning mirrors in the solar field. A comparative cost analysis was performed between EDS and deluge water based cleaning that shows the EDS method is commercially viable and would meet water conservation needs.Copyright

The Role of Operations Management Across the Entrepreneurial Value Chain

This special issue contains articles that exemplify the role of operations management across the entrepreneurial value chain. This value chain encompasses all stages of the entrepreneurial phenomenon, including technology commercialization, where discovery, commitment, organization, and growth must take place. We report on a literature search that identifies research questions categorized with respect to topics crucial to operations management scholars and classify these questions under each stage of this value chain. The search guides the development of an evolutionary path for the use of resources, routines, and reputation (3Rs), often lacking in this process, and enables us to propose modeling and topical gaps in the literature. We offer a framework to set up exemplars for operational tradeoffs uniquely associated with the entrepreneurial value chain. We also articulate how five contributed articles in this issue tackle some of these tradeoffs, prior to introducing four perspective pieces. We hope this discussion motivates follow-on work and triggers a significant increase in the flow of articles that make it to both entrepreneurship and operations management top-tier academic and practitioner publications.

Eco-efficiency of Service Co-production: Connecting Eco-certifications and Resource Efficiency in U.S. Hotels

This study investigates the relationship between eco-certifications (second or third party certified with an audit requirement) and resource efficiency in the U.S. hotel industry. Hotel properties become eco-certified by voluntarily conforming to environmental practice guidelines established by a certifying body, which assesses and recognizes the properties that meet their criteria. Eco-certifications therefore are key environmental sustainability initiatives that address both the internal operations and external customers. Based on regression analysis of 2,893 U.S. hotel properties for the year 2011, this analysis shows that eco-certified hotels maintain higher operational efficiency, as well as greater customer-driven resource efficiency, in comparison with properties with lesser or no eco-certifications. These results suggest that eco-certifications influence the resource consumption behavior of both the operators and the customers, although these effects are not consistent for all properties. The improvement from the operational effect is most pronounced in lower-tier properties, while the customer efficiency effect is most noticeable in upper-tier properties.

Managing Highly Innovative Projects: The Influence of Design Characteristics on Project Valuation

The climate change debate and economic recovery strategies in various industries demand highly innovative projects featuring stretched performance goals for developing clean technology. These projects face multiple sources of uncertainty in high risk situations, and require specialized know-how and longer periods for revenue growth than their counterparts in other industries. We use data from 207 clean technology projects funded by the U.S. Advanced Research Projects Agency-Energy to conduct a comparative study of how operations design can hedge risk and enhance project valuation in technology development and deployment stages. We find that deployment feasibility is significantly and positively related to project valuation. On the other hand, stretched technical performance goals, development feasibility and market growth targets are associated with lower valuation. We also find some significant differences for these results across institution types: mature firms, start-ups, universities, and research centers. We examine the risk profile of these projects by technology and institution type, and discuss the managerial and policy implications for these findings.

Signaling eco-certification: Implications for service coproduction and resource efficiency

Purpose – The purpose of this paper is to use an eco-friendly service concept framework to demonstrate the effect of credible eco-certification signaling. Design/methodology/approach – The authors examine a cross-sectional data set consisting of 2,481 hotel sites across the US. The authors measure the performance of the operations component of eco-friendly service by operations-driven resource efficiency (ODF), and the performance of the marketing component by customer-driven resource efficiency (CDF). A series of multivariate regressions compare these two resource efficiency measures between credibly eco-certified hotel sites and others. Findings – The results indicate that credible eco-certifications achieve the signaling effect. Eco-certified hotels outperform others in both ODF and CDF measures; and eco-certified hotels still achieve higher CDF after controlling for ODF. Practical implications – The findings suggest that eco-friendly service design requires not only eco-friendly operations but also a ...